Member Info for NoelShempsky

More to worry about?

"Tanzania's Magufuli orders central bank to create gold reserve

...

"For example, according to recent reports, Tanzania is not the biggest gold exporter in east Africa, even though we know we are the biggest gold producers in the region," he said, without naming the report or the country topping Tanzania.

"We are not profiting from our gold as we should," he added."

https://www.theeastafrican.co.ke/business/Tanzania-john-magufuli-orders-central-bank-create-gold-reserve/2560-4928044-12qmx2r/index.html

I like this company as a growth stock with takeover potential, but there is something worrying me and I am wondering if anyone else is troubled by it.

How would you feel if there is a rerating of ECK and the sp jumps to 55p or possibly 60p, but you lost your shares? They are taken away - confiscated.

Do you have your shares in an online account rather than holding a certificate at home?

In your online broker's Terms & Conditions, are there words to this effect?

"any investments held on your behalf may be pooled with those investments of other
customers" -

and -

"in the event of an unreconciled shortfall caused by the default of a custodian, you may share proportionately in that shortfall"

Two years ago, I switched brokers because my last broker introduced that clause and now the broker I switched to has introduced it.

Of course they talk about the "extremely unlikely" event of a custodian going bust, but they would say that wouldn't they. They call it extremely unlikely, but in a recession it can get ugly very quickly.

I'm surprised that shareholders aren't up in arms about this - they (brokers who have that clause in their T&Cs) are effectively saying that we can lose our shares due to no fault of our own, but to the activities of others who are entrusted to look after our shares. It is outrageous.

Can anyone recommend a good UK broker that does not have that clause? Thanks.

Hoping there never is a shortfall, and lets have ECK at 60p soon. GLA.

Thanks for the reply.

Do Hargreaves Lansdown expect their clients to "participate in a shortfall" if the custodian defaults?

I'm surprised that shareholders aren't up in arms about this - they (brokers who have that clause in their T&Cs) are effectively saying that we can lose our shares due to no fault of our own, but to the activities of others who are entrusted to look after our shares. It is outrageous.

The shares you gave to her - does she have a share certificate or are they in an online account?

If they are in an online account, does the broker have those clauses in their T&Cs?

I'm not sure that a rise in the gold price will lift the AAU sp and it is nothing to do with AAU. I see other gold mining stocks that, like AAU, have languished for years in spite of good economics - low cost of production and even paying a dividend hasn't lifted the price.

Having said that I don't think a rise in the gold price will lift the AAU sp, if there were to be a very huge rise in the gold price, that ought to do something for the sp.

But there is something worrying me and I am wondering if anyone else is troubled by it.

How would you feel if there is a change in sentiment and the AAU jumps to 5p or possibly 10p, but you lost your shares? They are taken away - confiscated.

Do you have your shares in an online account rather than holding a certificate at home?

In your online broker's Terms & Conditions, are there words to this effect?

"any investments held on your behalf may be pooled with those investments of other
customers" -

and -

"in the event of an unreconciled shortfall caused by the default of a custodian, you may share proportionately in that shortfall"

Two years ago, I switched brokers because my last broker introduced that clause and now the broker I switched to has introduced it.

Of course they talk about the "extremely unlikely" event of a custodian going bust, but they would say that wouldn't they. They call it extremely unlikely, but in a recession it can get ugly very quickly.

Can anyone recommend a good UK broker that does not have that clause? Thanks.

Hoping there never is a shortfall, and lets have 3p soon. GLA.

I agree, I am very disappointed at the lack of an update on the Solarwinds deal.

Do any readers of this board subscribe to Tom Winnifrith? Perhaps you can give us a clue to his view without infringing his terms and conditions of confidentiality and not giving away his writings.

Thanks.

blakeney - thank you for your informative reply, which I found mildly reassuring, but you say that it is standard within the industry.

That has me wondering why they have only recenty started inserting that clause to their T&Cs. It never used to be there, so what has changed. I don't mean that as a question for you, I'm just thinking aloud, but if you do care to comment, please do so.

I see it as a huge gamble.

I was in another company with a similar profile to QFI - i.e. it had a patented technology that offered great advantages and that was tried and tested and shown to work. The company got tantalisingly close to pulling off deals, but they always fell through. The shareholders were kept on a knife edge wondering if it would run out of cash before commercial deals could be signed.

Then one day we got the bad news. It went under and the shares were worthless. The shareholders lost everything.

