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No I don`t see us going to 80. In the last 2 days the major Western central banks have revealed how far behind the curve they are in having a strategy to combat significant upward pressure on inflation. I would be a good opportunity for Mr. Hogan to put his hand in his deep pockets and buy some shares. His ownership of a merely 45.000 shares when he is being paid over £2.0m a year tax free is lamentable. Unfortunately we are probably in a close period for such a purchase.
There`s nothing hawkish about this Fed. They are still printing. Actions not words is what counts. They say they will stop printing in March next year and interest rates might hit 1 per cent by December. That`s no remedy when inflation is 9 per cent and rising. Expect to see the same in reaction from the BOE today. The RPI hit 7 per cent yesterday.
Fed`s crazy policies helping us this morning,.US inflation hit 9% last week and they decide to continue with QE until March next year. The permanent officials believe in policies that will stoke inflation and the guys who meet once a month aren`t prepared to tear up the papers that are put in front of them. That`s life.
Kando,
Your analysis is broadly correct, but it is not just the Fed that is clinging to a false analysis the market has a whole is doing so. The consensus Wall Street forecast for inflation averages around 2 per cent although today`s inflation figures have hit 9 per cent. They too have to believe it is transitory caused by temporary supply constraints otherwise their forecasting models break down with dreadful consequences for asset price forecasts and in their own remuneration. Any meaningful tightening with have a long time scale before it takes effect. and therefore in my humble opinion high inflation will persist for some while. The consensus scenario also requires the gold price to remain suppressed so that it goes not give a signal that serious levels of inflation are on the way.
Could you please use another platform on which to air your political views as they have no relevance to the case for investing in Cey. Ironically the Labour Party will demonstrate how out of touch it is when it loses the Hartlepool by election.
CEO Hogan has only spent 20k of his own money on CEY shares since his appointment. For someone who is probably earning in excess of £2m a year this is a derisory amount. Today is an opportunity for him to show confidence in his plans for the future and make a meaningful investment of say £500,000. If he stands up at 1.30 and says he has made this commitment the shares will go north.
It`s not so much what will happen this year but in 22 when there will be exceptionally strong demand plus significant ticket price inflation. Due to the govt`s lax monetary policy inflation will return and this is the type of company that will generate substantial profit increases. Meanwhile the vaccines will also overcome Covid. There are not too many investors who have seen this all play out before.
The authorities are clearly pushing gold down again. The Dems are now on the way to be in control of Congress which will lead to a looser fiscal and monetary policy. Meanwhile bitcoin which the authorities cannot control is up materially.
Osaka,
The company is currently grossly undervalued. The directors seem content to let the share price drift back below 20p at which point they pick up shares. The risk here is that of the company being taken private in which case the private investors will be deprived of the opportunity to participate in the highly significant upside potential which others will then benefit from.