Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
"Ultimately, if this was a tech company, those numbers would be worth hundreds of millions of pounds."
I doubt it. Anything this illiquid is also shunned in the US. This is one of the least liquid stocks in the UK. It's very rare that anything in the US is this illiquid except on the pink sheets.
@Edward, there needs to be more transparency in precisely what equities they own. We have no idea where they've invested the money. The vast majority of investments in small/AIM stocks lose money, so the market is never going to give much value to such investments. There also needs to be some attempt at improving the liquidity - a 10% yield is completely unattractive when the spread is this large (often beyond 10% !). And the managemnet needs to stop operating entirely for their own benefit as they do.
The above are what I refer to by 'terrible' management.
Thanks; looks like STAC would currently yield 7.83% (Buy @ 105.4p).
It's tempting, but I'm thinking it's not enough compared to GACA, NWBD, RSAB, ELLA considering the China risk. From what I can tell, STAN has significant China exposure, which could concievable tip it to a loss which would immediately result in the divi being suspended (lost).
Bull:
- 10% divi
- Potential for significant capital gain?
Bear:
- 4 May: Bid 180/Ask 200. 15 Aug: Bid 130/Ask 150 after bumper results...
- Terrible management who seemingly want to take this private in the 50-100p range
- One of the widest spreads on AIM, wiping out the divi for a year or more
Unless Stockopedia and InteractiveInvestor are reportomg complete tosh OR the NAV itself is suspect, this seems to offer a good margin of safety with a 65% discount to NAV? And the divi is attractive - ****IF**** it can be maintained, but I don't yet see anything glaringly obviously bad here. Happy to hear otherwise.
All continuing to look rock-solid here: No doubts about the dividend for the foreseeable:
"The proportion of contracted revenue for the global portfolio now stands at 90% for 2023, 85% for 2024 and 75% for 2025. This active hedging strategy has substantially insulated Foresight Solar from the fall in near-term merchant power prices. The revenue stability and solid cash distribution also provides confidence in the targeted 1.5x dividend cover for the next three years."
Looks to me like this is unlikely to go through - but the question is whether it's a good entry point irrespective? Perhaps we'll see another leg down and then some consolidation once it's clear there's no deal?
Pros: An interesting/quirky debt/royalty company with a decent dividend and good track record
Cons: An overly concentrated portfolio; some of the US BDCs already have biopharma on their books; are more diversified; are more liquid and offer even higher yields - take your pick from 40+ listed companies, many with an equally long track record.
Back in my day, the term 'asset-backed' meant that when a loan goes sour, there's a physical asset that the lender can sell to recover the loss. This seems to be very different to the 'asset-backed' nature of GABI's loans, because GABI seems to suffer a loss as soon as the lendee decides not to repay:
"In the period, cash payments were received in respect of the guarantee underwriting 50% of the outstanding amounts under the previously disclosed football finance problem loan (0.3%). A creditor proposal has been received in respect of the other 50%, the impact of which (if accepted) would be an impairment of c. £0.9 million. As recommended by Mazars, this impairment has been reflected in the NAV. "
What was the asset which backed this loan. Did they pledge a barrel of footballs or maybe some autographs from the players?
I've been watching this for a long time; unsure about the validity of NAV and with questions about the founder, but ultimately, the financial results were good; the dividend has been consistent , is covered and appears to be sustainable. That's enough for me to open a small position.