Member Info for Guvvi

Also one of the key attractions is the location right by the sea so a port will suffice. Not sure what a jungle has to do with it lol.

This is not straightforward to figure out but i notice a couple of well informed posters here have it broken down properly. It looks very mispriced and highly likely to realise a more sensible value in the short term.

I've bought a lot of share today and rather unusually the spread and prices haven't even moved so volume may not be the key but newsflow certainly will be !

The other issue here you should always look at a companies EV ( enterprise value ) which in SLPs case is much lower than the market cap.
It gets paid 4 months behind its sales so in reality its huge 100m dollars odd cash pile is shooting up after the last quarter right now ( where you had a massive profit ) and by the looks of the current PGM prices and the increase production expected in the current quarter the profit is going to be even higher again.
I don't think people fully appreciate how much money we can be sure it is making right now and equally how cheap it's share price is relative to all this.

Simple p/e's or screens just won't highlight this. What surprises me is this is not now a small miner, its a £350m market cap company that is totally priced incorrectly. Long may it continue - well not for too long. :)

I can't help but think SLP remains a great takeover target in the real world for another larger that is also probably both producing a lot of cash at the minute and for which equity raising or debt finance are cheap and acceptable.

I honestly see this is a fairly likely outcome at some point. I mean why wouldn't someone make an offer of £2 a share for the business without the cash ( let the company declare a big chunk of it pre-sale ). Be interesting in a few months to see whether the board would recommend £2 a share and a return of say 25p a share as a dividend.

Yeah it's worth a lot more than today's price i agree.

The MM have to make a market at the prices they advertise in NMS ( normal market size ) over the phone. They can decline to do this online i.e via your HL app or whatever but if you ring your broker you can tell them to ring whichever MM and make them do whatever if advertised in the daily size which you can see on lvl 2.

just an odd day to see even right now still a spread of 4p.

anyway it matters not who cares.

Random question... we don't have small volumes today but the spread has been 3p or 4p all day really.

Anyone got a sensible idea why this might be the case?

Yeah you can't be worried about this price action. The market is just trying to price an awful lot here isn't it.

From collapse last year to a new equity structure and 2 serious acquisitions and a promising future etc. It's a lot of info for the market to have to deal with with relatively little info.

Even today the 2020 accounts are really of no interest we just want to know what the next 12 months holds and its very early for that to be clear.

Without being too bullish this company has many ways to spread it's revenue and profits now across a new model and this brought together has us in a place where serious growth is available both organically/inorganically.

Its hardly priced to the moon at the minute relative to many growth companies and yet has a solid balance sheet and plenty of time to show what it can do.

Patience guys lets see what the company can actually do, the share price action over 2 days is totally irrelevant.

I bought a lot of this a few months ago and could see very little downside at a price in the 30s and with the greater clarity we have now i still see huge upside with very little downside unless there is a total catastrophe.

I always like the investments where i have to imagine a total failure of both acquisitions and no recovery back to 2019 to have made a mistake. And this in a growing market with well incentivised managers/directors and staff now at the business.

Bought a lot more today because of the rough maths we are all making sense of and this risk/reward available.

It is almost certain to me that another fund is launched. They've basically said as much without saying it.

They need cash to contribute and keep up with the deployment of these as they co-fund them but yes their whole portfolio of cases should be pretty big in a year or 2 and during that period expect a lot of realisations is also a pretty clear message.

Anyone not sure about this being a sound investment as these prices needs their head tested.

Now having read the interims a few times slowly today ( making sense of which fund is doing what/invested capital/investment committed figures seem overly complicated etc ) ... the fact there has been a lot of trades at prices below yesterday seems pretty short sighted of the market.

This is an honest business telling you it's sales are only a reflection of settled cases and receipts and that this process has quite reasonably been lumpy during covid. It is blindingly obvious that they are likely to be very effectively deploying more capital directly and indirectly for the benefit of the business and that over a period of time this is going to manifest itself in good shareholder returns.

I like the prospects for the business at this price a lot.

I don't have access to any specific reports but have copied this from another article where someone does...

Guidance points towards gross profit of A$30m-A$47m in the 2020/21 financial year, a forecast that supports Arden Partners’ forecast 61 per cent increase in pre-tax profit and EPS to A$14.8m and 10c (5.7p)

Results are tomorrow not wednesday, fingers crossed. Pretty sure this is a great long term investment but might be lumpy if people are unnerved by share prices.

The accounts are driven by settlements and fees and never have estimated values inferred like others so i think you need to really understand this one to stick with it. I've got a lot here and very happy so far.