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RHL, RURALCO HOLDINGS LIMITED
nipper
post Posted: Feb 26 2019, 10:14 PM
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QUOTE
Canadian agricultural giant Nutrien has lobbed a takeover bid for smaller listed rival Ruralco, believed to be worth about $450 million.

It comes as Ruralco (RHL) remains in a trading halt today pending an announcement related to a transaction. Nutrien counts Landmark as it’s Australian subsidiary and is advised by UBS.

Ruralco is advised by Gresham and Insight Capital Advisors.

Ruralco shares have been halted at $3.06 and it is understood the offer by Nutrien is at a premium of at least 30 per cent to its share price.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
triage
post Posted: Dec 8 2007, 07:07 PM
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In reply to: King Baz on Saturday 08/12/07 02:47pm

Yes King Baz, as an off topic comment I agree with what you say about NUF - I think NUF's management selling out at this point in the cycle is probably the MIM moment of the coming soft commodities bull. The boss of NUF has stuck it out for a long time and has a lot of his own money at risk so it is his choice. But for the mum and dad investors in NUF I think it is a very poor outcome. Apparently the management of NUF get to keep their jobs and there is a suggestion that the boss bloke will be able to buy back in to the expanded company at some stage (yeah right, and the Chinese will still respect Rathbone et al in the morning too).

LMS is right about RHL in that on some days it is barely traded. I'm reading Jim Rogers' book "Investment Biker" and he tells the story of him discovering the Austrian stock market and how it had virtually stopped trading. He started buying and made 500% in three years when others caught on (this was over twenty years ago). It is a classic contrarian play to favour what everyone else has lost interest in (rather than to favour what everyone else hates). Here's hoping for us eh.

krk004 - we'll keep in touch on the 'Agricultural Companies on ASX' forum.




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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
King Baz
post Posted: Dec 8 2007, 02:47 PM
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goodwork people - nice little discussion going.

Previous Agribusiness discussions have been on sector rotation threads and the TIM/GTP threads . . . but, YES despite the significant gains to date there are still some real investment opportunities.

It doesn't take a rocket scientist to figure out the given the increase in Natural Gas (for N-fert), Phosphate and Potash prices, as well as grain to see that there are some structural changes that have led to hardocore changes to business fundamentals. Muc of the limelight has been stolen by MIS-politics, all the whilst IPL/NUF are filling the coffers.

RIC is waiting for ABB to make a bid, AAC is a 'for the boys' investment, and COZ are tooo speculative (because they have no SCA) thought they made me plenty of money!

I have very little exposure to listed Agribus purely because l am directly involved in private equity investments in a few agribusiness . . . but as a non-correlated asset class, agbiz remains as relevant as ever.

Can not believe NUF is selling-out at bottom-cycle earnings multiples - ChemChina have got themselves a bargain!

Would not at all be surprised to see TIM move into a specialty winery vineyard now that it is cashed up as once the 'glut' finishes and rationalisation takes place, some of these cute little lifestyle vineyards are going to be nice little earners.





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Regards,

KB



LIFE IS FRAGILE and as investors we have disproportionately significant moral obligations.

I encourage people to watch the DVD titled 'The Corporation' to fully understand the exploitative nature intrinsic to corporations. Then, immediately after to watch the 'Inconvenient Truth' to put it in context.
 
krk004
post Posted: Dec 8 2007, 12:56 PM
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Triage,

Pretty much have the same companies I have on my watchlist for Ag stocks (refer 'Agricultural Companies on ASX' forum here on SS).

I have a few other semi-ag stocks as well.

AAE - bio-fuels
ARJ - farmland property trust
BUG - ginger
COZ - 'carbon credit farming'
FCL - diversified holdings inc. Elders 100%
NAM - cotton
as well as the MIS operators (ie TIM, GTP, TAN, SHV, FEA, WFL, etc.)

Like you, am not well versed in 'Fundamental Analysis' or any insider knowledge, so am not sure exactly the merits of each (DYOR).

Tend to adopt a trend following process over the watchlists I create.

PrimeAg interests me, but like you, will probably wait a while and see how the market responds and go from there(?).

I also log-in occassionally to the 'Grains' foum on HC to look at yellowcake entries, can be a bit too much 'cut & paste' for my liking sometimes - prefer his(?) own views, when he gives them.

Feel free to add your thoughts from time to time on the 'Agricultural Companies on ASX' forum, I'm trying to keep it ticking along with hap-hazard posts.

All the best,

DYOR & KYOIS.



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Do Your Own Research & Know Your Own Investment Style.

"I cannot change the direction of the wind, but I can adjust my sails."
 
triage
post Posted: Dec 7 2007, 12:24 PM
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QUOTE (krk004 @ Friday 07/12/07 10:36am)

krk004

Given that I have neither expert nor insider knowledge of these stocks I intend to take a portfolio approach to investing in soft commodities ie a bit of this and a bit of that and hope the rising tide lifts all or at least most of them.

I got to say that because the "agrian socialists" still rule in the bush there is nothing like the choice in Australian soft commodities as there is in the mining and energy sectors.

