Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Just wondering if anyone knows why on earth someone would buy 2 shares, or 4 shares?
The dealing costs alone wouldn't make it worth it?
Big investment firms do not pay dealing charges, or stamp duty. Single digit trades on slow moving stock allow the bid and ask to be manipulated. You see on google, its gone up to 65p, but really it is just covering up £10k sell at 62p. Fictional example, didn't watch the trades yesterday.
Seems DWF is good value currently, though we do not know how much good value it is, due to lack of profit guidance, which was a strange choice. Happy to hold, dont expect it to move much soon.
Thanks for the reply.
Strange volume/price action here. Not seen like this before.
I’m long so not an issue, but was just curious.
Almost 8% spread!
I hear rumours of a covenant breach and equity fundraising to remedy from a broker... sentiment here certainly seems poor, not helped by the delayed trading statement and the failure to mention profit... This share is close to covid lows right now which doesn't make sense considering the underlying performance and fundamentals of the business.
What are they hiding within that trading statement? Share price action suggests fundraising at 50p is imminent, can't really explain it otherwise. Whitelaw consideration shares subject to lengthy lock in so its not them, not sure if any previous acquisition shares are being sold
There seems to be some truly desperate selling here to be dumping at such a bombed out valuation
This doesn’t make sense to me.
The company seems sound, doing great things, gaining new business, positive trading statement, so why are we at historic lows and sinking fast.
Guess we will find out….
The Zeus statement seems much more bullish than Liberum, a small miss on sales and profit but improvements to next year and no mention of leverage or cash conversion challenges despite a ratio of 1.6x compared to the covenant of 1.75x. A dividend of 9% next year is high enough to suggest that this is not sustainable. I guess we will see, a temporary covenant waiver from banks would help, would they pitch a fundraise at below 50p given institutional backing? Otherwise next news in July
Liberium are clowns, did exactly the same to NEX post results and the sp sunk 10%.
The same analyst had a hold at 80 just after results, and then downgraded the next day and the markets have listened and ignore Berenbergs very positive analysis.
This is purely down to Allen from Liberium imo
It seems such a severe reaction one one negative review after a generally positive TS?
Granted the volumes here aren't massive so it's the retail investors who are spooked with talk of a covenant breach.
DWF advise other companies on avoiding covenant breaches so this doesn't add up to me. Their reputation would be in tatters if that happens?
Yes it would, wouldn’t it. Perhaps that’s the reason the price is dropping?!