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You can also use CFD if it is a bit more long term.
Spreadbetting is the best way to hedge. You need to work out the amount per point. Very cost effective for short term hedge.
I am desparately trying tomfind acway to hedge a UK ftse 100 stock other than spreadbetting....
Any ideas would be well received
That is a good and realistic strategy. I have made the mistake about holding on too long a couple of times. On one occasion, news leaked and the share tanked - luckily I got out with a tiny amount of profit. Rule 1 of investing: Don't lose money.
I'm still in here and if it was any other share I would have sold - but I have seen FRES fly before and I hope it will again.
I have sold some more at £10.52, taking a very good profit. Hedging bets I know but I have held everything for a big gain too often in the past and seen the price collapse so my new philosophy is to sell in trenches on the way up (hopefully) Doesn't work for everybody but does now for me. Still hold a goodly number, for me anyway.
GL to everyone here whatever their strategy.
The last time silver was at this price in 2016 our SP was 2000.
Thing is this is just the start of gold and silver heading skywards
An investor should do what they are comfortable with - whatever amount 'you' have invested will be significant to 'you'. I'm in good profit here but I'm looking for more - not in a greedy way, I just think this will go higher.
Bulls make money, bears make money, but pigs get slaughtered. Its not about holding nerve its about having your exit and entries planned and staying with rules that you have created and learned in the past.
I would urge all LTH to hold their nerves until at after H1 results. I have made a big bet on it and I am confident.
Mrd, I am sorry to hear that Nickel convinced you to sell at 555p when I was trying hard to convince everyone that he was WRONG complete with my calculations why. Shows you how unreliable his figures are. I think many people here would remember his and my private battle and I have been proven right in the cash burn figures and he was wrong.
The cash burn relates to the capex spends which would be neutralised at $1600 gold and $17 silver. Now that gold is at $18 and silver at $19, that will effectively add another $300m a year of cash generation to the bottom line which is almost all profit. Of course, not the whole of H1 has PM at these prices but you were only looking at 4 weeks of weak gold price and 6 weeks of weak silver price before they recovered.
The H1 results will show a massive increase in revenue YOY which will result in a very big uplift for this share. I took profit at 900p here but I doubled down and bought more when it retraced to 850p after seeing the strength of gold price. I think it has ways to go with central banks printing money to prop up companies. Silver will go along with it and when the economy recovers, will probably go to a ratio of around 85 which brings it to $21.
All the other commodity plays are recovering and you just need to look at Rio Tinto's SP. Silver is being dragged up with it and that is why it is outpacing gold. It has a chance to revert to ratio of 60 once it breaks above $20. It would take gold to be at 1900 but that would mean a silver price of $31! It has happened many times in the past. Let history be your guide.
Not surprised Nickel, most of the hard graft and optimisation done to correct previous issues. Value being unlocked now and market sees that coupled with rise in commodity prices. Will clearly line the bottom line $$$. A private research broker has tipped this to propel to £18-£20. Will take some time to get there but it will. Faster if silver breaks out.
Also an "upgrade" by JP Morgan...
Some way to go to catch up though!
A £400K buy order just filled on £10.50.
As i said... the big boys have done the maths with silver at $19 and gold above $1800. It's a very different picture.
The capex has been spent to sort out the operations so that going forwards there are no repeats. That's quite clear from the market updates. The market is forward looking and and that's starting to get reflected in the price action now. This has a very long way to go with commodity prices at these levels and the expectations for higher commodities for longer. Remember too that aside from Central banks wading in the FED has also commited to no rate rises for years which totally underpins the price action. Real rates will likely remian negative and possibly go even lower which also only adds to support. Silver moving quicker than gold makes it very material ... the numbers are the numbers. Anyway, good luck to everyone regardless of what you're doing. My view as covered this morning.
Nickel
We shall see. A miner has to average the cost over a commodity price over an entire year. Everyone is getting very greedy about silver. Fresnillo has delivered 4 poor reports in a row. Just maybe they can avoid a fifth. Tony
and it makes me laugh when you see people making investment decisions based on a daily rsi. Absolutely hilarious. Those who are obsessed by such things would have been selling premier foods at 32p when the rsi was over 80. A couple of months later it's now 89p and the rsi is still over 80. Basically anyway, who thought they were a guru by selling RSI over 80 in pfd has missed out on hundreds of %. The same will apply to FRES as the cashflow picture ahead is very very different at $19 silver and $1800 gold :)
Ah I remember when nickel investor convinced me to sell this at 555p.
correction...
When silver was last at these levels 3-4 years back this was closer to £20
Tornado - there's a massive difference between $19 and $14 as i've said. Gold isn't going to sell off like before, the Central banks are the inside trade ... they have taken record amounts. Silver has to close some of the disconnect too. I was right before when it was doing nothing and i've been right on the move up. I will tell you this now that many will sell this way too soon... momentum is a powerful thing and when funds who've been on the sidelines (and with other peoples money!!) want in they want in. FRES is now catching up on the all the other big players in the game. When silver was last at these levels 3-4 years back this was closer to $20. As i've said, do the numbers on 55m ounces at $19 and then compare to $14. This move has barely started but let's see who's right :)
Nickel
It is seriously overbought on the daily and weekly. The company as you well know has a lot of debt to sort out. The rise to $19 silver won't last long. It only becomes a monster as you put if silver remains at the higher price as we head into a serious recession in most parts of the world. Good luck with £15 a share as someone who thought it was worth only £4 or so when it was £5.50
Gold should be closer to $1900 now if looking at the tifs and real rates. FRES is now like a cash machine above $19 but I reckon it's going $20+ very soon. Let's see and GLA!!!
Do 55m ounces a year at $14 and then compare to $19.
If you reckon that silver has to catch up on gold (by way of that ratio they keep talking about) then I can now see FRES going back to £15 a share easy.