Member Info for Kabaa

Nav is over 30p a share.

Even if we did go under tomorrow it'd probably end up a multibagger lol.

And if duff man does deliver, we will have an nav multiples of today's account

The covenants at the moment would be tested in Feb and Aug 2020, that is for the period ending Dec and June.

They will be in negotiations already to relax all of these for a longer time period. If that happens then i'd expect the share price to double/triple in very short order.

I don't see it not happening either and even if they are not relaxed about it, they still have enough cash to last them beyond 12 months.

The trend will turn back up before the end of the month and we'll have some more positive posts on here lol.

What about if you believe pdl will service it's debt no problem either way and will restructure it within 2 years, diamond prices will go back up due to demand increasing along with supply decreasing significantly over the next decade (as analysts do) and margins will pick up significantly now Cap ex has significantly peaked?

Oh pull yourself together, this is not going into admin any time soon. The fact different people keep saying things like this makes me more confident this will move back up sharply.

They have over 100m in cash
The bonds still have 2.5 years before needing payment.
They have huge inventories
Management has specifically told us a few weeks ago they're not considering raising money through dilution. They would not cross that out if they were worried.
They also put over £50k in at 21p in June.
Etc.

You'll probably find you'll make a fair turn on your average price if you sit it out and be patient, in my humble opinion.

Of losers this evening.

Do you really think the latest report is the sign of a company going bust or about to go under?

Do you think 650mn dollars worth of bonds would be trading close to face value if pdl was in as much trouble as you'd like us to believe? When they start trading at 20%+ with the equity down here, I will start to worry. Until now, the equity value is ridiculously cheap and this market move is down to fear - just look at the 3 losers posting tonight. I can guarantee they are not successful people whatsoever. Either shorters or just saddos that like to post on boards where the share price has gone down.

Sure Poker, you wait for that. Meanwhile this could move up 100-200% on a gust of wind.

What price do you think you will be able to buy these at? As you are obviously hanging around to whilst continuously posting irrelevant negative information to try and make people sell.

Do you think you'll get them at 3p? £25m cap?

5p - £43m cap?

Cheap people like you never get your price and never make any money in my experience because you always want something for nothing, Do everyone a favour and do one.

2 weeks ago we were at 9.5p.

Since then we have found one diamond in 1 day that can be sold for at least £10m.

I think we are due a bit of a bounce at one point lol!

That is 10 trading days ago.

Also de beers are reducing supply to the market for the very reason prices are too low. They obviously believe prices will go up. Pdl are accounting for a continued fall in diamond prices so again are being conservative on all fronts imo.

They have specifically said they are not considering raising cash from shares so at the moment are not trying to ramp the share price and don't need to.

Colonel, I pretty much agree on all of that but

1. Their targets I believe are very conservative.
2. We have just had 70mn fcf.
3. We've just found a very valuable diamond in 1 day after that forecast (that is excluding large diamond finds)
4. Cap ex is reducing so again I think they're being conservative on all fronts inc. negative diamond market, steady production, no valuable diamond finds etc.

So upside on that does also exist and more diamonds like the one found on sep 23 are likely out there...

Good post Steve

One more thing, pdl share price is acting as if they're going to do a massive d/e or get closed down.

Fact: they have 2.5 years to refinance their bonds, 100mn in cash and are currently making 70mn fcf after servicing debts in a poor diamond market. The covenants do not even matter short term and this dog has a fight in it for years to come.

By 2030, this mcap could be in the billions. 50mn is utterly absurd for one of the biggest diamond miners in the world.

This diamond sales down figure is months old.

The poster is trying to post anything to make the share price down and unfortunately looks like he's succeeded to make a few poor sods sell.

The truth is, all diamond price forecasters out there believe diamond prices will go up very significantly long into the future.

De beers believe this too, which is why they have refused to lower their prices and undersupplied the market instead.

You will probably find that sales will start to increase from now as Colonel pointed out this quarter.

I would not normally suggest other stocks but thought PDL was a similar oversold stock to Mtro and both are huge recovery plays.

Gingerhippo: The losses are what most people (and computers) are looking at. The truth is they are merely writedowns and PDL has just turned a massive corner, invested hundreds of millions into itself and is now generating 70mn free cash flow (after servicing all of it's debts) and are due to reduce capex too.
It's production will likely increase over the years as it has (a current) 250mn carat reserve. Diamond prices are set to increase from 2021-2050.
It is a hugely misunderstood stock as people just look at the numbers you saw, the debt, the negative diamond price etc and dismiss it.
That is just a few reasons I think it will be one of the biggest recovery plays i've ever seen (and I have seen hundreds over the decades)

Petra diamonds is actually 57m market cap according to lse.

For anyone that looks at charts, I believe when MTR breaks the 50/100/200 ma's at 300 itll go straight to 400 within days.

Similar with Petra, when it breaks 8 and 9.5, it'll go straight to high teens.

In my opinion, much of the market these days are traded by algo's and basically 'trend following' computers. One reason mtro and petra diamonds have been super sold off is due to staying below these moving averages and not crossing them. This obviously cannot continue forever though and so we have 2 stocks that are due a massive multibag bounce. Mtro has already gone up quite a bit but still has a lot more to go in the recovery phase.

Sorry it's the ticker code for 'Petra diamonds'. It is a similar stock to mtro in that it has been overly hammered to oblivion and a recovery play.

I agree actually. MTRO looks like it's turned and firmly found it's bottom. PDL looks like it may have a few flat or 2-4% up and down days for a few days, then surge. I think Mtro will go back up 300 quite easily but PDL has a lot more upside in multiples. People clearly misunderstand the problems there and are selling as if it's about to be put in admin or do a d/e - there is no chance of that for at least 3 years and so is a ginormous recovery play. MTRO still has legs short term and probably another 10% tomorrow imo.

Well done to the people who held on to this. It is tough to ride the storm.

I had this and PDL on my watchlist as severely oversold to oblivion and likely to recover in multiples due to value of the business and assets. Anyone else in both? Hoping for a similar turn there and some...

This will have a tripledigit% up day/week at one point. And it gets taken out you'll surely see north of 40p in one day.

Has completely cleared of sell orders except for market makers. Haven't seen that for months. Seller finally out?