Who will survive the utter Bloodbath?5 Apr 2020 21:01
The business, money, home and main sections of Saturday's Telegraph and today's Sunday Times were packed full of apocalyptic breakdowns of the economic destruction to come if the global coronavirus lockdowns don't end soon. There isn't a sector immune from the fallout for Covid19.
So. What does this mean for the BMN investor?
1. Our business continues to be profitable. Our costs have suddenly gotten lower and will stay that way long enough for it to make a different to our end of year report.
2. We are at the leading edge of a revolutionary technological shift that will change the world. (We've been given a glimpse of a world with less cars, planes and toxic carbon being pumped into the air) and people are only going to be more aware of sustainability and the challenges that our planet must face together.
3. Change is coming to every sector of every economy in the world. Pure Darwinism. Bushveld is leading that change in the energy sector and is moving to corner the market. They're not being forced to play catch up, they are leading the assault.
4. Many loss making companies are going to be wiped out -- sensible investors will seek to move their money to where innovation, growth and profitability are clear.
5. The isolationism era might be coming to an end (or at least its proponents are being shown to be the snake oil salesmen they are). Climate change cannot be ignored.
6. We need to get off AIM. Private investors might see the big picture, and institutions may well see it too but their hands are tied until we're on the main market.
7. Forget all the euphemisms of flattening the curve. 98% of the world can still be infected by it. The lockdowns are only slowing it down, they are not sustainable. The lockdowns are allowing hospital capacity and ventilator supplies to be built up -- once they are, then countries will start to release the controls. Key industries should be able to resume work sooner rather than later. Mining and construction should be among them, albeit possible on a smaller scale.
8. An effective treatment and/or vaccine will come eventually. Until then, the short term pain will continue but the mid-term prospects are extraordinary. Bushveld is making money. Will continue to innovate, grow and take advantage of everything I have written above.
If you are reading this post, then you are aware of one the best hidden gems in the investing world.
Good luck,
Ninja