Rubicon

[Joshuatree]

Ok read it and it was pretty good read, lotta trees ;like that:) NZ Govt a customer coming too by the looks.

In terms of the unit sales performance for the 12 months to 31 March 2018, ArborGen sold 347 million seedlings globally, which was down slightly on the 351 million reported in the prior year, as the impact of the hurricane season took its toll on the growth we had otherwise planned to see in the US market. 270 million seedlings were sold in the US (236 million of which were loblolly pine), inclusive of more than 73 million in MCP and varietals, 19 million in Australasia, and 58 million in Brazil (50 million of which were eucalyptus). Most notably here, is that ArborGen’s advanced genetics sales in the US, as a percentage of its total loblolly pine sales, increased from 25% to 31%, with MCP sales up 22% on the prior year. This in turn saw the US loblolly pine ASP (average sale price) lift 7% year-on-year. Globally, loblolly and radiata advanced-genetics pine sales as a percentage of ArborGen’s total unit sales increased from 29% to 34%.

[Well Endowed]

https://www.nzx.com/announcements/320694

Kasnet gone, co-chairmen Knott and Tandon appointed.

[biker]

https://www.nzx.com/announcements/320694

Kasnet gone, co-chairmen Knott and Tandon appointed.

The new director appointed - Ozey Horton- sound like just the man for the job as RBC moves toward realising its true value.

[sb9]

https://www.nzx.com/announcements/320694

Kasnet gone, co-chairmen Knott and Tandon appointed.

Well, both of them being the largest shareholders, hopefully can help the company realise its true potential. Let's wait and see...

[percy]

The new director appointed - Ozey Horton- sound like just the man for the job as RBC moves toward realising its true value.

Yes an excellent appointment.

[whatsup]

Another brick in the wall !

[iceman]

This is good news. Steven Knaset has finished his job selling Tenon, restructuring RBC and buying all of ArborGen. Well done and the right time to move on as the future requires totally different skill set.
Knott and Tandon own nearly half of RBC so are natural Chairmen for the co that should have shareholders interests at heart.
The new appointment Ozey is oozing the right experience for RBC

Positive announcement in my view

[biker]

The ducks continue to be lined up. Nice.
summa cum laude - "with highest honor". In North America, this honor is typically awarded to graduates in the top 1–5% of their class.

18/7/2018, 9:05 am GENERAL
18 July 2018 – Rubicon announced today that Mr Thomas Avery has been appointed to the Board as an Independent Director.

Tom has nearly 40 years of investment banking and venture capital experience. He has served on numerous private company boards throughout his career, advising companies on the successful financing, planning and execution of growth strategies. As an investment banker, Tom worked primarily with middle market growth companies in executing mergers and acquisitions, initial public offerings, and private placements of equity and debt. He served as a Managing Director at Raymond James & Associates from 2000-2014, which involved the management of the technology investment banking group and the financial sponsors’ efforts. Prior to that, Tom’s career saw him act as the head of the investment banking group at Interstate/Johnson-Lane, be a general partner at Summit Partners and at Noro-Moseley Partners, and work as a Senior Vice President at The Robinson-Humphrey Company. He currently has directorships at Cicero Inc., CRA International Inc, and KIPP Metro Atlanta.

Tom has a Bachelor of Science degree in Industrial Management, summa sum laude, from the Georgia Institute of Technology, and a Master’s in Business Administration from the Harvard Business School.

Rubicon’s Co-Chairmen, David Knott and Ranjan Tandon, welcomed Tom to the Board, saying “Tom’s extensive business experience with all aspects of the execution of growth strategies, particularly financing, will be put to good use as we increase the intensity of our focus on the continued commercialisation of ArborGen’s businesses in the United States, Brazil and Australasia. He will make a strong contribution towards Rubicon meeting and advancing its key milestones, and we are extremely pleased to have him with us as we move forward.”

Ends

[whatsup]

The ducks continue to be lined up. Nice.

18/7/2018, 9:05 am GENERAL
18 July 2018 – Rubicon announced today that Mr Thomas Avery has been appointed to the Board as an Independent Director.

Tom has nearly 40 years of investment banking and venture capital experience. He has served on numerous private company boards throughout his career, advising companies on the successful financing, planning and execution of growth strategies. As an investment banker, Tom worked primarily with middle market growth companies in executing mergers and acquisitions, initial public offerings, and private placements of equity and debt. He served as a Managing Director at Raymond James & Associates from 2000-2014, which involved the management of the technology investment banking group and the financial sponsors’ efforts. Prior to that, Tom’s career saw him act as the head of the investment banking group at Interstate/Johnson-Lane, be a general partner at Summit Partners and at Noro-Moseley Partners, and work as a Senior Vice President at The Robinson-Humphrey Company. He currently has directorships at Cicero Inc., CRA International Inc, and KIPP Metro Atlanta.

Tom has a Bachelor of Science degree in Industrial Management, summa sum laude, from the Georgia Institute of Technology, and a Master’s in Business Administration from the Harvard Business School.

Rubicon’s Co-Chairmen, David Knott and Ranjan Tandon, welcomed Tom to the Board, saying “Tom’s extensive business experience with all aspects of the execution of growth strategies, particularly financing, will be put to good use as we increase the intensity of our focus on the continued commercialisation of ArborGen’s businesses in the United States, Brazil and Australasia. He will make a strong contribution towards Rubicon meeting and advancing its key milestones, and we are extremely pleased to have him with us as we move forward.”

Ends

Another block in the wall today, Im picking that a rerating will be applied shortly with these company building anns, could be the winning share of 2019 !

[sb9]

Another block in the wall today, Im picking that a rerating will be applied shortly with these company building anns, could be the winning share of 2019 !

Couldn't agree more...slowly realising its potential. Price getting close to NTA of 40c is the first target.

[Hectorplains]

Another block in the wall today, Im picking that a rerating will be applied shortly with these company building anns, could be the winning share of 2019 !


Just Hugh to go then...

[winner69]

Another block in the wall today, Im picking that a rerating will be applied shortly with these company building anns, could be the winning share of 2019 !

No no ...it will be the winning share of 2018

[ari]

Couldn't agree more...slowly realising its potential. Price getting close to NTA of 40c is the first target.

If I were to sell @40c, profit would be $900...not my best investment over 14 years for $100k....just bought too early......

[sb9]

If I were to sell @40c, profit would be $900...not my best investment over 14 years for $100k....just bought too early......

Ouch, that sounds paltry return for such a big investment. Well, at least its moving in right direction.

[Balance]

If I were to sell @40c, profit would be $900...not my best investment over 14 years for $100k....just bought too early......

Will not sell until at least $1.

RBC is that kind of a stock.

[ari]

Will not sell until at least $1.

RBC is that kind of a stock.

I'm with you Balance. One of the earlier values was around $1.30>$1.40.....still dreamin....

[percy]

I'm with you Balance. One of the earlier values was around $1.30>$1.40.....still dreamin....

It is not dreaming.
It is sound visualisation.!.

[Brain]

Mr market clearly does not share all the above enthusiasm.

[biker]

Mr market clearly does not share all the above enthusiasm.

Not yet ....

[Brain]

Will be good when it does. I topped up this morning. I was the sole buyer for 20,000 shares.
A very quiet day.

[sb9]

Big crossing this arvo...getting close to 30c mark slowly.



1
2
12:37:28 pm
29
5,000,000
$1,450,000
Off market

[Balance]

Big crossing this arvo...getting close to 30c mark slowly.



1
2
12:37:28 pm
29
5,000,000
$1,450,000
Off market



A positive indicator indeed!

Means someone sees great value at 29c after doing research.

Probably bought off another who bought at 19c - so two happy parties!

[sb9]

Big crossing this arvo...getting close to 30c mark slowly.



1
2
12:37:28 pm
29
5,000,000
$1,450,000
Off market




https://www.nzx.com/announcements/321166

The above notice from Perry Corp. relates to the off market transaction from Friday.

[whatsup]

Knocking on heaven's door !

[Well Endowed]

small turnover chipping away at things, 30c hit. could well see some consolidation/profit taking around these levels given the ~50% rise this year

[winner69]

RBC still worth a punt -- ie trade the hype and sentiment


I doubt it will ever be worth a buck or more based on financial performance ... needs to make a decent real prpfit before that ...you never know that after 20 years of endeavour they just might


But as long as they keep the story going and there are believers the share price should keep going up ...and maybe there is even a 'greater fool' out there who will buy the whole company for an outrageous price

[minimoke]

RBC still worth a punt -- ie trade the hype and sentiment


I doubt it will ever be worth a buck or more based on financial performance ... needs to make a decent real prpfit before that ...you never know that after 20 years of endeavour they just might


But as long as they keep the story going and there are believers the share price should keep going up ...and maybe there is even a 'greater fool' out there who will buy the whole company for an outrageous priceWood used to be our past, it will soon be our future.

One of the biggest issues facing our planet is plastic. We have no choice but to find biodegradable alternatives and fast growing soft wood can help with that.

If we are going to save the polar bears we need carbon soaks - and what better way than planting new trees that simply love a feast of CO2.

And given opposition to coal is so de rigueur we need to find alternatives to steel - nothing like a plank of wood for that.

$0.30 is going to look like a steal in a couple of years.

[Biscuit]

Wood used to be our past, it will soon be our future.

One of the biggest issues facing our planet is plastic. We have no choice but to find biodegradable alternatives and fast growing soft wood can help with that.

If we are going to save the polar bears we need carbon soaks - and what better way than planting new trees that simply love a feast of CO2.

And given opposition to coal is so de rigueur we need to find alternatives to steel - nothing like a plank of wood for that.

$0.30 is going to look like a steal in a couple of years.

A forest is only a carbon sink as long as you don't chop it down. You want to do something for the planet, invest in "lab-grown" meat - that is the future alternative to our current economic dependence on animal production.

[minimoke]

A forest is only a carbon sink as long as you don't chop it down. You want to do something for the planet, invest in "lab-grown" meat - that is the future alternative to our current economic dependence on animal production.
Cutting the trees down and replanting with Arborogen sources trees is a valid stratgy for soaking up carbon: http://www.climatecentral.org/news/young-forests-store-enormous-amounts-carbon-20348

[Biscuit]

Cutting the trees down and replanting with Arborogen sources trees is a valid stratgy for soaking up carbon: http://www.climatecentral.org/news/young-forests-store-enormous-amounts-carbon-20348

That might be true if you cut down the forest and converted it into non-biodegradable plastic and then regrew it with Arborgen's trees. However, if you turn the trees into anythin biodegradable (timber, biodegradable plastic etc etc) then ofcourse all the carbon is returned to the atmosphere over whatever time it takes the product to degrade (decades to hundreds of years for some timber, a few months for some biodegradable plastics).

[Balance]

That might be true if you cut down the forest and converted it into non-biodegradable plastic and then regrew it with Arborgen's trees. However, if you turn the trees into anythin biodegradable (timber, biodegradable plastic etc etc) then ofcourse all the carbon is returned to the atmosphere over whatever time it takes the product to degrade (decades to hundreds of years for some timber, a few months for some biodegradable plastics).

Incidence of carbon-credit and carbon-debit falls on different parties.

