Member Info for Chatmandu

Phew, the total ***** has finally gone.

So, no actual proof you own the stock.... Move along troll boy / sock puppet.

Oh dear Mark. You really are a bit of a tool aren't you. When you're not lickspittling Velo, you're desperately trying to continue this claim that I'm a troll.

I currently hold 50,392.79 GBP of SLP.

How much do you currently hold? Care to share a screenshot of your dealing account?

Let's look at your posting history and compare it to the 'warning post' regarding the behaviour of the 'hedge fund trolls'. The allegation was that people would adopt a predominantly bullish stance to gain the trust of other posters and then post negative things or capitulate/sell to spook other investors.

*** Pump ***
13 Jul 2021 15:19 = "Stupid panic sell overreaction."

13 Jul 2021 15:22 = "They say to buy when there's blood on the streets, well here's a perfect bloody example."

*** Dump ***

13 Jul 2021 18:05 = "Not looking forward to Velo's post Tuesday analysis now."

*** Pump ***

14 Jul 2021 16:06 = "Looks like a clear 500,000 plus more share buys than sells so far, incl. mislabelled 'sells'." [bull**** of course, because the buy/sell labelling is based upon the contract price vs the bid/offer spread and is very often wrong]

16 Jul 2021 15:55 = "These people are absolute scum of the earth, don't let them steal your profits."

*** Dump ***

19 Jul 2021 08:38 = "Cash preservation, getting now to more people at their av price paid? Their of opinion it's going to dump further??"

19 Jul 2021 10:56 = "unpleasant times."

*** Pump ***

21 Jul 2021 08:53 = "Lift Off"

______________

Do you even own a single share? Prove it troll boy.

@JWSM

Your analysis of the purchasing patterns appear to have been correct - i.e. later afternoon price recovery wasn't due to shorters closing their positions and we've now moved into a bull phase.

Are you seeing any weakness in the buying that might indicate a pause/drop? I'm trying to decide whether to sell to buy or wait for the cash to arrive and then buy.

Thanks,

This 'troll' (seriously lay off the chang) is still waiting for the transferred cash to appear my dealing account. Until then, I don't have any cash available to invest. It's a shame because the price is moving up and I'm missing out on potential gains.

My comment, regarding the company that lost 95% of its value, is apparently a well worn joke amongst traders and a warning with regards to the risks associated with attempting to catch falling knives. Your comment regarding a 50% loss subsequently requiring a 100% gain brought it into my mind.

I'm going to give it some serious thought. My current SLP holdings are worth £47k and I'm definitely over weight in terms of a '20 share equally weighted portfolio'. My portfolio isn't currently comprised of 20 individual shares and my other money, with the exception of JLP, is in collective funds - whether that actually mitigates risk is another argument entirely.

I do have some other ITs that I wish to add to my portfolio (e.g. Baillie Gifford Shin Nippon), so I'll have to weigh up the pros and cons. I also need to decide what my capitulation point would be with regards to SLP. I certainly wouldn't feel entirely comfortable following the price down below by average purchase price.

@Guvvi

Please stop seducing my greed gene, you cheeky thing.

@JWSM

Q. What can you tell me about a share that lost 95%% of its value?
A. It was a share that lost 90% of its value and then halved again.

I'm going to give it some serious thought and run the numbers to see what sized investment would still leave me with a suitable safety margin. I'm willing to accept some additional risk, but will definitely backstop that with a stop loss that prevents actual losses - e.g.

1) Make additional purchases to give an average purchase price of 75p .
2) Set a stop loss at 80p.

Those are just examples, rather than firm figures.

My current average purchase price is 61.19p. If I were to sell my FTSE trackers and also put in the money I'm currently transferring, I'd end up with an average price of 89p (based upon the current price of 108p). A lower share price would obviously improve that somewhat.

89p isn't that much of a safety margin compared to the lows of yesterday, but would still potentially offer a 100% upside based upon a target of 178p. Is that achievable given the possibly newly assigned in country risk? I think I need to give this some thought.

@Guvvi,

I invest via my SIPP, so I'm not leveraged at all. If I were to ever take on debt to buy shares it would only be for something like a FTSE250 accumulation tracker after a major market fall - e.g. 2008 financial crash. I'd also be concerned about job security and debt repayments, so it isn't something I'm likely to do.

If I were to go in very heavy - e.g. 50+% of my SIPP, then I'd certainly use a stop loss to prevent my pension evaporating. I'm seriously considering a very large position, but it seems potentially rash considering it's my pension! But then again, it could be one of those trades that literally changes my whole life.

