Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
StevieQ - 1. Political mayhem ( to put it nicely) resulting in lack of investment from U.K. and overseas 2. The decline in profit ( not revenue which is up)and letters volume ( way overdone because of previous) 3.Confidence - so the overall is a bad cycle which will resolve in time hence my outlook - medium/ long term and dividend reinvestment.
Regularly Redceo - every couple of days this site has issues for me and it’s not from my end. Sad to see Arsenal and Falkland stoop to low levels of name calling etc - no need for it as all views politely put make for a better BB. We are all entitled to our view and mine is the same as always has been - this will rerate when all the political issues are sorted. RMG are a profitable company in a ever growing market and much like a good team manager turns a rubbish performing team into a winning team so will Rico and the 5 year plan - the basics are there for sure , all my postie mates say they are very busy and efficiencies are coming .
Again ! Iran/ US - China/ Brexit/ Boris / Climate change/Debt / German recession etc etc - take your pick and the good old media seem to gloat about it - why ? aren’t we always led to believe that positivity breeds positive outcome and being negative the opposite. RMG along for the ride unfortunately ..............
Yes Thankyou for your much appreciated input Fruitster - the SP has got a different feel to it and although I think shorts might not have much direct influence,they do have an indirect one in the sense that some other buyers/sellers check the short positions and trade accordingly. IMO the political situation is having a drag and if that was not there then with the turn around plan SP would be substantially higher. I may be over optimistic but I’m still looking over 400 by January. Just my half full outlook !
Mike1974 - I think that is fair enough - after all profit was down some 30% on previous results so only to expected that the company cannot reward for missing targets. I appreciate that some managers will have gone above and beyond and that’s harsh on them but that’s the way it is. Hopefully it will spur on the managers who underperformed. Centrica in a similar situation with their managers - there are consequences for underperformance and the team takes a hit. Off topic but I thought Jeremy Hunt looked good last night , unfortunately despite Rory s comendable honesty and saying it how it is , he would be eaten alive by Corbyn & Co.
Sorry - week old news ! Looked at wrong RNS.
Good to see Rico buying again.
Personally I’m for Jeremy Hunt as Boris is untrustworthy imo. Javid or Raab as back ups - not Gove - but let’s face it , whoever it is will have the major issue of the hoc full of spoilties.
Scampthedog - you’ve obviously never heard about sentiment then ? If you track back to points in time when Brexit looked like getting sorted you would see spikes in a lot of U.K. companies - I’m not talking all FTSE 100 ones as a lot of that is overseas based, but U.K. predominant companies. It’s rubbish to say Brexit hasn’t affected the SP because it clearly has, or at least the uncertainty of not having direction has. RMG make a profit ,not a loss - yes there are issues to address such as technology, efficiencies etc which have had an impact but the political situation is the main driver which affects sentiment. It’s the old fear versus greed thing which cycles all the time.
This is seriously undervalued but unfortunately politics are the main driver now and the gov is in meltdown- take today’s ridiculous announcement about zero C02 emissions by 2050 - I’m a gas engineer and I can guarantee that it cannot be met , just not possible in such a short time. Sums up the total uselessness of our gov and that includes the even worse Corbyn & co. Absolute mess but value is value and in the longer outlook RMG and other bombed out shares will recover ( unless of course they are emission related ) - time for a revolution- rant over for now.
Result of HSBC going to hold from buy - target 216
I may be wrong but I really don’t think this will go sub 190 before ex div mainly because ANYONE who sells below 192 is selling at a loss - would not make sense from an investor unless you really are fearful enough that a 500 year old company with a very small debt would go bust , which it won’t - but hey ho I’ve just seen one of my other shares tank on confirmation of oil , so irrational is the new rational. Prob best I invest in loss making Uber instead - bound to go up.
Agree with your posts Fruitster- As previously stated I’m looking medium/ long term and this (hopefully) means a conclusion to Brexit and a good way into RMG 5 year plan. Let us not forget that RMG DO have a plan ,they are not drifting aimlessly with the same format. It takes time to turn around a large company but I see a forward plan in a growing market ( packets/ parcels) and with their infrastructure and investment in new technology I see a positive future. The brokers will too as some are now, so it’s a matter of waiting for sentiment/ trend to turn - which IMO it will.
A BOT is short for a robot - ie; electronic - please correct me if you meant something different Redceo - and btw welcome back from your very brief absence! FireBot33 - think you should make your own decisions on investing but welcome all posts - FWIW I’m holding at average 2.56 and run out of funds to buy more.
I’ve had a long long dislike of Deutche - they are anti U.K. and anti - Brexit on many of U.K. shares - and I don’t say that lightly - definitely their own self serving agenda ( even if they prove accurate)-intense dislike and distrust of them - apologies to anyone who works for them, not.
Err scrub that last question
Investment in the business is a positive so not really applicable to profit forecasts - it’s the same as buying a new van , initial cost is high but if it means you are going to be more productive in the long run and more efficient ( ie; no breakdowns,better fuel economy etc) then it’s positive. Companies that don’t evolve and invest are more concerning. As I’ve previously stated I’m not looking at now ,I’m looking 2/3 years ahead when my accumulated quota of shares and expected capital appreciation bears fruit. Brokers are taken notice of by investors who don’t have time to research but as Fruitster says and I’ve learned they are often wrong and lag the market.Btw - where’s Redceo ?
The thing is opinions are just that - some brokers are negative and some positive - just because the market/trend is down atm doesn’t make them right - only time and I mean next 2 or so years will reveal who was right. I’ve been in many shares where the trend was down ( Morrison’s a good one) where the companies fundamentals eventually come through . Dividends reinvested ( compounded) over time where a company pays a good one such as RMG will always prove a good investment long term and that’s where I stand. Politics/global concerns are weighing hugely on this and other U.K. companies so you have to decide - are you looking for quick gains/losses or are you looking 2/3 years down the road. It’s all a gamble but IMO and others this will pay off in the long run. I’m holding.
Ditto that - no one knows what will happen and the media continually use scaremongering reports that can only be opinion unless they have seen the “future” which if they have ,they can tell me what happens to RMG SP. Lots of politicians once again throwing their toys out the pram because they can’t get their own way - sums them up. I’m looking to see the 200 support not broken and then we can hope that’s the bottom.
Seems a company making a half billion pounds profit gets absolutely battered but if your names Uber and you make a billion dollar loss and say your unlikely to ever make a profit your SP holds. Maybe RMG should rename themselves to something more techie ?