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Member Info for MrMagic


Member Since: Mon, 13th Jun 2011

Number of Share Chat Posts (all time): 7,980
Number of Share Chat Posts (last 30 days): 21

Last Posted: Thu 16:46


Post Distribution over the last 30 days




Thu 16:46


unluckyruss - "how can anyone say this is not under valued."

I think the issue is and always has been that the consideration is not simply about the perceived value of the assets. If it were that simple then I agree the SP would not be where it is. The consideration I think has been around HOW LONG it will take to realise the value of the assets and HOW MANY SHARES will likely be in issue before we get there. So for example if you & I were to jointly agree that the Greenland asset was worth say £5m (arbitrary amount for sake of argument) there is more to consider than just the MCAP increasing by £5m. What people (I believe) are assessing is how many years it will take for the Greenland asset to be sold for £5m and how many more billions of shares might be added between now and then. There is clearly risk involved and picking the right time to invest is obviously crucial for a share that has historically been repeatedly diluted.

The solution for the SP is really very simple. Put in place a business strategy that requires no shareholder dilution and then the value of all the assets, imo, will be immediately added to investors perceptions and the SP will rocket.

As it is, when the company pretty much out of the blue drops bombshells like the recent 1.5 billion share placing, giving discounted shares to HNW investors, well, people's confidence understandably isn't going to be very good and the perceived risk factor of leaving your investment open to such dilution will likely be high.

Bottom line is simple. Either demonstrate that there is no longer intention to continually dilute shareholders or deliver results of value that counteract the downward SP pressure of dilution. Draw up a business plan, communicate it, stick to it and deliver it.

Thu 15:17


rrrRRRrrr - " I don't care if it was poor English, mis understanding or WHatever. £450 k was received yesterday"

Ok. Well the RNS clearly stated:

"the REMAINDER of the first tranche of consideration monies, amounting to USD 450,000, has been paid by the purchaser"

It's more than just bad English if indeed $450K was paid yesterday. It what you say is true then the only statement required would have been:

"the first tranche payment of USD 450,000, has been paid by the purchaser"

I don't get why there would be any need to even consider the word "Remainder", it makes no sense. You can surely see why there could be confusion here. I'm pretty sure I've seen posts of others on ADVFN which also suggest that part of the $450K had already been paid. It's a bizarre situation to be in if such a simple thing is not inherently clear.
Thu 13:54


"No we we paid 450k yesterday"

Ok I am confused then and the figures I posted yesterday were likely incorrect. Yesterday's RNS stated:

"the REMAINDER of the first tranche of consideration monies, amounting to USD 450,000, has been paid by the purchaser "

The deal terms were given in the RNS of 14th Apr where it said:

"The first tranche of USD450,000 will be payable at the closing of the transaction ("Completion")"

So if the first tranche was for a total of $450K and the remainder of that has just been paid, then how much had already been paid, and how much was the remainder?
Thu 13:39


rrRRRrrr - "So there is no debt."

Could you comment on the £2.6m listed under "Trade and other payables" in the Liabilities section of the recent Interim Report please. Do you not class that as a "debt"? Does it have to be paid? Genuine question.

rrrRRRrrr - "Plus $450k we got yesterday."

Wasn't what we got paid yesterday just the remainder of the first tranche payment since part of it had already been paid. Is that not correct? Happy to hold my hand up if this is wrong. How much was actually paid yesterday in your opinion?

Also I'd appreciate your comment on this RNS statement:

"Kenya-related items were in the books of the Company at a carrying value of approximately £8.5m. In the event that there is no rapid and positive outcome in Kenya, the Company will expect to make a further impairment of these assets at year end."

What does that actually mean for us ? I'm not an accountant so I don't understand the implication. Presumably it is "funny money" i.e. just a case of how things are shown in the books? Will it mean the company shows a loss at the end of the year of that magnitude or is it irrelevant? Again genuine question.
Wed 14:00


Fairly mooted market reaction to deal closing it seems so far.

The RNS mentions the "remainder" of the first tranche payment having now been paid. I'd appreciate someone else confirming how much that is but for now I am assuming that this relates to the $100,000 paid by the buyer for exclusivity. If so that means the remainder now paid is $350,000.

The deal had 7% commission to be paid (and I've seen nothing to suggest that this doesn't still apply) and on that basis the numbers as far as I can determine (please check yourself in case of error) come out as follows:

Payment $350,000

7% Fee = $24,500

Remainder = $325,500

Converting to GBP at today's rates that equates to £212,091

That would represent approx. 7% of current MCAP of £3m.

The next payment tranche is 9 months away and will be $225,000 ($209,250 after deducting fees or £136,332)

The deal closure is more of a symbolic event than anything I think and AB seemed to agree with that in this dialogue with a Twitter poster:

https://twitter.com/armcmb/status/598411564560027649

The real future lies with the Jupiter assets imo and the recovery of the iron ore situation.


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