Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Mr Market as usual doing a great job of getting shares as cheap as possible. We're all at a loss here, however, most investors can't take any loss atall, so only buy when things start to go up again. The added risk of buying when things are dropping is met with added rewards that when it does snap back up it will be swift. Think of all that cash waiting on the sidelines for any whiff of a solid bottom forming, let alone the 4 year saga of SFO coming to a close.
Watching level 2 is intriguing, all the buys well above the offer are not pushing up the spread, why, because there is a distressed seller vacating the room at a typically amateurish time.
Market cap is currently under £400m, with management owning 20%, and another 8% short, coupled with not seeing a single holding RNS other than Blackrock in the last few years and you suddenly have a very small free float. Volume here just now is very reassuring (over 15% of the company traded in 3days!) if the buyers want to keep buying in such volume there is noway sellers can keep meeting demand (witness the smaller and smaller amounts available on level 2). Once the ret*rded distressed sellers stop nuking the bid at the worst times (its almost like they want it to go down, ie shorters), we will see a steady uptrend. Seen it all before, see past the share price manipulation and look at the assets your actually buying.
Rye Bay were starting to close there short at £1.6 a few days ago, yet chose two days later the chose to increase there position at £1.15 due to a guilty plee, go figure, its all smoke and mirrors to try and decieve. Wouldn't surprise me if one or two institutional holders were using the SFO resurgence as an excuse to exit at a loss with a few envelopes passed to the shorters in advance. At the end of the day the II's couldn't care less because its their clients money and not there own there throwing down the drain at the worst possible time in PFC's history. You couldn't make it up.
With the share price so low, i doubt the SFO will be walloping a $400m fine. There was talk of this number 3 years ago when the M/Cap was £1bn+, but its not in SFO interest to put a company out of business.
Any idea what sort of follow up news is due after this date:
"Specifically, Mr Lufkin has pleaded guilty... he is due to be sentenced at Southwark Crown Court on 11 February 2021."
Trades starting to go through at mid price (institutional transfers). The same thing happened to NRR a few months ago at circa 55p. The market knew there was one or two distressed sellers, so the offer kept dropping to force them out as low as possible. Still solid volume (over 2% of company traded today). Not a huge amount of bargains in the market just now, but PFC around these levels are a great long term hold. GLA
How can the market support a valuation of close to £300million when at best they are making a profit of £5m a month? You cant give this a p/e of 8 because of hashrate changes. The company would need to reinvest all cash into new machines to keep up? Be interested to hear genuine thoughts thanks
Bare in mind the same thing happened yesterday evening, came under pressure at close and gapped up the next morning.
Everyone ive spoken to is not allowing any form of short. Shame :( 105p looks a bit far fetched short term at least.
Quoted in the 90's for any size. Looks like the 4% flippers have gone. Only 60m shares in issue. Should be a great share for 2021!
This placing seems to be solidly met with over half the total placing shares proposed already traded in 2 hours. Hence any flippers (people buying the placing 1.25p to make a quick 10% will be quickly swallowed quickly. We also dont know how over-subscribed the placing is. Hence existing holders may be selling now, knowing in a few weeks they can pick them back up at 1.25p. However, if the placing is oversubscribed they may be scaled back, so may need to buy on the open market to keep there original stake. Either way, with £5m in the bank, and no doubt some holders who sold up higher may be tempted to rebuy, this now looks like a more solid investment proposition. GLA, Merry Chrimbo!
re your question - forward selling?
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Rebound?
FCAP were on offer all morning, selling 100k. They are nowhere to be seen now. Cant buy a dime. Jupiter had under 5% of company on 18th. Since then well over 10million has been traded. Amazing entry imo, been following this for years. Now is the time with FDA fast approaching.
chris....
I was going on yearly cash increase, you are looking at June 2020. I was looking at June 2019.
June 2019 Cash balance of £3.8 million.
August 2020 Cash balance at : £10.6 million
8m volume, not even 10am. 55m shares in issue. Look at the recent holding RNS's. Some II's had been reducing. No doubt it is them clearing the decks. Today seems like a complete reset of the shareholder register. Can see this back to £1.2 within by new year. Usual over-reaction, however, thats what the market does, if there is a sell on market maker books, it will do its best to buy them as cheap as possible.
Always keep some cash aside for opportunities like this. Have a good weekend.
30th June 2019. Cash £3.8m. Now over £11m in 2020.
Cash balance at 30th June of £3.8 million, and now over £11m. And your saying its not a growth stock?
£47m market cap, EBITDA of £15m cash of £11.6m! Wow xmas came early, ty!