Those growing trees obtain plenty of credits - I have confirmed this with one of the biggest forestry companies in NZ. Their comment to me is that NZ investors and businesses are not suited to long term horizon business like forestry.

So sadly, from when NZ companies owned most of the forests in NZ (NZ Forests Products, Fletcher Forests, Carter Holt Evergreen Forests etc etc etc), NZ now owns bugger all!

[minimoke]

So many grumpy people around. Now they are eroding my RBC holding. Down 3.5c on no news.

[mshierlaw]

So many grumpy people around. Now they are eroding my RBC holding. Down 3.5c on no news.

Fall was predicted by divergance on MACD some time ago. Look on the bright side, could be some good buying coming up next week.

[ratkin]

Fall was predicted by divergance on MACD some time ago. Look on the bright side, could be some good buying coming up next week.

You cannot use witchcraft on a stock this iliquid

[Snow Leopard]

You cannot use witchcraft on a stock this iliquid

You can but....


Fall was predicted by divergance on MACD some time ago....

....as is usual, none of the witch doctors mentioned it at the time.


But TAiH (Technical Analysis in Hindsight) is infallible. :p

[Balance]

Fall was predicted by divergance on MACD some time ago. Look on the bright side, could be some good buying coming up next week.

Breathtaking accuracy indeed!

Same charts and MACD also predicted Apple becoming the first trillion dollar value stock a few years ago?

[minimoke]

New Chairman announced

David Knott Jnr

BA University of North Carolina at Chapel Hill
David is the Co-Chief Executive Officer, Co-Chief Investment Manager and Co-Managing Partner of Knott Partners who, with associated entities, is Rubicon’s largest shareholder. He has served as Co-Chief Investment Manager of Knott Partners since March 2017. David is on the Advisory Board of The HiGro Group, LLC.

[percy]

I like it.
A lot of skin in the game focusses your attention.

[minimoke]

I'm not sure this is good news. "14 August 2018 – Rubicon announced today that Luke Moriarty, the Company’s CEO (and oneof its Directors), and Company Secretary/CFO Mark Taylor, have given notice of their intentionto finish their roles with the Company". Unless it is a cleaning of the decks and getting ready to sell Arborogen.

[percy]

Certainly signals the controlling directors want change.
We live in interesting times.?

[Xerof]

I'm not sure this is good news. "14 August 2018 – Rubicon announced today that Luke Moriarty, the Company’s CEO (and oneof its Directors), and Company Secretary/CFO Mark Taylor, have given notice of their intentionto finish their roles with the Company". Unless it is a cleaning of the decks and getting ready to sell Arborogen.

Rationalisation of the number of staff required, in anticipation of an amalgamation I hope, to rid us completely of the duplication we currently have. I see it as an extreme positive, CEO and CFO will see (or have been shown) that their work over the past year or so is now done and dusted, so time to move on

There is one other Director who needs to step down, and he knows who he is

[Balance]

I'm not sure this is good news. "14 August 2018 – Rubicon announced today that Luke Moriarty, the Company’s CEO (and oneof its Directors), and Company Secretary/CFO Mark Taylor, have given notice of their intentionto finish their roles with the Company". Unless it is a cleaning of the decks and getting ready to sell Arborogen.

NBR & Tim Hunter will be breaking out the champagne and rejoicing for two anyway.

Luke has had a great life courtesy of Fletcher, Tenon & Rubicon.

[Well Endowed]

I see it as very positive too. Trim back the layers of management/cost.

[Invest in good stories]

Good news this - as Xerof says 'only one Director to go now" and a lot of the negative historic NZ sentiment to Rubicon will disappear. Hopefully the market will move past only seeing old ex Fletchers personalities with all the baggage/mistrust that brings, and begin to look at the Arborgen strategy/position and see the potential here. A long overdue uplift in value won't be far around the corner - the fundamentals scream out for it.

[biker]

Much as I’d like to be, I’m not yet convinced this is a good announcement.
It will depends on who and what follows.
Hopefully this is part of the process of realising value and Rubicon becoming ArborGen.
I just hope the current CEO and CFO of ArborGen (in the US) have small shareholder’s interests in mind.
Luke Moriarty has persevered with RBC over many years.
The Tenon wind up was as good as could be expected,capital raising has been managed with as little dilution as possible over the years and ArborGen was purchased at a very good price.
Moriarty and Taylor have considerable skin in the game. I hope that doesn’t change.
I would like to think this is the start of a paradigm shift for RBC and that Moriarty and Co are finally playing the lucrative (for shareholders and hence themselves), end game.

[iceman]

I see it as very positive too. Trim back the layers of management/cost.

Agree this is positive and a clear indication that they want things to start happening with respect to realising the full value of Arborgen. Interesting times.. Probably one of the most undervalued shares on the NZX and the lowering NZD is a bonus.

[minimoke]

Moriarty and Taylor have considerable skin in the game. I hope that doesn’t change.
.So maybe we can expect a discounted sell off - like PPH.

[ari]

Much as I’d like to be, I’m not yet convinced this is a good announcement.
It will depends on who and what follows.
Hopefully this is part of the process of realising value and Rubicon becoming ArborGen.
I just hope the current CEO and CFO of ArborGen (in the US) have small shareholder’s interests in mind.
Luke Moriarty has persevered with RBC over many years.
The Tenon wind up was as good as could be expected,capital raising has been managed with as little dilution as possible over the years and ArborGen was purchased at a very good price.
Moriarty and Taylor have considerable skin in the game. I hope that doesn’t change.
I would like to think this is the start of a paradigm shift for RBC and that Moriarty and Co are finally playing the lucrative (for shareholders and hence themselves), end game.

I've read all the comments but I can't get the words 'ulterior motive' out of my head!

[biker]

So maybe we can expect a discounted sell off - like PPH.

I very much doubt that. Moriarty and Taylor more than anyone, know the real value of RBC and I have no doubt it is substantially more than 28-30c a share.

All IMHO

[Well Endowed]

Moriarty Superannuation Fund 2.71m shares
Moriarty Family Trust 0.79m shares
Taylor Superannuation Fund 1.09m shares


might be a small selldown/buying opportunity. However given the offmarket sale that went through a week or two back for 1.5m around 30c, I don't these would take too long to be soaked up.

[biker]

I've read all the comments but I can't get the words 'ulterior motive' out of my head!

I feel the same ari and in this case the ulterior motive could be very positive.
They have obviously reached some agreement or arrangement and must under disclosure rules announce it but the rationale behind it will come later.
They are ‘finishing their roles’.
The anouncement is so brief it speaks volumes.

14 August 2018 – Rubicon announced today that Luke Moriarty, the Company’s CEO (and one of its Directors), and Company Secretary/CFO Mark Taylor, have given notice of their intention to finish their roles with the Company and will leave later this fiscal year. More information will be provided at a later date.

[mikeybycrikey]

The anouncement is so brief it speaks volumes.

I feel like the announcement could've been a little longer just to remove any speculation about what's really going on. It's not like they have to pay by the word or anything.

I'm guessing it's a good thing but more certainly wouldn't have gone amiss.

[Balance]

Moriarty Superannuation Fund 2.71m shares
Moriarty Family Trust 0.79m shares
Taylor Superannuation Fund 1.09m shares


might be a small selldown/buying opportunity. However given the offmarket sale that went through a week or two back for 1.5m around 30c, I don't these would take too long to be soaked up.

Actually, was 5m shares at 30c?

[Well Endowed]

Actually, was 5m shares at 30c?


It was, - apologies should've had a '$' on that. yeah it was 5m shares, total value $1.5m, definitely shows the demand there. Would think any selling by former directors should manage to find a home

[Balance]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12108995

Gaynor's perspective on Moriarty leaving.

"Rubicon shareholders have suffered huge losses while directors received total fees of $4.3m and Moriarty received $7.2m in salaries, bonuses and retention payments".

Been a nice bonanza for Luke for sure!

[iceman]

Thanks for the link Balance. A good article by Gaynor. Agree with him on RBC needing a bit of a clean out at Board level as we head towards a much brighter future.

[Xerof]

There's a nice phrase which sums things up nicely for recent long-serving Rubicon directors and management - lifestyle company. One more director to go, held in by historic connection, which now has no relevance at all to the Company's current situation.

And Gaynor has said nothing more than the sentiment that has been expressed here about the past performance. Pity he's opening old wounds for long suffering shareholders. Seems his dwelling on the past has prompted a bit of selling today, perhaps from that quarter.

I'm looking forward, have been accumulating since initially entering in the 19/23 area, and see a bright outcome for my investment

[ari]

Really just a re hash of a previous Gaynor article...I get the distinct impression that he is not in favor of RBC....he may well be right! https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10794164

[winner69]

Wonder who you guys will ‘blame’ when Arborgen fails to live up to its lofty expectations.

[Well Endowed]

There's a nice phrase which sums things up nicely for recent long-serving Rubicon directors and management - lifestyle company. One more director to go, held in by historic connection, which now has no relevance at all to the Company's current situation.

And Gaynor has said nothing more than the sentiment that has been expressed here about the past performance. Pity he's opening old wounds for long suffering shareholders. Seems his dwelling on the past has prompted a bit of selling today, perhaps from that quarter.

I'm looking forward, have been accumulating since initially entering in the 19/23 area, and see a bright outcome for my investment


agreed, very happy with my entry point and feel RBC is a pretty decent long term hold.

[minimoke]

Wonder who you guys will ‘blame’ when Arborgen fails to live up to its lofty expectations.
Dont you mean "if" rather than "when"?

[ari]

agreed, very happy with my entry point and feel RBC is a pretty decent long term hold.

I remember saying that in '87...just put them in the bottom drawer....the companies faded into oblivion. I've been holding RBC 14+ years!

[blackcap]

Dont you mean "if" rather than "when"?

I'm still slightly concerned with Moriaty's comment to me at the AGM when I mentioned David Darling, that he said that DD was a former student of his...

But still holding my investment in the "new RBC" at 23.

[Balance]

I remember saying that in '87...just put them in the bottom drawer....the companies faded into oblivion. I've been holding RBC 14+ years!

Gee - I am not sure whether one should laugh or cry!

I lost big on Fletcher Forest but more than made up with Fletcher Paper and Fletcher Energy. Only got into RBC after Making good money out of Tenon.

[percy]

It's different this time...!!!.....lol.


Well the quickest way to administration is carrying large debt and no cash flow.
RBC have no debt, and increasing cashflow,and now a proven business model.
More like 1991 than 1987.

[ratkin]

Gee - I am not sure whether one should laugh or cry!

I lost big on Fletcher Forest but more than made up with Fletcher Paper and Fletcher Energy. Only got into RBC after Making good money out of Tenon.

Yeah it all about timing. Did great out of Tenon a few years back, no reason why can’t do well from Rubicon too. In at 19cents so do not share Gaynors pessimism

[ari]

Forgot about Fletcher Energy....$90k windfall for me and I really thought Capstone Energy was the next best thing......

[Balance]

Forgot about Fletcher Energy....$90k windfall for me and I really thought Capstone Energy was the next best thing......

Nice!

Capstone was why GPG went for RBC as well from memory?

[biker]

Nice!

Capstone was why GPG went for RBC as well from memory?

Also from memory, but I recall Moriarty sold RBC out of Capstone quite early on for a good price, and the Capstone price collapsed not long after.