In the case of that company, I suspected that some of the directors actually sabotaged the company and ran off with the patent so that they got the rewards that should, rightfully, have gone to the shareholders. I'm not saying that is the case with QFI. I'm just venting my anger at being defrauded by crooks in that other company.

However, let's be optimistic and assume that in, say, six months time, the sp is multiples of what it is today - but some QFI shareholders find that their shares have been taken off them because of a shortfall by a custodian - does your online broker have that clause in its T&Cs? If so, does it worry you?

Am I the only person worrying about them confiscating my shares?

My post was banned by Admin, so I am re-posting it with the offending part removed -

At the moment QFI seems to be a huge gamble - a high risk, high reward gamble.

But there is something worrying me and I am wondering if anyone else is troubled by it.

How would you feel if things turn out well for QFI, the board pulls off a few deals and the sp jumps to 10p, 20p, maybe even 30p - but you lost your shares? They are taken away - confiscated.

Do you have your shares in an online account rather than holding a certificate at home?

In your online broker's Terms & Conditions, are there words to this effect?

"any investments held on your behalf may be pooled with those investments of other
customers" -

and -

"in the event of an unreconciled shortfall caused by the default of a custodian, you may share proportionately in that shortfall"

Two years ago, I switched brokers because my last broker introduced that clause and now the broker I switched to has introduced it.

Of course they talk about the "extremely unlikely" event of a custodian going bust, but they would say that wouldn't they. They call it extremely unlikely, but in a recession it can get ugly very quickly.

Can anyone recommend a good broker that does not have that clause? Thanks.

Hoping it never happens and lets have 30p soon. GLA.

In my "Don't listen to FK1" posting, I expressed myself incorrectly.

What I meant to say about FK1s posts was just to warn against his seeming certainty that the sp is going to drop. For example, they way he writes "sub 3p was coming et voila" - et voila = "I told you so", or "Dibs told you so", as though that slight dip somehow confirms his view of a bigger drop on the way.

When I hastily typed "Don't listen to FK1" what I meant to say was, as Dibs had said to me, go with your own conviction.

The same applies to my view of "booming sales figures". None of us knows the future.

Well. I'm off to have more sherry now and look forward that jump from 3p to 30p so that I can write "et voila".

To all those who sold yesterday - don't listen to FK1.

I did say that an announcement could lift the sp. OK, ignore the 30p dream, but when, partly as a result of the Solar Winds deal, FLX comes out with booming sales figures (as, in my opinion, they will) - - the sp is going only one way.

Dibs seemed to have been right about QFI and therefore I wanted to give serious thought to his opinion on FLX.

Over a week ago I posed some questions for him.

Today I got a reply from Dibs and also we have had RNSs about directors buying. Dibs didn't answer my specific questions, but the RNSs help me to answer them myself.

My questions were -

Do you still think it is all doom and gloom for FLX? -- with today's RNS, I think not.

Can't you see the Solar Winds tie-up bringing loads of cash in to FLX? -- with today's RNS, I can see it bringing in loads of cash.

Don't you think that they have had to recruit more sales people to deal with the enquiries is very positive? -- with today's RNS, I think it is very positive.

Sorry to be rude Dibs, but "go with your own conviction" is a cop-out answer. It is true that 30p might not be on the horizon for a good while yet, but I think 10p is on the horizon.

Very good bit of buying today. Have I missed some news?

slicksandwets - thanks for that link.

GLA

It's been a week and Dibs hasn't replied.

Perhaps he doesn't want to admit that a good trading update from FLX could do to the share price what good drilling results did to PGM in September - from 3p to 30p in one day, see -

https://uk.advfn.com/p.php?pid=staticchart&s=L%5EPGM&t=37&p=5&dm=0&vol=0&width=334&height=208&min_pre=0&min_after=0

Just my little dream.

I first bought into Shanta in July 2013 at 12.75p per share and I seem to recall that they had just fallen from 15p.

I've just topped up in the hope that in January they announce a dividend.

I can't see it being as high as a penny a share (if it was, wow!), but even a tenth of a penny a share would be good and I think it might be a bit higher than that.

there was a posting about the environment.

Come on the cry baby who thinks he is the board policeman and can't simply ignore posts he doesn't like - get that one removed.

Dibs, it is starting to look as though you might be right about QFI and so I am feeling more inclined to to give serious consideration to your views on Falanx.

Do you still think it is all doom and gloom for FLX?

Can't you see the Solar Winds tie-up bringing loads of cash in to FLX?

Don't you think that they have had to recruit more sales people to deal with the enquiries is very positive?

Thanks.

Whoops - 250,000