Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Looks like I'm the only one left talking about Velti. Well I still believe the mobile internet is going to be at least five times bigger than the desktop internet. And Velti is number one in advertising software for this growing industry. I was convinced it was worth 600 at the beginining of the year. So I've just bought back what I sold in Oct at a bargain price of 480. We will see how goes.
Velti seems to have slid down to 470. I think time to start rebuilding my position. I love volatility. Unfortunately much of what I sold went into Super Group (though I'm not complaining.)
Revenue up 170%, EPS ($0.23) vs ($0.33) same period year ago. They are going to struggle to have a positive second half year revenue compared to H2 2009 (given H2 09 positive revenue jump.) All in I think they will struggle to do better than 50% revenue growth and 25% profit growth for the full yeat (these are wild guesses.) I think they can justify a £6 share price (though only just.) But not much more than that. Its odd that the share price went up 35% between 2nd sep and 20 sep and then the results were announced on 30 sep. If I didn't know better . . .
Sold two thirds of my position, one third at 618 and a third at 601. Will repurchase if price comes down and/or after the results announcement.
And over the 600 line we go, target achieved. Not that I want to be greedy, but volume action remains strong, does anyone know what is driving the price. Cheers.
What a difference a month can make. I think the combination of excellent results and a Nasdaq listing (which I feel will result in Velti getting a better PE ratio - and becoming more volatile.) are driving the stocks performance. I am within sight of my 600 price target. Having increased my position size to five times my initial buy, this has so far been one of my best performers in terms of price appreciation AND amount of skin I have in the game.
I am significantly overweight on this (I added to my position which I bought at 200, at 160, 195, 205 and again at 250 - talk about falling in love with a stock.) I don't know why the decline (perhaps something as simple as its association with Greece, or Greek owners looking for liquidity.) But I'm quite nervous. Even though I can't see anything that should stop it from going to 600 over the next couple of years. I am thinking of selling if the price continues to behave badly. There does not seem to be any news on the internet, but with this type of company I will be the last to know when things start to go wrong. And I've already sat through one year when I was underwater on it. I guess Buffet was right when he said the difference in results between investors tends to be a difference in emotional control. If you here anything trickiedickie be sure to post.
Finally showing a profit on this. Its been a long wait to get back to 2 but it finally made it and then some. The impatient trader in me even bought some more at 1.80 and at 2.05. I am projecting rev growth of +20% and eps growth of +30% over the next five years (mobile advertising is going to become an important media). I am looking to ride this for quite awhile.
No doubt RGS is undervalued at 5 times earnings. Given its low debt and high return on equity. But given the lack of growth in its 2009 results (EPS is where it was in 2005,) it will take another 12 months before anyone gives it any attention, even longer if their is another correction and then there is no guarantee that by 2010 management will have gotten the act together. I got in here at 78 and at 82. I can't make up my mind whether to sell, lick my wounds and buy into other opportunities or wait this out for another 2 years on the 'hope' that management know what they are doing (this whole acquistion was meant to increase dogholder value - this dog .)
I bought as a turnaround opportunity at 80 and still feel that its worth at least 1.60. But given this market I'm not sure its worth the wait. There are other better quality companies that are equally under priced, but have the benefit of paying out a strong dividend as we watch how things unfold.
I bought this at 2 and still can't see any reason on this green earth that its not worth at least 3 (most pessimistic case.) I can't see why I won't end up with a profit on this one within the next 5 years. Unfortunately there is no dividend to console me whilst I wait.
Results annonced today: Back to profit, management is doing the job, price has recovered, I'm going to buy more between 80 and 90 (I will double my holdings,) still expecting to see the price beat 160 within 13 months.
I bought Regeneris when it was still called Fonebak at various prices btw 70 and 80. I liked the sector (recycling mobiles and other electronic stuff - few competitors, growing market,) I liked the companies market position and I believed that the turn around would take less than a year and the price would hit 160 if it could restore its normal margins. With hindsight I should have waited to have gotten it cheaper - but I probably would have forgotten about it if I hadn't bought then. That said we await its next results to see if management has done its stuff.
AEC was recomended in this weeks Investors Chronicle (my first contact with the stock) the chart is dire, have not yet finished on the fundamentals. Anyone got any knowledge of the company.