Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This a short term thing and will turn around once supply is reduced which it will be soon and demand picks up which will also happen but not as quickly. Not good for oil companies etc in the short term but with petrol etc falling this will reduce distribution costs and leave the consumer much better off which should in turn fuel ( excuse the pun!) spending and growth. its an ill wind and all that!!!
think this is a long term hold as given current negative market sentiment and china slow down etc it will be awhile before it makes any significant positive move but it should do once the outlook improves. Hang in there i guess!
Positive news as Investec havd upped forecast and from 2015 they will selling some of their products directly so higher margins and yet price falls?? Probably profit taking. Lets have some more of Singer/Finn Cap downbeat forecasts to get the price up again!!
Agree that margins much better on small tools and non operated plant. But how much of Speedys mix is larger operated plant. It cant be more than 10% which should not dilute earnings by that much. Theymay have to do the bigger stuff to win bigger contracts but the bread and butter will always be the small tools etc from their nationwide branch network where demand is strong and they can compete with the small local players due their huge purchasing power. Definitely not heading for the 50's more like £1 but over time.
Take a step back and what do we as investors believe about Speedy. Its had its problems but seems to have recovered with a new management team and focus. Demand for plant and tools is high and so fundamentally the business model seems robust. We all want it to succeed and get back to 100p soon.
See Singer at it again with stupid forecast. Who are Oriel Securities? Also saying a sell at 545? Deutshe Bank increased their forecast to 745. At the moment Mr Market seems to believe the higher end forecasts and recent trading updates also support these higher valuations. lets see but i believe this one will be snapped up soon by one of the big boys!