Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
why it would be expensive to have small shareholders on a company's books. There's no cost for the company involved with us just sitting there - as most of us have been doing since the Qonnetics days. So what's changed suddenly that makes it worth going to the bother of removing us? New shareholders in after the director bailed? We would become expensive if they want to pay a dividend, of course. So I upped my holding to stay in with a meaningful amount just to see what happens.
Market cap 19.5m is almost covered by cash alone. The more the price of oil goes down the more attractive discovered reserves of oil and gas are in small companies like this (v epensive exploration). For me this is a contrarian punt. The anti-fracking lobby is beginning to make headway in the states... look at what's happening in Colorado. Just my view, of course.
No bid declared yet, just rumours of renewed interest. So no restrictions on directors' deals as long at they are not too close to the results. From an operational POV it's encouraging for the new CEO to be buying - and judging by the shareprice others agree.
There was also talk that Soco International (LSE: SIA.L - news) , ½p cheaper at 140p, could also be bought. Shares (Berlin: DI6.BE - news) in the oil group plunged last week after it cut its reserve estimate for its TGT oilfield of the coast of Vietnam. Given “Soco has effectively been for sale for the past few years”, the recent sell-off could spur bid interest in the company, RBC Capital Markets analyst Al Stanton said. Telegraph (after reporting on Dragon Oil buyout approach).
I'm not clever enough to be a trader. I just look out for stocks with a dividend that have fallen too far. Doesn't happen often, but this is a perfect example. The market always overdoes the fall and it was a perfect day for shorting oil stocks so it made the fall even steeper. Sooner or later the shorts will come off and this will rise to about £1.80 - the same price as the directors bought at - and I will be happy with that and more. This has a dividend and the potential for capital gain...hen's teeth.
since the news of renewed interest from Oberthur a few weeks ago. I never buy shares on the strength of tateover alone, but I've been all over the results and it seems to me there's a good chance that this is going to surprise on the upside. I rate Marthin Sutherland and I think his presence on the board makes this cheap. If Oberthur is going to move it'll have to be soon or this will get away from them. I've been looking at their operation too and they've made the mistake of being too digital. They now need DLaR more than DLaR needs them. Tempus observed last year that Oberthur would be smart to wait to see which way the Bank of England contract went. DLaR won that one. There's new life in this old dog - just look at the website. Add to the mix Oberthur's ability to borrow cheaply in euros and I reckon they will have to move or their business will be in trouble. Well, that's my take on it anyway so I've gought in at 541ish.