Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. 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.
AS, it doesn't matter about the fundamentals of RMG to a certain extent. Clearly you haven't learnt yet that markets are mostly driven by sentiment and forward looking. What sort of person would want to buy a company where their profit was dropping by 200m, regardless of whether after that they were still "good value".
Investors are like pack animals, learn to mostly follow the crowd and you won't be sat here getting more frustrated by the day at a dropping SP. Either that or seek out a company you truly believe in and then stop looking. You're just going to wind yourself up more and more.
Once the attitude turns and money starts heading back into RMG it'll do great and you'll wish you had brought more. It just might take a while until that happens.
AngerSharkz, teslo, do Merrill Lynch keep these shares in a separate account and "burn" them in one hit at the end or are they taken out of circulation on a daily basis? Presumably they can never be used by companies like Marshall Wace?
here comes the expected daily Red regardless of news
With Royal Mail buying shares back in larger chunks, HOW does it affect us ?
Marshall Wace is likely increasing for two reasons, one because they think COVID is over and that RMG's profitability will be heavily impacted by this.
Two, RMG stepped up the buyback program to 500k shares a day, with the daily volume currently around 2-3 million shares supply at those volumes will dry-up, the shorts are therefore creating artificial supply to meet the demand from the company.
It's very similar to DK v the shorts last year, with the difference being a lot of profit taking was likely taken at the higher level and I would assume real selling pressure from overhead supply (those who bought above the current price) will not occur until those holders approach their breakeven point.
There are some great books on trading mindset by both Mark Minervini and Mark Douglas I rate them above anything fundamental and technical analysis based.
They're probably free on YouTube or Audible.
Thanks for clearing that up teslo and Maximas.
I realise that business is business and even bankers have children that need feeding but somehow it just doesn't seem right. Maybe I don't have the necessary mindset?
Thanks Maximas. According to their website.....
"Marshall Wace is a leading provider of alternative investment solutions. Operating as a single team across the globe, we are dedicated to creating long-term relationships with our clients built on trust and integrity. We define our culture as one of continuous innovation and a quest for improvement."
They borrow the shares from existing holders from brokers, unless you have sell order limit placed with your broker they're free to " lend " those shares out.
Marshall Wace could be shorting for any number of reasons, hedge funds are never normally more than 70 % long, so they will always be shorting 20-30 other stocks.
If RMG continues to make a profit in the 300-500 million range on an ongoing basis whilst it continues to streamline and modernize the business the shorts will eventually get burned as they did in September 2020, especially if they pursue the share buy back long-term.
If the price falls too far they will also just step-up the buyback daily rate as they still have circa £165 million in the pot, the BOD knows the fair value of the company. At today's closing price of 435.2 that is 37.9m shares,
Daily volume on RMG is around 2-4 million shares on a normal trading day so it seems that only people selling shares currently is the shorts. Marshall Wace are short circa 8m shares and RMG has the funds in reserve to buy 37.9m shares, they are probably hoping the shorts increase simply so they can buyback even lower and currently RMG have the buying power to burn them them on any given day.
Fundamentally the only problem the company currently has moving forward is controlling the labour costs, 15,000 being of sick during covid resulted in £300 million additional costs. GLS is continuing to grow and as people were saying in 2019 it is probably worth more than the market cap alone, nothing has changed their.
Short-term if the market crashes and takes RMG with it, we may see a repeat of the past, but that will just create another opportunity as it was at the end of 2019 and early 2020.
The fundamentals long-term for RMG are also a lot stronger now than they were in 2020.
If you have shares stored online,which many do,these company’s can borrow them from you without you knowing.
Marshall Wace are showing a short position of 0.81%.
As there are now 993,000,000 shares in circulation, would I be correct in thinking that MW have "borrowed" 80,443,000 shares in the hope that the SP will drop on a daily basis?
a) Who do they "borrow" the shares from?
b) If RM are buying their own shares back to reduce numbers then does this increase the short holding percentage for MW?
