what happened with RYSAS today? - plunged 48%

[investmd]

Can't find anything online to explain the drastic fall

[RetroRanger]

They had some weird split thing. Combination of split and new shares from what ive heard .

[Mikekryan]

Any update about this situation? This is what I could find

 

 

[gfp]

I don't know anything about this company but it sounds like it was a rights offering -

 

https://translate.google.com/translate?sl=auto&tl=en&u=https://uzmanpara.milliyet.com.tr/kap-haberi/rysas-reysas-tasimacilik-ve-lojistik-ticaret-a-s--sermaye-artirimi---azaltimi-islemlerine-iliskin-bildirim/1863730/

[RetroRanger]

Yes, new stocks at 1 Lira is soo cheap but i have so little understanding and also there is so much risk with Brokers Like Degiro to handle this correctly...

[dabuff]

Which brokers have you all used to invest in the stock?

[Mikekryan]

I’ve used DEGIRO. They just sent email to us explaining how to participate in the rights issue. 
 

are people generally going to participate or not? Are you bullish or bearish on RYSAS?

[investmd]

Seems like an option to buy shares during a Capital raise. 

Does that mean pre-existing shareholders can buy in at 1 lira whereas new investors have to come in at today's price of 3 lira? Company was trading at 8 Lira a few months ago. 

[RetroRanger]

Good to hear Degiro ist Handling this correct. Read sonewhere the Stopped Trading turkish Stocks due to Lira Vola.

 

@investmdthats how i understand IT!

[Thelilyinvestor]

I was going to buy it last week through DEGIRO and they didnt let me, they say that trading in Turkish Stocks is suspended due to the lira volatility.

I hope they let clients buy soon, will post if they do.

[RetroRanger]

Watch the end. Hes talking again about reysas . He first thought of them as 50 Cent for 1 dollar and sell IT, but now thinks of it as a potential 100 bagger over 20-30 years, as long as the moat stays intact. 

[Mikekryan]

I am using DEGIRO and they are not allowing any purchases of Rysas currently. They said we can’t purchase because of the rights issue, however we had been notified it was due to currency fluctuations recently. Are any others experiencing this and know when this will be resolved?

From DEGIRO 

Due to recent developments in Turkey, we have temporarily stopped the possibility to buy shares on the Istanbul Stock Exchange. With this measure in place, we will also cancel all open buy orders for the Istanbul Stock Exchange.

 

 

[Thelilyinvestor]

Hi Mike,

I asked them and they cannot answer when trading from DEGIRO in Turkish stocks will resume... so it might be a painful wait for a while... 

[investmd]

@RetroRanger thanks for posting the Pabrai video. Interesting perspective on 100 baggers. 

[Mikekryan]

@RetroRangerCan you link your video here please? 

[Krapdivad]

$RYSKF Reysas

 

Pabrai says he bought a Turkish company when it was a $20M market cap and a $500M liquidation value.

Now it's over $100M market cap and $800 M liquidation value.

 

Reysas fits the marketcap description and timing of his purchase.

 

However, looking on TIKR I’m seeing a book value of $10M in 2019 and $80 M currently.

 

Anyone know why this discrepancy in the liquidation value?

 

I’m assuming the value of the assets such as real estate has risen considerably. Especially due to the devaluation of the Lira. 

Edited October 22, 2021 by Krapdivad

[Krapdivad]

22 hours ago, Krapdivad said:

$RYSKF Reysas

 

Pabrai says he bought a Turkish company when it was a $20M market cap and a $500M liquidation value.

Now it's over $100M market cap and $800 M liquidation value.

 

Reysas fits the marketcap description and timing of his purchase.

 

However, looking on TIKR I’m seeing a book value of $10M in 2019 and $80 M currently.

 

Anyone know why this discrepancy in the liquidation value?

 

I’m assuming the value of the assets such as real estate has risen considerably. Especially due to the devaluation of the Lira. 

 

Found how how Mohnish is valuing the liquidation value or the replacement cost of the company. 

He explains it all in this sumzero talk at 38:50 min 

 

Reysas has 12 M sq ft of warehouses

Costs $80-$100 / sq ft to replace warehouses at current steel prices 

This gives you ~$1B of assets 

- $200 M Debt 

= $800 M in liquidation value 

[Aurel]

Mhh…Would you bet on liquidation value in turkey?