middler2
19 Feb 2016
Re: Obscure RNS Have just spoken with Kevin Milne - the new deputy chairman of six months standing. He seems very open and honest and agreed the RNS was a tad confusing. He did go through it with me and it now makes a lot more sense. The reason for all the complex special purpose vehicles is to do with the complexity of Mozambique law. It would have taken quite a bit of time, effort and money to change the structure of the holding or operating company. He suggested I think about Montara as an investing or umbrella company with 13 different concessions. Three different investors have sought an approximately 15% share in three of these concessions, for which they have paid roughly $1 million each. In return, they get roughly 15% of the profit and are paid a 5% coupon, so the investor is being rewarded in two ways, but the company have raised sufficient capital to expand the operation significantly at relatively low cost and with no dilution to shareholders. He also suggested part of his role is to improve the frequency and clarity of information for their investors!The rest of this is personal comment and NOT what he said. I believe the investments tend to put a value of around $20 million on just three of Montana's concessions and show this company is seriously undervalued - probably because the market does not yet understand Obtala. However, I think the new blood at Obtala will seek to do this and we should see a serious re-rating soon.
middler2
17 Feb 2016
Obscure RNS I am sure the market does not really understand this RNS and has reacted accordingly, but my take is this:Obtala seem to have obtained three indefinite loans paying interest of between 12.5% and 17.5% of 5% return - say 0.75% on average. In addition the investors will receive the economic interests in (presumably the profit from) between 3000 and 6250 hectares of forestry and own between 12.5% and 17.5% of their dedicated company (SPV). In return there is some immediate investment and marketing channels, allowing more rapid growth and I presume the BOD judge that the remaining 258,250 hectares and the 82.5% to 87.5% of the SPV's will be worth more than what we had before the deal.Having said that, another way of looking at things is that they have given away around 4.7% of the forestry business for $3 million, making the total worth say $63 million, rather than the £100 million it was last valued at. Still WAY UP on the current market cap of just £16 million. Surely a screaming buy.
Basse the man
08 Jan 2016
Q1 will be mission critical Topped up a few weeks back at a tad below 5.5, and fully expect to double my money within the next three months. Imo significantly undervalued at present and relating due, likely driven by timber progress / news. Plan to keep my main holding at least for the medium term, as suspect multibagging. Good luck all, let's enjoy the rid
Meeko
04 Dec 2015
Another 50k Seems good value at this price so just topped up another 50k. Company operating across a number of verticals, and making progress with quality standards. Market seems to have over-reacted after statement from Mozambican govt's decision to suspend the authorisation of any new request for logging areas under the regime of 'simple licences' for the next two years. This suspension does not affect OBT as all of the timber rights are held under the "forestry concession contract", so surely it's a good thing as it reduces new competition. GLA DYOR
Ripley94
03 Dec 2015
TW tip Hasn't moved it.
3Dimensional
02 Dec 2015
RNS Timber Update the recent news bodes very well for Obtala.Onwards and upwards.....3D
3Dimensional
02 Dec 2015
Re: SP bombing! Anybody know why the sp is bombing? ---------- ---------- ---------- ------Yes, an article was put out saying that timber could not be exported from the Country and that licences would no longer be given. So the bucket shops tried to take advantage of the news.Fortunately, we have a very well run company and they have in the last 30 mins issued an RNS to say neither of these problems affect Obtala's timber operations or licences.3 Cheers for Obtala
Weildy
02 Dec 2015
SP bombing! Anybody know why the sp is bombing?
3Dimensional
07 Nov 2015
Re: Great news again - perhaps perhaps the withdrawal from the cannery will actually save us costs in the long run, after all it was a JV anyway. Dried fruits are all the rage at the moment as they preserve all the vitamins, whereas canned fruits are laden with sugars and preservatives and acids, not to mention the aluminium that the acids leach from the tins.I'm not a nutritionist but I'm sure the management know what they are doing and after the last two RNS's it cements my feelings, so for now in them I trust.Cant wait for the forestry spin out and price of the new free shares. Would also be nice to see our products on the Airbus 380 rolled outbefore I fly off at chrimbo, but maybe asking too much with that request 3D
middler2
06 Nov 2015
Re: Great news again - perhaps Not sure I can agree 3D. I have not read all the way though yet, but giving up the cannery? Why not 'sell' the cannery. What has happened to the integration. We did have growing, preserving and selling. Now the middle bit has gone! I suspect you are right about the forestry though - should show a tidy profit when that goes through. I am still posting a buy, as I think this will come good, but I would like to have seen more on the figures at this stage.
3Dimensional
06 Nov 2015
Great news again lets see how much longer the Market can hold this lil beauty back, fantastic RNS today and I cant wait for the free shares to be issued in the forestry division, I have been told combined entity will result in an SP not far from 20pGood luck 3D
middler2
15 Oct 2015
Sparkling Latest RNS should put some sparkle back into this. Both forestry and agriculture sides should benefit!
The buzz
30 Sep 2015
Re: Surprised I cannot say that I have studied the half yearly report in detail, but I must admit some concern that there is a llarge trading loss that is being hidden by revaluation of land assets (catching a large tax bill). Whilst this valuation might be genuine, to my mind it creates a risk as the true value of these assets will only be known if they are actually put up for sale. Agreed OBT is still building up their business, but I would like to see some more solid trading profits.The B
HPC Follower
29 Sep 2015
Re: Surprised Now, on the back of essentially a "good news" RNS, the OBT SP drops 11%... with Paragon (PRG) also dropping badly on lack of news.Guess we will have to wait for a few more quarters growth in OBT revenue and profits before any new "buyers" at higher share prices are attracted.Someone needs to raise interest rates to promote the movement of bond money to equities; the downwards spiral of losses at present leads to negligible company investment, and increasing share prices are needed so there is profit to re-invest, etc. in a spiral which will be much more beneficial all round.
Weildy
11 Sep 2015
Surprised Up 14% in one day and nobody has commented. I am optimistic that something positive is afoot (at last). Other than the rise in share price I have nothing to back up my optimism.