[minimoke]

Ongoing clearing of the decks continues

21 August 2018 – Rubicon’s Chairman, Dave Knott, announced the appointment of Paul Smart to the Rubicon Board as an Independent Director under the NZX Listing Rules.

Mr Knott said “Paul is New Zealand based, with a broad background in growth companies in both the public and private markets, and extensive experience in all aspects of finance across a wide range of industries. He has operated at both senior management and non-executive board levels throughout his career, with a focus on growing successful companies in the broad technology and energy fields.

His prior management positions have included CFO of Meridian Energy and CFO of Sky Television. He has previously held non-executive Director and/or Chairman roles in Arc Innovations, NZPM Group, and Southern Hydro (Melbourne) amongst others, and he is currently a non-executive Director of Solarcity, InterCity Holdings, Mercer Group, Argus Group and Geo40. He is a chartered accountant by background, and a member of the NZ Institute of Directors. We are pleased to have Paul join the Board at this exciting time of the Company’s life, and we believe he will add considerable value to our decision-making as we move forward.”

Separately, Mr Knott said that Rubicon had recently undertaken a competitive tender process in connection with the supply of audit services to the company, and that as a result of the assessment of proposals, the Board has selected Deloitte to provide audit services to the company in the future. KPMG has resigned as the company’s auditor with effect from today, and the Board has formally appointed Deloitte as the Company’s new auditor. Deloitte will perform the audit of the FY’19 Rubicon financial statements. “The Board would like to thank KPMG for their commitment and service, which has been provided to the Company since Rubicon’s inception” he said.

[percy]

I guess he has the smarts,although being a director of Mercer Group was not a smart decision.

[minimoke]

I guess he has the smarts,although being a director of Mercer Group was not a smart decision.Accepting the Director opportunity perhasp not smart. Remainging A Director shameful given Mercers share price was $3.70 5 years ago and is now $0.16

[winner69]

Accepting the Director opportunity perhasp not smart. Remainging A Director shameful given Mercers share price was $3.70 5 years ago and is now $0.16

Might be an omen there?

Good to see a bean counter background on the Board

[percy]

Accepting the Director opportunity perhasp not smart. Remainging A Director shameful given Mercers share price was $3.70 5 years ago and is now $0.16

Hard on his pocket holding 5,150,000 shares.?

[biker]

Hard on his pocket holding 5,150,000 shares.?

Well, if he gets into RBC now he has the opportunity of making it up :-))

New auditors. -continuing to trim the costs.
Gaynor will be happy. -one of his suggestions. ( or should I say, slightly less unhappy).

[Brain]

Well, if he gets into RBC now he has the opportunity of making it up :-))

New auditors. -continuing to trim the costs.
Gaynor will be happy. -one of his suggestions. ( or should I say, slightly less unhappy).

Why would new Auditors be an advantage apart from the fact that the new lot are cheaper. I always thought that auditors were there for the benefit of shareholders and the IRD to make sure that all was properly accounted for and that nothing was dodgy.

[BlackPeter]

Why would new Auditors be an advantage apart from the fact that the new lot are cheaper. I always thought that auditors were there for the benefit of shareholders and the IRD to make sure that all was properly accounted for and that nothing was dodgy.

They say new brooms sweep better ....

Same with auditors. A fresh pair of eyes versus an old team already biased and just looking into the same corners again and again.
If auditors come back again and again to the same company they know and trust management already which is nice from a human perspective but not helpful for them to do the job they are paid for. As well - management knows the questions in advance and can prepare. No surprises for them & unlikely to reveal any flaws.

NZSA recommends to regularly change the auditors (this is if you want them to do a good job).

[Brain]

Thanks BP that makes sense

[blackcap]

Why the AGM in Mt Maunganui?

Oh well I shall book my flight to Tauranga for that Monday.

[t.rexjr]

Why the AGM in Mt Maunganui?

Oh well I shall book my flight to Tauranga for that Monday.

Bring your cricket bat

[minimoke]

Why the AGM in Mt Maunganui?

Oh well I shall book my flight to Tauranga for that Monday.I Suppose it is close to the airport. And near the port where there are millions of tons of logs waiting to be shipped. Other than that cant see why you'd choose the Mount.

[ari]

I Suppose it is close to the airport. And near the port where there are millions of tons of logs waiting to be shipped. Other than that cant see why you'd choose the Mount.

I was also wondering what the significance was, have they ever held them before in Mt Maunganui? Certainly a wall of wood over the road. Thought they may have held it in Kerikeri

[blackcap]

I don't know if this has been covered here before but we shareholders do need to act. Recieved my admission card to the AGM in the mail today and note that Resolution 5 asks for an increase in non-exec directors fees from $800k to $825k. Now its not the amount of increase that annoys but the total amount is just preposterous or have I missed something?

On another thread we were discussing TRA wanting to go from $425k to $640k, that being bad enough, now I see that RBC is capitalised at about half of what TRA is.

[iceman]

I don't know if this has been covered here before but we shareholders do need to act. Recieved my admission card to the AGM in the mail today and note that Resolution 5 asks for an increase in non-exec directors fees from $800k to $825k. Now its not the amount of increase that annoys but the total amount is just preposterous or have I missed something?

On another thread we were discussing TRA wanting to go from $425k to $640k, that being bad enough, now I see that RBC is capitalised at about half of what TRA is.

Agree blackcap. This seems an outrageous amount of money for a Board of what is nothing more than a holding company.

[minimoke]

I'll be voting "For".
Its not that I like the total sum of money. I agree its outragous. But what I do like is of the $825,000 $450,000 of it will go to 3 x $150,000 share placements to avery, horton and smart.

Cash tends to focus the mind on what to spend. Shares will hopefully focus their minds sharply on how not to loose any of the $150k each. And better - how to turn $150 into $300.

[Xerof]

The fine print for Moriaty's renumeration from the depths of the Annual Report. Nice if you can get it I suppose. If he now gets paid a leaving bonus, they'll be rioting in the streets of Mt Maunganui !!




The base salary paid to the Rubicon CEO in the period was NZ$289,000. He also received a retention payment in March 2018 of NZ$71,834. He received a performance incentive payment of NZ$650,000 (pre-taxation), reflecting his assessed performance for a 24 month period, over which the entire Tenon business was sold, the TCLP investment acquired, and ArborGen was acquired. The CEO had set objectives which were required to be met prior to fiscal year-end, against which his performance was measured, with the key recent metrics being the acquisition of 100% of ArborGen at or below a Board-determined price and on a deferred payment basis, the securing of the continued funding of ArborGen by its existing banks, the completion of the sale of Rubicon’s interest in TCLP to assist in the acquisition funding, and the raising of external capital should that be necessary to strengthen the Rubicon balance sheet post-acquisition. The Board determined that in recognition of his considerable efforts over the preceding 24 months in successfully completing all objectives set, the performance incentive payment noted above should be made. He did not receive any Director fees either for his services as a Director of Rubicon, or for his directorship of ArborGen Inc.







Then there are the 'golden handcuffs' payable to 10 Arborgen employees. What threat does a change of shareholding ownership pose to employees. Is their pride hurt or something?


Upon the 100% acquisition of ArborGen by Rubicon, a plan was put in place to retain ArborGen senior management. The benefit under this plan totals $2 million, and provides for the payment by ArborGen of up to $1 million on 1 July 2018 and another $1 million on 1 July 2019 to senior executives. The package is split across ten individuals, with the requirement being that an individual must still be employed by ArborGen on those respective dates in order for them to receive a payment on those dates. If an individual is made redundant by ArborGen, then they will still receive the benefit of the plan.

Then, there was this, very admirable move by the Board: for the period 1 Nov 17 to 1 Nov 18


Following the sale of the Tenon distribution business, and the winding down and (soon) liquidation of that company, the Rubicon Board agreed to reduce Rubicon Directors fees from 1 November 2017 to NZ$95,000 per annum for the Chairman and NZ$62,500 for each non-executive Director. This reduction in Directors fees together with the downsizing of the Board will more than halve the total annual Directors fees from NZ$583,875 to NZ$282,500, a reduction of NZ$301,375. The CEO does not receive Rubicon Director fees.

Sooo, how do we now get a STARTING base for Directors fees of $800,000, asking for shareholders to approve a $25,000 increase? (for a vaguely stated "2018")


That, subject to the election of Messrs Avery, Horton and Smart as Directors of the Company:

(a) the maximum aggregate remuneration able to be paid to non-executive Directors of the Company in 2018 shall be increased by
NZ$25,000 from NZ$800,000 to NZ$825,000, with immediate effect;







My 400,000 votes will be "No" as I cannot reconcile how we got from 282,500 to 800,000,

[minimoke]

My 400,000 votes will be "No" as I cannot reconcile how we got from 282,500 to 800,000,Hmm a very good question!

[minimoke]

I've got a starting base of $433380 (including committee fees), based on six months fees of $216690 pg 49 of latest half year annual report. $19,000 worth of committee fees can be stripped out as these were due to Tenon sale

Hasler and Karapalis have retired, Kasnet resigned after selling off tenon

On 18 July Avery and Horton was appointed to Board
21 August Knottt was appointed

So 3 out, 3 in.


Seems they are adding to the board of a smaller company and cant add up the fees

Changed my mind.. Its a no on teh remuneration. I have to figure out which of teh new director also gets a no - no point increasing the board

[blackcap]

I've got a starting base of $433380 (including committee fees), based on six months fees of $216690 pg 49 of latest half year annual report. $19,000 worth of committee fees can be stripped out as these were due to Tenon sale

Hasler and Karapalis have retired, Kasnet resigned after selling off tenon

On 18 July Avery and Horton was appointed to Board
21 August Knottt was appointed

So 3 out, 3 in.


Seems they are adding to the board of a smaller company and cant add up the fees

Changed my mind.. Its a no on teh remuneration. I have to figure out which of teh new director also gets a no - no point increasing the board

Thanks for that. Good mind to go to the AGM and ask some questions now. This seems almost illegal if they are stating a base of 800k which is not correct. Do we need to ask the auditors what is going on?

[minimoke]

Thanks for that. Good mind to go to the AGM and ask some questions now. This seems almost illegal if they are stating a base of 800k which is not correct. Do we need to ask the auditors what is going on?
I've sent an email asking the question. Lets see how they respond

[winner69]

My 400,000 votes will be "No" as I cannot reconcile how we got from 282,500 to 800,000,

Probably the same number crunchers who have come up with pie in the sky values for Arborgen in that Note 15 of AR

[minimoke]

I've sent an email asking the question. Lets see how they respondRight, I've received a reply. So 10/10 for prompt and efficient investor communications. Excellent stuff!


Long and short of it is:
- Director fees are reducing to circa $370,000. A bit hard to be specific as some directors may not be on Board for full year)
- Horton Smart and Avery, get standard Director fees.
- BUT Horton, Smart and Avery get an additional $150,000 worth of shares each.

So if we take $370,000 fees approx plus 3 x $150,000 in shares we get close to the proposed $820,000.

So I'll be voting "NO". I haven't seen what extra contribution, over standard Director Governance Duties, Horton, Smart and Avery will be doing to warrant an additional $150,000 each. That would be 16 committees each (based on prior payments of $9,488 per committee). Or they have to be doing 5 1/2 time the work of the other Directors - that doesn't seem equitable

I reckon if they back the company they can put the cash from their director fees directly into shares themselves.

