The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Hi Ford, yes. The calculation you've laid out is an important one for understanding a company's Market Cap(italisation). A more difficult thing is to justify any given Market Cap. If you've ever watched Dragons Den, the dialogue of the deal there is a good way to get a feel for different valuations, albeit for early stage businesses. Normally a multiple of annual profits (or revenue). Oil in the ground is a harder thing to (agree a) value as you may have picked up from other threads.
ATB
SA
22:16 also Plebeens
Which currency / market for the round number?
??
SA
20:21
Hi Ford707, Saint hearing you loud and clear. At risk of iritating those who don't like reading blow-by-blow accounts of LTHs buys and sells (spoiler alert, move right along if that applies to you) - but in answer to your direct question, I am still here. I've just checked my dealing records and I've bought on 22 occasions (think I said 16 the other day), differing amounts, mostly averaging down and sold on 6 occasions (often buying back in lower). 3 of my sales have been in the last 3 days for much the same reasons as you've heard from other LTHs this week. I still have enough skin in the game to feel the pain of any drop but also, in the dream scenario, to add more marzipan and icing to a very tasty cake.
As I know from one of our earlier exchanges, I need to pass your test :) so I won't be offering advice or making predictions. In fact, if the past week has taught me anything it is that everything I thought I knew has become irrelevant and a new order is in force. In that respect, you know at least as much about it as I do so good luck with whatever you choose to do. But do have a plan.
When it's all done, it would be good to compare experiences over a beer.
ATB
SA
08:21
garrym, I hope it gave others a laugh too. I know you are very selective one when you choose to post so I'll take it as a compliment that you chose to respond.
The Wall of Wolf Street. I like it.
SA
08:15
rodrod1, shall we pick up our debate about the resistance offered by 2.5p?
LOL
SA
Is that Happy Days roofer61 ... or Happy Daze?
I was pondering, and don't take these as predictions, just the ramblings of a happy LTH:
1) If DW wasn't already financially independent for life, he is now
2) He's likely to achieve cult status in the US
3) At this rate, the reddit crew will carry 88E to a main listing
4) They may even rename their Stock Exchange after him ;)
Happy Daze,
SA
15:27
Indeed rodrod1, as I said, rinse & repeat.
:)
SA
Agreed on the fascinating viewing comment - hours can quickly disappear. Hopefully the draw to 4c can pull the AIM price through 2.5p.
Rinse, repeat.
SA
14:40
rodrod1, do you think we need to become bilingual (or multi-lingual) when thinking of resistance levels e.g. a pound sterling value and US and AUS dollar values? I know the SPs on difference exchanges/markets never seem to quite match one another (using any recognised exchnage rate) but my hope is that, if resitance levels are at "round" numbers (2p/2.5p/3p etc) then, the fact that these will never translate to a neat round numbers on other exchanges/markets will be a good thing for us. My theory being that if they did all read across to the same resistance value (i.e. 2.5p/2.5c/2.5c) it would be harder to push through. The fact that they will never align dilutes the psychological resistance argument. Thoughts?
GL
SA
How long before someone mentions celebrating in Sardinia? Oops, just done it.
GLA
SA
As a post script to this thread from yesterday and thanks to (almost) everyone for their contributions, 88E is appearing in 7th place on HL's list of most viewed stocks today. Plenty of interest out there.
GLA
SA
14:55
AIM4, an interesting topic. I'm sure there are many and complex dynamics at play. I'm not looking at MMs, in general, just at Hargreaves Landsdown, in particular. I would speculate that, like any other MM, if they have an imbalance (that they are uncomfortable with) at the end of a trading day/week, then they address that with another MM in what we routinely see as an uncrossed trade at the end of the day - but happy for anyone to clarify differently. I'm also unclear on how the new (to 88E) OTC market dynamic works vs AIM (hence my Global Exchanges thread on Thursday). It could be that the LTHs de-risking view is consistent with an exporting of shares to the US. All speculation on my part and, as always, more than happy to entertain other points of view. Finally, as far as the HL published data is concerned, we do not know what 100% of bought and sold shares are (as absolute totals) merely what proportions of those totals were 88E shares.
ATB,
SA
13:24
Brom, my working assuption was/is that HL would know definitively whether they are buying or selling a client's shares. Unlikely a third party (like LSE) interpreting a data feed of transactions (algorithmically).
ATB
SA
I've been taking my routine look at trading volumes (and values) as published each weekend on the HL site. Source: Shares > Research & Tips > Top of the Stocks. I thought the summary was worth sharing here:
Volume of trades (last week)
Bought 88E (13th place) - 0.73% of all trades
Sold - 88E (9th place) - 1.18% of all trades
Value of Trades (last week)
Bought - 88E (not listed) therefore lower than 20th place and less than 0.56% of the value of all trades
Sold - 88E (18th place) - 0.69% of the value of all trades
I think this fits with the narrative we've seen on the site this week in the following respects:
1) Increased actively in the share (doesn't normally appear on these lists).
2) More sales than purchases (at least this side of the pond). LTHs de-risking.
3) Still substantial buying activity (at relatively modest value). Belief that there's still decent upside.
I won't go off topic by mentioning other shares on this board but, suffice to say, I've found this approach a useful prospecting exercise for other investable companies - albeit as a means to an end rather than an end in its own right.
GLA
SA
09:45
Thanks Brom, yes I understand the difference between a full listing and a trading market but my main point is that, as they are both methods of assessing the value of the same entity, would we expect to see a closer alignment in those valuations than is currently the case?
Agreed on the ASX dip into their close but we're long enough in the tooth to have seen many similar examples over the years.
All the best,
SA
09:56
JofHoggit, thanks for the input and hope you're well.
Using the Zoetic example with current prices both sides of the pond as a simple example:
Zoetic
AIM 88p OTC $1.17 Gives Fx ratio of 1.33 (close to official 1.37)
88e/eeenf
AIM 1.525p OTC 2.86c Gives Fx ratio of 1.87 (not close - but we don't yet know what price OTC will open today)
Using derived Fx ratio from Zoetic example in 88e example, if OTC opens unchanged at 2.86c then 88E would "need" to be 2.15p to square the circle.
Do you feel OTC exposure was intrumental in driving Zoetic upwards?
BTW - Zoetic would just have to be 88p at the moment, wouldn't it :)
GLA
SA
Does anyone have any experience of other shareholdings which are quoted on both AIM and OTC?
I've been observing the AIM vs ASX price levels for long enough now to accept that they can find their own levels on any given session. Although they broadly track one another, there's not a slavish man-marking of one market session to the next. However, the OTC market is new (to me) and has the key difference that their sessions overlap with the AIM trading hours. Am I right to presume that it is unlikely (even impossible if there's an effective arbitrage opportunity) for AIM and OTC to coexist at materially different price levels? Just thinking about the scenario where OTC opens at or near (their) yesterday close at 1:30 with AIM significantly lower. All thoughts and experience appreciated.
GLA,
SA
Yes, good momentum here. Hopefully it spurs on another round of global exchanges playing leapfrog with each other to new (recent) highs.
GLA
SA
14:28
Interesting moneyhawk, thanks.
Your point (1) may explain why the CNBS site for EEENF quotes the company website as tangierspetroleum dot com dot au.
SA
Wolfiebill, that sounds juuust too long to attempt to do it sideways :)
SA