Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
You need to look no further than the companies involved in wishing to raise money in the markets and then being unable to do so, entirely due to market conditions. I afraid we will have to wait longer to achieve the results we desire due to those same conditions. At least we do understand the fundamentals and the health of the company that allows us to rest easy.
I remember Corac well when it was the flavour of the month in line with other companies whose technology promised so much and delivered so little. I know it is so difficult to sell in an uptrend however, this is what the clever investors do making sure that they lock in profits for real and then move on to the next company. I have found over time that collaborations and MOU'S meant very little unless very quickly followed up with orders. I became interested in Corac at 10p per share and have added a substantial amount since because of only what can be described a vast improvement in orders and cash flow. By continuing there progress at the present rate, the market will have no option sooner or later to get financially involved and, that will be the time we will get our multi bagger. The main question is why gamble on a company that does not have the same fundamentals? at least we can visibly see the winning post barring accidents.
Max! good to hear from you. When that idiot Gordon Brown sold off our gold stocks because it did not earn interest, it just showed up his knowledge on the subject and, then multiply the answer by the idiots pretending that they know all the answers, is it any small wonder that companies are facing such difficult times. You must agree the markets have their own headaches in trying to sort the mess out and, in the meantime the companies are doing their best to stay afloat. Politics to one side the reformist Tony Blair wanted only qualified people in the House Of Lords, what a pity he did not extend that policy into government. You may be assured that there is insufficient gold known about to meet demand and, as they can not make it, it is a good asset to have around and this is the reason why the central banks, the Russians, the Chinese and big investors alike are buying it instead of hanging around watching the printing presses print a load of money out of thin air. You may be interested to learn that out of money since the flotation of the monetary system, gold is the only metal(money) to have held its value in keeping up with inflation. Strange as it may sound, the authorities have not been able to mess with it and that alone tells you something. On a daily basis the gold price fluctuates with good and bad news and my own thoughts are, the authorities are gradually backing into a corner that they will not be able to get out of and, that is when gold will meet with some of the fanciful prices that many of the qualified experts have forecast. Fortunately, I dabbled a little bit in the junior gold minors and as yet I have not regretted it. It is worth remembering that long before any monetary system was introduced gold was much sought after for use as jewellery and opulence/status.
Long time getting there but the simple answer to your question is no! You may also be interested in the fact that the Russians and the Chinese are using gold to back their monetary systems in rivalling the dollar. It all comes down to time and that is something that we all wish we had more of. Hope I have not bored you as I could rant on forever and, it is good to see you in form and in good spirits. Able!
Hi Truro Trader! I agree with your remarks and that is the reason that I continue to hold TPG because what ever happens, the government will not be allowed to ruin industry, just witness the brexit shambles. I just wish that I could write some thing really bullish however, we may have to wait some time before we experience conditions of normality and unfortunately time is what I do not have a lot of. There is no question of TPG becoming a first rate company to invest in and the sooner the market realises that companies like this is where they should put their money instead of negative equity the sooner the market will begin to normalise. Patience and you should be well rewarded as indeed I hope my daughter or myself will be, Able.
Obviously what is affecting the share prices at the moment is the uncertainty within the markets concerning currency realignments and, quantitative easing by printing more money out of thin air. At present it is all about protecting one's own interests and, the only answer that I can come up with is to remove one's interests from the equities market and to buy gold. It may be of interest o learn that Soros along with others have done precisely that.
My own understanding is that sooner or later there will be a raid on anyone with assets in order to bring the financial system into balance in other words everyone will have to pay. I have not dreamed this article up as it is information gleaned from a number of experts.
Just look at the companies going bust, big and small alike and this problem will exist until trading becomes profitable for the companies remaining in business. Unfortunately the various governments are not in a position to save the large companies due to their own precarious financial situations.
Oh ye of so little faith! The company have stated that they have all the interests of shareholders at heart. You have to expect swings at this state of the game and the big question is, where is the share price headed when done and dusted? For me I am awaiting the general market crash so that I can pick up the shares at bargain prices. The big question is when? this is where we are all in the lap of the gods.
