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Positive write up from Seeking Alpha recently, worth a read:
https://seekingalpha.com/article/4333247-yellow-cake-great-risk-reward-in-uranium-industry
Conclusion
"Yellow Cake might seem like a boring stock, but you don't have to envision a massive overshoot in the price of uranium, for the stock to offer a very attractive return, while still have good downside protection if the recovery takes longer.
The very real risk of mine closures in relation to COVID-19 can also make it one of the few stocks that goes up, if in fact we get a price recovery in uranium.
The price of uranium has been depressed for some time, so a long-term horizon is definitely warranted. However, due to the illiquid uranium market and relatively few producers, mine closures could be a potential catalyst for the price of uranium.
I have been buying over the last week, due to the attractive upside potential but also good downside protection".
A partial ban on shorting has been put in place in Italy and Spain today. Shutting the stable door somewhat, but a positive move nonetheless. Will the LSE follow...?
https://www.reuters.com/article/health-coronavirus-spain-stocks/spains-market-regulator-bans-short-selling-of-69-spanish-stocks-idUSL8N2B5A0U
https://uk.reuters.com/article/health-coronavirus-italy-shortselling/italys-consob-bans-short-selling-on-85-stocks-on-friday-idUKL8N2B59XV
Sale of assets needed urgently if POO remains low.
"The Group's base assumptions show that it will be able to operate within its contractual debt facilities and have sufficient financial headroom for the 12 months from the date of approval of the 2019 Annual Report and Accounts. Under a severe downside scenario where the Group both fails to meet its production forecast and assuming a flat $30/bbl oil price, the Group has sufficient liquidity for the 12 months from the date of approval of the 2019 Annual Report and Accounts. However, using both the base and downside oil price assumptions the Group's leverage is forecast to be marginally above the RBL gearing covenant when calculated at 31 December 2020, if planned portfolio management proceeds are not realised."
"During the year, commitments under Tullow's Reserves Based Lending facility reduced from $2,464 million to $2,400 million in line with the schedule. Tullow's debt facilities further include $300 million convertible notes due in 2021, $650 million senior notes due in 2022 and $800 million senior notes due in 2025."
An encouraging article here showing the benefits the proposed US Strategic Reserve could give to the Uranium markets. Yellow Cake gets a positive mention too. YCA certainly looks good value at the moment, trading at a discount of almost 20% to NAV.
https://sightlineu3o8.com/2020/03/new-u-s-strategic-reserve-could-bring-an-end-to-the-uranium-bear-market/
I can envisage Russia having an eye on trying to cripple the US shale industry. The US has not limited production to any extent, so this may be their Russians' short term intent. Why us and not them? This has proven to be a tactic that was not sustained over a longer period of time so far though. No one expects oil to be at this price in the long term . It's needed. There is no adequate substitute.
Well, here's the twitter link. I would suggest that you make of it what you will..
https://twitter.com/ScottWapnerCNBC/status/1236687860427829248
5.81% for Feb (Jan 4.66%)
https://my.euroclear.com/apps/en/monthly-stock-loan-data.html#month=eq:2&year=eq:2020&limit=22&search=1&order=asc:abbreviation
Extract here from the CA half year report. "Allied Minds' shares trade at below half of the Fund's estimate of its NAV per share."
During the period, Allied Minds achieved its first successful exit, with the sale of its stake in HawkEye 360 for $65.6 million. In September, Federated Wireless raised $51 million at a valuation more than 20% higher than its prior round in 2018, of which $10 million was invested by Allied Minds. Subsequently, Federated Wireless received US regulatory approval for both the initial and full-scale commercial deployments of its Citizens Broadband Radio Service ("CBRS") system.
In November, the Fund requisitioned a General Meeting ("GM") of Allied Minds with the aim of changing the composition of its board to help accelerate and maximise both cost reductions and cash distributions. In December, Allied Minds announced a range of developments including a $1.5 million reduction in recurring HQ expenses, an increase in the Q1 2020 initial cash return from the sale of the HawkEye 360 stake, the introduction of a cumulative cash returns threshold before any further payments could be made under the Phantom Plan, and the appointment of the Fund's proposed new non-executive director, Mark Lerdal. Based on this package of changes, the Fund agreed to withdraw its GM requisition.
Allied Minds' shares trade at below half of the Fund's estimate of its NAV per share. Its market capitalisation is less than the value of its stake in Federated Wireless at the time of the September 2019 fundraising round, plus estimated parent-level cash. Allied Minds also owns two other sizeable holdings in Spin Memory and BridgeComm, both of which have raised capital from third parties including strategic investors, as well as three smaller investments.
https://www.lse.co.uk/rns/CRS/half-year-report-hr3b3uf89axu1e6.html
I would suggest that CA have already had a positive effect due to their increased holding here, pablo. They have curbed some of the ludicrous bonus schemes for the BOD and also increased the distribution from the sale of HawkEye. Their general direction has been to more closely align the interests of the shareholders with those of the company. That's surely good news for us. Their SP and admittedly dodgy other investments (HUR, DLAR for example) have no direct bearing on ALM.
