Member Info for KiJaHu

I'm loading up here over the next few months, this is in deep value territory and inflation is coming down and consumer spending in hospitality and travel is holding steady/increasing. We're approaching warmer months, this is definitely flying under the radar at the minute, I genuinely see this at least double bagging in the next 6 months, the risk/reward is massively skewed to the latter. Won't be selling a penny until the 12-15p range.

That makes sense but in relation to this company it doesn't apply as much, drilling and the discovery phase has taken place to an extent, there's been a lot of historical drilling and that's what ESR are basing their future testing/expansion on, but it didn't attract any big players apart from a speculative punt from Alex and some financial backing.

So that begs the question that even with the unique geology likes the clay deposits, what are people hoping from this business moving forward?

There's a lot to unpack with this company because unless you have a PHD in geology or have experience investing in mining stocks over a long period you're at a technical disadvantage immediately.

If the holes are historical from the late 80s to 94, why haven't other mining business snapped up these licenses? Polymetal operates in Kostanay, why haven't other large operators done the same? The data from previous studies shows there's evidence of copper/gold/silver, why didn't anyone move on it sooner? The ionic clays, if this is as uncommon as ESR says it is and the other large deposits are mainly found in China and form a very significant part of the global REE supply chain, as a former Soviet state, why didn't China move in on it? Also, if this type of material is so easily accessible and low opex to recover and process why haven't ESR put all their initial effort into this as a way of funding more speculative, deeper deposits and expensive analysis like the helicopter surveys?

What are people's expectations with this business? It's obviously a lottery ticket type affair and is massively speculative, but what would be the catalysts in seeing this share price even recover to the previous high of 6p?

...out of curiosity did anyone bother launching any legal bids against Morrisons for this? It's still one of the maddest/****test take over bids of all time, they literally bought the company out less than 24 hours or letting it go under, I still have the shares in my shares account too

Why must it be? Asos's main demographic are people under the age of 40, as interest rates rise consumer spending drops, a service driven economy does badly during these circumstances so people lose jobs, the most vulnerable are those with less experience or in lower paid work, i.e asos demographic. I've never known a period of such uncertainty, we have absolutely no idea what's going to happen next, what the implications of this war will be, rise of nationalism over globalism, food shortages etc, I'm not touching stocks full stop but consumer stocks (grocery/pharma etc) unless essential should be avoided. You can't put a price on ASOS or Boohoo, there is no target price, we have no idea how low their margins will sink or how strong/weak consumer demand will be.

If I was in either, I'd cut my losses. I said a few months ago if you're in Boohoo just stick it out but since the invasion a lot has changed.

https://amp.theguardian.com/business/nils-pratley-on-finance/2022/may/09/mccolls-saga-banks-recession-rescue-administrators

'So why were administrators summoned by the banks last Friday? The answer to that question seems only to be the fact that the rival proposal from EG Group, the petrol forecourt business owned by the Issa brothers of Asda fame, would have seen lenders get paid in full upfront. Put another way, the banks – understood to include Barclays, HSBC and NatWest – prioritised certainty for themselves even though the EG proposal, at that stage, created uncertainties for McColl’s pensioners who were exposed to the risk of a cut in their benefits.'

So basically the banks forced admin to pave the way for a bid by the EG group as they were prepared to pay the debt upfront. Interesting article, obviously Morrison's were forced to pay upfront in the end too but just shows that this business should never have gone into admin. Legitimizes the feel here of being shafted.

Didn't you lose like 6 figures on this nav? Between you and phoenix you've lost over a quarter of a mil, why don't you just hire one? I agree with phoenix that you might have a case for improper reporting/negligence, I don't know what else you can take them for, Morrison's have absolutely no morals but everything they did was within the rules and above board.

It's just technical analysis, on T212 it doesn't even show as suspended for me, he's probably looked at an online broker and saw it 'live' still

Out of curiosity when did you start investing? I think the biggest mistake I made was not doing more research into their assets on hand, the high inflationary environment/not transitory interest hikes and the return to a stagflation scenario for global economies was completely out of our hands and ultimately this wasn't a compelling bet for lenders in the end.

I would be mega ****ed personally, I don't know what 200k means to you in the grand scheme but it would crush me. The level of transparency is shocking. Completely agree on the MD rollouts, if they were trying to show the lenders the improved rev on these sites did they need to convert 100s of them? Was a 600m deal for supplying all Mccolls stores not enough for Morrisons? That 30 million should have been used to pay down debt and keep the business afloat and secure its future. The RNS's mentioned admin only once and that was the day before. Not to mention all the rumour leaking by Sky, when you look how this has been handled over the last few months I don't understand how it doesn't fall under criminal law.

If there is any justice the Issas takeover, they take care of the pension pot, Morrisons lose the massive wholesale contract and MD is never to be seen or heard of again.

Either way mate you sound in high spirits given the situ, I hope you're ok.

Jesus Christ phoenixtrader, I was upset at 260k shares in the 3s, I'm guessing you're money bags either way and I don't have to put you on a Samaritans watch list?

..wonder who 'leaked' that? Mark Kleinman should be investigated.

Also, has a company ever led the biggest risers chart on LSE AND gone into admin on the same day? Incredible

Correct.

Any rescue package will not include shareholders, anyone who says otherwise have not been passing the dutchie to the left hand side.

Had nearly 10k riding on this and on a night shift tonight, what a lovely bit of news to wake up to ha!

Cheers, you too mate

Amazing post mountainous

We all had a theory that Morrison's would pick apart the carcass post collapse but to see them ear mark them beforehand in black and white is pretty shocking stuff if I'm honest

Did you read the guardian article?
'PwC, which has been advising McColl’s consortium of lenders including the Silverpoint hedge fund, is understood to be lining up to handle any administration. A so-called pre-pack deal would allow Morrisons to take on the stores it wants without McColl’s smaller newsagents and its pension scheme'

That is absolutely disgusting, anyone who was involved in the share raise last year at 30p has paid for those Morrison's conversions, money that could have been spent keeping the business solvent, American business is the absolute worst.

Ha 3p would be amazing...imagine saying that even a month ago. Crazy stuff, can't wait to see it all unfold

I think its just the timing banburyboy, that sky news article was minutes old when that RNS was released, someone must have alerted them there's been a leak. It's all over mate, I'm genuinely disappointed. Not shocked, but definitely disappointed. As much as I've lost here I hope people who rely on mccolls to put food on the table get to keep their jobs.

Ha, you and me both, I was actually in profit for a few hours two weeks ago when it hit the fives, greed got the better of me. No idea why I didn't sell half but that's life. You fancy the administrators coming in tomorrow as per sky news? I'm 50/50 on tomorrow but will defo happen next week

Completely agree lewishem, if CDF1 is really as invested as he/she/they say they are, I'll have a little of what they're having as it must be good stuff. I've never seen a company repeatedly mention over and over how completely ****ed they are and how shareholders will get zilch either way. I've missed the boat to sell now