Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Well, got some more. Slightly disappointed in the short term trend of this. However, as the below comments say, this valuation is now ridiculous. Fell i have spent a bit of time on this and happy with the fundamentals, and very happy with the fundamentals compared to the current price.
Near a pound for BV/S
PE near 10.
Kept quite consistent revenue.
Cash ratio of 0.34 and current ratio of 5.4! So strong cash position and very strong position to cover short term liabilities.
I could go on.
On my review this company had 8 weak points, 6 strong points and 4 very strong points.
Most of the weak points were around volatility and share price bits and some cash flow aspects.
However, still should not be around 38p atm.
For a macro point, yeah, there is 100% excess valuation, across multiple asset classes. However, i don't think this is a growth stock, far more value. Therefore if we were to see a return with dividends, even with a hike in rates, NPV should remain strong. And unlike growth names in the us where any raise in the 10y yield has an affect on them, i don't believe this should preform the same. On this point, due to their strong rations on the balance sheet, debt should stay controllable with any raise in rates.
Just my view.......