Greed vs fear.

I did actually consider going 'all in' for SLP. It is the kind of opportunity that could wipe years off my working life.

10-15% stop loss vs 100% upside.

Decisions, decisions.

@NicetoMichu

The cash transfer into the dealing account still hasn't been completed, so I'm in the same boat. I made a minor top-up last Wednesday, but lacked the available cash to buy more - I considered, but decided against, selling holdings to finance a larger purchase at <100p.

It's certainly nice for those holders that were underwater, such as ic152, who can now trim their holdings if they so wish.

From the lows of yesterday, to today's price, it is a 14% increase. That's a very decent gain (or high volatility depending upon your outlook).

If the price stabilises/drops by the time my transfer is completed, I will look to buy more. Times like these are a bit awkward - I'm always wary of buying a share that has had a price spike, in case it reverses, but I think the trend for SLP will be definitely be upwards.

@LunaNera

Just out of interest, how large a position, as a percentage of total portfolio, are you willing to take on? If the price rises, when (if at all) do you consider trimming your investments?

Good advice. A dividend cut can wipe out huge chunks of capital.

@JWSM

I previously followed a high yield compounding approach to investing and it worked pretty well. I'd generally select shares via stock screeners and would target companies with high ROCE, good dividend cover, higher than average dividend yield, a history of rising dividends, etc.

There is quite an active board on another website where people use the strategy as an alternative to buying an annuity. Unfortunately, a lot of people came a bit unstuck in 2020 - lots of dividend cuts, coupled with share price falls, when relying on the income for retirement. I think there is certainly a place for some high yield shares within a portfolio - especially if they can be purchased at a discount (e.g. BDEV immediately after the Brexit vote when the yield spiked to more than 8%), but I'm not sure I'd want to rely on it completely for retirement income - not unless I had 2+ years of income reserve to ride out any storms.

@LunaNera

"instead of a broke business (which SLP is definitively not)"

Yesterday I posted regarding possible motives for shorting SLP and I neglected to add a caveat. From a shorter's perspective, full bankruptcy is the best outcome because they don't need to buy back the shares. That works when a company is highly leveraged and the debt to equity ratio makes it impossible to refinance the debts. With SLPs cash reserves, the chances of that happening would be very remote.

"In fact, the cheaper the price falls, the lower the downside risk"

Agreed with regards to new purchases but, for somebody already underwater, some of the risk has already been realised and that isn't much of a comfort blanket.

I'm in the lucky position of being well above water and have no current plans to sell. If I was underwater at this point, I'd be sitting tight and riding out the storm - and maybe thinking about a top-up to average down my purchase price.

https://www.nhs.uk/mental-health/advice-for-life-situations-and-events/where-to-get-urgent-help-for-mental-health/

@JWSM

Late afternoon share price recovery suggests, to me at least, traders closing their short positions overnight. We've seen a late afternoon uptick on the 16th, 19th and 20th. There are still no officially declared short positions, though, so it might just be standard trading that we're seeing.

If it is shorters, then I'd expect a similar share price pattern to emerge tomorrow - 5% intra day swings offer the potential for decent daily profits.

Would you mind explaining why you interpret the late afternoon share price recoveries as 'strong bull action as opposed to shorters closing their positions? Is there something I'm missing?

and down through the gutter and into the sewer we descend...
- calling people na-zis - check
- homophobia - check
- childish insults regarding gender - check

All posted 'just for fun' apparently.

Perhaps it's time to take a break from your keyboard, let the tantrum pass and then return when you're able to act your age?

@LuckyLuciano agreed with regards to there being no guarantee that the SP will readjust upwards to eradicate the low P/E, but P/E is generally agreed to be a good guide to whether a share is cheap/expensive. On that basis, SLP does appear to be very cheap.

Everybody with an interest in SLP knows that the Q4 results are likely to be very good, so they're presumably already baked into the price, which makes the current weakness all the more confusing/profound. We seem to be well below the 'consensus' (non-institutional investor) calculated level of fair pricing. It seems like a market anomaly but, given the previous SP and dividend profits that have been made, I'm not sure why SLP isn't being actively bought by institutional investors or ITs. The dividend alone should make it attractive for income seekers (e.g. CTY).

Shouldn't this company, especially at these prices, be ripe for a takeover - all a buyer needs to do is crank the handle and take the profits?