Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Will a rising tide float all boats?
If the FTSE closes above 7,750, it will be the highest since June last year. It could precursor an attempt on the all time high set early last year. Its undervaluation has led to increased buy backs and bids, shrinking the overall supply. Of course, unless demand picks up, this malaise may continue as institutions have pulled out additional funds this year so far.
The question is, will todays employment date help convince the BofE to cut rates. Until that prospect is widely expected on the immediate horizon, the highly geared small caps will not participate to the same degree. The Aim index still languishes way below its all time high.
I know this is not HW related but we have just witnessed a systemic change in British politics. Lee Anderson is just the start. As a prospective parliamentary candidate for ReformUK in London, i am very excited!
In a forecast last year, the company announced they expected debt to be £160m by year end 2024. I dont see what all the fuss is about. The last analysts report i read expected interest in the year to be £18m. Nothing to see here, move along.
The recent contract wins make me more confident the customer base is expanding, albeit slower than i would like but expanding it is. The trajectory is positive and I am hopeful that either the 2024 revenue forecast will be raised or the 2025 forecast will be at least £350m . It appears that three of the four operational sites are nearing a capacity utilisation rate which implies positive cash flow and not far from potential profitability. It just needs Methil to gain some traction to help the process.
The Chancellor did not help Methil with his extension of the fossil fuel winfall tax to 2029 and we can only hope the easing of new licences will offset that.
The budget had potential wider implications for the UK market. We all know that UK company valuations are significantly below international peers, this is a direct result of domestic pension companies abandoning UK listed shares for overseas. Holdings in their portfolios have fallen from nearly 50% at the turn of the century to around 3% today. I wont go into the reasoning but idiot politicians are the issue. In the budget, the chancellor made some adjustments to the ISA rules which have a minimal positive affect but more importantly, he indicated that the defined benifit pension companies will need to reveal their total percentage investment in UK companies. Many in the City believe this is the start of issuing minimum UK thresholds which could infuse billions back into the domestic market. It might be that this starts a general reversal of the long trend of under invesment. Time will tell.
Https://www.telegraph.co.uk/world-news/2024/03/05/eu-weapons-exports-britain-russia-war-defence/
The EU commissioner for Defence Thierry Breton, has proposed that the EU cut off arms supply to the UK in a conflict to protect the EU itself. His rhetoric was very anti-British and should focus the MoD on ensuring UK production of everthing from Bullets to...ships is capable of manufacturing in scale. This should wake the government up from its rediculous policy of net zero which has decimated heavy industry, most important Steel.
The UK has gone from average or slightly cheaper energy costs in the 1980s to three times the cost of US and double most developed/ industrial EU nations.
SYNOOGOLD. Banging tune.
I am of the opinion the large trade might be the rump of the big overhang. So added a bit.
Calling chart people.
Where do you think the long downtrend from Dec 2020 comes in??? The close could be key.
Media posts by the dozen about meeting politicians, new employees, situations vacant, charity runs by staff, cake baking etc etc...posts about actual business related...hhhmmm that would be a big fat zero.
Xenor. If there are multiple buys on a day, where do you think that stock comes from? Its either off the MMs long position, or MMs establishing a short position (unlikely at this level) or a shareholding seller supplying.
Today i a case in question. Significant buy volume but the SP has hardly moved.
Bubble. I am not saying your opinion, its turning, is wrong just that the supply demand is so in favour of demand that an overhang is still present...in whatever form. It does appear that 10p is a breeding ground for new and existing shareholders to show willing. I do hope you have picked the inflection point spot on.
Bubble. The tape tells me the seller is not done. If a buyer pays 10.50p for a lump them others after that are still buying decent size, slighlt cheaper...then the market is either very long or the seller is still firm.
In an attempt to inject some positivity, we can all rejoice that the maximum we can fall is another 10p. Now how many companies can you invest in with such a fantastic limited loss potential. I commend this to the house.