Marshall Wace add a bit more. I wonder how long before some of their mates join in?
https://www.shorttracker.co.uk/
We're in profit today ??best sell sell sell
@Angel whilst debate is normally productive on this board, the mixture of bulls bears and clowns make it highly toxic also.
@Hudson making it a more attractive buy this morning.
Good luck
So has Royal Fail lost 1 third of it value in a few months ?
Means I get more Shares in the Sharesave scheme
@Angel If it was a lottery the same people and companies would not make a consistent profit year in year out.
The Market says the company is worth £4.2 billion today, fundamentals may count over the long-term, but technical analysis is far more important over the shorter period because institutions and market makers move markets not private investors and institutional bots are programmed with technical analysis and they trade probabilities based on that along with fundamentals.
I remember 2019 when the price was hovering around the £3.50 - 2.50 level and people on here were raving on about fundamentals and how GLS was worth more than the market cap etc. That did not stop the market taking the price to below £2 multiple times pre-covid.
If you're basing your investment/trade on fundamental alone, then trust your judgement and forget about it. I have seen people from the past who used to post here make bad and costly decisions, purely because they post on these boards day in day out and it impacted their mindset negatively and when the price dropped and a lot of them sold before the huge rise.
I respect the employees knowledge on this board, but I observe a lot of the boards on this site and when I see posters, post day in and day out with zero technical analysis it screams out gambler to me. I'm not saying that is you, but a good tip is if you click on a persons profile and find they're posting day in day out on multiple AIM share boards, they're normally clowns and 100 % gambling.
They call themselves traders, but they're trying to trade stocks with a 5-10 % spread day and then they wonder why they can never make a profit trading.
Good Luck with everything.
Market Cap tonight 4.28bn.
Freehold property valuation 3bn + ?
Might be prudent to concentrate on fundamentals ?
I did not proof read the last post, but I hope you get the gist.
As others have said with shares you can ride out any storm and RMG will be back to its former highs at some point in time, how low it goes before then is anyone's guess and out of our control, hence why shares is always a better option, especially to people new to it.
@Angel is your holding in RMG a SB or a CFD, if all or part of it is, then it is having a detrimental effect on your mindset and postings.
I'm not sure what the current statistics are but 80 - 90 % of those people lose money and very quickly and boards like this full of those types of clowns. It's always better to do your own research than rely on anything you read her otherwise in 20-30 years you will be as bitter as @ispy
Bottom line is - once certain firms arrive in the shorts list, they are not leaving until they drive the share price down to a very low level. They're the same guys on the job over at Boohoo and Asos. Th egoal is to compress the share price so low that they can then close their shorts and ride the wave up with a large long. In the meantime, prepare to be robbed!
The 'selling pressure' is a sustained attack by people who run algos to manipulate a share price with the FCA's blessing.
Somebody needs to sue the FCA; incompetent and totally unfit for purpose. Of course, if you run the same algo, you'll get a letter telling you to stop doing it or risk arrest - only certain (approved) firms are allowed to steal from private investors.
It's very simple and obvious how they do it, by using published API functions in the L2 data API for the exchange. These functions (spoofing/removal of orders etc.) were added by the exchanges, with the specific purpose of making more money for certain firms. It would make a nice BBC investigation - how people's pentions are raided by (very) fat and greedy cats.
I expect nobody here will understand a word of what I'm saying.
AS it does appear we are in for more of the same and one thing I did learn from previous similar experience is to stick to your own plan/strategy. I am lucky I have protected profits along the way and can ride out the storm. As others have said logic here quite often goes out the window. I am happy to continue to hold as I feel we are in a much better place than a couple of years ago. Transformation progressing, New hubs. CWU relationship greatly improved etc. Pretty obvious to say we need to watch the shorts closely and if they continue to rise it would be prudent to re-evaluate and don't be at their mercy. Being more positive it can of course turn quite quickly. GL
£40m wasn't what it was going to cost it was what was going to be saved going forward. There's a difference.