Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It looks like the penny has finally dropped and new investors have spotted the disparity in MCAP and true value.
In reality the SP could be 3p+ and still represent good value for buyers.
The drop on the announcement of the fundraise was massively overdone and has essentially just made it easy for II's to pick up volume on the cheap before allowing the SP to rise back up.
£1.2m in the bank come Monday, Directors well invested and a significant order book for 2023.
All this with an MCAP of a little over £3m. Time to see some upward momentum.
The investors who have been here for 2 or more years know the score here. VELA needs time, as nothing happens quickly and we certainly don't bank on an RNS meaning a deal is done or money is in the bank.
For the new investors caught up in the twitter ramping, don't throw the kitchen sink in on this rise as it will level off and like many long time investors here you might need to sit on your shares for a good while.
Good old leaky AIM market.
Its good news for holders (good to see something is actually happening), however, I will celebrate once AZD1656 is sold as we have seen far too many dangling carrots in the last 24 months that turned out to be a non-starter.
Sadly its just another "potential takeover" that ensures Scott Kaintz gets paid for another year!
By the time any takeover happens CZN will have borrowed so much money the shareholders will get nothing.
I cant argue with that. It does appear that the institutional investors got the benefit of a real, positive PR campaign compared to retail buyers. On a positive note, it does at least look like the majority of shares from the offer will be held by institutions which should mean a bit more stability for the SP in the coming weeks/months.
Onward and upward. Hopefully we all come out of this with a few quid!
In fairness, retail investors had to do a bare minimum amount of DD to review the offer and decide to make a purchase (via their brokers). I would rather that than have a flood of twitter investors dive in thanks to some ropey online promo.
Looking forward to seeing the SP move up once the dust has settled here. The drop was overdone given the amount of contracted future business and the opportunity for growth with additional cash in the bank.
I wonder whether we are seeing a bit of selling with retail buyers aiming to pick up shares in the subscription. Its a risky strategy given the subscription could be oversubscribed with orders scaled back as a result (IE: you dont get what you want and then have to buy back on the open market which should climb once the dust has settled).
No matter how good the numbers look, a few folk are happy to get robbed and offload shares at this level. Just a case of waiting until the sellers run out and off we go.
A few "chartists" were doing a bit of social promo (pumping) on twitter earlier, so perhaps a few unsuspecting donors have dived in with their eyes closed.
Some good news would be nice (although I would be annoyed if it had been leaked before shareholders got a sniff of it)
I got that one wrong. Retail offer going straight in at 1p. The situation is less than ideal for long term holders who have had a shocking week but fair play to the BoD for giving the retail investors the same deal as the institutions.
It will be interesting what the retail offer is later this month. I have a strong suspicion they will take the average trade price since the fundraiser announced yesterday, in which case the offer will be north of 1.2/1.3. It could potentially be much more if the SP rises over the next few days but that is yet to be seen (fingers crossed we see a climb as there are not many shares available pre placing).
Sadly the existing shareholders have taking a real kicking today, however, its cash in the bank for LST and the traders will likely push the SP back up over the next week or two taking a few percent here and there on the way.
The drop was pretty severe even for AIM standards so I cant see the SP staying at sub 1.5 levels for very long (if at all if tomorrow is a decent day).
If there is no real news, the next update will be "Final Results" at the end of April which I dont imagine will make for good reading unless the BoD drop a mega bit of news in the interim.
I'm absolutely stumped. Broker wont talk to anyone (I was told they wont deal with retail investors) and no one is sharing any news of any form.
Coos bay surely has to be worth something (VELA sunk millions into it)?
What happened to the RTO with Poseidon? (Is there anyone else interested?)
Are the BoD taking a wage while nothing happens? (Pretty poor show)
Is CZN going to run out of cash before anything meaningful happens (at which point no one is getting paid and the locked in shareholders are going to lose their shirt!)
I will be surprised if the MM's can drop it much given the total value of todays trades is about 59p!
Its amazing how negative sentiment is driving the slide in SP. We all know that the investment value is double the current MCAP. VELA should be a no brainer buy!
No big volume held by Laiker to keep the volume on the side of the BOD. Next AGM, Brent is gone unless he pulls a rabbit out of the hat.
For those stating they have sold up. Fair play. It wont do any damage to the SP. Its just a shame you have been put in a position where confidence in a turnaround (soon) has gone.
We surely cant continue on this downward trajectory for long. We are valued at half the price of our investment portfolio!
I have been here for a long time (too long) and have sunk some decent cash into VELA after extensive research and some averaging down, however, I am starting to get a little nervous about the continued slide (and the BoD don't seem too fussed)! - BoD clear out at the next AGM on the cards I reckon!