It seems to me from what I can make out is that there will eventually be a new world currency tied to gold and in order to achieve this end there will be a asset stripping grab. Should such an event take place we already know who will suffer most. My understanding is that the upper echelons of society have already parked their cash in Switzerland as they already know what the plans laid are. Supposition yes! however from all the information that I have read I can only conclude that it is intended for the above information to be eventually acted upon to solve the debt problem and, it also explains why the market is so nervous in attributing justifiable share prices to so many companies.
Organic growth is all that is affecting and masking the company's results and when an overall profit is announced we can expect a token dividend. The longer the organic growth last's the greater will be the profits, the dividend and the share price. The only problem on the horizon is the worlds debt problem that sooner or later has to be resolved and is the only reason for the poor performance of the share price to date..
It might be helpful to know how you acquired such sensitive information that has of yet not been disclosed? Hopefully you are correct as it would be a nice shot in the arm for investors.
I find your article nicely balanced and your findings are the reason why I retain my holdings as I do believe the shares in the not to distant will increase substantially but, not until we have experienced market meltdown. Presumably this is the sole reason why the share price has been held back as the big institutions are looking at safe havens until the fog clears. However, we must look at the bigger picture and the prospect of what lies ahead, if we take stock of previous bear markets we will find that the markets were very efficient at sorting the wheat from the chaff. This time around the overall position is so different as all the governments are too cash strapped, witness the money printing, negative rates, and on top of all this recession beckons. We have already experienced the demise of many household names and the main problem is going to be the house of cards effect that will ravage almost every sector. All the problems that will be accounted for is due to the various authorities not acting soon enough in maintaining a balanced economy and promising voters perks that could not be afforded. My take on all this is the people who pay their way, are going to suffer a disproportionate grab of their assets no matter how hard they have worked through their life and, to grasp what I am talking about we will highly likely relive the Cyprus affair. For what it is worth I understand that the European countries have already laid their plans. Truro Trader! I am sorry that I sound so pessimistic and is the reason for my various forays into gold mining companies following the likes of Soros who has already exited the equity markets.
Buying "Tullow" or "TP Group" at present has to be considered long term due entirely to market conditions. I very much regret that it seems we are all due to receive our medicine as the various economies are rushing into a disaster area. Just witness the increasing chorus from the experts forecasting dire times and advising investors to invest in gold. As a safety first procedure I have been buying gold stocks and they have so far (fingers crossed) kept me somewhat insulated from the general turmoil. I have always experienced that if you buy into a company with plenty of cash and first class prospects it usually comes out the other side relatively unscathed. However, according to the experts we will not have experienced anything like the crash that is coming, be warned!
I would like to know why TW is so negative towards Versarien and Neill Rickets? There has to be a reason and I do understand that the share price has been built mainly on hope, as there are not sufficient metrics to support it. However, the investor interest has been quite solid and the information released by the company has not been negative. Any sensible ideas anyone?
Every thing about the market at present is bad news, with the exception of gold that has held it's value since time began and, due to what I consider a deteriorating situation, I have increased slightly gold mining shares and lightened my holding in versarien as a safety measure, as I hopefully deal in facts. I have a friend who held Lonmin and Aquarius Platinum when they were worth thousands and, believing he could not lose held on through thick and thin, later he had a load of near worthless shares. Lesson number one is do not get greedy and, lesson number two, there is no such thing as a one hundred per cent certainty. With the remaining holding i am happy as I do not have too large a holding relative to my portfolios.
You are in a very difficult circumstances however, I will explain what my approach would be. Both the shares you mention are time related and have a very good chance of considerable upside, the conundrum is, which one will take off first? I would not sell any more than half of my holding and buy T.P. G. At least the odds would be in your favour and the main question is , if you hold you may get a surprise uplift due to the deteriorating middle east situation however, on balance if I was in your position I would sell half and buy T.P.G, as all you would be doing is transferring your losses and at the same time hedging your bet.
