We would love to hear your thoughts about our site and services, please take our survey here.
As the great Warren Buffett once said that it’s wise for investors to be fearful when others are greedy and greedy when others are fearful.
With this in mind I’ve switched a few GGP into some more SOLG. Seems to be a sensible trade ....only time will tell
Several issues really but the implication that MM are responsible for AT trades is nonsense as all sorts of market operatives and operators have the ability to interact with either the bid or the offer.They can range from institutional dealers, private client brokers, algorithmic programmes, CFD manufacturers, proprietary traders and final markets makers. MM’s these days have very little latitude to take a view and have to get permission to maintain what used to be referred to as a back book. The retail service providers (RSP) make a fortune in stocks like GGP and Solgold as high volumes and sitting between the bid and offers and taking a “turn” . They can and do turn these off if they’ve gone offside in a stock but invariably they done need to take big risks or positions to make money. I don’t believe the idea that Christmas week effects the way they behave in a stock as throughout the year they aren’t taking risks. Since their inception in 1988 I don’t think Winterflood have ever turned in an annual loss and certainly the early days of SETS trading weren’t easy as the RSP wasn’t around and traders did take positions and risk. Sadly the market is now a faceless interface compared to how it used to operate. Most trading books have to use the closing auction to go home flat every night. The modern market no longer rewards the flamboyant risk taking market makers. Incidentally I’ve never been a CEO as you must be confusing me with another poster
Easyp, You referred to MM as crooks and manipulators. Maybe you’d be better providing the liquidity for traders and investors to utilise. Can’t see that I said markets can’t be manipulated. When a share price doesn’t move in the direction you want it to move it doesn’t mean it’s being manipulated by a crook.
APF. Is a company in which I’ve been involved with since the early 1990’s . It was the “minority” but yet large shareholders that were loyal to the previous CEO and founder, the late and great Peter Boycott that instituted the change. The change happened over a weekend and Julian arrived on the Monday morning. Now, he’s a very bright and impressive individual. As one of the largest shareholders I also met with David on several occasions. I was a fund manager for many years
ManUtd, Anglo American got SSX on the “cheap” because the management of that company took on far too much debt in a poorly planned attempt to take the company from discovery to production. I think you’re right in drawing parallels but sadly it’s wrong. The perils of too much debt did for SSX and the beauty of having a powerful balance sheet and existing free cash flow allowed AAL to assume all that debt and take on the project. They were probably too generous in paying shareholders anything and would have been better served picking it up from the receivers
Ice, just on the subject of allocating 1bn shares. To my knowledge existing shareholders have kept their pre-emption rights as points 13 & 14 were withdrawn. As stated during the AGM these shares would be issued by either a rights or open offer and thus BHP & NCM would be able to maintain and possibly increase their exposure if they took part in the underwriting alongside taking up their entitlements. In the event of a large issue few PI’s with large exposure would be able to take up all of their entitlement(me included). I believe the company like many companies can issue up to 10% of their share capital without the need for an EGM and I suspect we may see a placing to the Chinese investors soon. Correct me if I’m wrong on the 10% ruling for Solgold. I struggle to see how BHP have Jack ****. At the end of the day it’s all about price for an asset and I don’t regard Solgold as being bid proof or safe after today’s events. I’m sure NM will, at some stage negotiate hard and I like the fact he has plenty of skin in the game. The recent events at GGP show us how a company can be rewarded for replacing a very popular CEO with another CEO. I continue to support NM and Solgold but to be brutally honest I don’t get sentimental about investments or betting and I would support a bid at the right level. If I wanted a Copper producer I’d add more SCCO & FCX. I bought a copper explorer who have made the most remarkable discoveries of recent times and that is due to the foresight of one man ...NM. . GLA to all Solgold investors
Red Knight, given Solgold propensity to Tweet on Twitter it speaks volume that they haven’t tweeted the AGM result. Today was an embarrassment to the board and NM position is untenable when it’s largest shareholders have sent a clear message to the company
CD ...get a grip ! That’s worthy of the Booker prize for fiction.
SP’s can go down and if that doesn’t fit your agenda then stop accusing BHP of market manipulation as it’s not a very rational thing to suggest. They make their Billions from mining commodities not from trading shares or spoofing the market in a small company where they own sub £100m worth
tiger, I look at the Simandu Iron Project and certain miners are happy to sit on the asset rather than push it through to development as it keeps mega tons from the market and helps to keep the market supply tight and prices buoyant. Miners today are acutely aware of supply/demand metrics and how oversupply kills pricing. They learnt an expensive lesson in the super cycle last time. Having less than £100m tied up is chick **** to these guys and in certain ways it’s similar to land banking by house builders