Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
This is a little old (10th April) but CRA gets a good mention on page 3 of the article. Sadly it seems to be with regard to (dare I use the word) Potential solutions under development - with CRA having a liquid problem affecting operation that needs to be overcome - rather than a ready to buy solution off the shelf and ready to go. still worth a read at http://www.arabianoilandgas.com/article-12246-the-brownfield-dilemma/1/#.U1eruFVdX4Y
I recently bought into ALK (but wished I had waited a bit till after this last fall) but in the long run I think ALK will grow steadily filling the gap in the market for the energy it can provide. It is solid, doesn't rely on handouts, makes a decent profit and is reasonably valued, with a growth path in it's current area. It is well placed to exploit shale gas on the vast acreage of mineral rights it has license for if that turns out to be more than hype and may well make money from licensing/selling it's rights to others than developing it themselves.
Why do we invest in shares? only reason I invest is to make a profit, whilst you may occasionally make money on a share that goes up for spurious reasons ( just as likely to lose money on an over priced share with no solid foundation) the only real bankable proposition are shares in companies that can make a profit and then grow that profit year on year. So I agree with Choice words like potential, as well as reduced losses, cutting edge technology, new sales channels ,reorganisation etc...are all meaningless until you can see words like Positive Cash flow and PROFIT
Hi Mikeygit I may have joined you in despair as I have today purchased a substantial number of shares in CRA at 7.6p . My reason as expressed in my previous post is that at present the current share price is about equal to assets - discarding the potential value of CET which also negatively acts on the company by burning development capital- The lowest ever (so far) mid sp was 6.75p a couple of years ago so we are close to an all time low. Looking over the last 5 years or so when CRA does start to recover from a real low it rises quickly (I hope it will repeat that this time). It is almost impossible to catch a falling knife or a falling sp so this may have further to fall, but I decided the potential for a rebound from a decent value position was worth the risk. I am prepared to buy more If the value position improves further (share price drops below all time low/ CRA make positive order announcements)
Today I joined the ranks of AVAP shareholders. So my opinion is backed by my action.Why? Well AVAP is a rarity on the UK market - it is one of three companies that buy and lease planes (one is almost a closed ended entity it has no growth potential) the other is CLA also in some ways a company with no growth prospect - however 65% of it is owned by AVAP who are quietly mopping up the remaining shares well below the market buy price (declared purchase of another 1.7m shares today). I expect before long AVAP will buyout CLA and merge it. CLA is profitable on a PE of 5.5 the cost savings removing dual listings etc will only boost this profitability. If you check the aviation jobs in Singapore you will find a listing for an FD for AVAP & CLA combined. The AVAP share price is backed up by an asset value (after all debt) of around £1.20 the assets are nearly all in planes that are well sought after in the second hand market. BUT the hidden asset is that AVAP has advance orders for around 40 planes - if all purchased and kept would almost triple the fleet however if AVAP does not have a lessor lined up it can sell the plane at a profit - recently it made a £1m or so on such a deal. Another area of profit growth is finance costs - AVAP have recently refinanced two planes (14% of debt) with a saving of above £1m a year - it means that they now have enough visibility in the plane financing market to obtain finance at similar rates to the bigger plane leasing companies in the states (which trade on PE of 13 and up). This access may mean some existing finance deals can also be refinanced at lower cost and even if that is not possible it bodes well for the future financing of new planes. As with all companies there is a downside - rising interest rates (though most are fixed for various periods) could squeeze margins, decline in air travel / air travel growth - perhaps in a severe downturn particularly in the far east/pacific where AVAP leases most of it planes could result in airline failure ( though planes would be returned to AVAP - there may be losses on monies owed). AVAP does need to widen it client base which it id doing as at present one client dominates. Thankfully two new planes go to a new customer this month so that also sems to be in process.
The problem at Corac may be in a little line tucked away in the annual report, which indicates that they do not expect to make a profit across the group for at least two more years.This is In addition to one of the lead statements that the technology has taken/is taking a lot longer than they anticipated to develop. Holding a share that makes a loss year after year is hard to do even when the loss is getting narrower especially when it is not yet proved that the technology works in situ as well as anticipated/hoped for and that the company can then make a profit out of the product. I lost a fortune on a solid engineering company that developed an amazing cutting edge technology it raised £300m in the market and then failed to make a profit on selling the product before it had burned through all the cash - we heard loads of promising words from management then woke up one morning to find the whole project had been sold to an an American outfit for £15m!! A fair way to value the Sp at the moment is the profitable bit made £ 1.7m it will struggle to beat that in the current year so a PE of 10 would be about right. equal to £17m (they paid £10m) there was £13.6m of cash, that is burning at about £400K a month so now equals£12m. The whole at present therefore worth £29m equating to approx 7p per share - that values the CET technology at zero which is not really fair- The current share price therefore probably represents fair value until such time as we can see more clarity on the CET products, the will it work? can it be sold it be sold at a profit? who and how many will be bought?