Member Info for redwineday

I have the same take out. They have something to say more quickly than expected.

Coverage of the used car market growth of the front page of the FT. MMH stunning results yet only 4% rise so Mr Market isn't listening. Cazoo noise drowning out everything else. BOD should be thinking about buybacks.

Will be really interesting to see what the royalty income from Norgine looks like in the H1 numbers. Finncap had 1.3m for FY 21 up from 700k last year so certainly doesn't seem like a stretch, but by the look of it there is no momentum in the UK at least.

Someone mentioned that the previous CEO had made a comment that it was Norgines responsibility for sales. IMO this is a typical beancounters way of thinking. Its completely the opposite and 3rd party vendors need to be managed in the same way that any sales team would by the manufacturer.

I'm sure the new CEO will get to this in time knowing that his number 1 focus today is getting the US teams in gear.

100k worth of trades and 5m taken off mkt cap. Why any company with a global asset would list on this market is beyond me.

We should be looking at an average sales price of 2k US per carat. This combined with a production increase vs last year would look knockout and as you say, bigger stones to come in the second half.

I feel it could be something to do with the cancelled July sale in Antwerp. Unfortunately I don't think we can definitively tell when this sale was cancelled, but I noticed as cancelled around 10 days ago (on their website). Could be taken as a sign of something gone wrong?

On the other hand i noticed that they already have SH approval at the last AGM to buy back at there own discretion. I would wager that being announced soon. They need to do something to close the price/value gap.

Surely if someone wanted to bid it would be done by now.

I cant see Graff doing it. Why would they want to own a mine? Its a long way from Lesotho to Bond street or 5th Avenue. I can see the logic of being a SH here a they get visibility and insight on the market and specifically the market for big stones but involved with mining operations. Just don't see it.

If Anglo or Rio or some other mining outfit wanted it it would be done by now.

last trade at the equivalent of 31p, yet this opens at 26p. How does that work!

No idea whether it's relevant but I noticed that the after an absence the algos have reappeared. Buy order being filled?

I read the caption and though you meant Gem SP performance!

I'm afraid the "magic years" of innovation and novelty are long gone. Their comparison metrics, as pointed out by sain@vision are poor. Take a look at Notting Hill.

More than ever this is just a leveraged punt on the Central London market and prices. If you still believe (as I do) that London is still a world city and still attractive to foreigners and aspiring young Brits, the SP t can deliver a multi bagger when the hordes pile in.

Looks like someone was in hurry to dump a lot of stock today.

should have said loss making unicorns - of course

119 - 123K carats. Its in their 2020 annual results presentation.

I agree, I don't see it working but then again I am old and accept that millennials and younger don't think like me, or you I suspect.

In in investing in takes 2 points of view to make a market.

They have a USP - they are not used car salesmen - even if they are selling used cars
They don't have anything like the overhead that traditional retailers have.
They have mega advertising budgets.
In a market like todays, they don't need to make money. How many unicorns are valued at astronomical valuations but still attract captial
With the capital they have already raised they can keep going for a very long time.
Investors invest because they like the story and expect someone else will but their shares at a higher price.
Even if their valuations come down the fact they are in the market will take volume form traditional retailers.

This last point is what is holding LOOK and other retailers back. If you are expecting a re-rate based on Cazoo not doing very well I think you may wait for quite a long time,

By the way, I say all of the above as a holder here. I think the market will slowly walk the SP. The big mistake which i hope the rectify in the H1 result is a commitment to SP capital returns. As far as I can see they have no reason not to do this give their balance sheet. This would give the SP the boost it needs.

So you and I are speculating on this board. Why didn’t they just release an RNS. Poor comms at best.

I think we may see a shortfall in revenue. Why did they cancel the sale of large planned for Antwerp in July? Not enough large stones?

This is getting boring,

The market cap of this mutt has dropped by 30m in 2 months. we can blabber on about manipulation by MM's and so on but for 26% to be lost is unexplainable unless someone is unloading a lot, but we se no TR1's from th major holders or something is known in the market that we are not aware of.

If all was well this would have gone up by a similar amount. No smoke without fire I'm afraid.

Exactly this.

Why cant they find a new chairman? No-one wants the job I suppose, although the brighter outlook should help.