Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Said it all along the bonds are the play here
Http://digitaleditions.telegraph.co.uk/data/1639/reader/reader.html?social#!preferred/0/package/1639/pub/1639/page/109/article/NaN
Well played Slim, just topped up-game on
Yes I reckon goes out at £2+…v attractive target this
Yes I just noticed that but if you look over the previous few months they had been steadily reducing in decent amounts-the weakness may just be general lack of interest in the stock and not due to FIL but knowing how they operate I reckon they not been helping…either way I’m relaxed as VERY cheap and happily accumulating stock … I called SPT as a bid stock in the last few weeks and my money on this to be next…we shall see
Previous post 21/2
Hi JG68
Very oversold here
I believe FIL are the reason for the weakness as they a large holder and been constant sellers as you can see by the RNS’s
From previous experience it is their style to just sit on the offer and sell relentlessly without any finesse ie sell into rising prices as and when demand is there.
I’m happy to be adding to my large position re my earlier post a couple of weeks back, once FIL have fulfilled their selling target the stock will undoubtedly bounce and rally hard.
The EV/sales ratio is about 25% - very cheap and will re rate in time…I expect them to be back in play soon and only a matter of time until someone comes knocking
Don’t forget WG Mary…
Pleased with this post 20/2
Couldn’t agree more Mary these are ridiculously oversold and my tip for approach in the coming months.
I have big position here and happy to keep adding, amazed on this pullback from 127 odd, was decent Dr buying I seem to remember recently , market is mispricing so many stocks and this is right up there
Had this a while so about flat… well done Mary…great minds….WG next…
Mary
Sellers out the way, I noticed some prints @ 106 a couple of days ago , reckon they have a run now- update 6/3…
Totally agree, lots of UK up for sale
Got there in the end! Couldn’t post link as Telegraph block it, read first post first (3rd down)
Balanced piece imo
Martin Lewis, the Moneysavingexpert.com founder, is among them. He said the watchdog’s investigation was “huge” and could lead to “PPI-type scale” payouts. If you think you might have been mis-sold, read our guide before putting in a claim.
A spokesman for Lloyds Bank said: “We are currently reviewing the recent FOS decision and will support the FCA with the upcoming industry review.”
But motor finance industry voices have argued that while, on paper, the ability for dealerships to set interest rates themselves looks bad, in practice it enabled better, more flexible deals for consumers in the vast majority of cases.
Adrian Dally, of the Finance and Leasing Association (FLA), said: “Ultimately, being blunt, the scale of this has been misrepresented.
“What the FCA is doing has been misrepresented. Motor finance providers, our members, have rejected most of those [complaints] because we consider what happened was within the rules.
“There’s a perception that what happened was lenders allowed dealers to raise interest rates to earn more commission. No, that isn’t how it worked at all, what goes up can come down. They had discretion to lower the rate. Ultimately, dealers wanted the [discretionary commissions] so they could bring down the rate in order to match what a consumer was offered elsewhere. The consumers benefited more than they lost from this discretion.”
Mr Dally said that discretionary commissions were “something we have been aware of for a long time. It’s not been secret, it’s been out there.”
It is a view shared by Dominic Threlfall, former managing director of Pebley Beach Group, a car dealership headquartered in Swindon, Wiltshire, who said discretionary commissions were a vital tool to stay profitable during his more than 30 years in business.
He said: “Did it happen? Yes. We did increase interest rates, but it wasn’t an insult. It was part of a package. When people buy a car they buy a package and the dealership will stack the package up.
“Each customer is different and that’s what [we] tried to do, to make a deal that fits the customer.
“We have customers coming in who may not have had 10pc deposits therefore we have to reduce their car prices down a bit. [So] what you would do is reduce the car price down, you might put the interest rate up a little bit to compensate for that.
“Because [dealerships] were earning more on commission that meant they could reduce the price of the car, or reduce the price of the trade-in car.
“Just by putting the interest rate up a little bit the customer has walked out with a much better package,” he said, arguing that the consumer may have to spend less cash up front.
“It probably cost the dealership a little bit of money to sell it that way”, he said. “Companies should not be crucified for that. It’s a package to buy a car. We’re not a nanny state, people are making an informed decision that they want to buy that car.
“I laugh almost at what is going on,” he said, adding “It is almost as if profit is a dirty word.”
Despite the motor industry’s protestations that the FCA’s intervention is a storm in a teacup, there are plenty who think car finance could result in large sums being returned to hundreds of thousands of customers.
How car finance scandal unfolded
Banks are setting aside huge sums against compensation – but dealers say they did customers a favour. By Noah Eastwood
The Vauxhall Zafira was one of the most reliable family cars ever to roll off the production line, so driving one home after paying just a fraction of the price must have felt like a steal.
That’s what Lisa King thought when she bought a new top-of-the-range Zafira in 2012. She paid a little under £14,000 upfront and financed £12,000 over five years in repayments of £279 a month. “It was a lot cheaper than the book price,” she said.
The catch? A whopping 12.7pc interest rate, at a time when the cost of borrowing was near record lows.
“We didn’t think anything of it,” despite an “excellent” credit rating at the time, she said. “When the salesman said we wouldn’t be able to match that price elsewhere, we said OK.”
Six years later, following a notice from the City watchdog in 2019, Mrs King, along with thousands of other drivers, discovered that their motor finance deals may not have been sold “subject to status”, which would have set interest based on a credit rating. Instead, it was at the whim of the dealership in roughly 40pc of cases, according to the Financial Conduct Authority (FCA). What is worse, car dealers, who act as brokers on behalf of lenders, in Mrs King’s case Black Horse (a division of Lloyds Banking Group), were incentivised to secure higher rates with extra cash.
The so-called discretionary commission arrangements were everyday practice at dealerships for decades. They played a role in millions of loan agreements and potentially led to consumers collectively paying billions of pounds over the odds for cars.
The commissions were banned by the FCA in 2021 but it was initially implied the ban would only cover new loans as opposed to historic claims.
But a landmark case in January, where the Financial Ombudsman ruled in favour of a case against Black Horse, has paved the way for thousands of new claims going back to 2007 to be heard. The FCA is now investigating whether to greenlight mass payouts, with a decision due in September. It found drivers paying up to £1,100 over the odds on a £10,000, four-year finance deal.
‘As dealerships were earning more commission that meant they could reduce the price of the car’
Many are already describing the unfolding situation as the “next PPI” and claims management companies will be smelling blood as major banks brace for a wave of payouts, including Lloyds, which this week said it had reserved £450m against possible compensation.
The total sum banks could be on the hook for is between £6bn and £16bn, according to estimates from RBC Capital, which will worry anyone with a stake in any one of the major FTSE 100 banks that could be implicated.
I still anticipate bond to be re paid in full however if it is rolled I would expect a v high rate to be offered to enforce this ie15+…
There would be a register available that lists the major % holders of the bond so yes be interesting to see the colour of it…i personally think b small chance the rol would happen but even if does be v attractive coupon…
Very good post baldmark
They need to be very careful.If bonds are not paid out in full in August, after paying a £6m divi, the capital markets will show no mercy to The Board and their advisers….
Not feeble tick….just a sensible view thank you all the same
Agree with your above comment…however they arrive at it I believe bond re paid in full , plenty of buyers of the bonds today with buyers paying 90 at the close of the play , great opportunity imo
Been steadily topping up to my existing position which purchased at issue…as I say secured debt 380 odd so even in liquidation which clearly won’t happen they have portfolio of 700mil so plenty to repay the bond with even in fire sale of assets-