RE: comparison to peers (First Majestic)22 Apr 2021 16:16
It's no secret that Froneman from Sibanye wishes to buy silver mines as it is currently lacking in Sibanye's portfolio. He also wishes to have more exposure outside of SA. This could be beneficial to both Froneman and Eduardo. Markets have a funny way of suppressing share prices before a takeover to make the offer attractive. Just a thought...
The satellite pipe has proven to be rich with large stones and I agree with Colonel's observation. I have added a few more today as when they do find some decent stones we will be riding on the magic bus to 100 and beyond...
I think the jury is still out regarding the running of the company but certainly the penny has dropped that they own one of the best diamond mines in the world. Dividend soon and not too long now before we get another announcement regarding a decent find or two.
Well if they do go down ex div I will pick up some more as there are positives to propel the price upwards without big finds like an improving diamond market and life getting back close to normal after the pandemic. If history is anything to go by the wait shouldn't be too long now for a large find or two. They often come grouped together like fish swimming in a shoal. The next catch could be a plentiful one when it comes and when that happens we will be rewarded with a proper valuation and you never know that we could be in for a special dividend. Great hold in my book.
It makes you wonder though why more funds didn't average down when they were much lower. I think the reinstatement of a dividend may have given funds greater confidence going forward and the cash balance has de risked the investment decision.
I think it is fair to say that the price should be over 100. The broker recommendations have been cautious and overly pessimistic in some case which have proven to be wrong. Just as well we didn't take their advice and sell in the 20's... I feel a lot more confident going forward with a strong cash balance and improving diamond market. It's time to literally put your feet up and relax and look forward to the next major find as it will be a Brucey bonus and you never know that the bod may just decide that they want to reward shareholders with a special dividend.
You won't have to wait that long Morgan22 as this looks like it will be the subject of a takeover approach. That probably explains why the hedgies have been brought in to quell the share price to make a potential offer look good as it would appear rather foolish to short at this level. I doubt they would have much luck under 850 but interesting times ahead here. It's a strong hold for me as the market hasn't realised the true potential here.
I think the dividend is a good start and is something to build on. It also leaves options for share buybacks and special dividends. As far as I am concerned GEMD is a good recovery play with the potential increase of diamond prices.
I did notice the PDL targets Usernamebut1. PDL is a much trickier company to value mainly due to the debt which is pretty colossal. Having their level of debt in a falling diamond price environment was unfortunate. If the diamond prices continue to improve they could be a good recovery play. I shall wait and see for the time being. Fortunately I put my money where my mouth is and bought in here and was lucky enough to get a decent holding in the 20s and 30s and have continued to add since. I do feel sorry for PDL holders and hope that things improve for them.
Have a Buy on GEMD and an 80p target. Still shy of what I think the company is worth but still this is an improvement on their 26p target back in September. No doubt this target will rise when they pull up some biggies.
RE: First re-rate... raise to 72p and “buy”11 Mar 2021 10:43
A very good set of results which I feel judging by this mornings trade is not fully understood my the market. A very welcomed dividend to boot. With regards to broker notes I would hesitate caution and would question their rational to their suggested targets. In my book this has to worth at the very least 100 and with good fortune a bit more with some large finds.
A decent and fair article by Edmund Jackson was sent after market close and he recommends a Buy. Considering he is a contributor for II, one can assume that a few investors from II will take note and buy. Also on this site they have the figures from Credit Suisse in reverse. The old target was 350 and the new target is 540. These figures are often used by services which go into their algorithm equations. Have a good weekend all.
Well if you don't ask you don't get, it's better to be upfront and honest in my book. If you feel they are milking the company you should tell them that directly. Fortune favours the brave after all...
RE: GEM doing community work. Good to see.17 Feb 2021 12:33
I wonder what happens to the money which the Kingdom of Lesotho receives through licence agreements, royalties and taxes. Obviously not to the local community because it looks as though they are well looked after by Gem diamonds.