Member Info for 42trader

I added too.
There is the obvious issues of supply and work force issues effecting ASC. Covid probably an issue with the uncertainty also.
Regarding buying US stocks, I'd be very wary as they are so very over bought where as the UK market is still under valued.
My biggest concern would be a market correction for the US which would effect all markets. I'm expecting a market crash to happen this year, but who knows when it will happen for sure.

The sp is very close to the bottom upward trend channel on the daily chart. About 252p. On a weekly it has a bit more room to drop, to about 215p, though I don't personally see it going that low. Buying between current price and 252p looks to be a bit of a bargain. Just keep some change to buy more if in the event of a drop to the £2 level.

Have some people still have Kallumama not on ignore. I really don't mind negative posts, but for someone to spend his whole day writing up negative posts day after day for a share he doesn't own......... well he needs to get a life or get a proper job.

The planning permission of Modern Warf (MW) has the potential to give UAI share price an uplift over the next 2 years of approx. 50p to £1 based on £20m £40m return from the project.
Out of the 4 main projects of MW, CFNE, Landmark and Mayfield, MW is only the third largest. Only CFNE left for planning permission now and that is not due until 2024.
There has not been a better time for home builders with the shortage of homes across the UK. The population in London is forecast to grow 14% (1.2m people) in the next 20 years.

Expect an updated report from Liberum today.

Bought a few of these today as I noticed I never owned any share in a company beginning with the letter A. Got to be diversified.

This is on my watchlist and currently it is hitting very strong support where there is a good chance to bounce.
The problem I see though, is the company has said the issues could continue and affect the 2022 revenues. So often the market waits for good news or hitting and exceeding targets before it will start to buy. So buying in now could possible tie up funds for 12 months.
Like you MaryBr190, I look for quality companies that look cheap, then buy a small amount and add on drops. While this is certainly a quality company, I am undecided whether it is cheap even at the current price. Certainly one to watch though and see if the current support holds.

....and it coming up to xmas time in a few months. And we all know what that means.

DHC certainly was a character. When was he last seen?

Maybe he has. Over the years there has always been opportunity to profit on WSG, buying low and selling high but not as a long term investment.
Lets face it, PF has done a fantastic job keeping his roll as ceo for 25 years in a company that has always been on the brink of profit but always turns a loss. He has kept many in jobs only at the expense of investors.
10p on the books could well be possible this time, enabling a few with a low average to make money. Just make sure if you see a profit, to bank it.

WSG started back in 1988 and run by Peter Fowler since 1996.
When listed there was initially 13.5 million shares. Today there are 219 million shares in issue having been diluted down over 30 times.
Since 2007, the company has made a grand loss of over £25m and has raised in excess of £40m.
There has allegedly been well over 50 contracts won in this time.
As with every other year, the company is now on the brink of becoming profitable. (you never know, maybe P Fower has actually done it this time).

Stoodio- don’t forget to “Run to the hills”.

Sorry Stocky1 I didn’t mean you.
I agree with you that the company is under valued. But that has never stopped the market from being irrational. With a profitable company like SLP the sp will recover at some stage. Just need to ride the storm and buy more if able.

Well there is actually support at 80p and 70p but the stronger support is at 60p.
What I think Stocky1 means by poor results due is the fact that they have missed their target and the net profits will almost certainly be lower than what was forecasted. It doesn't matter that the company is still doing well, missing forecasts is the issue. But when a company is, by all other standards, doing well, a miss in forecasts becomes an opportunity to buy cheaply. Once these results are out of the way, new forecasts will be made and then SLP will likely rise as metals reverse trend.
As for shorts, I'm sure there some, but lets face it, SLP is still doing well despite market conditions against them, so it makes no sense to short it. Besides this, there is no short interest registered, which means no one has any shorts above 0.5%.
Market volatility I agree will cause a crash a crash at some stage and it is always worth holding back some cash for this. But when it happens for sure no one really knows. There is always something that is going on.

Basically SLP has dropped in price because of the drop in price of the 3 metals Platinum, Paladium and Rhodium. This is out of their control for the company.
Slp is being run well and is continuing to grow each year.
The drop in price of those 3 metals has caused forecast targets to be missed creating this buying opportunity in a well run, profitable, and dividend paying company.

1. Fundamentals. - PE 2.8
PEG 0.2
ROE increasing every year.
EV £188m vs Market cap of £237m
Cash rich and set to grow more.
Dividend.
EPS to continue to grow.
Stockopedia quality score of 97/100 and value score of 91/100.
In general, SLP has grown yoy and looks very attractive.

2. Paladium, Platinmum and Rhodium have all fallen over the last few months. Platinum is currently at strong support level and could reverse from here. (Personally I think it will drop a bit more though to possible around 800, another strong support level). Paladium and Rhodium both look to drop a bit further before trend reverses.
So these 3 metals have had a bad time on the market recently and could well drop further, but the bigger percentage of their drop is over and sooner or later the market will buy again increasing the price.

3. Liberium target price of 195p, a 127% rise from current price of 88p.

In general, the market buy companies that beating forecasts. When a company matches or does not beat the forecast it often sees a sell off, even if the company is still profit making and growing yoy. This is exactly what has happened with SLP to the point it is now crazily undervalued with a book value of approx. 71p which is close to SLP current price.
I see SLP price as good now to buy first tranche and add if it does drop further increasing amount bought each time.

Imo, theses are some of the reasons I see SLP as a good buy.

1. Fundamentals. - PE 2.8

Imo, there are quite a few reasons for the decline in the sp of SLP.
1. Decline in the price of Rhodium. - this will likely reverse end of 2021-2022 as demand increases for it. There are several reasons for the decline. First off, it is not a metal that is highly traded and so it can fluctuate a fair amount. Also the demand for rhodium dropped on the back of the world wide shortage of chips (not the potato kind). Without enough chips, the demand for nitrate acid, (produced from Rhodium) has dropped. This may increase again but the negative point is it is not needed in the production of electric cars (which will only grow) as there is no catalytic converters in them.
The price of Rhodium could drop further to 120000 where there is strong support.

2. COVID 19. -production affected.

3. Riots in South Africa news will affect any company in the country whether it has impacted or not. As far as I’m aware SLP was not affected by the riots.

4. While production of Rhodium by SLP was inline with forecasts it didn’t beat the forecast and was in fact 0.7% below.

5. Cost of production has risen in the last year mainly by increased cost of power. This is likely to increase again in 2022.

6. 4% drop in revenues. - while production has hit its target, the drop of Rhodium market price has lead to a 4% decline in revenues. SLP gets approx. Half it’s revenues this way. So while the price of Rhodium stays lower, revenues will be lower.

7. General market conditions. - “sell in May”. Generally markets do fall through the summer periods.
In general the mining sector has been out of favour.

So overall quite a few reasons so see this fall in the sp. whether is continues to fall or reverses soon, who really knows. But we do know that SLP is cash rich and if they do not spend the money somewhere they will likely double their cash position by the end of 2022. This has become a value play stock and as others have stated could become a takeover target. Personally I see the sp dropping more still but to what level I could only guess at. I see strong support at 60-70p and personally would love a drop to that price.
The last broker report by Liberum give a target price of 195p, so already more than double current price.
I do wonder whether the profits will miss the forecast target when the results come out on 6th September.

I bought in here today and also looking to add on any drops.

Certainly looks good value at this price to me. Bought a small amount today and will add if it drops.

Just put a £5k order in for tomorrow for 23p. Not sure i'll get that price as I think it will open higher than that.

The share price has done well over the last 3 days considering that the market has dropped.