Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
TRP is a massive gamble, just like the Grand National, however, what is unclear to me at this stage is "Where Is The Money Coming From" to pay for the drilling rig? Yes, negotiations with banks, but clearly uncertainty, a rights issue is very unlikely due to the capitalisation of the company. Your views and thoughts are welcome!
Shorters expect the share to fall because they don't believe the BOD predictions, in six months time we will see if they are right or wrong. All shares are news driven, for this reason the shares will drift. Must admit to losing 40% on this stock so looking forward to Xmas to see if I am right or badly wrong. I am confident the BOD will be correct, however, do your own research.
There is a lot of bearish sentiment out there, worries concerning high inflation, higher interest rates, and, shorters preparing for a big crash by the end of the year. What is the point in investing in shares when you can receivie 4.5% on a Gilt? I believe Mobico is a great company with a worthwhile future, albeit a few bumps in the road on the journey ahead. For me, I see a fall as an opportunity to buy.
Sneedway, that is really interesting and helpful, together with the £75 million interest. I had completely missed that and appreciate your thoughts. I am surprised that you can take out a loan of £500 million and place this on the balance sheet as an asset, have been laughing about that one all morning! Very helpful thanks.
Cineworld had massive debt, Mobico has debt which is comfortable to manage. At the next set of results the board anticipate a profit in the reagion of £200 - £215 million. Mobico pay a dividend and next year this could increase. Rolls Royce fell out of favour with considerable debt, however, i am sitting on a profit of 130% and look forward to a dividend in the future. Some stocks do fall out of favour, and, then, they go north with a vengeance. I categorise Mobico to be a stock which will perform very well within the next 12 months.
The results are really not good, however, I see this as a buying opportunity. I am an existing shareholder, and, have purchased these shares at a much higher price.
On the negative side I see very high wage increases and minimal share purchases by the board.
However, the losses appear to be turning into profits in the region of £200 -£215 million, and, a good dividend in the future. This post is my opinion and does not suggest advice in any way.
01 Aug 2022 Asher, Jeremy Benjamin Gerald Chairman of the Board, CEO 141,051,835.00 £0.0017 £246,840.71 509,798,300.00 shares.
It is encouraging to note that the Chairman has purchased these shares, clearly he is putting his money where his mouth is.
https://www.malcysblog.com/2023/01/oil-price-petrotal-tower-coro-echo-capricornnewmed-and-finally/
Scroll down to Tower Resources, the upside could be substantial.
There were lots of interesting questions both during the meeting and after. In summary, the board are mainly old, I like this because age increases experience! Some of the Executives are younger I.e. 50 plus. The hedging strategy is a good one, they limit hedging since the price of gas has gone from 10 pence a therm to over 500 pence, i.e. excessively volatile, therefore difficult to predict. They played down the chances of a strike at the next drilling in the North Sea, and, rightly so. If successful, this could increase the reserves quite significantly, however, it would not be too serious if they don't. They have a 170 employees and are 85% gas, albeit the boe equivalent is usually quoted. Most of the healthy balance sheet has been created over the last four months (for obvious reasons). Smaller companies are better equipped to ensure greater production of existing assets, whilst, larger companies tend to go for the big ticket items e.g. Gulf of Mexico and can't be bothered with the hassle of aged wells. The government taxation of 65% initially caused concern, however, with aged wells, investment is required to keep them going, and, provided the 3 year taxation promise is kept,then, this will not materially alter Serica. Hope this post is of interest.
I attended the meeting, very interesting, an interim dividend of 6 pence, the right of the board for a share buy back should the board decide to do so, however, there is not an intention to do so at this moment in time. Opportunities may exist away from the North Sea due to the tax of 65% recently announced by the government. If this excessive tax ends in 2025, the investment of extracting gas from existing wells will not be of great significance. Serica is 85% gas.
The recent sizeable gas find in Anchovies 2 is a game changer. Gas takes time to bring into production, nevertheless, assuming gas prices remain high, this looks to be a speculative BUY.