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Share Views - Ferrum Crescent Exec-Chairman Justin Tooth talks on his re-structuring strategy and exciting new projects Watch here

Share Views Episode 13 - Ferrum Crescent Exec-Chairman Justin Tooth talks on his re-structuring strategy and exciting new projects

Member Info for MrMagic

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Member Since: Mon, 13th Jun 2011

Number of Share Chat Posts (all time): 9,291
Number of Share Chat Posts (last 30 days): 52

Last Posted: Wed 13:02

Post Distribution over the last 30 days

Wed 13:02

Here's the problem I see with current SP.

On 30th Aug there were 252,384,571 shares in issue and the (pesumably) best price the company could place new shares at was 0.4p. The MCAP for me at that point was thus 252384571 * 0.4p = approx £1m.

Today, after a few more shares we have 327,384,571 shares in issue and MMs want around 0.6p for shares.

That would equate to a MCAP of (327,384,571 * 0.6p) = £1.96m

So according to the MMs, this company has gained circa £1m in MCAP value since that 30th Aug placing which raised just £300,000. Hmmmmmm

Doubtless my logic is flawed but I simply don't buy the story.
Wed 12:42

Still claiming confidence Gilg yet you're still here ramping the sound bites. Doesn't wash for me sorry. Just looks like you're trying to convince others of your beliefs. As others have rightly stated, the problem here and at RRR has been that whatever value you perceived was in the assets, it gets whittled away by each dilutive placing. That makes the case for investing early extremely risky imo. The killer blow comes if/when placings are done at discount and/or when they are done simply to fund "working capital" as per the 75,000,000 recently placed. Working capital doesn't tend to add any shareholder value imo.
Wed 09:20

I noted also that the recent placing raised £300,000 for the purpose of working capital. 75m shares were issued @ 0.4p which was approx a 30% increase in the share issue. All for working capital ! So in effect PJ was buyng placing shares to raise money for admin and salaries etc which he will presumably benefit from once he takes his board position.
Wed 09:12

Placing prices are never irrelevant imo. They reflect, imo, the true price that city boys will pay for the shares. If the shares were worth 0.6p then AB could have done the placing at 0.6p. Reality is he placed at 0.4p and threw warrants in to boot. I can't see that anything materially substantial has happened since that placing, i.e. no $millions have arrived from anywhere to inflate the MCAP etc so I remain very sceptical about MMs current pricing. I'm not the least bit interested in what PJ has bought as when he takes up a board position he will I assume be on the payroll gravy train so for me he is just spending salary money in advance.
Wed 08:33

I can buy 1,000,000 of these with no difficulty at all but MMs want over 0.6p which is laughable given the last placing price at 0.4p Must think we are fools !
17 Oct '16

Been on hols that's all. Internet availability was limited and some of it ridiculously expensive to the extent I wouldn't pay for it.
17 Oct '16

I agree with Gilg. PJ is not about to sell imo. I believe his stake in the company is there for a purpose, but I don't believe it's the purpose that Gilg talks about.
17 Oct '16

Not seeing it Colin TBH. I'm not seeing the usual tell-tale stream of large round trades that we generally see before a placing. There have been a few 200,000 share trades but little more than that. I'd say a few people are simply building positions on the back of the #RareEarthRamp. I suspect that in the not too distant future this board will be temporarily flooded with new aliases all pumping like crazy to generate a spike. Very much same old imo.
16 Oct '16

Strange comments there Gilg. I haven't mentioned AB at all. I've presented the simple case that the situation in Greenland is complicated and I've provided one of a plethora of articles out there that explain it. People as far as I can see are simply challenging what they see at "just the next ramp" which this share and RRR have suffered repeatedly for years. There's nothing new being brought to the table here. Just the latest prospect being over-hyped by traders with the usual sound bites of "re-rate", "multibag", "something brewing" yada yada.

Bottom line as with all these kind of shares. Where is the money going to come from to fund expenditures, expenses, salaries etc?

I've offered you an open bet that the resolutions for the next AGMs here and at RRR will contain requests for authority to issue a shed load more shares next year. You've declined that bet so not much more to say. Good luck with your trade.
16 Oct '16

The SP isn't any indicator of the prospects of the asset in question nor does it have anything to do with the laws and regulations of mining in Greenland.

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