Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I was looking at these much higher up but fortunately not invested given the dire SP performance. Is today the start of a bounceback or just a dead cat bounce.
Thanks old man, you too. It will be a Chistmas not paid for by the losses of shareholders, and hence I will sleep soundly. I'm not sure how others do it.
Have a Merry Christmas h4mmered, well at least they will.
...the management getting amply rewarded with bonuses this year, having managed to keep shareholder losses to a trifle over 50%, after losing a similar amount in their first year in charge. Hopefully their cash bonuses were significantly larger than the share-based payments announced yesterday, to ensure that they are amply incentivised to keep up the work for another year.
and again regular round number buys, somebody wants this....
Over the last couple of weeks there have been regular buy trades in multiples of 50,000 even 650,000 shares, not huge individually large values but is some body is accumulating?
All you can do is watch it drift further downwards until Somerston eventually take the company private. There is no incentive for Somerston to support the stock - the further it falls the better the deal price is for them. They have to take it private because the business needs capital and has no route to access capital other than Somerston. The management has no incentive to help the price because they realise that they are ultimately employed by Somerston, currently indirectly, eventually directly. Sorry, sorry tale.
Anybody watching out there?
All credit to the CEO? More like all credit to the CFO, who gave himself a 30K payrise since December 2016...
All credit to the CEO; despite overseeing a 65% drop in the share price, reducing transparency, increasing debt (moved off balance sheet), increasing the cost base and spending an enormous amount on acquisitions (partly from himself), he remains very upbeat.
Ugly indeed. This was a Tom Winnifrith pick at 50p from what I recall. He should stick to busting AIM frauds.
Ugly, ugly numbers. Perhaps laying the groundwork for Somerston to take the business private, I guess around net tangible assets of 15p...
I sold out on this basket case some 18-24 months ago. At the time I set out my rational as to why their business model was seriously flawed including their whole concept of financing. I mentioned I had close knowledge of a similar but much more successful approach. I got shot down by several on this board. I had a few shares left over when I sold the rest and I see today they have, over that time, lost 80% of their value. Hopefully no one still on this blog has a big exposure.
Yes, but just sold out at a loss. Uncomfortable with the strategy and poor reporting of the company.
Is there anybody still here?
Can't believe FundingKnight will continue to be supported - the platform has written a handful of loans since acquisition last June, vs £1-2m a month prior to acquisition, and has effectively been shuttered.
Agreed re shares in issue and thhe level of support of Funding Knight will continue to be an ongoing concern for this year. Down the road there appears potential for fintech to grow with a low cost structure. The big banks are apparently now lending more,but they are disadvantaged by higher costs.
NAV should use the year end shares in issue, not the average shares in issue during the year. Year end it was 309.3m, which gives 21.3p ex goodwill, but since then there is the sale of SMEF and the ongoing operational losses, which was what took my numbers down to 19.4p.
Try this:- https://www.rns-pdf.londonstockexchange.com/rns/5701A_-2017-3-27.pdf
Quick maths check, (https://www.rns-pdf.londonstockexchange.com/rns/5701A_-2017-3-27.pdf) page 27 Notes to Financial Statements. Total assets £142m less goodwill (£25m) and all liabilities (£51m) gives approx NAV of £66m, at year end. Av. weighted shares outstanding at year end 270,934,270 so NAV per share 24.36p Of the £66m, Fintech Ventures is £41m which is 62% of NAV or 15.13p. Of this £41m, only £5m are loans, cash and receivables. The rest is investment in the FinTech platforms. Must say the company report and accounts are really hard going, it is all very complicated and difficult for PI's to follow. This used to be a very profitable company with substantial asset backing. We have to hope that the management and execution is to notch to deliver some strong value growth from heavy investments in the Fintech Ventures.
Have I got my maths right? The year end NAV was £90m, deduct the £25m goodwill within Sancus BMS, less the £2m or so they lost selling SMEF and another £3m for the operating loss for another year and you're left with £60m or thereabouts, equivalent to 19.4p per share; of which £36m, or 11.6p per share, is the platform investments. If you assume a 50% discount on the investments, to reflect realisable value, you end up with £42m, or 13.5p per share. I was hoping for a slightly more optimistic "back of an envelope" calculation, so I am hoping you can tell me that the numbers are wrong!
Well I wish I had that much cash to buy on a whim. Still it's paying off so far.
It was a buy on a whim CTW2014; I thought it was due a bounce and had made some good money elsewhere so I took out the stock on offer in the market. As you rightly pointed out, the stock was badly oversold. Hopefully it will rally into the low 20s to give a chance for a quick turn. To establish a floor to the price the company needs to publish a figure for net tangible assets, but without this and in the absence of a take-private deal from Somerston there will still be the risk that the shares once again hit a downward spiral, hence my purchase last week was a trade, not a long term buy
Well I must confess that I share your discomfort JDF7. I topped up on 24th March at around 21.75 to bring my average down in the hope of boost on a decent set of results - what a good move that turned out to be (not)! Today has seen yet more aggressive selling and a further drop, but I was cheered a little by the £69k buy just before close. You don't invest that kind of cash on a whim so someone is obviously confident of a turnaround here! Not that I place too much store by broker ratings but Panmure Gordon have consistently rated this as a buy and, although their target price has come down in recent times, right now I would happily accept the 39p target they had on it at the end of March! I am about two thirds down here now and like you won't be putting any more in, at least not before seeing clear signs of a reversal in the trend. Hopefully that will come.
Ctw, you may be right but I think the market is not clear nor convinced by GLIF's strategy, performance nor by its odd relationships or rather attempts are reducing conflicts of interest. The company is and has always been particularly poor at communicating clear and transparent results for all its portfolio. I am not attaching too much faith to its NAV ( due to not being clear about the assumptions, risks and performance of constituent parts of the business ). I'm holding but with a good degree of uncomfortableness and I certainly will not add.