Member Info for ic152

Ouch! Obviously, wish I had sold more before this latest drop below 93. Concerning as to where the PGM drop will end. What are the views here?
Still incredibly profitable but……

The chip shortage will certainly be continuing well in to 2022. However, over the next year the expectation is for the backorders to slowly reduce and automobile manufacturing to rise, albeit slowly but still increasing from todays levels. Rhodium will creep towards surplus, putting some pressure on price, before reversing this trend as production for cars ramps up later this year/early next year.
That said SLP has over $100M cash as of end of June. This is probably nearer $120M now and I assume significant receivables, which should be valued as part of the business. So, I agree 200p is wishful at this point but 100p is way of the mark considering current assets and even incorporating a modest short term drop in PGM's

PGM’s all drifting lower…. Not helping the mood

Although results are known, this may not bode well for the official release. Meanwhile, $1.5M+/week of profits keep being added to the bank

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

Yes!

Ridiculous selloff. Must be nearly 40% in cash now. The chip shortage will ease later this year, platinum rising slightly. This is now in crazy pricing territory

Stoodio, what is your take on the chip shortage, falling PGM's and the future SP at 3 and 6 months?

cautionyourblast - Quality and Value must win out at some point, surely?

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

Well, I wasn’t expecting that! Any ideas for the drop today? Rhodium looks stable.

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.

Chatmandu- I have much to learn. I didn’t and am sitting in the red. An uncomfortable position I have put myself in. I am praying for PGM’s to be stable or upwards.

I wish she would nudge quicker….
Good to see stability with Rhodium though

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.

Can't say the continous SP reduction isn't concerning. I have bought all I can now but any ideas on why the sentiment in SLP is so poor right now?