The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Let's all focus on the subject matter and not on personalities.
There is serious money at stake here for I would say nearly 95% of us.
What you wil get is some mischievous posts.
Just not worth getting involved.
The business side of this debate is more relevant to most
GLA
To bring this into production will require more money. The issue is on what terms? An easy cheap raise with all documentation in place to drill is a different matter entirely if we are potentially to be left hanging for an indefinite period. Wonga financing would decimate the SP. I have seen it many times. I guess they are hoping for the paperwork PRIOR to raising. In the absence of concrete permissions the raise will be on discounted terms of at least 20%.
Doc83 ; well both can't be true. The Petrovis Group claim on their website that MATD is their subsidiary, whereas the Petro Matad website claims that the Isle of Man company is the parent company. If you are incorporated, but not part of a subsidiary, then you would not describe yourself as ' a parent company ' so that makes no sense to me. I would hazard a guess that the MATD site is incorrect.
We know that Petro Matad is incorporated in the Isle of Man - but as I said before, in order to list on the LSE it would have been necessary to create a subsidiary, though clearly it's not a UK incorporation.
Investor - I'm also not necessarily saying you are wrong. Just that as far as the Mongolian people (and those damned activists) are concerned, they view us as foreign.
A lot for MB to clear up tomorrow. I see a 20-25% swing in the SP tomorrow or for the remainder of this week, based on what he says. I just don't know which way!
Petro Matad should clarify this basic but fundamental issue!
Aeschylus ; there are some typos on the PM website I notice - so I don't have massive confidence in the integrity of the proof reading, whoever is responsible for it. It's not a good look.
To simply call an Isle of Man or UK incorporated company a ' parent company ' makes no sense to me - a parent company of whom exactly ? It's terminology used when talking about having a subsidiary company.
Doc83 ; at the end of the day we are both investors and hopefully it will still work out for us. It has been a very frustrating ride though. What I have learnt most from this saga since I first invested in 2019 is the wisdom of some advice that I recently read in a book about small cap biotech or exploration companies. If there's a sudden price spike on a news catalyst then take out your initial capital and keep the profit invested. That way even in the worst case possible scenario of the company going bust, you are only risking your paper profit. If I had know this at the beginning, and stuck to that advice then it would have been a far less stressful and low risk experience.
@Investor.
The show's not over. This will turn around if we can afford to wait another few months but a cash raise is something that is definitely on the cards. IMHO there have been a few occasions in the past when I was just waiting for the announcement that we are all in for a 5-6 million fund raise. The 64000 dollar question is how many will jump if the simply have had enough and are willing to cut their losses and quit or just leave their existing investments diluted .
Roxy ; I think it will turn around, but as you say, a raise is pretty well inevitable now. The question is how much will the raise be for, and at what price ?
I think there will be more clarification by MB during the AGM about what is now actually holding up the land access paperwork, so all should become a lot clearer than was apparent in the typically rather cryptic RNS release.
Totally agree Investor.
I too agree with Investor33 post just below..
Also, for me, the upcoming elections are a major issue too .. politicians across the gambit of levels will not be inclined to effect actions to help Petro Matad ahead of elections... then a period of things bedding down after elections too.....
Also, on top, Mike Buck is half baked as a rule here too.
So unlikely I'll add to my now very small indeed holding here in the coming months.. unless this goes super low - 1.5 to 1.75 p - and I genuinely do not want that to happen for a few reasons...eg I'd like to see longtermers get a good break here for a change.... eg It's very unlikely I'd have even 5k gbp in this share - I've done similar journeys in other similar O&G plays - in Africa-and it's mostly a brutal journey with bad/awful long term shareholder outcomes - and so I'd not have a chance to make much out of betting here anyway, whatever
PS: Generally, range trading remains absolutely the way to play such shares imho.. hence why I track this BB content and always have a small - long only - bet in play whatever.. and look to and reduce to make a few k from time to time.. which over the years adds up..
NicetoMichu ; I would have to say that after years as a LTH of MATD, you are 100% correct when you say that range trading is the way to play such shares. Foolishly, for most of the time that I have held shares I have not kept a close eye on charts - I only started doing this about a year ago. That was a big mistake, because it has been range bound for years.
Over many years the share price has bounced around between pretty well defined support and resistance levels, and frankly if I had traded those levels over the last 4 years then I would be massively in profit by now.
Back last May I briefly sat on a fat profit when it hit 7 or 8p, but foolishly just did nothing. And of course at such times the rampers create lots of FOMO sentiment ; ' jump in now guys this is soaring, and it will be 20p next week ' etc. In reality there have been lots of spikes on news catalysts, but every time the share price has plummeted back down to some kind of support level.
So now it's the fault of the rampers, so in that case is it back down due to the derampers? Lol
Cybertron ; nope, it's because for years it's been a trader's share, but I don't expect that you know much about that.
Cybertron another one who knows nothing about how algorithmic trading bots kick in with small cap penny shares on news catalysts, and then when certain parameters are reached which they are programmed to act on, they dump the shares. Or conversely, if the news catalyst is analysed as being 'negative' they immediately short and then buy back.
Why do you think we had that small bounce following the sharp drop on the open straight after the last RNS ? Nothing to do with a mass of shorts buying to close their position then ?
For now this is a trader's stock, and it's range bound. Computer bots and human short term traders work with technical analysis, and particularly with support and resistance levels.