Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Well this is Dull.........
Earache, I think you need to check the definition of a SPAC, in case you can’t be bothered here you go... A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital for the purpose of acquiring an existing company. You funnily enough left out the bits of that RNS about their continued long term commitment to their gas production business.
I’m also pretty sure VLU is main market not AIM, but hey I’m too lazy to check ...maybe you could do that for me.
Dave, honestly dont bother engaging with earache, self righteous and useless little man. I filtered him a while ago now. Boards read much nicer without reading his constant confrontations and verbatim posts. It's easy to see why he chose his username and he's pretty much universally disliked as I'm sure you can see why. Most people can tell the decent investors from the trolls but he makes a habit of going after the former.
Did I say you were wrong? I may disagree with some of your ideas, but you are entitled to them, and I’m always interested to see where people think things are going.
Ok I’ll go along with your whimsical notion that they get to a position where they have zero cash in the bank - at that point with no operating business and no prospect of an RTO I would indeed value them at zero!
I know VLU, it is not a SPAC. They are looking for an acquisition to add value but that is nothing like an AIM cash shell - completely different kettle of fish with completely different rules.
I research a lot of RTO plays and Cash shell transitions MOGP included but have been in enough SPACs to become less caught up in sentiment and more focussed on the fundamentals.
I’m happy to be proven wrong, just can’t see how the mechanics would differ here to similar cash shells, if anyone has any examples that prove I’m talking b0llox as you so eloquently put it, feel free to highlight them - but only if they are an AIM cash shells please!
This share is a dream for short term traders so I imagine the price will jump between .25 and .35 every 14 days.
And fair play to the short term traders its 40% profit buying the low and selling the high. Spac is a punt on the outcome at the very end so the weekly share price is irrelevant from that point, unless your bounce trading then obviously the weekly price and daily highs are your profits
Your comparing apples and oranges, this is a SPAC not a gas company. From my experience of Cash shells, it quite often comes down to exactly what it says on the tin - Cash.
Didn’t say it will reduce to zero, but certainly will head back to cash if they haven’t got a deal by September.
In reality there will probably be little news flow until suspension due to a deal, or failure to reach a deal. Negotiations have to be kept confidential, so any SP rises are purely speculative.
I reiterate I think this is decent entry but you wouldn’t want to be getting in much higher.
How do you see this playing out if you don’t mind me asking?
took a few more.
I sense a disturbance in the force.
DYOR
I would argue cash value is the most important thing to look at when investing in a cash shell.
Look at CCAP and RDGC recently, you can have a good board, you can have the sentiment, but trading overvalue is not sustainable, and at the end of the day all that matters is the most basic fundamental. If you’re not careful with your book cost, one RNS and you could find yourself 50% down quicker than you can say investing company!
Having said that, it’s not a bad entry here.
Dave agree with you on your valuation.
Three million cash in bank give or take them three million for the cash shell itself is generally what has been seen on other clean shells with market caps ranging from one to three million. So the 0.34 is probably top end until some news.
And before you start Earole, you have your own method of working out company value, understanding the cash value of any company is surely a fundamental before dipping a toe? To say no point bothering is poor show! KR BC
Just trying to work out cash value, roughly about 0.17 I make it? ...Still room for manoeuvre but I would say upto 2x cash is all you can expect for a SPAC right now without news.
How much cash they got here? Is it circa 3 mill?