Member Info for CaneToad

(taken from GEMD board)
https://economictimes.indiatimes.com/markets/commodities/news/rough-diamond-prices-up-10-on-supply-concerns/articleshow/87968330.cms?from=mdr

So diamond prices up significantly / diamond miners down significantly...

I'm tempted to buy some more, but am staying out of the market until I know what's going on with covid.

Other diamond producers are heavily down again today, e.g. GEMD is down another 5% (plus 5.3% drop on Friday). And somebody in PDL is selling heavily. That's all I can tell.

You would think that somebody would have adjusted the Prev. Close figures, but alas not LES, Hargreaves Lansdown or even the London Stcok Exchange. In the meantime, there's been a huge downward move in a puff of smoke, without explanation.

From what I can tell, today's drop is another ~15%. The drop on Friday was ~8%.

The figures are totally screwed, because nobody in the financial services industry is able to divide by 50.

Market cap on Petra Diamond site (pre consolidation) indeed is: £139.83M, while latest figure (Hargreaves Lansdown) is: £112.64M, which is 20% lower. WTF is going on? Money has vanished...

Friday Close: 1.44p (equivalent to 72p post consolidation)
Today's High: 71.97p
Current Price: 61p (-11p, or -15.28% lower)

Not sure WTF is going on.

@Knockout: The share was suspended for a month. He informed the market at the closing time on the last day possible. What he said at the AGM and what he did were the exact opposite. He received £500k for 'improving' the share price. What exactly should we apologize to the CEO for?

I am intending to continue holding the shares as I believe they're undervalued. I need to wait and digest the update before deciding the next step: (a) are dividends being reinstated and (b) are they profitable again.

With almost a year after hearing about the Ex-IM Bank letter, I thought this announcement woiuld be more substantial; i.e. they now have funding. It seems to be the very beginning on the process. I won't be adding any more shares at this time.

It sems that the big selloff here is due to a huge selloff in all middle eastern stocks, due to the large drop in the oil price. It's not specific to NETW. Obviously that doesn't help us holders of NETW ...

https://www.youtube.com/watch?v=JbNovALKjsI

Finally, out of the 10 largest institutional share holders, none have reduced their share holding.

I agree that their RNS was poor, not offering any guide to PROFITABILITY.

I am NOT a big fan of the management.

I am also NOT a big fan of the company.

I am just trying to understand the logic of the current price from an investment perspective.

I cannot see how this price is justified from the publicly available info.

This is definitely becoming a deeply unloved stock, but I am perplexed at the current price.

Enterprise Value: £19.58m
Market Cap: £1.03b
Cash: £2.184b
Net Debt: -£1.033b
Gross Gearing: 58.6%
Net Gearing: -52.62%
Price Target (7 Brokers): 260.82p (~100% above current price)
Ratings: 1 Hold, 4 Buy, 2 Strong Buy
Dividend yield (2021E): 7.23%
Dividend History: Consistent payer

I agree that the chart is grim. But this is now being priced for imminent bankruptcy. But without debt, I cannot see how that is possible. The lowest price (that I can see) seems to be in 2009, when there were genuine concernes over a collapse of many financial institutions, along with TCAP, but we are not in that scenario. The worst case that I can see is a modest loss in let profit.

In terms of their credit rating, this is excellent at BBB-. They are currently able to borrow $250m in funds (due 2028) at 2.625%, reflecting a very low risk of default. The expiry is more than 6y out. This is amongst the lowest interest rates of any company in the FTSE250!

What am I missing here?

I fully appreciate that the old voice broking business is in stuctural decline - hence why they bought LiquidNet, but LiquidNet is now priced at zero.

Is @Fevertreeman or somebody else able to offer anything here?

@ODONNELL: Let me get one thing straight. I am not against short-selling per se. It is essential in certain circumstances, e.g. for the hedging of option positions. What I am against, is people changing their rhetoric, depending on their position, which is mostly done by small-time short-sellers on these boards. In my experience, the vast majority of these small-time short-sellers eventually blow their accounts, so it's not something that any sane investor would consider.

FSJ is now in a situation similar to what Babco*k International was a year ago. It's painful. But the short sellers on that share will remember the day that it rose 40+ % and wiped them out. Eventually, that could happen here as well.

I've been combing through the financials of FSJ again and I don't (yet) think it's as bad as some think. I'm hanging off for the moment, but am watching carefully. It's good to see them increasing their business to the Renewables sector.

This is definitely the pits. I'm holding off now in case we revisit 200p. I have a feeling that the Big Slide is only just starting.

He's going to have to go on a charm offensive and/or produce good results.
My only interest now is that the results are good.

Cutting it bloody fine - yes...

Good news. No doubt some will want to leave. I'll be holding and think this will recover and that the company itself is very solid, ridiculously cheap and that it's still going to be a successful investment. Clearly, that might take some time.

@Chuz: "Where does all the money go when oil, gold, btc etc drop"

I don't know for sure. I suspect it goes into someone elses pocket...

My portfolio is totally red today, except for a NASDAQ put option that I bought about 6w back and which I thought would decay to zero!