The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Every month SLP is adding approximately $8M of profit. Which is over 2% of its current value each month, or 28% each year, at these prices.
Of course, naysayers will state the PGM prices can drop and the more positive that they will rise but the current SP is a joke with this in mind
I sold out a number at 1.00. Glad I did although I am just adding to the current sell out of a great company. Every day profit is pouring in, Rhodium is stable and the basket price is still very high. By year end the cash balance will be over 40% of the company value, just crazy. Price is going down now because of charts and stats, not inherent value, having been hit by global uncertainties
Honestly, wish I could just forget about the price, come back in 6 months and see the real value being shown in the SP. I cannot see anything other than a very bright long term outcome here. If only I had Warren Buffet's patience to hold great stocks long term.....
I sold out a number at 1.00. Glad I did although I am just adding to the current sell out of a great company. Every day profit is pouring in, Rhodium is stable and the basket price is still very high. By year end the cash balance will be over 40% of the company value, just crazy. Price is going down now because of charts and stats, not inherent value, having been hit by global uncertainties
Honestly, wish I could just forget about the price, come back in 6 months and see the real value being shown in the SP. I cannot see anything other than a very bright long term outcome here. If only I had Warren Buffet's patience to hold great stocks long term.....
All rather painful at the moment. Can someone clarify but at current prices of PGM's, give or take a few %, won't the company have approximately $200M cash in a year from now. Add this to the assets this would not be be a million miles from the current valuation. That does not make sense from a valuation standpoint, or am I being naive again
Thanks again to all 3 of you. Some sage advice and my future dealings will be appropriately adjusted. Chatmandu, your approach to this is wise, makes sense and I have taken note of this! And of copurse, decisions are my own to bear.
LunaNera, I saw £ signs and neglected to adjust my risk, very stupid of me but the fundamentals do look strong and I have time on my hands.
Top Tiger, it is a fascinating case history on how the value is driven by sentiment and not the fundamentals in these smaller 'risky' companies. Much to gain and vice versa.
What I would say is the dialogue on this chat is educating. So many opinions and ways to process value and 'potential' changes to market sentiment. And the tone has definitely improved recently, which is great to see. Think I am going to order a copy of the Zulu principle, I really should be better informed than just Stockopedia.
My use of leverage is the wrong terminology Chatmandu. I should have stated that I overbought and turned an 'investment' into a financially problematic gamble. My average buy is at 112 and if I had realised some of the profits in the 130's-140's these drops would have been easy to stomach. Hindsight.....
Still I have time to hold but may need to sell some at a loss if issues arise in the near term
Chatmandu and LunaNera, first off thank you for taking an interest and some very sound advice.
My circumstances - I would never borrow money to buy stock, the money invested will be used for a deposit on a family home (plus a buffer). The buffer has almost been wiped out. I am mid 40's and gave the equity to my ex wife, so she could get a place for the kids, so I am starting again and need to get on the ladder soon. I have 65% in SLP, 20% in Tharisa and 15% mixed in my ISA/savings. 30% of my SIPP is SLP. Bad mistake!
I certainly got a bit caught in the hype of value and momentum with SLP and didn't consider PGM prices, volatility etc. as much as I should have. I certainly didn't have an exit strategy (I do now). The suggestions of using excel as analysis and stop tool is definitely a good one, so will be set-up this week.
Lessons learnt - Don't over leverage, buy and sell in smaller increments, actually sell to reduce risk and balance the portfolio. These posts definitely help and I appreciate the time you all take on here.
I still see SLP being a good long term investment and I have a minimum 12 months to hold if necessary but will be reducing down the holding to add more balance over the next weeks and months.
I rarely contribute as a complete amateur. My average price on SLP is 105. Yes I was late to the party that started well but ended badly. There will be more parties but I overleveraged myself and have put myself in a difficult position, which I will never do again, that's for sure.
What is so noticeable is the change in tone. It is understandable, almost everyone on this board has lost significantly in the past 2 months, whether you are still 100%+ ahead, or in my position, this is stressful and taxing. There may be the odd person posting with motives that do not match ours, so counter this with the obvious positivity SLP deserves.
I do hope that the obvious correction happens soon, this is a great stock and it won't be long before the value of the company will be equal to its assets alone at these prices, but in the meantime I hope that everyone can take a breath and realise that 99% of the people on here are decent with the same intentions. I rely on you all for honest and fair opinions. You owe me nothing, I know, but please keep posting your viewpoints and analysis, as it is so helpful and I am benefiting from each of these.
Slight dip in Rhodium again. Amazing how the market can be spooked by a small drop and te fundamentals and profit are seen as secondary.
The 'discussions' on SLP and THS are interesting. How do you all see the difference in value between the 2, as SLP has a mine life of 10 years and THS much longer? I am more heavy into SLP but have bought a stake in THS.
Stoodio, your confidence is inspiring and buying a house sooner depends on it!
Thanks All,
Certainly sage advice and information. Not sure I will ever understand the rationale for such big swings in seasonality that Velo predicts (well so far) but the fundamentals are so impressive and I guess as long as Rhodium doesn't dip much further, then this is a cash generating machine.
'This happens every time to SLP like velo explained, first time I witnessed it I was in despair, now it just annoys me', completely understand this point, although not sure I will see another August with SLP, all being well. May have put too much om my ISA and SIPP in here, not diversified enough, which is a learning point.