Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"fedfade you fire off a ridiculous price of 160 and expect to be taken serious. I think not. Cash might be king but earns nothing , i am in here today at 248.3p . am i stressed, na."
Last time I heard a "ridiculous" price target was this time in 2008!
@comeonvog the market is supposed to be made of opposing views, right? One doesn't necessarily need to be short in order to have a bearish viewpoint. I genuinely don't see the business logic in buying back shares. That is made even more apparent when they haven't allocated a specific sum. In my book, simply a trick to deter "shorting", but it won't help. Cash is king moving forward.
@Eurofox, Very likely it was a false breakout, and we could easily be going sub 200p. I mentioned earlier that the board's decision to buyback share is reeks of a smokescreen. They need to preserve all cash they have. It makes zero business sense to buyback shares in midst of the massive unknowns.
I believe in Aviva, but I am expecting a sub 200 price action. My own top-up target is @160-170. Good luck!
to be totally honest, I don't think that is their intent. To me, and based on my knowledge of how these things work is that this strategy was worked out together with their underwriter to ensure a kind of a Pavlovian dog. Look at it this way; they suspended the dividend payments , because of these unprecedented events. There is, therefore, no rational sense in risking that withheld "cash" by embarking on buybacks.
You said it yourself, just imagine how much more cash they would have had if they had not bought stocks @500 levels. That was all waster money. They could have simply bumped up the dividends instead of buying "worthless" shares. That way, you give the decision making power back to the shareholders. Buybacks are value destructive, and only serve to line the pockets of the executives whose bonuses are made of a combination of operational KPIS and share options.
The executives don't give a hoot about value preservation. At least not the majority of them.
In summary, I believe, they don't intend to buy anything meaningful and it's all a smoke screen to deter speculators from shorting the stock.
FYI I am long on the stock, but as much as I would like to, I don;t believe in their in their intent of buying anything.
There is no volume! Fluff and tweets are driving this tanker. Trump should be put to trial for his frequent market manipulating attempts. Until around his tweet yesterday anyone who traded in any direction did so out of a 50/50 chance. Only luck drove the longs home. Charts are all pointing downward. With S&P at almost ATH in the face of a great depression, only a fool and his cash will be left holding the bag. FYI look at the long term chart of the oil stocks. They are in a terminal decline!
WTI $11.40
Brent $17.40
How is this possible? - a rigged market, that's how. FED and other central bankers have completely destroyed price discovery. It will only come back, biting both their heads and tails off.