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BLT P/E ratio 11 EPS 153p Div cover 2.4 times Div yield 4.4% Whereas RIO P/E ratio 26 EPS 120p Div cover 1 times Div yield 3.86% BLT's ratios are far better than Rio. Despite that today RIO went north where BLT went south.
You may be right. The shares may have been oversold. But I attribute today's bounce back based on the following factors. Today BLT announced that it will cut cost from $50 to $30 per tonne and at the same time increase annual output by 65 million tonne. IMHO, recent weakness in the shares price was due to fall in the price of iron ore from $190 to $80 per tonne.
Aldi and Lidl are fairly new comer to the market. When hey were growing, Sainsbury's saw them grow and did nothing to curtail their advancement. Now Sainsbury's has woken up when Aldi and Lidl achieved 36% growth and Sainsbury's lost 2.8%. Now Sainsbury's need mastermind to get it back in the front seat.
Analysts' forecasts 3 to 4 percent fall in sales, which was reflected in the share price. Contingent discount or income from suppliers fiasco, which was seen in Tesco's accounts was not the case with SBRY. The actual fall in sales is 2.8 percent. Better than the analysts' forecast. In normal condition one expects the SP should go up instead going the wrong way Interim results together dividend policy will be updated on 12 Nov.
Apparently you are a customer of SAGA. All customers applied for £5K worth of shares will be allocated 1000 shares. Whereas non-customers applied for £5K worth of shares will be allocated 400 shares. Judging from the SP, all those who did not apply will not be worse off and those who applied will not be better off.
It is BLT's policy to declare progressive dividend whenever possible. Where not possible then at least maintain same div as declared in the previous year. I know you did not ask for div policy. I lay below div cover for the last 5 years. Please judge for yourself if div is well covered. In 2009 div was covered 2.35 times. In 2010 covered 2.57 times. In 2011 covered 2.93 times. In 2012 covered 2.87 times. In 2013 covered 1.91 times. Tomorrow BLT shares will start its journed 38p lighter at 1898, after adjusting div. Today I sold all my holdings of BLT at 1942. By doing so I forgo div. I did that for two reasons. From my personal tax point of view, capital gains are more favourable than div. Secondly, like you I was also afraid that the market may give same treatment to BLT as it did to RIO.
Full year's results for the year ended 31 Dec 12, will be published on 5 Mar 13. It is still 2 months away. Two months is a long time in stock market terms. I hope the SP holds the current disy height till then. For the year ended 31 Dec 11, final dividend was around 0.31p. I expect this year the final dividend could be 0.34p. My expectation is based on the fact that interim dividend was increased by 10%. But mind you the interim was declared before money laundry problem arose.
In addition to the previous fine of $340m, making the total of $667m. Which is 33% less than what the pundits predicted. Is it a good news? Well fines can never be good news. But under the circumstances it is a good news. The uncertainty is over. The stock market does not like uncertainty. On 6 Aug this year, when this started, STAN's SP was 1566p.Can the SP rise to that height, say in Mar 13, when the final results will come?
With hindsight, it appears that last year Logic Investments gave you sound advice in light of the laundering allegations in Aug 12, which resulted share price went down by about 350p in two days. it presented a buying opportunity. Of course Logic Investments could not have foreseen nor could have predicted the laundering bombshell was in the pipeline.