At the very least any payment should be based on positive outcomes - like a significant lift in the share price that has gone nowhere for a while, rather than standard governance inputs of what has to be a smaller company with smaller responsibilites

[BlackPeter]

Right, I've received a reply. So 10/10 for prompt and efficient investor communications. Excellent stuff!


Long and short of it is:
- Director fees are reducing to circa $370,000. A bit hard to be specific as some directors may not be on Board for full year)
- Horton Smart and Avery, get standard Director fees.
- BUT Horton, Smart and Avery get an additional $150,000 worth of shares each.

So if we take $370,000 fees approx plus 3 x $150,000 in shares we get close to the proposed $820,000.

So I'll be voting "NO". I haven't seen what extra contribution, over standard Director Governance Duties, Horton, Smart and Avery will be doing to warrant an additional $150,000 each. That would be 16 committees each (based on prior payments of $9,488 per committee). Or they have to be doing 5 1/2 time the work of the other Directors - that doesn't seem equitable

I reckon if they back the company they can put the cash from their director fees directly into shares themselves.

At the very least any payment should be based on positive outcomes - like a significant lift in the share price that has gone nowhere for a while, rather than standard governance inputs of what has to be a smaller company with smaller responsibilites

Thank you for investigating and letting us know. This is sharetrader at its best ;);

[blackcap]

Right, I've received a reply. So 10/10 for prompt and efficient investor communications. Excellent stuff!


Long and short of it is:
- Director fees are reducing to circa $370,000. A bit hard to be specific as some directors may not be on Board for full year)
- Horton Smart and Avery, get standard Director fees.
- BUT Horton, Smart and Avery get an additional $150,000 worth of shares each.

So if we take $370,000 fees approx plus 3 x $150,000 in shares we get close to the proposed $820,000.

So I'll be voting "NO". I haven't seen what extra contribution, over standard Director Governance Duties, Horton, Smart and Avery will be doing to warrant an additional $150,000 each. That would be 16 committees each (based on prior payments of $9,488 per committee). Or they have to be doing 5 1/2 time the work of the other Directors - that doesn't seem equitable

I reckon if they back the company they can put the cash from their director fees directly into shares themselves.

At the very least any payment should be based on positive outcomes - like a significant lift in the share price that has gone nowhere for a while, rather than standard governance inputs of what has to be a smaller company with smaller responsibilites

Did your response give any justification why those 3 directors require an additional $150k each? Yikes this is just daylight robbery of the highest order. What a bunch of W an kers.

[minimoke]

Did your response give any justification why those 3 directors require an additional $150k each? No - but to be fair I didn't ask. At this level I think it is incumbent on them to "sell" the shareholder (read Company Owners) benefits of this proposal. In the absence of such, mine remains a "no" vote

[minimoke]

Or they have to be doing 5 1/2 time the work of the other Directors - that doesn't seem equitable

Edit - my bad math. Should be 3.2 times the work as figures I was using was 6 month figures. Of course they need to be annualised. So thats approx $66,500 annual director fees plus $150,000 in shares

[whatsup]

As RBC, at the moment is to all effects a rebirth company I would have thought that these directors would have wanted to show their value to all share holders before asking for any increase in either salaries of director fees, that way we the owners can judge for ourselves if they are worth it after a year or so.

[iceman]

No - but to be fair I didn't ask. At this level I think it is incumbent on them to "sell" the shareholder (read Company Owners) benefits of this proposal. In the absence of such, mine remains a "no" vote

Thanks MM. Great work on our behalf and much appreciated. Needless to say, I will be voting AGAINST this remuneration package.They need to show us they´re worth this extra money. This is not a complicated company to run. Just a holding company for Argorgen and nothing more. So far they´ve failed to convince us SH that they can realise the value they tout as being fair.
But I do recognise good progress has been made over the last couple of years, progress we´ve already fully paid for in large salaries and Director fees.

Would be great if someone from ST will go to the AGM and ask a few questions and voice our disappointment

[Xerof]

Thanks MM. Great work on our behalf and much appreciated. Needless to say, I will be voting AGAINST this remuneration package.They need to show us they´re worth this extra money. This is not a complicated company to run. Just a holding company for Argorgen and nothing more. So far they´ve failed to convince us SH that they can realise the value they tout as being fair.
But I do recognise good progress has been made over the last couple of years, progress we´ve already fully paid for in large salaries and Director fees.

Would be great if someone from ST will go to the AGM and ask a few questions and voice our disappointment

With a bit of luck Balance may feel the desire to get stuck in on our behalf, in person

[percy]

With a bit of luck Balance may feel the desire to get stuck in on our behalf, in person

Should you decide to go, I will give you $50 towards your travel costs.

[Xerof]

My 400,000 votes will be "No" as I cannot reconcile how we got from 282,500 to 800,000,

Ok, I also queried the Company more directly on where exactly shareholders have already approved the rise in fees from 282,500 to 800,000.

Shareholders approved this 800,000 limit in 2001, and clearly it has never been close to that limit ever since, typically being between 500 and 600k, until the voluntary reduction to 282,500 in late 2017.

Although they are within their rights to go to 800k, and also ask for another 25k to get these share deals across the line (fees will revert hereafter to between 400k to 500k), the issue remains, these new Directors are filling seats on what is effectively a holding company, with one asset.

My view is: you have been appointed to perform a task (unknown, but probably to extract the 'true' value out of Arborgen for shareholders, them being the largest), but please, have some respect for minorities, and perform, then ask for reward, not the other way round, as that has downside (or maybe upside) for minorities, but only upside for Directors

So, I can reconcile 282,500 to 800,000, but I still vote no.

It's very clear to me why the AGM is being held in Mt Maunganui

[blackcap]

It's very clear to me why the AGM is being held in Mt Maunganui

Thanks Xerof. That explains a lot. Feel a bit used by RBC after this. W ank ers.

I may just have to go to the Mount.

[Xerof]

Make sure you take this with you

9898

[blackcap]

Make sure you take this with you

9898

Haha that made me laugh. Not a bad idea. Couple of kneecaps would not go awry :)

(just joking, would not advocate violence of any sort)

[biker]

My view is that the fees and shares to these new directors are a relatively small incentive for them to engage with the company.
They are well qualified and experienced and should add more value than they extract.

Ozey Horton
Independent Director
MBA Harvard Business School; BSE Duke University
Ozey has extensive experience in global operations, strategic planning, merger and acquisition integration and change management. He has been a Director Emeritus of McKinsey & Co., a business consulting organisation, since 2011 when he retired after nearly 30 years with the firm. At McKinsey, Ozey led various practice areas around the globe, including Pulp, Paper and Packaging, Industrial, Change Management, Global Operations in Energy and Materials, and Basic Materials. His McKinsey client service and practice leadership provided for considerable experience working in Europe, South America, India, and Asia. He is a faculty member for McKinsey’s leadership development program and also serves as an independent business advisor.

He currently serves on the boards of Metso Corporation, Worthington Industries, Al Dabbagh Group, and Louisiana–Pacific Corp. He also serves on the Board of Spoleto Festival, USA and the Advisory Board of The MUSC Hollings Cancer Center.

Thomas Avery
Independent Director
MBA Harvard Business School; BSc Georgia Institute of Technology
Tom has nearly 40 years of investment banking and venture capital experience. He has served on numerous private company boards throughout his career, advising companies on the successful financing, planning and execution of growth strategies.

As an investment banker, Tom worked primarily with middle market growth companies in executing mergers and acquisitions, initial public offerings, and private placements of equity and debt. He served as a Managing Director at Raymond James & Associates from 2000-2014, which involved the management of the technology investment banking group and the financial sponsors’ efforts. Prior to that, Tom’s career saw him act as the head of the investment banking group at Interstate/Johnson-Lane, be a general partner at Summit Partners and at Noro-Moseley Partners, and work as a Senior Vice President at The Robinson-Humphrey Company.
He currently has directorships at Cicero Inc., CRA International Inc, and KIPP Metro Atlanta.


Paul Smart is New Zealand based, with a broad background in growth companies in both the public and private markets, and extensive experience in all aspects of finance across a wide range of industries. He has operated at both senior management and non-executive board levels throughout his career, with a focus on growing successful companies in the broad technology and energy fields. His prior management positions have included CFO of Meridian Energy and CFO of Sky Television. He has previously held non-executive Director and/or Chairman roles in Arc Innovations, NZPM Group, and Southern Hydro (Melbourne) amongst others, and he is currently a non-executive Director of Solarcity, InterCity Holdings, Mercer Group, Argus Group and Geo40. He is a chartered accountant by background, and a member of the NZ Institute of Directors.

[whatsup]

My view is that the fees and shares to these new directors are a relatively small incentive for them to engage with the company.
They are well qualified and experienced and should add more value than they extract.

Ozey Horton
Independent Director
MBA Harvard Business School; BSE Duke University
Ozey has extensive experience in global operations, strategic planning, merger and acquisition integration and change management. He has been a Director Emeritus of McKinsey & Co., a business consulting organisation, since 2011 when he retired after nearly 30 years with the firm. At McKinsey, Ozey led various practice areas around the globe, including Pulp, Paper and Packaging, Industrial, Change Management, Global Operations in Energy and Materials, and Basic Materials. His McKinsey client service and practice leadership provided for considerable experience working in Europe, South America, India, and Asia. He is a faculty member for McKinsey’s leadership development program and also serves as an independent business advisor.

He currently serves on the boards of Metso Corporation, Worthington Industries, Al Dabbagh Group, and Louisiana–Pacific Corp. He also serves on the Board of Spoleto Festival, USA and the Advisory Board of The MUSC Hollings Cancer Center.

Thomas Avery
Independent Director
MBA Harvard Business School; BSc Georgia Institute of Technology
Tom has nearly 40 years of investment banking and venture capital experience. He has served on numerous private company boards throughout his career, advising companies on the successful financing, planning and execution of growth strategies.

As an investment banker, Tom worked primarily with middle market growth companies in executing mergers and acquisitions, initial public offerings, and private placements of equity and debt. He served as a Managing Director at Raymond James & Associates from 2000-2014, which involved the management of the technology investment banking group and the financial sponsors’ efforts. Prior to that, Tom’s career saw him act as the head of the investment banking group at Interstate/Johnson-Lane, be a general partner at Summit Partners and at Noro-Moseley Partners, and work as a Senior Vice President at The Robinson-Humphrey Company.
He currently has directorships at Cicero Inc., CRA International Inc, and KIPP Metro Atlanta.


Paul Smart is New Zealand based, with a broad background in growth companies in both the public and private markets, and extensive experience in all aspects of finance across a wide range of industries. He has operated at both senior management and non-executive board levels throughout his career, with a focus on growing successful companies in the broad technology and energy fields. His prior management positions have included CFO of Meridian Energy and CFO of Sky Television. He has previously held non-executive Director and/or Chairman roles in Arc Innovations, NZPM Group, and Southern Hydro (Melbourne) amongst others, and he is currently a non-executive Director of Solarcity, InterCity Holdings, Mercer Group, Argus Group and Geo40. He is a chartered accountant by background, and a member of the NZ Institute of Directors.

