Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Using treasury shares to buy anything IS dumping them on the market and crashing the share price by 10%. They should cancel them all, and do no more buybacks. It's a daft idea and I can't see how it is good for anything.
I think Terry had it right.
I will say it again, Terry had it right. He said he closed his short at 541 when the share was at 541, and that has proved to be the bottom. Well done. Compare and contrast with my entry of 11 May which (at 705p) said "I would be REALLY surprised if this went below £7 significantly. That would have no justification on this absurdly cheap business. " Well, it did, and significantly, and I was surprised. Lay off the digs.
Bouncy: it takes courage to invest in emperors' clothes when the huge numbers or save-the-world zealots who have invested finally connect the two halves of their brains. Anything based on burning as much energy as possible as rapidly as possible will not last.
Not at £17, but I have been buying at twice this price. You may sneeze at dividends keepplugging, but they have been amazing and worthwhile. This has been my largest investment and it has more than paid for itself. I am a long term holder and will continue to be, though it was always recognised that it is a case of diminishing returns, and hence diminishing price. I expect it will be profitable for a good few years yet.
Alas, your situation is much more complex than mine. We are retired, but previously maxed the SIPP and it is not being drawn down, and that together with anticipated care charges should minimise or avoid IHT. I was thinking of transitioning volatile shares into funds or investment trusts if a SIPP transfers intact on death (as opposed to a cash value), or before I lose too many marbles.
Just looked at mine, with AJBell. They give the cumulative cost alongside the valuation, and the cost has NOT changed after the June1st payment, so they treat it as a dividend and not as a return of capital.
Yes rpg7, I firmly believe this sort of thing distorts the market. There should be a transaction tax of some sort, and I would welcome it. Renting out our nominee holdings so that they can be sold (shorted) to our detriment is also something that should be banned.
Alas : "My focus is in building SIPP for succession planning"
Do you mean making it a "balanced" portfolio so that it can be inherited by someone who knows nothing about shares and left alone, or what? That will sometime be a concern of mine: having 80% in mining shares may not be a sound strategy.
"Waiting until it starts to recover" does not work as it can be done only in long distant hindsight. Share prices do not move linearly until they hit a sawtooth : look at any historical chart and you will see myriads of reversal points that buck a trend only briefly. You need to define what percentage of price movement counts as the indication of recovery, and whatever practical percentage you choose, I can point to history where that would not have worked. If you pick an impractical figure like "risen 100%" you have missed the rise and are guaranteed to catch the next descent.
Bigkahuna : reading the Avani website I fail to see any mention of owning mines. They present themselves as purely intermediaries, so it could be that we PIs continue for years as smallholders. They would not be in it for dividends, but for assurance of supply at favourable terms.
The shares no longer exist in terms of dividend receiving vehicles. There are now only 12,518,301,508 of them, fewer than before, which share the next dividend. So if next time they distribute exactly the same amount of money in total as last time, you would get more. But it does not work like that, the amount of money varies, and when they announce the dividend per (current circulated) share that is what you will receive. You own a bigger slice of the company that you used to, but it does not mean more dividends.
When it carries on like this so you become the largest shareholder, then you can vote for bigger dividends :)
I would be REALLY surprised if this went below £7 significantly. That would have no justification on this absurdly cheap business. Already it has generated more profit for me than any other share, it is if they are paying you to buy the shares.