The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
We know where the price of this share is going tomorrow then (with a bit of luck, of course).
Regarding the price slippage, both the Euro and Aussie Dollar have both have been losing ground to the UK pound of late. FX comes into the pricing here.
There's nothing as energy dense as fossil fuels. They've enabled the rapid growth over the previous decades and years, and a lot of us wouldn't be here today if the energy surpluses year by year hadn't been stratospheric. All those little critters from hundreds of millions of years ago had enabled us to get where we are today. As for the future, less pollution and a cleaner environment is inevitable, I suppose. But the transition is going to be tough, far less energy dense, as well as expensive for a time.
The less shares in the float, the less there is to go around when the market cycle takes off again and demand kicks in, thus significantly appreciating the SP. It's not so much now, but in the future, where time is the vital factor. Oil and gas aren't finished yet for quite some time due to the interconnectedness of the world economy, despite the media propaganda and the girl with the pigtails.
Oh well, we hoped this day would come, but the offer price is dissapointing. I thought it would be BHP that would make the offer, but Anglo-American isn't a bad option. I remember in 2015, Anglo-American shares plummeted to £2.30!!!! it goes to show the SP's of blue chips can waterfall as well
This is an interesting share, but ones like this do seem to rise on anticipation, and then slump when reality dawns. A bit like Corbyn's Labour.
Institutional investors account for 2/3rds of the market. Retail investors have to suck up big falls, but the hedge funds, pension funds, Mutuals, etc, get to 'sue' when events go against them. So much for 'the values of shares can go up as well as down.' A big problem these days is index funds -- they are distorting markets.
Maybe it will work in the UK's favour. At a quick glance, it should cushion the blow a bit when the next banking crunch comes and all those contagion effects occur...you know, 2009 and all that. However, looking at the staff numbers going to other countries, they are not that substantial. My main fear for the UK is the Eurobonds market, which London dominates and will mean significant fall-out once the EUs banking system and the Eurozone gets into trouble again during the next decade.
There's no doubt there is going to be massive creative destruction to the car industry in the coming decade, especially to the component suppliers. It explains the downturn in the business cycle, as the auto market is a big component of global trade. The future is definitely electric though -- for cars at least. It's just not show time yet. Hence these current SPs and the MMs having fun with them.
Sure, but you've also got to add into the mix that the US (and West) is making sure it has exclusive access to prime lithium resources, meaning Chile and Bolivia, and to a lesser extent Argentina and Mexico. And Mexico is in the USA's backyard...
The western 'grand chessboard' for resources, which I thought was on the wane, is also at play here.
It's the Labour Left's last hurrah. You don't expect sanity and acting rationally, do you? Even if people were daft enough to elect them, it would only be in a coalition government as they'd fall short of an absolute majority, and most of these pie-in-the-sky spending plans would probably end up in the cr@pper. Even if they did implement them and borrowed through their noses, the markets would act, bond yields would rise and you'd have another election pretty fast.
If Labour ever implemented their spending plans in a hypothetical Labour coalition government, then bond yields, and by extension, interest rates, would go off the scale, and the Labour coalition government would fall. That's why all this talk about investing gazillions in public spending from Labour in a load of hogwash, and the markets -- sort of -- know it.
Put your rational hats on. Ask yourselves: Can you afford to lose what you have got left? Also, look at the current state of the world economy, and the lack of liquidity and taking risks, which Fraser is touching on. Governments are essentially bankrupt if rates/bond yields rise. They have been kept on life support since the 2008/09 financial crisis. Our government ain't coming to the rescue. Look at the only pro: a big miner making a lowball offer.
The future is electric and lithium...for a while anyway. Liquid Hydrogen is only relevant if you want to leave earth orbit in the current era.
Possibly. In this coming era, tangible assets -- even if they're in the ground -- may trump currencies, hence why getting into hard assets makes sense in this era.