Years ago in another life I had shares in a forestry company that had American directors and boy from memory did they have their noses in the trough, no sooner were they on board then the major item on the agenda was , yes you guessed it granting bucket loads of shares to the newly elected directors shares, I was the only one to object at that AGM on the basis, " the company is a price taker linked to currency movements, vagaries of a unreliable commodity market and fickly export market in multitude of markets " guess what I was shouted down by the 99% majority and needless to say the company lasted a couple of more years due to very bad directorship before it went under !

[minimoke]

My view is that the fees and shares to these new directors are a relatively small incentive for them to engage with the company.
They are well qualified and experienced and should add more value than they extract.
.
They sure have potential. Let them prove their worth, then we'l talk about bumper share issues.

[winner69]

Got a bit more money to play with

Going for broke ....but as long as they get through to IPO stage and find those greater fools we’ll be OK

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/323543/286341.pdf

[percy]

Well my voting paper is in the post.All boxes except one ticked yes.
Chairman of the meeting my proxy.

[zigzag]

Edison have a valuation of NZ$0.68 per share. Another opinion to add to the mix?

[t.rexjr]

Edison have a valuation of NZ$0.68 per share. Another opinion to add to the mix?

A worthwhile read. Thank you. Link below.

https://www.edisoninvestmentresearch.com/research/report/rubicon988683/preview/ (https://www.edisoninvestmentresearch.com/research/report/rubicon988683/preview/)

In depth analysis by actual humans...

[Snow Leopard]

Edison? They the same Edison who value PEB at $0.75 a pop?

[blackcap]

Edison? They the same Edison who value PEB at $0.75 a pop?

The same Edison who valued CRP at $2 a while back?

[percy]

I think their valuation is way to light...…………….lol.

[whatsup]

I think their valuation is way to light...…………….lol.

Percy , very early days for this rebirth company they need to hit their numbers and then some before the market recognises that the bad old days are well and truly behind then, let their numbers do the talking if that happens then Rubicon should one of the best % gainers for the year.

[winner69]

Edison have a valuation of NZ$0.68 per share. Another opinion to add to the mix?


......isn’t it actually 74 cents ...and they said a conservative valuation

Always use the highest number when touting stocks ..:):p:(:sleep::eek2:


No idea what those stupid faces mean but BP and Joshua use them so they must mean something

[winner69]

...and change some of the assumptions you could say they come up with $1.07

[Joshuatree]

The faces are good for ones sentiment on a share or a bit humour etc .As usual you are all of them including on the fence , buying , selling , pumping , dumping, holding, folding, spruiking, duping, informing , mourning, winning , losing, if you get the drift:t_up:.

[winner69]

The faces are good for ones sentiment on a share or a :t_up:bit humour etc .As usual you are all of them including on the fence , buying , selling , pumping , dumping, holding, folding, spruiking, duping, informing , mourning, winning , losing, if you get the drift:t_up:.

Thanks for the compliments Joshua

What does :t_up: mean?

Is it thumbs up or something?

[minimoke]

Thanks for the compliments Joshua

What does :t_up: mean?

Is it thumbs up or something?
No - its "flappy ears" - listening out for the next hot tip.

[whatsup]

zz,
Edison have a valuation of NZ$0.68 per share. Another opinion to add to the mix?

zz, Just goes to show how much Mr Market takes of Edison as after 45 minutes no trades today let alone at their .68 valuation !!

[percy]

zz,

zz, Just goes to show how much Mr Market takes of Edison as after 45 minutes no trades today let alone at their .68 valuation !!

Can't remember them ever being right.

[whatsup]

Can't remember them ever being right.

p, Edison from what I know operates a pay for recommendation service !

[blackcap]

I see the NZSA is voting AGAINST the increase in directors fees. They also raise concerns about the size of the board with regards the size of the company.

[percy]

I see the NZSA is voting AGAINST the increase in directors fees. They also raise concerns about the size of the board with regards the size of the company.

Good on NZSA.

[minimoke]

Hurricane Florence heading stright to America and South Caolina and an Aborgen nursery near you. Waiting for a market update on what preparations the company is making.

[minimoke]

Who knew storm watching could be so nerve racking. But I have removed my SELL order for the moment.

Areas to watch:
Blenheim Nursery North Carolina - inland NW from Myrtle Beach
Taylor Nursery: Inland west of Myrtle Beach (highest risk by the looks of it)
Belleville Nursery Inland west from Savannah, south Carolina

Other than that theres the Shelman and Selma nurseries moving into Georgia and Alabama.

[winner69]

There’s hurricanes every year .....just need to manage their way through it eh

Keep the workers safe main thing

[minimoke]

There’s hurricanes every year .....just need to manage their way through it eh

That is true. But Category 4's - possibly growing to a Cat 5 is not an every year occurrence. North Carolina Governor Roy Cooper said ""This is not a storm that people need to ride out. This is a storm that is historic, maybe once in a lifetime."

Note: Now a Cat 3

[winner69]

That is true. But Category 4's - possibly growing to a Cat 5 is not an every year occurrence. North Carolina Governor Roy Cooper said ""This is not a storm that people need to ride out. This is a storm that is historic, maybe once in a lifetime."

Note: Now a Cat 3

Last year they said “...despite the tough hurricane season that prevailed during the year and which materially adversely impacted sales volumes,"

Likely to be a recurring issue?

Would a once in a lifetime event wipe out a decent number of the frees they collect the seeds from?

[BlackPeter]

Last year they said “...despite the tough hurricane season that prevailed during the year and which materially adversely impacted sales volumes,"

Likely to be a recurring issue?

Would a once in a lifetime event wipe out a decent number of the frees they collect the seeds from?

I guess you hit the nail on its head. We better get used to powerful storms - and, as we know, once in 100 year events or once in a lifetime events tend to happen more and more frequently.

Better invest in industries which benefit from an increase of extreme weather events than hope for the weather to calm down again ...

[minimoke]

Last year they said “...despite the tough hurricane season that prevailed during the year and which materially adversely impacted sales volumes,"

Likely to be a recurring issue?

Would a once in a lifetime event wipe out a decent number of the frees they collect the seeds from?Thats where my concern has come from. I was seeing a storm come in and wipe out my investment. I'm a little calmer now. Now thinking of how many trees will be blown down that will need replanting.

[t.rexjr]

Thats where my concern has come from. I was seeing a storm come in and wipe out my investment. I'm a little calmer now. Now thinking of how many trees will be blown down that will need replanting.

With bigger stronger trees that don’t blow down aye?

Although the nurseries look to be in the flight path the ones most at risk are at least 1 - 2 hours drive inland. Shrinking the world to fit on your phone is deceiving. Hurricanes subside on landfall so mainly the coastal areas that get demolished.

Fingers crossed our supply will meet demand this coming season

[ari]

Just come back from Hawaii and this site was very useful for storm watching....https://earth.nullschool.net/#current/wind/surface/level/orthographic=-87.35,33.28,1112

[BlackPeter]

Just come back from Hawaii and this site was very useful for storm watching....https://earth.nullschool.net/#current/wind/surface/level/orthographic=-87.35,33.28,1112

cool web page - thanks for sharing!

[Baa_Baa]

Just come back from Hawaii and this site was very useful for storm watching....https://earth.nullschool.net/#current/wind/surface/level/orthographic=-87.35,33.28,1112

And this one, even better? https://www.windy.com/?22.350,-63.105,3,i:pressure,m:eC3adYd

[Xerof]

I see the NZSA is voting AGAINST the increase in directors fees. They also raise concerns about the size of the board with regards the size of the company.

My voice of displeasure was scanned through to Comp'share today (and accepted in that format). As well as the snout in the trough item, I also voted against 2 directors being appointed.

I suggest anyone who still wants to get their vote/proxy in before Saturday, scan them to Computershare.

[minimoke]

Hers an idea to save 2 directors and share payment.

Ditch the Rubicon website
use the arborgen website http://www.arborgen.com/
Add an "investor relations" section on thebottom

Have remaining board concentrate on governance around selling trees

(my fee of 100,000 shares will follow)

[winner69]

Arborgen need to breed a fast growing 7 foot tree

https://www.theverge.com/2018/9/11/17847208/amazon-christmas-trees-prime-shipping-holidays-2018

[winner69]

Wonder how the trees in Carolinas are doing

[minimoke]

I did ask Investor Relations what they are doing to secure for the once in a life time storm - but haven't heard back. With an estimated $18b in damage I am assuming Arborgen have the nurseries tucked up nice and safe.

[minimoke]

Arborgen need to breed a fast growing 7 foot tree

https://www.theverge.com/2018/9/11/17847208/amazon-christmas-trees-prime-shipping-holidays-2018
Scouring through the papers I find "Joint research with SC Christmas tree growers hasresulted in improved tree selections in support ofthe Christmas tree community" (thats the Taylor Nursery and South Carolina Forestry Commision). Now do a search of south carolina christmas tree farms - they love their christmas trees!

[Xerof]

Wonder how the trees in Carolinas are doing

The 2 'nearest' nurseries are at Claxton, GA, which is 83km inland from Savannah, GA, and the other one is in South Blenheim, CA 204km inland from Wilmington.

If we don't get an announcement in next couple of days, then all good.

I do think a proactive confirmation that it's just a nasty rainstorm at their place would calm winners frayed nerves though.

I would email Pam, but minimoke has already done so. No point giving them too much to do (other than count the 'NO' proxies)

[BlackPeter]

Wonder how the trees in Carolinas are doing

I am sure lack of water won't be one of their problems ...

[minimoke]

Maybe someone has the news that the trees are fairing OK. Up 1 cent today so far

[minimoke]

From the CEO today :" I can announce today that ArborGen-NZ has just signed a 12million seedling supply contract with Crown forestry for next year as part of the government’s 10-year 1billion tree planting program"

From the Chair "We have also determined that our independent Directors should be part remuneratedwith restricted Rubicon shares, so that they act and feel as each of you do asRubicon shareholders, to ensure the incentive and urgency are aligned. This is a bargain forRubicon, these new directors are of the highest quality, and like all good talent you need tomeet the market to secure their services." I would liek to have seen it tagged to performance outcomes but what do I know.

[blackcap]

From the CEO today :" I can announce today that ArborGen-NZ has just signed a 12million seedling supply contract with Crown forestry for next year as part of the government’s 10-year 1billion tree planting program"



That's great, but if its at the standard 6 cents per seedling price that equates to $720,000, not even enough to cover directors fees.

If its at the super dooper technology price of 26 cents then that changes things a bit.

[freddagg]

From the CEO today :" I can announce today that ArborGen-NZ has just signed a 12million seedling supply contract with Crown forestry for next year as part of the government’s 10-year 1billion tree planting program"

Bit odd announcing that. 3.5% of the years production.

[minimoke]

And another bit
Current year performance targets set –
 EBITDA US$71 million
 Seedling units sales > 10%1 higher y-o-y
 Progress to date – in largest (US market) already ~ 85% sold-out


And looking ahead
The ‘tree machine’ platform has been built
 Advanced genetics product portfolio is in place
 Regulatory approval is not required
 Pipeline of new products continued to be built ex annual R&D spend
 Conversion to higher-value genetics in the US is now taking hold
 US macro conditions are favourable
 NZ government approach to planting is bearing fruit
 ArborGen NZ has signed a 12 million seedling contract with Crown forestry
 Established a foothold in Brazil – future growth engine

 The hard work has been done

 Now entering the ‘harvest phase’

[whatsup]

So did we defeat the snouts in the trough motion ?

