The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Indeed. However, Eurochem's actions do seem petty and oafish. They must know that their claim dwarfs Shaftsinkers' entire value. Even if SHFT liquidated its assets in an effort to appease the claim there would not be anywhere near enough cash. Perhaps it is one last stab, ensuring it has the last laugh. I'm not sure. But Eurochem can't possibly expect their claim to be met because it simply isn't possible. And if they aren't expecting repayment, perhaps they are trying to just get back at Shaftsinkers. EUR see it that SHFT has materially impacted the value of their company, so EUR do something to materially impact SHFT's value. They've done a good job. Maybe it's all hot air after all.. Or maybe not and EUR want to dog SHFT to the end?..
I worked out just how valuable the company is here: (My own opinion, of course) http://phynixmanifesto.wordpress.com/2013/04/05/a-look-at-gemfields-hidden-value/ Note that this was written prior to the adverse RNS. Fair value is far far above what it currently is now at, but at the end of the day does that really matter? In a sound operating environment this does matter. It suggests that the stock should, in time, tend towards this true, higher liquidation value as the market begins to see the value. But what has happened here is different. It does not matter if it should be valued at a much higher price because, potentially, that value may now never be realised under these proposed restrictions. Gemfields may not be able to operate as it once did under this constraint. If it cannot sustainably produce the profits like it had done in 2012 then the underlying value behind this formula would not reflect itself in the market cap. I.e our liquidation value which is towering over the market value at the moment. I really liked this company and its bright prospects, I hope they can work their magic on this one too. GLA &, of course, all IMO
That's the same dilemma I find myself in. It would be gambling surely. We'd simply be betting on the Arb claim going away. I'm currently trying to find out more about it. I emailed SHFT last week but they have not responded. The Board collectively invested £50K shortly after the Eurochem arc claim was announced. Obviously to calm the market. None held shares previously. Would they put their own money in if they believed the claims held merit? Definitely not. But the move only confirms SHFT to be a buy for us if they are correct in their thinking. They would be best-placed to have an opinion on this, out of all parties. But if their conclusion is incorrect, if they underestimate how dogged Eurochem are prepared to be and wish to pursue their claim, then their signal will prove to be a red herring for us. Personally, I'm leaning towards preferring to pay a premium with the knowledge that the claim is out of the way rather than to dive in and hope for the best.
Yes, the Eurochem 'issue' is still very much looming. Hence why I'm holding off investing here, as I am sure others are too. What's your take on the situation? It looks a little bit like Eurochem are taking the p*** with their arb claim. I'm not sure whether to take it seriously or not.
Very quiet on here lately. I thought we might be on our way north but such a thought was a little premature. Equally, there appears to be strong support here too, so despite some selling we're still here at what could be argued as being a flag pennant: http://uk.advfn.com/p.php?pid=chartscreenshotshow&u=bCgjWXymYqYKvYrL7VoFhtYkd9uSHg+Zl+mO+FwcKSY=&symbol=L%5EGEM Anyway, regardless of the short term fluctuations, a cracking stock indeed. Next auction set to take place WC 15/04/13. Courtesy of another BB poster on ADVFN sharing an email from Gemfields.
Hi All, thought that this might take the interest of some: http://www.youtube.com/watch?v=_vF6sd-jXtA CEO interview in July 2012. Davidov says the share price of 72p is "unreasonably low". 42p sounds like a good idea then.
Results are released 25/04/13. The date was changed: http://www.investegate.co.uk/toumaz-ltd--tmz-/rns/results-date-change/201303151438061552A/
You're welcome. One final thing about stated buys and sells: my buy wasn't even registered. I couldn't find it at the time I bought. Just goes to show that the reliability of such information is not always accurate. Best of luck with your other investments.
Well the truth will out eventually. Personally I don't tend to put my money in stocks based solely on what others are doing. Maybe that II is wrong. Maybe it isn't an II. Maybe, it's someone who just wants to take some profits. What I'm trying to say is that it really is unimportant and speculating get's us running round in circles. At the end of the day the management are fantastic, it's undervalued, its growing and its fashionable. And the technicals are all signalling a buy. These things all say it's a good investment. Ii's dumping isnt necessarily a bad thing either. Back to Magnolia Petroleum - fantastic stock with great management. Doing everything right. And yet UBS IM sell out? Is this a bad thing? No. A buying opportunity. They were probably there from the beginning and are taking cash off the table. Good for them. Personally, and many think the same, this is just the beginning for Magnolia. Ii's selling/buying shouldn't be taken as a signal to sell/buy yourself. Simple. GLA
Here is something which could through into question the nature of the £66K sale yesterday afternoon. I purchased at 32.99p, and with a spread of 0.75% that should give a bid price of 32.74p. Large sales tend to be received with a lower price than the mkt bid price, so if it were a sale I would have thought it would have been less than my purchase price and less than 32.74p, which it was not. It was the same. It may therefore suggest that it was a buy after all... the bid didn't drop either. Doesn't really matter at the end of the day though! GLA
Yes, you are correct. They are stated sells, I agree. Yes, that often does happen, but interestingly it hasn't happened here. Not yet anyway. I doubt that they are delayed buys, but you can never be sure. Better to assume they are what they are stated as. It can be classed as de-ramping because you dramatize the facts with unnecessary statements like "massive sells here", and "looks like you're all doomed!". A £66K sell amounts to 0.0372% of total market cap. I would say a massive sell would be something like 0.05% - 1.00%. Of course, personal opinion dictates. Take Magnolia Petroleum for example. The share price has been dogged by UBS IM selling out their 12% stake down to a level not required to be publicly announced. That really is massive selling. That was something like £3M in total. And finally, we're not all doomed. Do you really suggest that a £66K sell in a fairly small company marks the beginnings of apocalypse?.... A little sensationalistic. Anyway, GL and hopefully you decide to invest here as the signals are great, both fundamentally and technically.
For those of you who might be interested in seeing the technical outlook on Gemfields, take a look at my latest research on Gemfields: http://phynixmanifesto.wordpress.com/2013/03/18/gemfields-head-shoulders-signals-a-speculative-buy/ Hope this is useful. I bought in yesterday late afternoon. GLA