Rural Equities Limited (REL)

**1leon** · 03-03-2013, 09:24 PM

It seems to me that what they have done again is enhanced the majority position of the Cushing interests. The more shares they succeed in cancelling the higher the proportion Cushings own. I expect we are really funding their ultimate takeover. As I recall they have previously made an offer well under nta and suspect that will be the minority shareholders ultimate fate.

**percy** · 03-03-2013, 09:51 PM

Originally Posted by 1leon

It seems to me that what they have done again is enhanced the majority position of the Cushing interests. The more shares they succeed in cancelling the higher the proportion Cushings own. I expect we are really funding their ultimate takeover. As I recall they have previously made an offer well under nta and suspect that will be the minority shareholders ultimate fate.

It is possible,then again we are all getting a bigger slice of the cake.

**1leon** · 05-03-2013, 09:35 PM

[QUOTE=percy;395837] ...we are all getting a bigger slice of the cake.
But will it be fair and when will we get it. I have owned my shares way back through NZ Rural Property Trust. I doubt anyone has been able to realise their true value and certainly the company shows it has no interest in seeing that. If you look at the history of REL since it merged with NZProperty Trust in Dec 2009 it has successively bought back/cancelled in excess of 2,000,000 each year. Cushing company H&G has advanced from 50.01% to 54.92% and if shareholders succumb to the latest offer it will advance to 58.25% It could easily attain two thirds within 3 years obtaining shares in this way at a 20% plus discount instead of paying a premium for increaed control. Frankly I think the larger slice you relish is going to cost you your voting power.
Incidentally Skyline which I also hold with only slightly less shares on issue manages to trade at a premium to asset backing but then it also pays a dividend, doesn't cancel shares and does not suffer the major shareholder stranglehold to the same extent. Liquidity, share trades, seem on par with REL. Skyline has major landholdings in Queenstown as well as property elsewhere.
Shareholder numbers of REL have moved down from 1550 to 1474 over the last 3 years- I note there are no sellers and hope modest trading reflects a preparedness to hold.

**percy** · 06-03-2013, 11:47 AM

[QUOTE=1leon;396255]

Originally Posted by percy

...we are all getting a bigger slice of the cake.
But will it be fair and when will we get it. I have owned my shares way back through NZ Rural Property Trust. I doubt anyone has been able to realise their true value and certainly the company shows it has no interest in seeing that. If you look at the history of REL since it merged with NZProperty Trust in Dec 2009 it has successively bought back/cancelled in excess of 2,000,000 each year. Cushing company H&G has advanced from 50.01% to 54.92% and if shareholders succumb to the latest offer it will advance to 58.25% It could easily attain two thirds within 3 years obtaining shares in this way at a 20% plus discount instead of paying a premium for increaed control. Frankly I think the larger slice you relish is going to cost you your voting power.
Incidentally Skyline which I also hold with only slightly less shares on issue manages to trade at a premium to asset backing but then it also pays a dividend, doesn't cancel shares and does not suffer the major shareholder stranglehold to the same extent. Liquidity, share trades, seem on par with REL. Skyline has major landholdings in Queenstown as well as property elsewhere.
Shareholder numbers of REL have moved down from 1550 to 1474 over the last 3 years- I note there are no sellers and hope modest trading reflects a preparedness to hold.

I think you will find/are finding David Cushing and the other fella are moving the company along very well.I think what they are doing is adding wealth for all shareholders. Any one owning 30% of a company really has control,so voting power well gone.
I do not hold [unfortunately] Skyline shares.

**percy** · 07-03-2013, 02:58 PM

5cents dividend paid on Wednesday 28th November 2012.
David Cushing as I pointed out is taking a much more proactive roll.
I also think he will give the company a much higher profile,which should lead to a higher share price.
Should he move the listing to the main board,the fun will start.
I believe he is putting the company before his own interests.

**1leon** · 07-03-2013, 05:44 PM

Sorry temporary (I hope) amnesia on that dividend.Perhaps Cushings needed the odd $m cash to see them through Xmas.
If the buy backs are at a less agressive discount I might even catch a scintilla of your enthusiasm. We might have to agree to differ on the fairness of that so I'll leave the forum to you.

**percy** · 07-03-2013, 06:51 PM

Originally Posted by 1leon

Sorry temporary (I hope) amnesia on that dividend.Perhaps Cushings needed the odd $m cash to see them through Xmas.
If the buy backs are at a less agressive discount I might even catch a scintilla of your enthusiasm. We might have to agree to differ on the fairness of that so I'll leave the forum to you.

Please don't do that.
You must realise I have only recently brought my shares,after humming and harring over them for last 18months to two years.I found it a lot different a company from the likes of Ebos,skellerup etc I am more used to.Statement of cash flow and balance sheet I struggled with.A friend advised me to look at them,as he was impressed with David Cushing ,whom he had met.David lives in ChCh, having married Cookie Time's owner Michael Mayell's sister.Rodger Finlay [also an ex investment banker] also impressed him.My friend told me they were getting rid of some poor farms and increasing investment in good farms.He said they owned the best farms in NZ.
Last year my core stocks RYM,EBO,POT went ,up 60%. I took a little off the top and brought a few REL so I would have a wider spread of shares.
I can see where you are coming from,and I think we will be able to judge direction of the company more correctly over the next year or two.