[minimoke]

So did we defeat the snouts in the trough motion ?
I bet we didnt - (havent heard yet)

[sb9]

And another bit
Current year performance targets set –
 EBITDA US$71 million
 Seedling units sales > 10%1 higher y-o-y
 Progress to date – in largest (US market) already ~ 85% sold-out


And looking ahead
The ‘tree machine’ platform has been built
 Advanced genetics product portfolio is in place
 Regulatory approval is not required
 Pipeline of new products continued to be built ex annual R&D spend
 Conversion to higher-value genetics in the US is now taking hold
 US macro conditions are favourable
 NZ government approach to planting is bearing fruit
 ArborGen NZ has signed a 12 million seedling contract with Crown forestry
 Established a foothold in Brazil – future growth engine

 The hard work has been done

 Now entering the ‘harvest phase’

And the following bit from CEO's sppech...

"So, for example, in February we announced ArborGen was the successful candidate in a proposal with the South Carolina Forestry Commission to exclusively lease, modernise, and operate the Taylor nursery. This represents a strong 10-year partnership, in relation to a 30 million per annum seedling nursery, located in a high-demand geography.

And we are currently also well-advanced with another opportunity, which if all goes well, we hope to announce to the market in the next quarter. "

[Well Endowed]

never stood a chance of defeating it, some interesting points in the NBR article from friday

https://www.nbr.co.nz/analysis/rubicon-and-gift-takes

whilst I don't agree with the director shares, the point about it being common place for attracting US board members/talent does make sense. However the 3 year escrow terms and likely aligned voting does raise some eyebrows.


Thanks Minimoke for the summary, much appreciated!

[whatsup]

And the following bit from CEO's sppech...

"So, for example, in February we announced ArborGen was the successful candidate in a proposal with the South Carolina Forestry Commission to exclusively lease, modernise, and operate the Taylor nursery. This represents a strong 10-year partnership, in relation to a 30 million per annum seedling nursery, located in a high-demand geography.

And we are currently also well-advanced with another opportunity, which if all goes well, we hope to announce to the market in the next quarter. "

So if this " deal " was/is so good , why wasn't there movement at the station ?

[sb9]

So if this " deal " was/is so good , why wasn't there movement at the station ?

Its not what you, me or company thinks about its value, Mr Market determines its price in the end.

[minimoke]

Nothing like ending the day with the market up 1.5 cents or 5.8%

[winner69]

Its not what you, me or company thinks about its value, Mr Market determines its price in the end.

Maybe 12 million seedlings relative to 350/400 million total sales non event

[whatsup]

Nothing like ending the day with the market up 1.5 cents or 5.8%

Still 9% off its 12 months high, I know we are a rebirth company and this deal was always going to go through but I would have thought that there would have been more interest/action today, tomorrow well that is another story.....

[sb9]

Maybe 12 million seedlings relative to 350/400 million total sales non event

Probably is...but you need to look at bigger picture and ensuing opportunities thereafter.

[minimoke]

97% of votes favored the trough

[blackcap]

97% of votes favored the trough

I saw that, but it was 99% that voted new directors on. So 2% extra dissent. Probably a collective of us at the forum along with NZSA proxies.

[percy]

I saw that, but it was 99% that voted new directors on. So 2% extra dissent. Probably a collective of us at the forum along with NZSA proxies.

We did not do very well.!
Pity as I thought we were sending a very clear message

[Baa_Baa]

We did not do very well.!
Pity as I thought we were sending a very clear message

It's that sense of self importance and influence when anonomously posting on an Internet forum that lulls one into thinking everyone must care and act on everything that ones says, especially when supported by a few of the collective voices. Only to find that we're all largely insignificant talking to ourselves and are not representative of those who have the majority shareholdings.

Jmho

[Xerof]

These resolutions don't even get put up for a vote without crosschecking with the guys who own all the shares, to ensure they are on the same page.

But the point is, if shareholders don't voice an opinion, however lowly and unimportant some may think that is, then why the F ever be a shareholder?

Unfortunately it's the indifference of the vast majority of the minorities that allows such activity to perpetuate

jmho

ps I thought the NZSA might have held a larger sway than it appears, unless they voted for the resolutions.:p But then I guess it varies company to company, and they still have to rustle up proxies, just like anonymous posters on internet forums:D

[t.rexjr]

The next NBR article could be interesting. The decorum of a couple of the old warts was less than becoming of a professional serving a publicly listed company. Paul Smart came across well and was in another league comparatively.

Not much to add from the meeting that wasn’t covered in the chairman’s address. Nice array of nibbles though.

[minimoke]

Word of warning to Rubicon and Aborgen. The establishment of the Maori Carbon Foundation (newly set up to plant possibly 150m trees on 150,000 acres of Maori land) The Role Of Maori Climate Commissioner (yes thats correct - trough makers are currently fully employed in NZ) is now being headed by Donna Awatere Huata. In case they dont know she use to head the Pipi Foundation. Until she diddled them out of a pile of cash and ended up in jail for a little under 3 years.

I dont want to see "koha" as a line in the accounts!

[Brain]

I checked out the website and don’t see Donna there. Is this a new appointment M M ?

[winner69]

I checked out the website and don’t see Donna there. Is this a new appointment M M ?


http://www.scoop.co.nz/stories/PO1809/S00238/maori-climate-commissioner-announced.htm

[Brain]

This is a very strange world we live in Winner.

[percy]

This is a very strange world we live in Winner.

And that must be the understatement of the year,.!

[t.rexjr]

http://www.scoop.co.nz/stories/PO1809/S00238/maori-climate-commissioner-announced.htm

The CV sounds quite good when you leave off stomach stapling fraudster

[minimoke]

The CV sounds quite good when you leave off stomach stapling fraudsterAre you angling for a job as prime minster. You are both as good at spotting competence and hiring based on sex and ethnicity.

Not one mention of a climate change background. No degree study or work in the area. Heres what is says


“Donna is a long-timeadvocate for the Treaty of Waitangi, a campaigner againstracism and a former Member of Parliament. She was also anearly advocate for the circular economy, representing NZ atthe Sustainable Business Conference in the Netherlands inthe early 2000’s.Donna represented the NZ MaoriCouncil, Maori Women’s Welfare League, NUMA, FOMA and TeWhanau o Waipareira Trust on the Appointments Boards for TeOhu Kaimoana and the Crown Forestry Rental Trust, and alsorepresented the NZ Maori Council on the UN Permanent Forumon Indigenous People2014-2017.

[Brain]

I think the Wikipaeda CV is worth reading.

In 2003 Huata was expelled from the ACT party on allegations of fraud regarding the Pipi Foundation charity, which at the time was under investigation by the Serious Fraud Office (https://en.wikipedia.org/wiki/Serious_Fraud_Office_(New_Zealand)).[3] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-3) Subsequently there were a series of legal battles around Huata's right to remain in parliament as an independent list MP. These culminated in one of the Supreme Court (https://en.wikipedia.org/wiki/Supreme_Court_of_New_Zealand)'s first major decisions in 2004 and she was removed from Parliament,[4] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-4) giving the ACT Party (https://en.wikipedia.org/wiki/ACT_Party) a new MP, Kenneth Wang (https://en.wikipedia.org/wiki/Kenneth_Wang) until the 2005 New Zealand Election.
Huata was charged by the Serious Fraud Office (https://en.wikipedia.org/wiki/Serious_Fraud_Office_(New_Zealand)) and later convicted of fraud after taking $80,000 from the Pipi Foundation, a Government funded charity, she had set up as an MP in 1999. The media reported that "Some of the stolen money was used to pay for Awatere Huata's stomach stapling operation and some was used to pay state-integrated school fees for the couple's children."[5] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-NZ_Herald_10348000-5) On 30 September 2005, she was sentenced to 2 years 9 months in jail alongside her husband, Wi Huata, who received 2 years with the ability to apply for home detention. On 16 May 2006, she was released on home detention[6] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-6) and after her sentence was completed in February 2009, she was able to set up a correspondence teaching centre "The Learning Post".[7] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-Stuff.co.nz_1402511-7) In October 2010 another school she and her husband ran was forced to go into liquidation owing large sums of money. NZQA (https://en.wikipedia.org/wiki/NZQA) said that many of the courses were inadequately supported.[8] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-8) The school had only 15 pupils.[9] (https://en.wikipedia.org/wiki/Donna_Awatere_Huata#cite_note-NZ_Herald_10679644-9)

[sb9]

Headlines from paywalled article from NBR today...

Cross words at Rubicon AGM....

[Leftfield]

Headlines from paywalled article from NBR today...

Cross words at Rubicon AGM....

Have read, and largely agree with the concerns raised (as seemingly does NZSA.)

Concerns raised ;
- Hugh Fletcher's possible related party transaction concerning the sale of a Tenon/Rubicon owned Taupo based timber processor Clearwood the details of which have never been released
- Overly obtuse annual reports
- Rubicons 'wretched' share performance and contrastingly generous payment for its CEO and incoming directors
- Dubious and possibly biased selections of new USA based directors.

One can only hope the concerns will penetrate the thick skins of this Board in the months ahead and that RBC will start delivering.

[sb9]

Have read, and largely agree with the concerns raised (as seemingly does NZSA.)

Concerns raised ;
- Hugh Fletcher's possible related party transaction concerning the sale of a Tenon/Rubicon owned Taupo based timber processor Clearwood the details of which have never been released
- Overly obtuse annual reports
- Rubicons 'wretched' share performance and contrastingly generous payment for its CEO and incoming directors
- Dubious and possibly biased selections of new USA based directors.

One can only hope the concerns will penetrate the thick skins of this Board in the months ahead and that RBC will start delivering.

Thanks for the snippets lf, much appreciated.

[Xerof]

The AGM has passed and our crusader against snouts in the trough is not to be heard from. Sold out eh Balance, or given up pig hunting?

[Balance]

The AGM has passed and our crusader against snouts in the trough is not to be heard from. Sold out eh Balance, or given up pig hunting?

Still here and taking the view that :

1. RBC is definitely now on the right path towards realization of value (after years and years of cash burn),

2. Never been a better alignment of interests in the main between the big shareholders/directors and other shareholders to realize that value,

3. $850k is fair enough compensation (even if all paid out) when we consider what's at stake for the directors to move RBC along (heck, that Derek Handley was going to get paid $400k plus expenses etc for the CTO position!).

What could go wrong is that the directors prove to be incompetent and incapable - a possibility but one which is well balanced against the real skin they have got in the game.

D M Knott - 115.6m shares - 28.25% of RBC.

R Tandon - 86.11m shares - 17.65% of RBC.

[Balance]

A worthwhile read. Thank you. Link below.

https://www.edisoninvestmentresearch.com/research/report/rubicon988683/preview/ (https://www.edisoninvestmentresearch.com/research/report/rubicon988683/preview/)

In depth analysis by actual humans...

Never take Edison seriously - they are simply regurgitating what the company tells them so read the report for infor and as a guide to what the directors and management are thinking.