Ones that I am favouring at the moment are:

AAC - owns over 1% of Australian land mass, over 500,000 head of cattle, just short of 30 cattle stations spread over the north of the country, oldest company in Australia (but does it have a lazy balance sheet??).

ABB - prefer over AWB and GNC as it has already cleaned up its consitution.

INP - Yellowcake on hc goes on and on about this one but it has risen heaps already this year.

NUF - pesticide comp but looks like it will be sold to the Chinese for not much more than current price

RHL - as LSM says, it provides services to the bush.

RWD - another one of Yellowcake's fertiliser plays and seems to have better focus that his other raw materials provider, MAK (which has no less than 6 different areas of focus!!)

TGR, CSS and AAQ - all into aquaculture but I am not convinced that Australia can maintain its competitive advantage here eg I had a look at the fish market yesterday and most of the prawns on sale were farmed and were not marked produce of Australia (presumably from SE Asia).

MSF, WBC - a couple of producers, sugar and dairy.

HXL, STI - a couple of agbiotechs, one in Melbourne and the other in Perth and Canada

One stock that I cannot work out is Ridley Corp which dominates its sector (provides stock feed) in Australia and north Amercica (I think) but its share price does not inspire. Maybe because it or its related parties are getting sued in relation to the mad cow outbreak on the US / Canadian border a while back - but don't know enough to form a view.

I don't like PrimeAg - getting lots of promotion at the moment but for me the $300m market cap is a lot of money to try out a concept. I stagged Platinum Asset Management's float because I reckon Neilson Kerr had timed his run perfectly and had done a wonderful bit of promoting. As it happens that stock price, and the business, has not done so well since. In a similar vein, I just think that Mr Corish is making the bullk of his money on the float and not what happens later. I could not be bothered going through the hassle of trying to stag this time around but I might look at PrimeAg as an investment in another six months when reality has set in.

The Commonwealth Bank produces what they call an Agribusiness Index. That index is up 52.8% over the last 12 months (ASX index is up 26.1%) and up 7.9% in the last month (ASX index is down 1.8%) but I suspect that IPL weighs heavily on how that index performs.

How did I go? Can you suggest any others that you think are worth a look.

As always, I raise these stocks merely as a point of discussion and not as a recommendation, as I know three quarts of bugger all. DYOR

regards







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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
krk004
post Posted: Dec 7 2007, 10:36 AM
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In reply to: triage on Tuesday 04/12/07 06:04pm

What’s on the list so far triage??



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Do Your Own Research & Know Your Own Investment Style.

"I cannot change the direction of the wind, but I can adjust my sails."
 


LSM
post Posted: Dec 7 2007, 09:42 AM
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In reply to: triage on Tuesday 04/12/07 05:04pm

Nice to see director buying on-market.

 
triage
post Posted: Dec 4 2007, 05:04 PM
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In reply to: LSM on Tuesday 04/12/07 01:56pm

LSM

I hope to develop a bit of a portfolio of soft commodity stocks over the next few months so we may be exchanging ideas with each from time to time.

regards



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
LSM
post Posted: Dec 4 2007, 01:56 PM
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Thanks Triage,

I am very much ‘beating my own drum’ here. Some of my resource profits have been finding their way into this little company. My interest lies in diversifying out of resources (metal) for the first time in five years. It’s been a great time but I believe some capital preservation is now required.

I like the idea that RHL is a well established business that has a strong history of profit. The business has valuable, tangible assets that if need be could be sold to relieve debt. The PE and dividends paid are very fair and provide good value…although growth has been lacking.

I believe that the last point could change for a number of reasons:
• Merger of two very similar business that will compliment each other
• Breaking of the drought and a return to normal weather conditions
• Increase in land prices in the bush
• Higher agg prices general because of China/India
• Change of management – experienced team with good contacts
• Labor tax breaks and incentives for the bush

Obviously my reasons behind this investment are to some degree thought out. It is a very nice change to invest money in a business that produces and has done so for many years. The risk here is minimal and for once I can honestly say that I can close my eyes and return in a few years without any worry about my investment…but of coarse I wouldn’t.

Thanks for getting on the thread and relieving some of my loneliness.

All the best
LSM


 
triage
post Posted: Dec 4 2007, 01:21 PM
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In reply to: LSM on Tuesday 06/11/07 12:24pm

LSM - at the moment you are fairly much on your lonesome it seems. Not even Yellowcake on hc is contributing to the discussion.

I might have a dabble at RHL but pretty much out of boredom, waiting for the market to crash so I can reload again...waiting...waiting...patience...

Its a funny thing that the word is that PrimeAg's IPO is already oversubscribed - unsourced rumour on the forums only - but some established agri stocks are being very thinly traded. It is not that they are not moving up but just that they are not attracting much attention, certainly not on hc or ss anyway.

Yellowcake keeps banging the fertiliser drum on hc but I suspect that most regulars know what he is going to say and do not bother reading his posts anymore.

Anyway here is a reference to a report that Com Bank has recently put out about agribusiness.

http://www.news.com.au/heraldsun/story/0,2...893-664,00.html



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
 


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