RE: The last 7 or 8 trading days...18 Jul 2022 20:11
For a company like SLP to grow, there is a useful albeit not necessary dependency on the Rh price. It is still a small producer and the potential for growth is not difficult to see. I am perfectly happy with---and supportive---of the board taking steps prudently. After all, this is not the fashion business where a new lineup can happen every trimester. Mining rights and licences, the due dilligence etc... is a (rightfully) slow and elaborate process. These investments aren't made lightly. Getting it wrong can have severe, regrettable, impacts.
It's all about good leadership. I think they deserve a bit more time developing this operation.
I remember Berlin-West needing its own power plant. When it was coal the emissions where so bad that people did not paint their houses any longer since they turned dark grey within a year. Surely, one can filter coal better nowadays, but still... it's a stop-gap measure.
Moving on to Oil the same may apply with emission targets. Does it matter whether the filtration (ie catalytic converter) is in cars or on power plants? Surely, some Rh must be used unless we now toss the whole emissions agenda overboard.
Germany is in a real pickle since they decomissioned all nuclear power plants.
TTM eps is currently at 30.2 cents. That's about $1.20 with a P/E of 4 or therebouts £1.
I would presume that the current figures are still trailing pending on last official reports.
Thus, 80p looks rather cheap.
But then, on a (ridicolous) P/E of 3 the picture looks rather different.
Right now, market participant are scared. This begins to open a lot of opportunities, not just with SLP. Everyone will have a different take on this, and they are welcome. For my part, I love it when investors run towards the hills. Probably worth waiting a bit longer to see what else ends up in the discount bins. The sale is not over yet.
I haven't got a postion yet but am getting very interested at these levels.
Recession or not, the demand for affordable housing will persist in the UK. PSN has > 20% of returns, no leverage and a rather attractive dividend (althoug that is not guaranteed to remain at these levels).
Either way, it's a high quality buy. Looking for the right entry point....
This is not just about Rh prices or the volume of cars produced . The likelihood of any green energy being produced in sufficient volumes by 2030 (currently considered as the global tipping point), is unlikely.
An albeit short but effective option is to also reduce current emissions via more efficient catalytic converters.
That's a point of view worth considering.
What will happen remains to be seen. Empirically, reducing current output, however unpopular, is an approach I would not rule out.