George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Yes, you’re right. It is the fear of non-compliance in a broader sense that made the flee away from gambling shares because when you say gambling compliance people only hear money laundring. When you say alcohol they hear party :-) More people have drinking problems than people who have addictive gambling problems. But compliance people are not driven by logic these days because Scandinavian banks have been hit by laundeeing scandals.
Important to understand why Swedbank sold all XLM shares: Earlier this year Swedbank made a general decision to sell all securities in gambling industry companies. This was a ‘political decision’. Now they are out of XLM and the market dynamics should be back to ‘normal’ (whatever that implies). But I thought that it is nice for people to know the context.
I’m a large shareholder and still believe XLM is significantly underprized. Great potential long term. But as said previously, they are doing the poorest job when it comes to investor relations and reporting to the market. Read thos from today’s trading update: “the Group expects to report EBITDA in line with current market expectations”. That is pure rubbish. The company expects what the market expects??? So, what is it, we (the market) expect? Well, you tell us. Don’t refer to what we expect. We are blindfolded. Looking at the drop in share price, you could say that the market expects more crashes on the way. Is that what you are referring to? I gurss not. But then what? Why don’t they just fire the people who are doing their investor relations before they do nore damage...
The big seller was Blackrock which cant be taken as a sign of good or bad. They are one of the biggest asset managers and they shuffle around based on macro trends and trimming of their entire portfolio. XML will for sure continue to grow. Over time share price will go up. For sure. But still, as posted earlier, they need to take better care of their shareholders by regular updates. We dont like sitting in the dark even when its warm and we are on a nice journey.
Thanks Steelo. Reporting is not that difficult and the company shouldn’t jeopardize it’s opportunities in its disclosures. Quarterly reporting on performance and major events would be fine. Why haven’t they commented on how they look at the deregulation in the US. Is this an option for XLM? I don’t inderstand why they pay high dividends when there are so many M&A opportunities which would give a much better return to shareholders.
I am a happy shareholder in XLM (c. 400k EUR). XLM is a nice Company doing business in a fast growing industry and they perform well. They have kept a nice momentum in their Growth and have been able to convert the growth into a strong cash flow. So I am basically happy. That said, I think that Ory and the board have completely failed when it comes to keeping the shareholders/market well informed about the business and the strategy. It's called shareholder value. Basically, XLM only informs the market about its performance twice a year. Reporting is minimalistic and old-fashioned. Also, recently a lot of new shares were issued to an institutional investor. To enable XLM to grow through M&A. But nothing really happens. So we have all been diluted but for what purpose? Taking cash in and then paying dividends to shareholders is a failure. Especially when you are in an indsutry with so many M&A opportunities. The internet tells us that XLM are doing small acquisitions now and then. But they are not reported to the market because then Ory and board members would be insiders and would not be able to pick up more shares when the price dips. My point is: XLM should focus more on IR. Look at how other listed companies are nursing the market/shareholders. Transparency pays of in the long run. I am sure that we all recognise that when we look at other listed companies.