Assess for yourself the credibility of management and directors in what they are saying about the company and take it from there.

With PEB, CRP, Snakk etc - directors have zero credibility so the reports are well and truly a total waste of $, time and paper.

https://www.sharetrader.co.nz/showthread.php?201-TENON/page31&highlight=tenon

I did rely on Edison's infor on Tenon to invest in a few more and history showed that Edison was actually conservative in its valuation!

Reality is that Tenon was a good play on the US housing recovery which was clearly there for anyone who cared to research at that time.

[Xerof]

Thanks for your reply and thoughts Balance, appreciated.

[Leftfield]

Wonder how the trees in Carolinas are doing

At last we have an answer Winner......"Mr Knott said that none of ArborGen’s seven US nursery facilities or any of its current year crops sustained damage, and that the Company’s previously provided US-GAAP EBITDA1 guidance for ArborGen of ~US$7 2 million for the current financial year ending 31 March 2019 remained in place."

[minimoke]

At last we have an answer Winner......"Mr Knott said that none of ArborGen’s seven US nursery facilities or any of its current year crops sustained damage, and that the Company’s previously provided US-GAAP EBITDA1 guidance for ArborGen of ~US$7 2 million for the current financial year ending 31 March 2019 remained in place."
Dont miss this bit "Rubicon announced today that its 100%-owned US operating business, ArborGen Inc (“ArborGen”), had sustained damage at only one of its nine orchards in the US South as a result of the recent Hurricane Michael – the third most intense Atlantic hurricane to have ever made landfall in the US, with wind speeds above 250 km/h" Doesnt seem to be major damage though

[Leftfield]

Interesting development



1 November, 2018 - Rubicon announced today that ArborGen Inc ("ArborGen") has


entered into a series of agreements with certain subsidiaries of TexMark


Timber Treasury, L.P. ("Triple T") - a joint venture between CatchMark Timber


Trust, Inc. and a consortium of large institutional investors, that recently


completed the acquisition of Campbell Global's US$1.4 billion of timberlands


located in Texas, US.





The primary agreement is a lease, pursuant to which ArborGen will lease the


Triple T nursery and seed orchard properties located in Texas. This agreement


includes a call option that gives ArborGen the right to acquire the leased


properties, and a corresponding put option that gives Triple T the right to


sell the leased properties, for US$2.5 million payable upon the expiration of


the 5-year lease period. ArborGen's current intention is that it will


exercise the call option at the end of the lease period. The lease agreement


(and subsequent call option exercise) will allow ArborGen to increase its


annual nursery production capacity and sales by approximately 30 million


seedlings per annum (effective from the next production season beginning 1


April 2019 when the lease agreement takes effect), and also immediately


expand its productive seed-orchard capacity (including advanced genetics


seed) in the important Texas region.

[Well Endowed]

Great announcement.

and most importantly:

"ArborGen has also entered into an exclusive multi-year agreement to supply Triple T all of its Texas seedling requirements for an initial term of 5 years, with term-renewal periods thereafter."

[sb9]

Great announcement.

and most importantly:

"ArborGen has also entered into an exclusive multi-year agreement to supply Triple T all of its Texas seedling requirements for an initial term of 5 years, with term-renewal periods thereafter."

All going as per plan.

[iceman]

On the face of it looks like a great announcement with long term benefit. Expanding into Texas must be a good thing and increasing production by 30 million seedlings effective next season is good news and will help ease the production strains RBC is under for the next couple of years. But obviously more nurseries and more production is needed ASAP

[percy]

Yes I too take the announcement as another step in the right direction.

[iceman]

Yes I too take the announcement as another step in the right direction.

Hasn't exactly excited the market though has it ?? No trades in the first hour this morning. How long before the majority owners and Board tire of being listed on the NZX !!

[blackcap]

Hasn't exactly excited the market though has it ?? No trades in the first hour this morning. How long before the majority owners and Board tire of being listed on the NZX !!

That may be, but I do not really see how they can delist effectively. They could try but I am sure that proposal would be voted down by shareholders. Remembering the majority s/h ers would not be allowed to vote on that resolution. So where would Rubicon go?
Or can the board just take a unilateral decision and we have to wear it? Not sure that is possible, PGC had to get s/h approval to move their listing outside of NZ. Someone who knows the rules may be able to help out here.

[Invest in good stories]

Iceman, I suspect the board and major shareholders are already well and truly tired of being listed on the NZX, and if I was in the major shareholders shoes I'd be very closely looking at how they can entirely remove the Rubicon layer and simply have a stake in the Arborgen (US domiciled) business.

Just how they go about this I'm not sure, but I dare say some very skilled tax/corporate lawyers could figure it out. Lets face it, Rubicon is merely a holding company now so just sucks up cost, the big shareholders are all US domiciled (or perhaps a Caribbean island for tax purposes :-)), board directors have increasingly become US domiciled, and most of the revenue is from the US. So just what is the advantage of being listed and domiciled in NZ? Not much that I can see and certainly NZ domicile and NZX listing would add tax complications/costs for the US major shareholders.

So I'm picking at some point that all the shareholders of Rubicon get "asked" to become shareholders in Arborgen (or a US offshoot). Perhaps by being a shareholder in Rubicon, you get rights to shares in Arborgen as well? This could be via a major transaction approach, and perhaps by a step-by-step process Rubicon then delists from NZX. Shareholder approval rules are complicated but I believe its only a vote to delist that may see shareholders holding more than 10% not able to vote. Major transactions (such as an "offer" to hold shares in Arborgen) can I presume be voted on by all shareholders (so the big boys get to vote and its guaranteed to pass). A step-by-step process may mean that when it comes time for the delisting vote, even the tinest shareholder will vote for it because at that point it just makes sense.

The big driver for all of this won't be the costs of keeping Rubicon going - that's relative trivia. The driver will be either tax advantage to the US based major shareholders (it may be disadvantageous to NZ domiciled shareholder) and/or access to capital/buy out offers. Sometimes though at least, when companies do look to swap shores, an offer to purchase shares at a premium is made to minor shareholders at the time so as to remove complexity/upset (and it may make the whole legal process easier).

IMHO I really can't see Rubicon being NZX listed or domiciled in NZ long term. I'm not a tax/corporate lawyer who will be figuring out just how it is done exactly, but if the mighty $ benefit stacks up, why wouldn't the major US based shareholders want this? Along with the business plan for Arborgen, its going to fascinating how this one plays out in the next couple of years - short of another GFC however I think there's good upside here.

[minimoke]

Iceman, I suspect the board and major shareholders are already well and truly tired of being listed on the NZX, and if I was in the major shareholders shoes I'd be very closely looking at how they can entirely remove the Rubicon layer and simply have a stake in the Arborgen (US domiciled) business.

.We discussed this a while back - and there were problems. Mainly around size of RBC / Aborogen and no of shareholders
NASDAQ rules included (mix of match):
- Pre tax earnings of $11m over the past three years
- $27.5m in cash flow over each of past 3 years
- Market cap of $550m (which could be reduced)

Essentially RBC needs to get "bigger" before an alternative listing can be seriously considered.

[Xerof]

They are welcome to take it private. I'd be happy with $1

[BlackPeter]

Oops - was the the Cross of death we just saw passing? TA not looking that happy these days ...

[minimoke]

Oops - was the the Cross of death we just saw passing? TA not looking that happy these days ...its on really small volume. Traders are total skinflints - like the one this morning spending $8k and quibbling over a quarter cent.

[Well Endowed]

Quite happy to pick up a few more at these levels. Personally can't the correlation in a risk off tech selldown and Rubicon's business model. This also seems reflective in the turnover today in my view, amounting to a whopping $15k...

[minimoke]

Quite happy to pick up a few more at these levels. I'll join you. Picked up a few more at $0.23 which is essentially half NTA

[whatsup]

so where is the .50 + valuation now,

[minimoke]

so where is the .50 + valuation now,
Waiting patiently for the takeover bid to release that value.

[Well Endowed]

agreed, has all the makings of one that will be looked back on when the takeover dust has settled and been a 'that was obvious wish I'd put more in' in my opinion.

Happy to sit and accumulate in preparation awaiting that day, whether it be 6mths, 12mths or even a bit longer, I believe it will come.

In the meantime, the announcements are starting to increase in frequency :t_up:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/327200/291008.pdf

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/327200/291009.pdf

[Leftfield]

6 mnth report out at end of day...see here (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/327614/291534.pdf)

Always a concern when such reports sneak out at the end of the day, and not enough in this one for me to sneak a late win the stock picking competition :t_down:

Very much steady as she goes IMO, while nice to see more debt retired. Once again net assets almost double the SP so all is good????

[winner69]

6 mnth report out at end of day...see here (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/327614/291534.pdf)

Always a concern when such reports sneak out at the end of the day, and not enough in this one for me to sneak a late win the stock picking competition :t_down:

Very much steady as she goes IMO, while nice to see more debt retired. Once again net assets almost double the SP so all is good????

....least it wasn’t the last thing on a Friday afternoon trick.

[iceman]

Can't really see anything there to worry about, nor is there anything in particular to celebrate. Pretty much steady as she goes.
I like how they're setting goals with their outlook statement and then clearly outlining how they have (or not) met the goals. They say they will be doing this soon for each of the next 10 years if I read this correctly which I think is interesting.

Clearly there will be some impact from hurricane Michael as they state some of their customers have had damage to land from flooding and will require less seedlings than expected. It may be possible that the new partnership with the Texans will pick up the slack although they don;t say anything about that. Shane Jones has ordered 12 million seedlings for next year and no doubt quite large amounts for years to come, especially if they continue mulching them like they did in Northland !!

A little bit at the end of interest is that "ArborGen’s annual management incentive metric will be cash-generation based" so they're focus is clearly on cash generation through balance sheet optimisation and earnings positive growth.

Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.

[minimoke]

Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP

Net assets per share = $0.46 (up from $0.43 in March)

[Leftfield]

Can't really see anything there to worry about.....
Looks like we now have a profitable and cash generating business with low gearing and a good future. Not much to complain about in this report as far as I can see.


Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP Net assets per share = $0.46 (up from $0.43 in March)

Yep agree......onwards and upwards. Steady as she goes..... survived one of the biggest hurricanes for many generations and has taken steps to be more geographically diversified. The market will one day realise the true value of this small gem.

[Leftfield]

ps just had a more detailed read of yesterday's report.....

"Forecasting EBITDA for FY19 approaching $US 7 Million"
While Note 2 explaining the changed financial years, says: "The EBITDA result on a similar basis for the 12 months ending 2018 was $4.3 million"

So RBC on track to approx 62% improvement in EBITDA. I'm feeling better already, not as grumpy as I was yesterday :cool:

[iceman]

With improvements in operational performance as well as an obvious focus on cash generation and management I think we are now very well positioned with this company. I also think the "risk" of them delisting from the NZX is somewhat reduced by the large scale purchases from Shane Jones' slushfund in the next few years.
May look to accumulate a few more if SP stays at current low prices.

[percy]

Good progress,while the outlook remains positive.

[mikeybycrikey]

Agree. Steady as she goes. All we need now is for others to appreciate the value in RBC and start lifting the SP

Net assets per share = $0.46 (up from $0.43 in March)

I’m less excited when I see that “intellectual property” is 31 cps of those 46 cents per share. I’m sure their intellectual property has some real world value but I doubt it is that high.

