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Exclusive: Hardman & Co Investor Forum - Severn Trent, Calculus Capital, Volta Finance, Residential


Bushveld Minerals Share Chat (BMN)



Share Price: 25.25Bid: 0.00Ask: 0.00Change: 0.00 (0.00%)No Movement on Bushveld
Spread: 0.00Spread as %: 0.00%Open: 26.75High: 0.00Low: 0.00Yesterday’s Close: 25.25


Share Discussion for Bushveld Minerals




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Uksteveg
Posts: 2,478
Opinion:No Opinion
Price:28.50
RE: Largo up 18 %
23 May '19
Just also noticed that the fund went up just over 1% yesterday. So we can expect another increase in their holdings for Bushveld. I’m looking at the chart, assuming I am looking at the right one, it shows a modest decline in the fund price for the two week period covering roughly the end of April / start of May the fund did fall about 10% so in that period they would have been selling?

Any thoughts Alfa?
 
Uksteveg
Posts: 2,478
Opinion:No Opinion
Price:28.50
RE: Largo up 18 %
23 May '19
So any buying by this fund on the 21st must’ve come after the release of the RNS? That was about 1140 and up to that point had been hit by sells.
Wolfman_Jack
Posts: 368
Opinion:No Opinion
Price:28.50
RE: Largo up 18 %
23 May '19
Just to follow-up, Van Eck updated REMX holdings for May 22.

On May 21 they held 13,082,776 shares of Bushveld Minerals Ltd representing 3.48% of their fund.
On May 22 they held 16,912,536 shares of Bushveld Minerals Ltd.representing 3.38% of their fund.

They had to buy these shares to create units in their fund so as to try to track the price of their underlying index as algos went nuts buying REMX in unprecedented volume for this tiny fund.

It is my opinion that the buying of 3,829,760 shares of Bushveld on May 21 contributed significantly to the positive price movement that day.

None of this is to say that Bushveld is not an excellent company.
Alfacomp
Posts: 10,140
Premium Chat Member
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
22 May '19
Uksteveg - the spot market for Vanadium and the small number of companies that cover it is about as non-transparent as you can get, some would say that such a system is highly manipulatable, I couldn't possibly comment.
Uksteveg
Posts: 2,478
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
22 May '19
I made the comment yesterday that I could not get my head round why TPEP would short us, based on both their very limited track record shorting , and also the fact it's only them declaring doing it. I agree this ETL is a bit of a red herring, we will find out later how that and the short position have been impacted.

I'm also a little baffled by the various spot prices for Vanadium which are both inconsistent and do not seem to directly reflect the real world, it's certainly not in any way comparable with the price of gold ( as an exampl.
YTSS
Posts: 987
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
22 May '19
If buying BMN regularly goes yo NT how would those with such large shorts buy back in large volumes so quickly. If the delayed trades from yesterday are correct they are all large within short timeframe
Alfacomp
Posts: 10,140
Premium Chat Member
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
22 May '19
faramog - indeed I have had rather a lot more than 75K since then so all this stuff about the rise in both BMN and Largo being down to an obscure ETF buying is a load of old hogwash.

The simple fact is that either a significant number of those shorting have been scared off, or the European spot Vanadium price based on very very low trading quantities (perhaps less than a few hundred tonnes) is about to bounce hard. Or both.
faramog
Posts: 3,858
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
the ETF holding in Bushveld has gone up approx 75k shares since 8th April ... just for interest
SquirtyFlower
Posts: 2,543
Opinion:Strong Buy
Price:28.75
RE: Largo up 18 %
21 May '19
The following link lists the holdings of REMX. It appears to be updated daily so currently shows the list as of the US close yesterday. It will be very interesting to see the next update. I'm also guessing this ETF could be another source of the 6m or so shares loaned to our officially declared shorters (can't remember their name).

https://www.vaneck.com/etf/equity/remx/holdings/

Largo Resources Ltd 3,869,664 shares (which was 3.31% of the fund)
Bushveld Minerals Ltd 13,082,776 shares (which was 2.97% of the fund).
kcfb
Posts: 55
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
Thank you Wolfman_Jack....I have now had a chance to look into REMX and agree that this is likely to be one of the more significant factors behind today's rise, coupled with the RNS and (possibly) a target being reached by some of those shorting the stock......again, many thanks for bringing this to the board.
Wolfman_Jack
Posts: 368
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
The fund manager Van Eck has an obligation to have its fund track the value of its underlying holdings, if there is excessive demand for the ETF (as there obviously is today just look at the volume) then the manager will create new shares to try to keep the price in line. They create new shares they have to buy more of the underlying of all companies held in the fund proportionally.

It holds a lot of small illiquid names, and I would imagine some hedge fund types are front-running this trade (i.e. buying the underlying holdings knowing Van Eck has to regardless of the price)

You can track the difference between the value of the fund and what it's trading at using the following links. That the Intraday Indicative Value (IIV) is so much less than the fund value, it indicates they are seeing excess demand and are creating shares to bring it in line.

https://finance.yahoo.com/quote/%5EREMX-IV/

https://finance.yahoo.com/quote/REMX/

https://www.fidelity.com/learning-center/investment-products/etf/primer-on-etf-valuation
bassguy
Posts: 1,556
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
Wolfman - thanks, why do they have to buy additional Bushveld, why create more shares in the EFT? Does the value not just increase. Showing my ignorance here, just tried to read up and am none the wiser.
Alfacomp
Posts: 10,140
Premium Chat Member
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
Wolfman_Jack - indeed REMX have been steadily accumulating shares in both BMN and Largo since mid march this year.
Expert10201
Posts: 622
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
Wolfman, so BMN and Largo are inter linked via ETF Investment vehicle. These 2 shares seem to have a close correlation looking back in time
Wolfman_Jack
Posts: 368
Opinion:No Opinion
Price:28.75
RE: Largo up 18 %
21 May '19
They are both held in REMX which is a US ETF experiencing some insane algo-driven volumes and is having to create shares, hence buy underlying holdings.
Expert10201
Posts: 622
Opinion:No Opinion
Price:28.75
Largo up 18 %
21 May '19
Can someone tell me why Largo Resources is up 18 % ? Being shorted by same organisations shorting BMN ? And they are closing positions on both? Some coincidence both BMN and Largo rally to a large degree same day




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