Member Info for 42trader

https://youtu.be/PfHfwrQz2Mg

This is well worth a watch.

Slighter weaker US dollar has push up price of gold today as a weaker dollar makes gold cheaper to buy in foreign counties. The thing to watch for this week will be the monthly US jobs report out on Friday.

Well 150p has very strong support and probably there will be no news until a trading update in January. The thing is, no one really knows what price it could drop to. It may well drop to 150p, but could bounce back from here. Clearly this is a company that is making huge sums of cash and is STILL growing and will CONTINUE to grow as it expands into the US. Looks like the acquisitions this last year will prove the 25% increase in revenues and then we will have the turn of the US to provide further growth in the following years.
So yeah, go on and load up, but do it in stages and save some cash for the possibility of a bargain price of 150p if we are lucky to see it.

Jim Slater talks about finding shares that have a competitive advantage or something new as well as a small growing company.
MRK seems to fit this bill. It certainly is growing while remaining profit making and cash generative. As for something new, well the way it controls costs by using just 1 centralised warehouse where it to deliver to 99% of England with next day delivery and still be able to deliver EBITDA margins of 8-9%, almost double that of it's competitors.

... or a move down. Looks to be moving further down to 85p where the next level of support is.

Let’s hope we have seen the bottom now and a rise in gold helps lift SHG.

Nov 29 (Reuters) – Gold prices steadied on Monday as concerns over the impact of the Omicron coronavirus variant offset a stronger dollar, with investors assessing whether the emergence of the variant could change the U.S. Federal Reserve's more hawkish stance.

Spot gold was little changed at $1,792.41 per ounce by 0446 GMT, while U.S. gold futures advanced 0.4% to $1,792.60.

With new cases of the Omicron variant found in the Netherlands, Denmark and Australia, more countries imposed travel restrictions to try to seal themselves off.

"Given the uncertainty around whether this new variant is more dangerous than the Delta variant and the risk of further restrictions, gold's downside should be protected," Harshal Barot, a senior research consultant for South Asia at Metals Focus, said, adding that it could trade between $1,780 and $1,830.

Barot also said while it was too soon to gauge if virus concerns have eased rate hike expectations, there is an upside risk for gold that the variant eventually leads the Fed to scale back on its stimulus tapering and rate rise plans.

Atlanta U.S. Federal Reserve President Raphael Bostic was the latest amongst a growing number of Fed officials to say he remained open to accelerating the pace of the central bank's bond taper.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest.

Countering upbeat triggers for gold, however, the dollar index gained 0.2%, increasing bullion's cost to buyers holding other currencies.

Physical gold demand picked up in major Asian hubs last week, with dealers in India preparing for a likely spurt in buying as the wedding season gathers pace.

Spot silver rose 1% to $23.35 per ounce. Platinum gained 2.1% to $973.81, while palladium added 2.6% to $1,794.05.

Astrong recovery in investor confidence following last year’s Covid-19 induced market softness, coupled with an undersupply of housing are highly supportive of institutional demand in both sub-sectors. International students heading to UK universities have bounced back, too, while anyone trying to rent a flat in the private sector will have seen rents surge in the past year.

This is good news for property company Conygar (CIC: 157p) which is looking to start construction work early next year on a 702-bed student accommodation scheme on one acre of its 36-acre Island Quarter site in Nottingham, a city with a large student population desperately in need of housing. Based on market rents the scheme could generate a rent roll of £5.7m and be worth £90m at current PBSA yields when it completes in September 2023. Construction costs of £54m will be debt funded.

Amended planning approval should also be granted by the year-end for the project's next phase, a 223-bedroom hotel to be managed by InterContinental Hotels, 247 residential apartments and 3,000 sq metres of flexible office space.

Conygar’s hidden value

NAV surges 28 per cent to £114m (217p a share)
Discussions ongoing for joint venture/debt funding for major phase of Nottingham site
Crosshands retail warehouse to be marketed in January
Sale of Selly Oak site likely to complete by year-end
Conygar’s annual results revealed only part of the profit potential from its flagship Nottingham site which was revalued upwards by two-thirds to £70.5m by surveyors at Knight Frank.

