The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Sw was open about his sale
I think thing to do if disagree with his posts (and he has not claimed infallibility) is to disect them and put forward a different view. In most cases should not be that difficult because he provides figures behind his conclusion)
Main short term problem I think at the moment is the overhang of some ten million shares from the recent rights issue. If bought by long term investor fine but if bought (as previous ones seemed to have been for short term profit my guess is that 7.5 or 8p see them start to trickle through. Which put a brake on things until they absorbed. Unless they belive LIMH PEA worth waiting for.
To be honest it could go either way
What I think is encouraging is that it, for time being at least , has found a level of about 6p which mean lower dilution of more rights and also could starting point if some good news.
Be very interesting to see how the reddit thing pans out.
Perhaps no bad thing for hedge funds to pause to think about their actions
Especially as it is quite possible done of the many buyers do not care if they lose a tiny investment if it let's them make a point. Of course enough of these tiny investments gather a momentum of their own.
I thnk that is an interesting article
Although i don't think the author has made allowance for LIMH (the company with the quoted shares) only owning 51% of LIM (the company if memory serves me correct which owns the mines etc) even so if half his projected value per share it is still a great uplift on present price
Yes they placed them all - some one had confidence
Apologies in previous post I said was potential overhang of four million shares - it is of course ten million from the placing.
Short term (unless buyers proposing to keep) that inevitably will be drag on price in my opinion
Possible issue i think is unless people who took up placement are in it for long /medium term there is an overhang of about four million shares. My guess (and that is all it is) its that they would perhaps look for a quick 25 % on some of all of them - which could been they will slip them out when they can get 8p upwards.
I thnk the other thing that is not helping is that on Canadian chat boards they have realised (as we did sometime ago) that what appeared to be brokers recommendation for LIMH was for a similarly named company.
Potentially this temporarily this act as moderate dampener on both companies. But with luck be short lived
Brent i noticed the pattern because it has been source of irritation over the years that inevitably the placing proved to be a great bargain for purchaser within about two weeks.
I accept and agree with what you say about differences this time to previous so with bit of luck we see the increase - without the retrenchment.
Buyer or buyers must have undertaken a detailed analysis.
Interestingly Juno holding still above 25% but unless they taken some up (and not seen RNS to that effect) it is getting closer to that figure.
I would think, if possible, they would want keep it above - as it gives them the ability to stop hostile takeover. Or to act as deal maker.
Similarly placing can't all gone to one buyer or would need RNS at some point because of percentage. Be interesting to know if just bought for quick turn - in which case market need absorb their sale coming weeks /months or as longer term investment.
Anglesey owned large part of LIMH which was producing. LIMH then traded at loss - made arrangement with creditors and became dormant. As part of process Anglesey had give up most of their shares.
Bit of simplification - I think if go to Labrador Iron Mine Holdings site and go to the announcements at time be more detail there.
In essence high Anglesey price on back of very large shareholding in producing iron mine. Now much smaller holding in non producing mine - but there is hope it will produce again.
There is a PEA due on subject 'early 2021' — precisely what early means is not altogether clear
Hope this helps
Brent you have created new verb
Could also have Treving - to castigate posters not to his standard
Bobbing to make largely flippant and irrelevant contents
Miking - to pop up from time to time with well thought out and often amusing observations
Southing to introduce realism and prompt discussion
Brenting - provide detailed information with ability to make alcohol disappear in post. In past times to to aggravate Gordon and indeed get Trev Treving
There of course many others but I am called away
On a serious note the run up to the LIMH Pea is so far very very similar to the the last run up to the AYM Pea
It is interesting thank you although i don't know if he is right or wrong to base some of prediction on historic 88p given unique circumstances at that time
But yes i too would happily take his 96p
Although i suspect world be largely out before got there
For what it's worth Board must have a very good idea of what Pea will say in broad terms. They know whats there and have actually operated the mines previously.
P ea i think will give independent view to confirm costs etc to recommision to assist raise finance
Possibly there will be an updating announcement alongside - which is where the good news could lie. Equally possibly may not
Key thing i think its hopefully Pea shows a step closer to production - which whilst inevitably a long way off is where the great potential in my opinion lies.
Spenfold let's hope that dip in LIM price is not due to a leak either
Be interesting to have some idea of what makes that share so volatile - i have noticed in percentage terms there are large movements - although in actual price not a lot. Be interesting to know volumes that are being traded.
I believe it is traded with matched deals so entirely possible I suppose that it does not take a great shortage of buyers or sellers on a particular day to make quite a large movement in either direction.
Boom a technique i have found quite successful in past (although not done here) and depends on company is set myself objective for say two thirds of the shares and mentally put them on one side. Then if the company has a degree of volatilty if i can get an idea of its usual movements trade the other third from time to time - either to withdraw cash on profits or simply increase holding.
Doesn't always work and clearly not without risk. Very hard to know when peak reached (to sell) or bottom to buy. So typically would follow share when rising and sell on small dip. Similarly would then follow down and buy back on small rise.
Clearly danger missing additional rise or indeed not need able buy back at lower price. Sometimes have got it wrong.
On my case would follow company for some time to get feel for its movements and of course I expected events can throw spanner in the works.
I am not recommending or otherwise just throwing idea out to you.
Nb sometimes my trading portion held for weeks or months sometimes rolled over in days.