PYX Resources: Achieving volume and diversification milestones. Watch the video here.
I like your YOLO enthusiasm Mary but there might be a nasty surprise in that production report...
We're 1.5% down for the day and counting yet silver is still above $26 and gold touching 1,780...
And to think I stayed in this basket case this week for a paltry 2% dividend yield hahaha.
Plot twist: it turns out FRES has never mined an oz of gold or silver in its life but is just a shell company for a Mexican cartel.
Kando - gold price and real rates have historically enjoyed the strongest relationship (almost perfectly inversely correlated), not gold price and the money supply. Gold shone in 2020 because real rates became negative, however, once 10-year yield moved up swiftly this year (up to 1.75%), gold lost its appeal as it typically yields zero or marginally negative once associated storage/insurance and transportation costs are included. If you can get circa 2% (or more) lending to the US government then why hold gold, so the logic goes...
Most of the new dollar creation in the last year has been in the form of central bank reserves, not cash as most people know it, otherwise we really would have seen hyperinflation.
A FRES peer we often bring up here and one I've held for a while, POLY, up 18% since March 30/31 PM lows whereas FRES hasn't even managed a 5% upturn since then.
On 19th April FRES hit 965 intraday when PMs were actually lower, PMs are now higher today (silver much more so) yet FRES is down 8% since then. Wow.
For clarification, even with it going ex-div yesterday, I decided not to sell at the delayed open given that PM prices were surging early yesterday. Of equal irritation to me would be a stop loss around 920 triggering early on and then watching FRES catapult up towards 960-1000 in line with PM price momentum. Silver in particular was very strong initially yesterday.
Yesterday was an absolute shambles. I held firm for the dividend, which given PM prices at yesterday's open (silver >26.3 and gold >1785 was AT THE TIME the right thing to so no stop loss for me. However, clearly some of the spivs got out around 940 (no way individuals on a retail trading platform got out then) after the 40 mins delay and then proceeded to pummel it down to the 870s. That was an absolute disgrace.
Even if I had sold around 920 early in the session I probably would have gone back in circa 900, naturally and logically with the view that it couldn't possibly go lower. FRES will bounce back soon as sure as night follows day, however, once I hit my targets I am definitely done for good with this name. It is absolutely not a long-term hold and whilst it can be a good trading stock (and was for me very lucrative pre-January), the daily share price suppression throughout 2021 and absurd share price movements on RNS, results, dividend and PM red days mean this is just not a name you want hard-earned money in, IMO.
It may well go north of £13 again later this year if PMs rally (I've seen £20 predictions which I think is ridiculous), but frankly, so what? Even many of my beleaguered travel and bank stocks have more than doubled since September (Barclays & easyJet just to name a few) and that's not even beginning the comparison with tech stocks and crypto. GLA.
Silver is still >26.3 and gold at 1785 yet FRES is on the cusp of plummeting below 890...Wow.
Mary we are saying the same thing (I think) but perhaps my use of symbol '-' confuses things, I intended it as a substitute for 'minus'. So, ex div date (today) = record date (tomorrow) minus 1 day. FRES is getting beaten down now because any new shareholder who buys today is NOT eligible for the dividend thus it should fall roughly in proportion to the dividend.
Thanks for the clarification, I suppose then logically FRES will get beaten down record date - 1 early on but then rise later in the session.
Mary you say always close Wednesday? If one is not a shareholder by close on record date - 2 (Wednesday) then you're not entitled to the dividend surely?
Given it's opened down then it seems confirmed that ex div today...Some seriously fishy business going on here.
'The next Fresnillo Plc dividend will go ex today for 23.5c and will be paid in 1 month'.
Record date on website now says 23rd April but payment on 30 June 2021.
They're saying there's confusion over dividend record date...Now confirmed as tomorrow 23rd April?!
Even when silver hit $30 the initial opening delay was less than 5 minutes, this is unprecedented...
They've really tried to suppress FRES today (even with this late PM surge), presumably in order to hoover up as many shares as possible in the 915-930 range to receive the dividend before today's close. They couldn't do a chunky block trade over a short period otherwise the share price would rocket.
Wow gold and silver have just started to wake up...
I've said it before but continued disappointing production reports (successive lower ore grades in particular) have really spoilt the party here. Intraday price suppression aside, I think some of the longer term institutional players have repeatedly dumped this name. The last RNS (which was actually fairly neutral to be fair) saw FRES down 14% at one point, I think investors are wary of more disappointment.
Even during the Reddit-fuelled silver squeeze, FRES didn't actually move for days (whereas North American names like First Majestic were flying). FRES popped 15-20% (but closing only +10%) on the day silver hit $30 but then had lost all those gains (and then some) after a day or two.