However, that is less than £2m per acre, or half the £4m per acre paid by the University of Nottingham for a 9-acre city centre office site which is currently used by HMRC and will become a new campus. In addition, the Nottingham residential housing market has been flying, so much so that the Conygar is unlikely to be short of funders for the first phase of 247 BTR flats, a fraction of the potential 3,500 flats that could ultimately be built, subject to planning approval.

Importantly, Conygar is in a strong financial position. Net cash of £13.7m (26p a share) will be boosted by £7m from the sale of an industrial property in Selly Oak, Birmingham, to a well-known listed student accommodation provider, and its Cross Hands retail park in Carmarthenshire (book value of £17.7m) will be marketed for sale in January. It should be easy to offload given that the retail warehousing market is recovering strongly.

Keep an eye on the UK Government’s mini-nuclear power station strategy, too, as Conygar’s strategic land holdings in Anglesey could become very valuable. Also, key infrastructure is set to be completed in the coming weeks at Conygar’s Haverfordwest site (book value £8.6m), thus enabling the sale of 729 plots of residential land.

The shares are up 29 per cent since the interim results (‘Opportunities in property’, 26 May 2021) and are back to where I suggested buying at in my 2018 Bargain Shares portfolio. B

Gold normally lags on negative markets, meaning it normally goes down first with the market in general then investors move into gold a few days later. It will be interesting to see if gold moves up substantially in the coming weeks. I’ve certainly been expecting the markets to crash towards the end of 2021. Is this it?

No problem DK. Crazy ain’t it, the risk of the risk. I think investors have bigger issues than the pm sector atm.

Hochschild Mining's (HOC) stressful week looks largely to be at an end after it confirmed the government of Peru's commitment to following its own mining code.
The company's future looked at risk earlier this week after the president of the council of ministers, Mirtha Vasquez, had said she would work to shut four mines in the Ayacucho region east of Lima over environmental concerns.

This was a blindside to Hochschild, and its valuation dived on the news.

On Thursday morning the gold and silver miner welcomed a "clarification" from the government, which said the miner could indeed apply to extend the licences of the Inmaculada and Pallancata mines, its two most important operations. Hochschild's share price recovered to almost 150p, compared to its pre-closure announcement level of 165p.

"We are pleased that our Inmaculada and Pallancata mines can continue to operate without further uncertainty and, furthermore, we reaffirm our goal to increasing our resources and extending our mine lives, in accordance with current legislation," said Hochschild chief executive Ignacio Bustamante.

RBC Capital Markets analyst Tyler Broda said the "uncomfortable" incident could actually be a positive for the miner. "[This] may in the end serve to de-risk Peru, and in the end enhances our confidence in the Hochschild investment case," he said.

After shifting the miner to a neutral rating on Monday, we move it back to a buy recommendation. Buy.

Cheers for correcting me on this poker. appreciate it. Rookie mistake misreading stockopedia figures. Actual cash figure according to the last report shows $270m now with a net of cash now of $64m which is probably about $68m now. Also noticed I had the nav wrong as it's in cents, so nav would be approx. £1.15. Still very good value with the company improving once again. I still think £3.20 is a reasonable price to aim for, once it has broken up through the downward trend line at about £1.80. Do you have a target price?

lol run to the hills!!
HOC has only 128% EPS for this year. Has cash of $250m, no debt and a value of 147p. The negatives are already vastly priced in!

Normally I would trade these movements but HOC is a quality company that is growing and extremely cheap with a nav price of 147p. It is in target to make $100m profits this year and also next year which is a big step change from previous years. This week has been a great week to buy into HOC at incredible prices of a company that is rerating but has had it price driven down in the year and a bit. I'm happy to hold here to 320p after an initial small buy at 150p, then 105p and again today at 138p.

Just to add, Bullish Island chart pattern formed. Very rare.

Yep gold did drop 80 points ish, but hit the bottom of upward trend channel and looks like it could see it going back up from here. Time will tell.

And looks like those that bought low have sold now and the buys coming through now. This will be a fun day.

Ive just added at 138p. Happy with that.

Darknight- it was at 165p when it dropped and 175p 2 days before.

You can buy now at 145p. Pretty good price considering it was 165p before the drop.

A bit more hurt to come imo as Hamilton look to be selling out. Maybe 10p on the cards to hit the bottom of the trend line. No indication atm for a reversal yet.
The fundamentals are strong though, so it's just a matter of holding atm and adding as close to 10p to give a good average.