The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I am not a very good trader, but I keep getting lucky with Zephyr. I wasn't expecting to get back in at sub 5.5p after I missed the boat at the beginning of last week so am delighted with 5.35p
Seems to have been two great RNS here and news a few days away. of the big drill Odd to see it falling back against that backdrop, especially because it has been higher before.
Is the Georgian sale. I'm amazed this is not up by more- pathetic rise considering the news. We've had:
1. New CEO
2. New acquisition
3. Georgian sale
4. POG Rise
Which were supposed to be value enhancing news events and guess what? We're lower than we were before all four. STUPID!!!!!
It's pretty hard to stomach. We've halved in value purely because of Chinnok (not taking into account successful casca deep flow test). That seems wrong somehow, even by AIM standards (and this share isn't a pump and dump dog).
Was hoping for a bit of an uptick. Given this went up 20% last week literally on air, one would imagine such an announcement would have given the SP a major kick from its currently depressed levels, but doesn't look like that's happening.
Ultimately, most AIM investors invest over the medium term of 2-3 years. Most of us trade shares, buying and selling as and when we see an opportunity. If we want long term growth and value, we probably invest in blue chip stocks.
The problem with SQZ is that it's share price since BKR has barely moved outside of the covid collapse. It's been locked in the £1.10-£1.40 zone since BKR, and more recently £1.10-£1.20. It's essentially a share whose price is impervious to:
- Commodity price fluctuations
- Cash position of the company
- Dividend
- Progress on known knowns (Columbus, Rhum 3, etc)
- Hedging
Which then leaves of course the much dreamed for deal as the potential share price mover. However, there's little evidence the company sees this is a particular priority. Sure, they say they are open to acquisitions, but who wouldn't be?. The only statements we get about deals are reiterations of the company's high bar to pursuing one- it's got to be super good value, it's got to be very big, and its and a fit in perfectly with their objectives. The last RNS annual report barely mentioned future deals aside from the standard de rigueur stuff copy and pasted from the last annual report.
The upshot is then a share whose price does not move, and where the one factor which would move the price is at best a dim and distant prospect. Meanwhile the market is rising and I know if I sell my SQZ shares for £1.10 to £1.20 to use my money for something, I'll be able to buy them back at the same price later.
Because all SQZ does is perform within its well known territory, there will probably never come a point where the market has an epiphany and values us properly. A rise will only come when an X factor is introduced and momentum begins- that's the way AIM works and always has done. The company's conservatism is at present preventing it from realising shareholder value even it it makes great business sense.
Its been 4- 4.5p several times previously in recent months, so I would be surprised if we do not rally quickly to that level as there seemed no reason whatever for the recent fall well below 3p, other than a slight decline in the PoG- which is really immaterial until we are producing.
The next leg up beyond 4.5 has been the challenge previously but I am confident we will return to that level again- although it will take solid news to move beyond it.
I'd love it if a £10 million MCap company issued a price monitoring RNS (or two RNS) because of me and my £4800 buy!
I think we can deduce though that this share is seriously illiquid and it won't take a lot of buying to move it up fast.
Well, it cannot be said he was trying to duck it. or not talk straight. I think some other CEOs would have been a lot more rampy about the oil- if anything I think he undersold it to avoid be seen to talk up this rather tatty second prize (which the market has decided is completely worthless already, but might end up being worth having of course).