The share price is only restrained due to market conditions and, when the company is able to demonstrate that they will be in a position to pay dividends while still growing the company shareholders will be rewarded. Take for instance Berkshire Hathaway they do not pay dividends but, shareholders if they wish to sell will make enormous profits and the reason for that is the enormous asset value of the company. My only problem is the illness that I suffer from whether it allows me to witness the next bull market in equities. I am seriously considering adding to my holdings as I can for see substantial gains in the near future and my daughter will inherit the legacy. Just in case anyone wonders, I play the market purely for my daughter and the strategy prevents me taking undue risks and when the stock appreciates substantially, I automatically sell some or all and, fingers crossed the system has allowed me to keep in front for the last 50 years plus.
Dinoken Your argument appears quite sound until you study the banks safety net and, unfortunately we have no Idea of the banks exposure to the so called non risk bond investments of all the banks that is causing a major headache for all the banks and the bonds that I refer are supposed to be risk free which of course are not. The problem is that all the banks are so intertwined that it is impossible to identify their various exposures and the egg on the face is they have not been obliged to set aside collateral to safe guard the banks and this is where the inherent risks are. Should you not realise what I am referring to just study the Italian bonds over the last eighteen months to understand the risks that I refer to and, remember their value are risk free, if they are I am a complete idiot. Yours Able!
At this present time you can come up with loads of bright ideas and they will just not do the trick, like it or not we are in a bear market and, when you witness bank shares rising you can then expect action with the share price. Just ask Neil Woodford and, if he is truthful will inform you that he is caught like a rat in a trap and , his problem is he is looking after other peoples money that should give rise to a different strategy to us. The very fact that we seem to have action in the gold market tells a story on it's own and I have been extremely fortunate to make some good calls that helps to offset falls in the rest of the portfolio. The world debt crisis is mainly responsible followed closely by the Euro that threatens the financial system and if there were no financial problems I would be in banks in a major way for me. I remain confident about the company and it's management and all that we can do is sit things out and hope that we can escape a full blown recession.
Sorry the title of the last post should read "Share Price)
The only important information is the information released by the company and not the hype released by the various posters and ,while they make an interesting read is of no consequence to the company's progress. I await the company's next important announcement to ascertain what the share price should be and I must admit the company is slowing up on the announcements due to either being fully committed or a lack of enquires which does not seem to be the case. I prefer to think it is down to general market conditions and Versarien will not be immune.
Hi! Truro Trader forgive me but I find your comments slightly incorrect, take for instance pessimism, if you refuse to invest in a share, that means you will lose money most likely and that constitutes fear. Kent County Council tried to withdraw their investment in the Woodford fund and was refused. Hargreaves Lansdown removing the Woodford funds will also have serious consequences. However you look at it, there will be knock on effects as a result and, will add to the fear already present. It does not matter what the real causes are, the herd instinct will immediately take over. This is precisely the problem in the market place at present and if my mind serves me correctly we will have to experience an ugly event such as a major institution going bust before we can expect anything like a return to normality. I am not a fan of gold but, this is the reason I have bought gold shares recently to insulate my portfolios in an attempt to insulate myself(the fear factor). If one can see through the fog TP Group should survive the present uncertainties due to the strength of the balance sheet. Be advised there are an awful lot of companies living on a knife edge who would not survive interest rate rises alone. In consequence I have lumped all the market attitudes into the three titles that should cover all the eventualities. For instance, fear,pessimism, unsure, reluctance, I lump all together under one umbrella and waiting for better times constitutes stagnation. Attitudes having changed due to the market getting bullish and the feel good attitude for making huge gains is my interpretation of optimism. You will of course realise we are all very capable of getting things wrong and that is why we must keep our fingers crossed. In the same context it would be interesting to read your views on the market and where you see it heading? Yours Able"