[percy]

I’m less excited when I see that “intellectual property” is 31 cps of those 46 cents per share. I’m sure their intellectual property has some real world value but I doubt it is that high.
Only time will tell whether the "intellectual property" is worth more or less than 31cps.
I guess we will get a fair idea in a couple of years time.

[blackcap]

Moriarty trying to screw us shareholdesr further...

https://www.nbr.co.nz/story/exiting-rubicon-execs-seek-severance-pay?utm_source=Heads+Up&utm_campaign=8ff94bd5d0-EMAIL_CAMPAIGN_2018_12_02_08_43&utm_medium=email&utm_term=0_de046f9519-8ff94bd5d0-35548589

[minimoke]

Moriarty trying to screw us shareholdesr further...

https://www.nbr.co.nz/story/exiting-rubicon-execs-seek-severance-pay?utm_source=Heads+Up&utm_campaign=8ff94bd5d0-EMAIL_CAMPAIGN_2018_12_02_08_43&utm_medium=email&utm_term=0_de046f9519-8ff94bd5d0-35548589I dont have a subscription so cant see the detail. But any severance should be part of the employment contract and thus no surprise.

[blackcap]

I dont have a subscription so cant see the detail. But any severance should be part of the employment contract and thus no surprise.

I used my 2 free weekly articles to have a look at this one. The SA is dismayed that Luke is going to get more money after he already has taken $7m while destroying wealth for RBC shareholders. Agree a contract is a contract and if that is the case well its back luck for shareholders.

[t.rexjr]

I've noted a some bot trading on this stock over the last couple/few weeks. Low volume stocks not a typical target. Would be interesting to know their agenda. The result seems to be a lower price. Clearly it must be someone trying to win the stock picking contest by way of sabotage...

[Xerof]

Yes, and it's been for far longer than a few weeks. Very small amounts sold into small bids, then small offers at lower prices than last trade if higher.

Pathetic really, don't they have some shirts to iron or something?

[whatsup]

Is there some good out there that we should be aware of as there is good interest today with the volume and price ?

Sorry should be RAK !

[minimoke]

Is there some good out there that we should be aware of as there is good interest today with the volume and price ?Are you sure you are looking at Rubicon. My charts show zero trades so far today.

[iceman]

One small buyer at 23c and sellers at 23.5c. All looks normal

[dubya]

And me at 22c :):)

[ari]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/328555/292645.pdf

[Leftfield]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/328555/292645.pdf

Golly still far to many words.....but the perhaps the key ones are;

"In that respect, the guidance we have provided the market is, that we are targeting a US-GAAP EBITDA1 result for ArborGen for the current scal year to 31 March 2019, approaching US$7 million2,5. As the critical selling season in the US (i.e. Q4 of the scal year) is still to come, at this point we cannot provide much in the way of additional commentary as to how the year-end might play out - other than to say that we believe this earnings target remains achievable,"

[ari]

Looking good to finish the year until RBC dropped the ball.....last 6 mths have been quite dismal and I was really hoping they had turned the corner.....

[minimoke]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

[BlackPeter]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

So - how much of these $5 m or whatever do they already use up to feed the troughers? I guess shareholders will be happy to pick up the balance ...

Hard to run these days a business which can't cope with bad weather events - these events will only go up in frequency and severity.

No surprises here!

[t.rexjr]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

Excludes 'corporate costs' too. Wonder how insignificant Moriarty's exit package was...

In the big picture though only short term heart ache.

[Leftfield]

Huge disappointment today, especially as some months ago management came out saying they expected little effect from the Hurricanes. Today's backdown makes me wonder about the quality of management and reporting.

TA not looking great for some time. I've lost a bit of faith in this one and have substantially reduced my holding.

[ari]

And only 3 mths earlier????? .......19 October 2018 – Rubicon announced today that its 100%-owned US operating business, ArborGen
Inc (“ArborGen”), had sustained damage at only one of its nine orchards in the US South as a result of
the recent Hurricane Michael – the third most intense Atlantic hurricane to have ever made landfall
in the US, with wind speeds above 250 km/h. Mr Knott, the Chairman of Rubicon and ArborGen said
that the Company was currently assessing the impact, and would update the market in due course, if
required. Mr Knott said that none of ArborGen’s seven US nursery facilities or any of its current year
crops sustained damage, and that the Company’s previously provided US-GAAP EBITDA1
guidance for
ArborGen of ~US$7 2 million for the current financial year ending 31 March 2019 remained in place.

[winner69]

Are these much touted superior Arborgen trees Knott free?

[winner69]

You guys need to keep the the faith if you really believe in the long term story ....what’s one storm in the big picture anyway

My view is never will be much money and performance will always be disappointing .....but current shareholders might be rewarded one day if a greater fool(s) buys them out somehow.

[mikeybycrikey]

Are these two updates not saying different things anyway. Originally, immediately after the hurricane, RBC said that everything was fine for them and they had suffered little actual damage. Now, several months after the hurricane, they are selling a little less stuff because forest owners a planting less.

I'm sure that I see this as a particularly big deal at this stage, and it feels like it has already been priced in, with the SP dropping about 25% in the past 6 months anyway.

[Balance]

Wow!

Anyone reading the comments here this morning would think the sky has fallen in!!!!

Read the announcement carefully and you can see that in the last update*, RBC sustained limited damage to its own tree growing and nursery operations but this impact update is as a consequence of its customers being severely adversely impacted by the hurricane.

RBC has undertook to update once they have assessed the damage and its impact - which it has done now.


* http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/325562/288924.pdf

[beetills]

Hopefully forest owners that suffered damage to existing trees may pick up the slack,if thats possible.

[minimoke]

Wow!

Anyone reading the comments here this morning would think the sky has fallen in!!!!

Read the announcement carefully and you can see that in the last update*, RBC sustained limited damage to its own tree growing and nursery operations but this impact update is as a consequence of its customers being severely adversely impacted by the hurricane.

RBC has undertook to update once they have assessed the damage and its impact - which it has done now.


* http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RBC/325562/288924.pdf
having people on the ground (as it were) in the US gives them the advantage of near instantaneous market intelligence gathering. I'm surprised it took then so long to identify this damage. Suggests to me they are a long way from touching their customers.

[Leftfield]

Wow! Anyone reading the comments here this morning would think the sky has fallen in!!!!


I hope your optimism is well rewarded Balance.

However, if you look at the TA, you'll note RBC is in 'death cross' territory and this (along with today's news) signals possible further declines or a continued SP drift sideways. Any more bad news out of the USA or more Bear market shenanigans then I suspect there will be further SP losses.

I always like to prune weak stocks from my portfolio early, so I'm fully out now. I'll revisit RBC when/if there is more positive news or the start of an uptrend.

GLH and DYOR.

[Balance]

I hope your optimism is well rewarded Balance.

However, if you look at the TA, you'll note RBC is in 'death cross' territory and this (along with today's news) signals possible further declines or a continued SP drift sideways. Any more bad news out of the USA or more Bear market shenanigans then I suspect there will be further SP losses.

I always like to prune weak stocks from my portfolio early, so I'm fully out now. I'll revisit RBC when/if there is more positive news or the start of an uptrend.

GLH and DYOR.

TA on a stock like RBC is as useful as tits on bulls.

[Invest in good stories]

I've been waiting for the update to market on this and I must admit the update was better than I thought. Last year Rubicon said their plantations weren't terribly damaged (a great result) and that EBITDA shouldn't be affected (just not believable). If you've been following Hurricane Michael, it was the biggest hurricane to hit Florida in 50 years. 50 years! In the months since, respective forestry organizations in the states hit have put the amount of forestry land damaged at over 5m acres. Florida and Georgia are each at over 2m acres each. So with that much damage of course land is going to be affected and the first job for forest owners will be to clear the enormous amount of damage and try to salvage whatever wood they can and get it to market. That salvage operation will mean that some will just flag plantings this year - they need to get $ in. So only a US$1m hit is pretty remarkable I think. I agree with others on this site that the notice today does show to me that information at the bottom of the organization (the forest advisors of Arborgen must have known this for a while) isn't flowing to the top and that's a concern. I also think it shows the weakness of the board in that they are now heavy with skilled investors but not skilled forestry people (Mr Fletcher included) who've got there hands dirty at one stage or another. A bit like the Fletchers board of the last couple of years alas. Forestry people would have known there would be an impact. However those concerns aside, if you're in Arborgen for the long haul (I am having bought in 2 years ago) that damage to land only means greater plantings in the years ahead than would otherwise have occurred. I'm suspecting/hoping Arborgen are not pointing this out however as it would be insensitive to those affected and not help long term on the ground relationships.

[minimoke]

Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.

[BigBob]

Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.

My favourite from the announcement is this gem...: "Further announcements may be made in due course"...

Wow...!! Really...? Is that so...?? Surprised they didn't make the announcement price sensitive...!!!!

[blackcap]

Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.

another $100k PA to the package :)

[Balance]

another $100k PA to the package :)

Good one! :D

[winner69]

Bit of life in the RBC share price

Must be due for some news from then soon

[Xerof]

Life??

I saw somebody dropped over 700k into the market a week or so ago. I thought it might have been Balance raising more money for his Metro stake, as this one seems to be becoming a 'lifestyle share' for the directors. Deja vu all over again

[minimoke]

Hopefully these folk wil use Aborogen sources trees https://www.radionz.co.nz/news/business/384699/air-nz-z-energy-contact-genesis-join-forces-to-grow-forests

(Though I actually wish they would plant natives on marginal land than exotics)

[sb9]

Sitting precariously on 0.20c support, if that's taken out wonder where next stop is gonna be...

Glad to have exited in Jan this year when they came out with trading update/downgrade.

[t.rexjr]

(Though I actually wish they would plant natives on marginal land than exotics)

All in good time apparently...

[t.rexjr]

Sitting precariously on 0.20c support, if that's taken out wonder where next stop is gonna be...

Glad to have exited in Jan this year when they came out with trading update/downgrade.

It seems to be getting bid down, Many a worthless trade dropping the price. Have started to ponder whether there is a plan afoot.

[BigBob]

It seems to be getting bid down, Many a worthless trade dropping the price. Have started to ponder whether there is a plan afoot.

It looks suspicious doesn't it...? It has been sold down to the bid constantly for a few months now...

[sb9]

It seems to be getting bid down, Many a worthless trade dropping the price. Have started to ponder whether there is a plan afoot.

That's been the trend over past few months, after nearly holding for close to a year (frustratingly) the price went no where and finally decided to bite bullet when trading update came out (capitulation time).

[Leftfield]

That's been the trend over past few months, after nearly holding for close to a year (frustratingly) the price went no where and finally decided to bite bullet when trading update came out (capitulation time).

I agree, I had hopes for this one, but got out when they contradicted themselves regarding the hurricane damage effect on their revenue. They need to show improved management (and financials) before I return.

[sb9]

I agree, I had hopes for this one, but got out when they contradicted themselves regarding the hurricane damage effect on their revenue. They need to show improved management (and financials) before I return.

Terrible management, that's all I can say.

[sb9]

0.20c resistance broken?? where to from here....