I wholeheartedly agree with the rest of your post however and we can look forward to the annual results on 2nd April. It's also been a good move by ALM to get Edison on board to help with their investor relations and we can look forward to a detailed report from them shortly afterwards I would expect.
Must say that thought has crossed my mind as well Paul. I remember buying at 8p in December 2018 and within a fortnight the share price had trebled on press rumours of approvals for the project which turned out to come to nothing. I luckily turned an 83% loss into a break even position. Sold out at that point.
The problem is obvious to us all at the moment - the ecologistas are in power (Atalaya have also been feeling the brunt of their activities lately as well) and the CSN ludicrously has new members who are anti uranium. It's worth noting that BKY were due to submit responses to the CSN earlier this month to answer their previous queries on risk analysis, waste management and clarification of previous official documentation. It will be interesting to see the response. Any vaguely encouraging news could see a spike as now BKY are listed on the Bolsa, the share price seems more volatile if anything. I'm not holding my breath though.
Until the political situation changes, which it may well do in time, we're stymied. The EV exploration results so far haven't been particularly exciting at all IMHO but there may be some chance that they could be mined economically.
It could only be a small punt at the moment though.
I'll take that as gospel then Nucky....? FFS you've posted nothing but negative comments. Get out then!
Just think how LTH's feel about how the position is now, not just folks like us that have invested in the last couple of months or less. It looks very undervalued ATM with little apparent downside to me and happy to let it roll. It's been a gravy train for the BOD for sure for too long; CA seem to be doing something about this. Let's see.
@NuckyT
ALM is just suffering as part of the overall correction in the stock markets; it's not due to any specific negative sentiment to this share. The fundamentals that encouraged us to invest are still the same, if not significantly improved in the last month or so due to the positive news from Federated Wireless. Coronavirus is not the cause of the decline per se, but the markets have been bullish for some time and are probably overdue a correction downwards according to many commentators.
"Something causes a bad-news panic to begin in an overbought/over-believed market. The computers do their thing and a waterfall decline ensues. Within a few days/weeks, prices wind up going too far. Then, out of the blue - and usually when the outlook is the darkest - something good comes along (friendly Fedspeak for example). Next the V-bottom occurs. And within days, the indices are right back to where they started. Such is the way the game is played these days."
https://seekingalpha.com/article/4327016-fear-arrived-plan?utm_medium=email&utm_source=seeking_alpha&mail_subject=must-read-fear-has-arrived-what-s-the-plan&utm_campaign=nl-must-read&utm_content=link-0
This may be of interest, so here are investor presentations for two PGM peer companies which have a similar MCap to EUA at present. THS £215m; EUA £196m; SLP £175m.
https://www.tharisa.com/pdf/investors/presentation/2020/different-by-design.pdf
https://www.sylvaniaplatinum.com/im/files/documents/20200217%20SLP%20HY1%20FY2020%20Investor%20Roadshow%20Presentation%20FINAL.pdf
Yes, things progressing very nicely at Federated Wireless - they certainly have high profile partners in Microsoft and Amazon. Exciting times ahead for them you would think!
That's right - no tax is paid in a SIPP either.
@Alansugareatyour
Dividends are taxed as follows:
£2k tax free
7.5% to basic rate band (on your total income)
32.5% Higher Rate
38.1% Additional Rate
To split CGT you would have to sell half before 5th April and half after 6th April
“In a world where you can be anything, be kind”.
Palladium to remain at high prices due to sluggish supply and strong demand; predictions of "bubble bursting" are premature. Look after your cats though...;)
https://www.ft.com/content/557a69f4-4e4c-11ea-95a0-43d18ec715f5
I am a globally experienced Hong Kong based C-Level Investment Banker. Over the past 30+ years, I have worked in multiple financial markets including London, New York, Zurich, Moscow, Hong Kong and Tokyo. I have a proven track record of success in building equity, equity linked and debt capital market businesses.
I have worked for some the world’s leading investment banks including Credit Suisse, UBS, Robert Fleming/Jardine Fleming, ABN Amro Rothschild and Gazprombank as well founding my own business CityCapital Corporation in London.
Most interestingly on his page: ...." looking for strategic investor-platinum/palladium/gold producing debt free co looking for strategic investor aims for top 3 global co-etc".........
https://www.linkedin.com/in/michaelhammondhk/?originalSubdomain=hk
The tiny buys are probably due to the new Freetrade app, which settles their free trades shortly after 3pm. Noticed this elsewhere too. Can see it catching on...
https://freetrade.io/pricing