Member Info for Chatmandu

I guess a lot of people have been burned when buying after the previous SLP recommendations.

The IC website shows all the previous articles relating to a share, so even cursory IC based research will show recommendations to buy followed by a falling share price - which is exactly what's happened this time.

https://i.postimg.cc/FRqWBc7T/image-2021-09-13-093517.png

I don't think we're going to see any improvement until the chip shortage ends and (if?) car production ramps up again.

Somebody on these boards questioned whether new car sales would recover in the post-covid 'work from home' world. I can definitely see the bear case (I'm certainly not looking to replace my car) but, perhaps, the macro trend of migration to the countryside will result in higher car sales as people can no longer rely on the good public transport systems found in cities?

Ultimately, time will tell. I'm not expecting things to improve until at least mid 2022.

@toptiger

I agree it does seem high for such valuable metals, but I've no idea what the actual cost of smelting is and it's not in the accounts. Perhaps that explains the discrepancy, that's been discussed before, between the spot price and the price received by SLP?

@CommandoKai

Thanks for posting that video - it's a very interesting look at the company.

I guess we're now in for the long haul.

@ashikshetty1

"THEY WOULD NOT BE MENTIONING THE DIVIDEND IF TEMPORARY PRODUCTION ISSUES WERE A CONCERN"

Plenty of FTSE100 companies use their dividends to distract from bad news and shore up their share price. I'd be careful using that kind of logic to make buy/sell decisions.
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@toptiger

"It's not producing though is it ?"

I presume that SLP's equipment isn't running at maximum capacity 100% of the time. Any backlog of work can, presumably, be made back at a later date?
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@stoodio

"Yes, it's raining money :)"

The dividend is welcome, but it will take a long time to regain the capital 'losses' via dividends. I won't be popping the corks until we're past 150p - if we ever get there!

"That price movement the last 2 days of last week, dictates to me that somebody knew there was a sexy divi on it's way"

I've been heavily criticised for suggesting Mr Market was party to information, that we weren't, when the share price was sliding. If you think this is the case, then it would also suggest that a falling share price is a signal to sell because 'they' know something you don't.
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@LunaNera

"We had a top up opportunity around 84p!"

Indeed we did. I don't really 'trade' shares because of the bid/offer spread and a belief in long term buy and hold, but SLP seems to have fantastic swings, if that's your thing.

Bonkers volatility. Day traders must be making a killing.

You'd have definitely have benefited from switching from SLP to JLP a couple of weeks ago. If you had, you'd now be in a position to rotate back into SLP. Is this still a good time to buy JLP or sell SLP?

(Sorry for typos. I was dragged into a nappy change and neglected to proof read before posting)

My two pence worth...

This board is a self selecting group of people that, on the whole, want the share price to soar. People have bought in at various price points and some are therefore more vulnerable than others to price volatility that others.

Maybe some people haven't been investing for very long and are a bit naive with regards to negative commentary - i.e. they assume that any words of caution are the evil shorters trying to 'steal' their shares - cries of 'deramper', 'shorters' and 'hedge fund rent boys' are thrown around with abandon.
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Guvi - you appear to have called the prices / timed things pretty well. I wish I'd followed your trades and sold/bought to increase my holdings. Well played and good luck to you.

@toptiger

Thanks. Everything appears to have gone well, but time will tell.

@toptiger

I returned to the UK late last night (travelled abroad with my wife for her medical treatment), but I'm quite busy with other stuff. I'm keeping an eye on SLP via my phone (it's my biggest holding) but I don't have time for research at the moment. I'm back at work next week and will take a serious look then.

I bought into JLP at 19p, so I'm still underwater.

High volumes being traded today and a 4% bid/offer spread?

That seems a bit odd.

Surely somebody is just going to buy the whole company at these prices? Anybody up for a leveraged buyout?

I agree that July's weakness was due to the rioting (an unpopular opinion at the time).

I think that current uncertainty over Afghanistan and the implications for geopolitics (i.e. 'weak' America Vs China), and the potential impact upon global trade is combining with the chip shortage and South Africa's in country risk, is combining to knock the SLP share price.

These type of events tend to get overplayed with traders deliberately trading the volatility and exacerbating any movements.

I'm sitting tight and, with a lack of actual SLP news, have no current plans to sell. Oh for a crystal ball....

Sorry - just read the article and John Rosier has had SLP in his portfolio for some time.

Perhaps Simon Thompson asked him to double check his analysis to make sure he hasn't missed anything?

Presumably, the car/exhaust manufacturers are learning the lessons of the chip shortages and are stockpiling PGM metals?

The markets are probably just reflecting American angst over Afghanistan. Traders will be trading the volatility, which will be magnified by the lower volumes during summer.

I'm sitting tight and am planning to top up some ITs and possibly take a position in Africa Oil and that Spanish copper producer. I'm abroad at the moment and don't have time for research.

@toptiger

Thanks. Whenever you've got the time, I'd appreciate your thoughts. I don't have much experience in small caps and haven't ventured outside of AIM before.

I'd say it's a general flight to safety due to Afghanistan. It also might possibly be highlighting how quickly situations can change. Clearly Afghanistan and the Taliban are an entirely different situation to the unrest in South Africa, but it might have freaked out some investors - e.g. 'if things can change that quickly there, maybe it can happen here' type thinking.

Markets have very short memories, so I expect it will be forgotten by October.

In other news for my portfolio, JLP down almost 10% today (ouch).