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A good run today, finishing at almost 100p. Could we see another good report and a run to the 150s?
This feels like a death by a thousand cuts !! Let's hope in the next update says they are sorting these bonds out.
If not we will keep drifting down to probably all time lows.
Come on Petra stop sitting on all that cash and make us shareholders happy for once in your history.
AIMHO
I have attempted a simple fundamental analysis of Petra Diamonds. These are my own thoughts and I might very well be totally wrong.PETRA DIAMONDS----------------------- 1. Current Ratio (financial condition): good at 3:1 and improving, this can sustain PD at difficult times. 2. Size: £182m too small for many investors, considered risky. The SP might get an artificial catalyst if market cap reaches 0.5bn-1bn, as more investors will be open to the asset. 3. Earnings stability: lacking, but improving trend in the last couple of years 4. Dividend record: poor record, will take a years to improve (post investment completion) 5. Earnings growth: in recovery 6. Price to book ratio: 0.49 good 7. P/E: 2.81 good 8. Long term liabilities: the £500m exceeds working capital by 2.5/1. I believe it consists of the bonds, and this should preferably be reduced soon using parts of profits / positive cash flow (it will take a couple of years to bring down to reasonable levels)CONCLUSION: it might take 2-3 years to ‘tick’ all above metrics, however, the potential increase in SP is significant if successfully achieved. Personally, I will be sitting still in the boat.
This appears (to me) like one of the most undervalued gems I have come across in my very long investing experience. Looking at the fundamentals, the SP has gone down in the last year, while all KPIs (including profit) now goes up. Logically this doesn't add up. However, prices are a function of supply and demand and sentiments takes time to change. Its quite common to be wrong in the short term, to be correct in the longer term, when investing in a turnaround (value) company. A long term sentiment can be difficult, but also rewarding!
Any news on the redemption of bonds? If it happens, it could be a 'gem-changer'.
Thanks, NtD for coming back and your analysis
Hi Rugby,
You are correct it has gone very quiet. However, I take this as a positive sign that PDL is aiming to re-set to a bau setting after a few years of cash strapped living. In the cash-strapped life, you RNS for every large diamond found and every sale as you want to highlight the positive on cashflow. As we close towards normal life, with net debt set to be a thing of the past and a net positive position, I am hoping that the silence into this result period reflects a desire to go back to a more normal reporting process.
If I had any spare cash at the moment I would definitely be putting it here - I am of the belief that the next results will give a strong positive to the share price. However, my main holding here is for the long term and on that basis I am very happy to hold here - possible 100% uplift in next 12 months is my view.
GLA
NtD
Hi all, my first time posting here. Just wanted an opinion on what the current state of play is with PDL. We don't look to have had any form of RNS telling us what's actually happening with the company. I've questions like are the mines open and running as they should be, are they producing diamonds. Have we had any blue diamond's recently, are we selling. It would be good to get a group view of what's actually happening. Thanks
UK markets are made for shorters!!
Petra should delist ASAP and get some recognition somewhere else.
Any US exchange would have Petra at 3x its mcap now.
I'll say it again them bonds have petra by the short and curlys big time.
Petra BOD need to sort it otherwise this will drift down to 70p!!!
AIMHO
60k worth of trades and mkt cap down by 10m. Londons biggest casino. Why any company would list here is beyond me....
Seems to be downward pressure here !! Where it goes no one knows ???
Itsaponzi - totally agreed! It can't hurt to put this suggestion to investor relations. PD is on the verge of total transformation, from serious existential challenges to a profitable company.
Atalaya mining pay a 15% Divi !! Gkp pay more !!
Where else can you get a return of over 11%?
We need a RNS either saying the bonds are being restructured or they are buying them on the open market!!
The cash pile must be pushing 320m US now ??
Then we might see a nice 50% rise untill then we are dead wood floating with almost no volume .
It's a waiting ge because it can't carry on like this anymore the company needs to seriously push on now.
This is a no brainer!
Will someone upstairs grow a pair and pull the trigger.
I'll answer my own question. They are trading at 95c to 1$. So if PDL go into the market and buy at 95c not only do they save the 10.5% coupon, they also add 5c back ono the balance sheet. `Seems like a good idea to me!
Anyone know what the bonds are trading at?
CFO mentioned this in the last conference call. Said they were looking at it given the amount of cash on hand.
Redwineday - this is a very good and important question.
If true, it would be excellent news for shareholders, as the company now turns a profit and over the long run probably can redeem the bonds. It might be wort to ask to Pose this question to the company.
Someone can correct me if am wrong but as I understand Petra can go into he market and buy the bonds themselves. This is not classed as a redemption, thus no penalty.
Anyone know were mc carrots has gone strange but loveable fellow I'm on the sidelines at the moment been a pdl player in past and have a lumpy buy order at 88p happy hunting everyone
Whilst some of the Bond holders may also be share holders the Bonds themselves only earn interest and are at some point re payable.
I appreciate that a premium is payable if any of the Bonds are re purchased but all of this is an aside to the Companies financial position.
As the cash continues to pour in, the Bond position should be well covered leaving the Shareholders in a very good position.
Is this too simplistic and am I missing something?
It's the elephant in the room !!
£200m mcap is just outrageous so yes the bondholders have this squeezed by the goolies literally.
Only a Restructuring of them bonds will move this now.
All Petra can do is just build their cash positioning hopefully the bondholders will release the shackles because at some point they will have to ??
Hold tight and wait ..
or is it only 9%???
Maybe the outstanding bond has somthing to do with the low share price.
It is still 3 years away?
So how much of the company is actually left for shareholders?
one third??
I don't really know if someone can comment thanks