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Trading View showing PE TTM at 4.4 but even that is not cash-adjusted.
Not worried about the Rh spot even at 5k per oz (let alone 8k) that is still plenty of cash for equity holders by way of divis and/or retained earnings.
12m Forecast Rolling PE Ratio (f) 4.4
PEG Ratio (f) 0.2
EPS Growth (f) 23.6%
Dividend Yield (f) 9.26%
Above from stockp.......
pe about 7 now that's top end it's not cheap.
Elprof - I'd await until the reaction to Q3 results and then swoop - I reckon its going to show a small profit if lucky. Theres going to be a big sales adjustment I reckon of $8m and a further $2m due to exchange loss of the cash pile. Using the basket price of 4E PGMs of $1900 the net profit will 'only' be a few $m a quarter.
Buy after Q3 results but keep an eye of PGM's as the sales adjustment works 2 ways.
imho and a little research.
Hi Mulder,
Lots to like I agree but the one element that is holding me back from buying more at this level, other than the fact that I already have a lot, is the falling price of rhodium which is now hovering just above $8,000. If that turns I will probably buy more.
Best wishes,
Prof
Bargain share price
Net cash
Very low multiple for earnings mid single digits
Dividend double digits
Yes a bargain at 87p! Added
Snippet from Precious Mining Weekly full article download from link below.
Balancing these demand and supply changes, we expect to see a market deficit of 631koz this year. This is a similar magnitude to the deficits seen last year (625koz) due to similar year-on-year growth in supply and demand. Factoring in the above short-term drivers, macroeconomic picture and fundamentals, we arrive at an annual average of $1,690 for 2023, up several hundred dollars on current levels. This includes the price peaking above this level at a high of $1,980, failing to recuperate a $2,000-handle before eventually falling back. With two years of annual deficits totalling 1.3Moz, the recent price weakness seems counter-intuitive. However, we believe that similar factors as those discussed in last week’s Weekly, which focused on the impact on the rhodium price, are at play for palladium. Automakers currently hold an abundance of PGMs, as they bought a larger quantity last year than they utilised. This overstocking has left the industry with an unusually long position in palladium, undermining their near-term demand requirements. Furthermore, this outcome has led to gloomier investor sentiment. Adding to investors’ concerns is the awareness of projected surpluses in the coming years.
https://metalsfocus.us3.list-manage.com/track/click?u=65e61541e75b9ce36f9b00274&id=8ccfe2d2e3&e=bf06856695
This is why we need a moratorium on AI research...Luna's microwave has achieved self awareness and is now communicating via internet chat boards ;o)
*** DING! ***
Precious Metals Weekly features Rh this week and reports on the outlook and supply download the article from the link, things are not as bad as Rh price suggests as the fundamentals are strong.
https://mailchi.mp/metalsfocus/precious-metals-weekly-5386878?e=bf06856695
the dividend is more than safe. We are still generating huge amounts of free cash and we have money in the bank to pay several years worth of dividends!
The curse of the post ex-dividend drop seems to have affected the share price quite heavily this time but for me this is just a good buying opportunity. I have just topped up.
From a TA point of view I think we are due a bounce from the 90p level anyway. If not i'll be buying more..
Assuming the final dividend remains "safe".
It should, there is enough margin.
As yiu can imagine, I welcome the dip now that the first divi is due....
I know what I do if prices remain in the bargain bin. They are now in my sort of price range (again! Yessssss)
All of that may be right and thanks for the detail. Impressive.
But even if RH tanks to "only" $5k - only LOL -this is still a net earnings of $30M against a stay-in-business working capital of what, about $5m - $6m normalised?
The retained earnings part of equity will continue to grow.
That gives a dividend return which is unrivalled. If anyone can find one better please let me know. To hell with the SP I`m not bothered one iota as i do not intend to sell main holding. Let it drop, and I will buy back in the tranche I sold at 106.
Meanwhile, Jaco and team keep doing what they do best: increasing those retained earnings. That is what the focus is on. For me at least.
Two things worry me regarding Rh price, firstly the amount of outstanding debtors that can can claim a reduction come 31st March if the Rh price is below what they were invoiced at over the past 123 days (average $13k oz) so we could be seeing a big adjustment of $5k an oz which has already been booked on the H1 figures. The second is the outstanding debtors day is 123 and not within the 30-90 days claimed by SLP (revenue $79.9m against outstanding debtors of $55m) . In 2021 the company had an extra income of $28m because of sales adjustments as the boot was on the other foot but expect a hit if Rh doesn't revert in the next 10 days. Q3 results could bring bargains and Q4 with news will be amazing.
I see this as a blip and forewarned is forearmed as I am holding and ready to top up.
FWIW, I still have 90p target. DYOR, ATB, DH.
bear in mind that if it does get back to the mid 80s, then that is an area SLP have launched share buybacks, so fine let it get back there, or, with a different company with better financials from last time, they might decide to do it at the current level
Hi Stuartrm, as others have said on this board, SLP usually drops a lot in between dividend payments. Wouldn’t surprise me if this fell below 90p again. Simon Thompson (who I respect), predicted a spike up not so long ago, but it simply hasn’t happened and seems to be more of a spike down. Am waiting for sub 90 before buying. GLA
Almost everything I hold is down between 2% and 4% today, with some by significantly more. It is difficult, if not near impossible, to determine which of the falls and how much of each of the falls is company specific and, how much is a result of fears over banking collapse contagion, war (sorry, special military operation) and the many other woes that keep appearing over the horizon.
Keeps dropping, wonder where the base for this is?
Platinum price surge forecast for 2023 (CNBC)
Factors including power cuts in South Africa, the war in Ukraine and the increased production of hybrid cars could cause platinum prices to increase in 2023.
Investment bank UBS readjusted its price forecast for platinum in 2023, estimating that the precious metal will cost $1,150 per ounce for June, up from a previous estimate of $1,100, and will reach $1,200 per ounce in December.
stochastic turning and bouncing off of support:
https://www.tradingview.com/x/PZu7e3AS/
No doubt a "special" version.
The normal Walkers crisps eBay rules do not apply.
(The other crisp flavours all now want to be special too.)
Fact Check ......ok not 10% but 1%
Fact Check .... ok not $10m but at least $10m
Fact Check ..... Walkers Salt n Lineker crisps are changing hands on ebay for £10
Shandong needed to shore up their finances and sold 200 kilos, which at first thoughts doesn't seem a lot and would easily fit into the boot of my mini cooper but it's equivalent to the total amount produced by SLP in a year and 10% of the worlds yearly production so when that hit the market @ $79M it had every right to drop a little. On the other hand Platinum made up any drop in the basket value with the help of Palladium too, both in demand for investors. The 4e Basket still remains above $2000 and profit of $10m a quarter and the company remains more popular than Gary Vinegar (yep thats a typo but I am sure when he sees it Sarson's will be more than a little worried if he decides to market it).
Didn't a Chinese manufacturer recently dump a load of Rh onto the market because they found out they needed only half the amount?
That certainly impacts supply and thus the price.
I don't see this as a permanent fixture.