Rockhorse Energy has flown up the page in the last year. Legal & General has made a major holding on 26th July, a few days ago.
The 50 Day MA is 145% , 200 Day MA is 259%. Operating margin 15.9% and a whopping sales growth of 1062%.
Revenues Est for 2018 $153M , 2019 $378M , 2020 $501M.
Net profit Est for 2018 $38,9M, 2019 $ 74.0M, 2020 $123M.
I am surprised that nobody else has spotted this share before.
Stockrank 84
700 club gold member. Anniversary yesterday 1/10/2013. Recently returned from New York with a wish to see Wall Street for myself as a bit of a satisfying accomplishment. I first got interested in investments when I was a financial advisor for 14 years. I learned a lot & went to quite a few investment seminars. The one I remember particularly was with Fidelity. They visited the companies that they invested in and held them for a long duration in their portfolios. The other thing was with different currencies that they could buy a particular stock with and of course sell it if it was favourable with another currency. This was potentially more risky of course. It was not long before I realised that all the money from the insurance premiums had to be invested and who was doing it. We used to sell investment bonds where 5% was allowed to be taken tax free once a year on the anniversary of the policy which could run for 20 years.There was a choice of Managed, Property, or Equity to invest into. It was at this point of time that the Property fund went up 40% in less than a year. A simple comparison with the Managed and Equity funds showed the difference. I was soon taking a keen interest in unit trusts and shares, looking for things that were going up and the highest that they had been and bought them. I bought a software package with Up-data which enabled me to be much more efficient, putting stop losses in. Drummed into my head was cut your losses and sell when a stock breached the stop loss and let the profits run. Another stepping stone was to buy myself a Rolls Royce silver shadow that was chestnut brown in colour. The reasons were threefold. 1. That I could afford it. 2. The two managers for the insurance company that I was working for were called Douglas & Rolls. 3. I was still single. As well as doing the insurance business I joined an investment club in Basingstoke and became their chairman. We closed it this year sadly because of ill health with some of the members. Now I have a portfolio that I am able to take out (if & when I want to some cash) just like the insurance bonds but much more flexible. I enjoy the technology stocks and have taken profits several times from Arm Holdings which is the only share that I have held for many years now. Having just got this Stockopedia yesterday (first saw it at an investment seminar in London earlier this year) when I noticed Dart Group (DTG) so that is now in my portfolio too. I suppose you could say I am an analyst & a chartist. It was good to see my portfolio already has Globo, , Blinks, Clingen ,Dart, Wanddisco, opay,Easyjet ,LLoyds Arm Telicom Plus(which has doubled and a bit more but then started to drop so I have just sold almost half and re invested the proceeds into ASOS.) In conclusion I hold about 20 shares, and have just INCREASED my holdings in Globo about two weeks ago, and noticed someone has reduced their holding with Globo to 3%.I hope they are not still holding the poor pawnbroker shares (guess who) -40% in one day followed by further catastrophic drop. A good case for a stoploss . Join the 700 club and put some money to work I say. more »
The sales growth is due to the transforming Marathon acquisition; I'd say the margin is a pure estimate at the moment. The moving averages are also boosted hugely by the long suspension while the acquisition was taking place.
If you ever set foot on ADVFN or Twitter with #RRE, you will see many people who spotted this share a long time ago. Don't invest on those metrics you list above though. You should understand their business model and get a feel for why such growth happened/is expected before taking the plunge.
Personally speaking, it has been my most successful ever investment at 55% of my total portfolio pre-suspension (now almost 80%).
I agree with the views expressed by andrea and bryans. I have a small holding in £RRE that has helped the overall portfolio performance. I bought in February and wished I had bought more, but that is always the way when a share performs really well.
I would like to take credit for spotting £RRE independently, but alas rode on the coat tails of much cleverer investors.
It's not a sector I personally toy with at all - but were RockRose Energy (LON:RRE) presenting at the UK investors show (the Nigel Way one) earlier in the year? If so, I recall thinkng that if I were interested in this sector they could have been worth looking at. That said the other presenters in the slot I am thinking of also made apparently good cases and I have no idea how they have done.
I have to say though that I was a little taken aback by the quote
Personally speaking, it has been my most successful ever investment at 55% of my total portfolio pre-suspensionFortune favours the brave and all that, but weren't you just a little bit nervous to have 55% of your portfolio suspended? I'm pretty sure I would have been - although it does prevent overtrading!
I wasn't nervous during the suspension, as it was clear that a positive outcome was due. Even as I had built into the position from £4.50ish, the "paper profit" had always given me a little comfort, even on the way up to 55%.
I am a little nervous now though, but consider the net cash position of about £17 (and rising) as like a natural "backstop". I did slice 10% off the top, earlier this week. The price rise since, means I am almost back to square one! This is a very unusual investment for me (Only my 3rd ever resource stock), and I have never gone over 25% of my total portfolio previously. It will also likely be the last time, as I am fully aware I got very very lucky.
FWIW
If interested in this sector then Jadestone Energy Inc (LON:JSE) is worth a look. They have a similar business model but operate in Australia / Asia.
Phil
Hold both
Hi Phil, agree completely about JSE. They’re one of my other two resource investments (previously held SQZ) . It’s only about 5% of my PF so far, but more likely to build than not. Will wait for the next set of results for confirmation of production and cash build before I top up any further. Any top up will likely correspond with a larger reduction in my RRE holding though, as I want to slowly reduce my oil exposure.
Hi Edward, I have had a look at Jadestone Energy and a few red lights put me off.
1. Bankruptcy risk.
2. Momentum Trap.
3. Quality , again in red, of just 2.
Having said that, the trend is still positive.
I wish you well with them.
Sorry I forgot to put the graph in which is now accessible to see. Also with a big drop in the market today Rockrose Energy is one of a few shares that is positive.
Hi lightningtiger, you again need to look beyond the stats on stockopedia. They are entirely backward looking, and don’t tell you what cash JSE are currently generating via production. They have a very low cost model of producing c13k BOEPD and should be flowing off plenty of FCF.
