Member Info for Kabaa

For a company of 15m market cap to sell its assets using the largest investment banks in China and Russia, I'd say you are looking at many many many multiples of the market cap.

Palladium is in a huge bull market and clearly our assets have come into play in a huge way.

I can see us multibagging many times over the coming weeks if not next few trading days. 15m market cap is a joke and this is one company on aim that has genuinely highly valuable assets to be sold to bigger players.

Colonel has been ramping this since 24p with nonsense. Clearly sold on Monday when he saw the results, expecting them to be good and now he's suddenly deramping in every post.

Assays 19-33 are at various stages..

That is quite a significant increase compared to their comment last month of 15-19 are at various stages.

They are clearly accelerating work by a large factor here and we should start getting some very large updates over the next few weeks.

Yes downbutnotout I agree. Just agreeing with the other guy there's a lot of rubbish on here today.

We could get the up move quickly or it could take till Xmas/jan. I'm just saying a few need to practice patience.

Yep, this is a buy and hold.

Diamond miners are getting smashed everywhere.
This one will survive imo and do very well over the years on any diamond price increase.

Forget about some quick up move, it'll happen over a longer period of time.

Showing good support here. Shouldn't go below 7p again...

I see Firestone Diamonds reported today. Similar story to Petra.

Their long term chart looks in much worse shape however.

When diamond prices come back, these share prices will go through the roof. The whole sector has been utterly hammered.

I thought exactly the same thing. I suspected he sold yesterday.

Givingthelowdown

This stock has been trashed from £1.50 because of lack of Institutional interest. 2 or 3 institutions have sold out in the last year with no buyers to replace them.

Many saying ii's won't touch this because it's too risky.

Now we have a very aggressive institutional buyer who seems to be buying on the open market + have bid for ALL of Prudential's stock and taken them straight out.

1. A very serious buyer interested (in 60 odd million shares)
2. They may continue to buy
3. You can bet they have done their homework -
4. This is seriously bullish and petra way oversold
5. Shorters were piggybacking a different ii seller. Now they're naked short 12m
6. etc

Hold for double figures guys. I said this would break the 50dma this week and it looks like it could do today/tomorrow morning.

The fact they've taken everything Prudential has in one block speaks volumes.

People suggesting this stock isn't good enough for institutions. Well 8.2% picked up, probably within a couple of weeks.

You can bet they've done their homework and are looking for a decent turn from here. Good night shorters :)

Looks like they bought below 3% then took all of Prudentials stock in 1 go.

That's quite a decent purchase they've just made.

Looks like we have an institutional buyer. Sorry to hear you sold out before this Steve.

Down - that is a good sign but I say a close above this as many others want to see this.

The market can easily spike above it for 2 minutes but a close suggests the move is more 'real' and not just daytraders messing around.

It will do it soon - I can't see the price falling much further. A covenant breach is not exactly a deadly sign as it's just short term credit facility. Petra have said they can reduce capex if this happens and as they are fcf positive, it is simply not going to harm them that much. Add to that the creditors have suggested they are supportive anyway so i'm not personally worried above a covenant breach.
Other than that, Petra have over 2 years to refinance the bond. So it's going to be around for a long time yet and not exactly going to get suspended imminently and put in admin as many on here would have you believe.
That's why i'm happy to sit it out. The trend will reverse soon and there is a lot of money to be made at this price. 100-200% at least imo.

It'll reverse eventually and have a huge rally. I doubt we will go to e.g. 4p as that would make the market cap way too low for something with half a billion revenue. The medium term estimate for diamond prices between 2020-2030 is way beyond what they are now and if you forecast the profits that would give petra, it values the shares at 10-20x what they are now.

Short term, from what I have seen in the markets, a close above the 50dma is often a sign that the short term down trend is over and an encouragement for investors on the sidelines to enter the market along with shorts buying back. It needs to close above this 50dma for a day or so to really get things going. I have this reading now at around 8p. So a break of that and a close above it will be a very bullish signal to target 12p+ within days.

What is your target in your chart?

I think a strong reversal to at least 20p is likely before xmas, then a range of about 16-24p for a few weeks.

''We do not share Mr Duffy’s optimism for the diamond sector''

Duffy is projecting flat prices for the diamond sector after they have fallen dramatically. He still think PDL can make money on this,

It is not exactly ''optimism for the diamond sector''

Redwineday, listening to the calls, Duffy did not want to "publicly forecast that" as it is largely dependant on diamond prices. He obviously believes they will be fcf positive. We already were in fy2019.
He also mentioned 75% of the 150-200fcf will be weighted towards the last 2 years. Therefore 25% in fy2020.
A continued negative diamond price could put further stress on that figure, especially if they drop another 10-15%.
But they have said they have many contingency plans if this happens.
If diamond prices go back up 10-15% however, the profits/fcf are going to go through the roof.

Colonel I don't see your point. Pdl have been indebted for a long time. Yes they have spent a lot of money on the mines, have reduced and are going to reduce spending significantly. This is a good thing. If it wasn't for diamond prices falling they would be throwing off 9 figures of fcf yearly.

It is amazing that the production is barely different to previous years when the share price has been 5,10 and 20 times higher.

Management seem very conservative in assuming diamond prices will remain low yet STILL believe they can deliver 150-200mn FCF in less than 3 years.

The share price is down here simply because of diamond prices as someone below suggested. Imagine if they recover 50%? Which isn't exactly impossible as we've been there before. The company would then be delivering 300m fcf! and the share price would be in several pounds, not pence.

This to me has become like buying an extremely cheap call option at a very low strike price.

A halfpenny selloff today is disappointing but as I said last week, any small sell off is completely insignificant compared to the upside of this. People selling this today are not doing so as a value play, they are doing it because they are bored and impatient.

So I still think this will bounce back to the teens and 20's fairly soon with no news needed for that and if anything like director buying, short-covering or diamond prices recover well this season or performance is ahead of expectations you could see this back in the 30's and 40's...

People getting impatient.

Buy the dips and sit it out. That's what i'm doing.

Will be back above the 50dma in no time (probably this week) and then head north after.