Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Sog - no interest until any later tranches, see initial RNS:
" No interest is payable on the First Deposit, the Further Deposits and the Fourth Deposit. Interest on any Future Deposit shall be mutually agreed between the Company and RiverFort."
Don't know if this makes any difference to your analysis? I personally am still expecting further falls.
My opinion, Rebster, is that I have no idea whether they are lying. I don't actually care.
What I don't understand is why certain posters are upset about a bit of negative spin, or contrary opinions.
Then rudeness occurs, threads get deleted, and we all suffer!
Rebster408. I don't think my definition of a lie is the same as yours.
Saying something will happen in the future is only a lie if you don't actually believe it will happen. I suspect Puma etc. actually believe (or believed when it was first written) that the SP would or could fall that low.
Where is the evidence to show they didn't believe that?
Alans55. That's simply not true for many of us. I have bought in the last 12 years at prices ranging from 0.2p (ie 10p now) to over £2. By also selling some after snippets of news I am well in credit.
Unlike some bios there have not been massive dilutions resulting in permanent loss of value (eg the likes of VAL).
There's always a reason to buy in here: the prospect for future value. Then cash in a bit more of your profit.
Yes, SP in mid November 2013 was 0.63p. How many AIM companies issued options 10 years ago that are actually worth cashing in because the SP has doubled in 10 years, even though the current SP is a pale reflection of a few years ago and its future potential?
Incidentally from 30p to 57.5p in 10 years is 6.7% compound interest. A bit better than PBs
The shares won't hit the market. They will go to RF to dribble sell over the next few months. It will probably be more like 400k or 500k shares.
However this realisation might spook the market further and cause a 5 or 10p fall.
But in the long term it makes no difference to the worth of the company.
The explanation I can offer is simply that there is continuous selling pressure from RF. The MMs need to drop the SP to entice mroe buyers so that RF can continue to sell.
This is what some call the death spiral.
I have no real idea of what RF are actually selling but many of the big 10k type trades must surely be thiers.
The comparison was purely with the mechanics of the deal, not the nature or type of company, nor indeed their perceived prospects.
Any organisation which has a programme of persistent regular selling will cause a slide in the SP.
Yes, it's a win for the company - it needs the cash. Currently it's a lose for shareholders, because of the increased dilution of new shares.
However, there is the opportunity (as after most fund-raises) to buy more shares cheaply.
In the long run it may make little difference to the eventual worth of the company. Why worry?
Continued:
Yet at some point we have to buy. It's the way to stop the SP drift while we wait for meaningful news. The only question is - What is a good buy price?
This share offers good value now, but better next week (perhaps?)
At some point the SP will be irresistible, and I'm sure that will be well before 50p.
How is this win-win? GDR has dropped from 28p to 12.5p in six months. Notice on their chart a few short lived upward periods. SP has now lost 55%. I don't know anything about the company (GDR), but any mirror performance here would be a disaster.
We can see here that any buys are being mopped up by RF, who still have quite a lot of shares to sell of their first batch.
I really like the potential of the SAR pipeline, but the short term prospect for the SP, for me, outweighs this potential. Why buy this morning when the SP will be less by 4pm? Why buy tomorrow when the SP will be less next week?