Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I hold both ECO (Canadian market) and SAVP. I initially bought SAVP at around 27p, sold at 15p and bought back in at sub 13p so I'm still down on my original investment. I wouldn't be buying more SAVP right now as I think they'll drift back in the next few months until the confirmation of the 7 deal . These companies share prices often do as a lack of announcements will inevitably result in a drip drip effect as people offload for "more exciting" stocks.
But once the deal is finally done I would hope that the price would get back above the 30p mark and then go higher depending on future drilling. That won't happen until next year though.
ECO is different - they (well, Tullow) went straight into another well after the first discovery. The prospects for this look just as good as the first so folk will keep buying on anticipation of more success. The difficulty now comes from trying to decide whether to offload all, some or none.
As for SAVP I'm not selling any.
I have just added a few. Unfortunately in a position now where had to sell elsewhere to add so dumped BNC, I had a 6.5% divi, 2.5 x covered and a pe of around 7 there so just goes to show confidence now in savp. Imo this is just an investor lag. There is a lot of info for insti’s to absorb. We haven’t seen many big buys yet most looked autonomous or PI. I think the trading compares to ECO where they had news and then the SP pulled back only to take off again in last couple days. We’ll see, Trek.
I'd have expected this to be into the 20's p yesterday or at least today. If there was even pretty full on buying pressure then the MM's would have to let this go readily enough. It shows to me what an unloved space the O&G AIM one remains. Too many II's/PI's looking at glass three quarters empty in this sector as their default.. and plenty of that is off the back of the renewable instead of non renewable theme imho. The excuse of a few workstreams still to complete ahead of the deal finally completing will of course be cited. In a more positive environment those streams would be expected to happen relatively smoothly/quickly and the price would more reflect this deal very likely completing by end Oct. Alas even when it completes sentiment may well still be poorer than it should/could be thereafter too. So getting to 40p here might be more hard fought than some here might think...
MM playing games. Hold everyone dont give them your shares
Interesting to watch the behaviour of the Market Makers on RSP this morning. Despite strong buying (though less than yesterday) they are working in unison to try and drive the sp down. Why? Because they sold millions of shares yesterday that they don't have and want to get from PI's at lower prices to make money. As long as PI's keep buying today and the sells remain as few as they have been this fake drop in sp can't go on. Likely to be in the 20s by next week imho. Today to date we have 900k buys and 550k sells including the latest 300k sell. Looking very healthy.
If its all blue why is the SP dropping
After strong buying start to the day the MM's are trying to squeeze the bid and offer down as they don't have stock to sell and will try and persuade a few holders to give up their shares.