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The price of gold has come down due to supply outstripping demand at 1800. People get far too hooked up on short term gold price movements when it's the volume times average price for the period which determine how much money gold miners make. Those with all the data play into this, going long and short on the commodity and the miner at differ times in the cycle. Personally I think we are at a pivot point, but who knows, maybe the miners have further to fall.
The currency of the future may be a crypto currency, but it won't be one of the current Crypto currencies, unless of course some, likely small country, unwilling or unable to develop its own, offers to buy into one based on the estimated cost of the mining, which will obviously disappoint all but those who have stock left over after mining it. The fact is any government can outlaw the use of any variant at the stoke of the pen or the tap of a keypad, at which point it becomes nothing more than an illegal marketplace token. Don't get me wrong, the current batch of Crypto currencies still have legs since there are still buyers willing to be sucked in, but once governments start using their own, a big slice of reality will set in. FRES meanwhile imo will be paying good dividends for decades to come.
The market price of silver was a joke for years, it's only now being allowed to recover, probably because having been just caught the manipulators don't want to appear to take the pizz. Fres share price is also a joke. Too popular with CFDs, Spread Betters and other imaginary position holders to be allowed to rise. Imo we are due a stock market correction at some point, one that will wipe out any long geared investors, and then, and only then will the price be allowed to rise to fair value, which imo is at least 50% more than present, perhaps even 100% more.
Slow day today. Everyone waiting to see what happens in the elections on Sunday. Personally I don't see this as producing any surprises that should adversely effect FRES, however fund managers nearly always act after the fact and not before.
Comical sums it up perfectly. Fair value is hidden behind purely market related movements. The net result is glaringly obvious price / value miss matches where punters fear to tread. It happens both ways, just look at some of the ridiculous over valuations out there.
Economics are clearly on the long investors side. Shame some of the so called 'smart' traders are still banging the sell drum.
Ridiculous. I suppose he also thinks house prices are driven by housebuilders share prices.
There are countless examples in recent years of traders with access to vast sums who refused to take a small loss and instead continued to double down on their position, only stopped when the position becomes so big that risk belatedly step in and the losses realized. Given today's neutral RNS and the continued irrational movement of this share I can only assume that some over indulged trader is continuing to sell, regardless of the underlying financials. It's either that or they are privy to information no one else is.
https://www.solarpowerportal.co.uk/news/solar_smashes_peak_generation_records_as_it_soars_to_9.68gw
In the cast of schrodinger's cat, whether it is alive or dead can only be determined upon opening the box. The concept being that before you open the box the state of the cat can only be described as a probability. Continuing this onto warehouses, the contents of a warehouse can only be fully known once it is emptied, prior to that their is always the probability that the recorded contents and the actual contents differ.
Ever considered the concept of Schrodinger's warehouse?
When it comes to trading in financial instruments Enron was a window on how these guys behave. Don't expect them to fight fair. These guys can spend limitless amounts to defend their position over the short to medium term and can even get governments to change the rules if required. Personally I think there are huge market valuation mismatches going on at the moment, across all sectors, with some companies trading in stratospheric p/e ratios, and other covid hammered companies trading as if the last 16 months hadn't happened. Question is, when will this period of irrational valuations come to an end. Not soon given how willing governments are to print money at the moment. Moral hazard is rampant and the non thinking tracker fund is king.
@MaryBR, totally agree. Recent broker ratings on lse are 1000 and above, no short position visible on shorttracker.co.uk, silver prices holding around $25. With most of the FTSE so ridicously overvalued this is one of the few shares I am happy to hold at the moment.
Short tracker is OK for monitoring large shorts but is no good if a load of different MMs are all sitting on up to 0.49% short in order to keep off the radar. I too think FRES is well run, but imo I also think this share is being played just like the price of silver is played.
Does anyone know the total amount of FRES shares out on loan at the moment, and while you at it where can this information be obtained for free? The way this share is behaving I suspect the figure is quite high.
So massively improved results and the stock hardly moves, in fact it was even down at one point today. So why is reason leaving the stock market. Go on the internet and there are loads of articles about irrationality in the market. IMO it all comes down to the fact that the market in options and futures is now so big that it is perversely effect share prices to the benefit of the sellers of these options. And not just in the short term, I think medium term prices are being effected also. I also believe the regulator is asleep here and a correction when it comes is going to see more than one or two financial firms fail. Naked selling of options is the most obvious issue here. This high risk strategy has the potential to make the firms and individuals involved a lot of money but is high risk with no safety valve should the market suddenly move against you. In addition, I feel that not enough attention is being focused on some of the trading websites that are springing up, We all know what happened after the Swiss Frank corrected in 2015. https://www.businessinsider.com/foreign-exchange-brokers-are-getting-wiped-out-by-the-swiss-francs-surge-2015-1 Frankly I don't see this ending well.
So back to FRES. I believe that FRES is too popular with geared traders, whose long positions are nothing more than a bunch of call options, for it to be allowed to rise. By ensuring that most of those options are never triggered everyone but the punters makes money. Only once same said punters move on will truer prices prevail.
PS Check who your custodians are. It matters.
Gabriela Mayor | IRO
IR@fresnilloplc.com
Write to investor relations and ask why:
Investor Relations
21 Upper Brook Street | Mayfair | London | W1K 7PY
+44 (0) 20 7399 2470
https://unctad.org/system/files/official-document/presspb2012d1_en.pdf
The policy recommendations at the end are very interesting.
In addition it is worth considering what effects the options market may be having on the share prices. With so much spread betting and CFD trading going on these days I suspect that the tail is wagging the dog: https://www.reuters.com/article/sponsored/uncovering-covered-calls
Not on market price , but based on projected earnings and assets. IMO based on the improvements in the prices of silver and gold over the last year it must be at least as much as the market is valuing it now, but then again I'm sure the broker ratings that will no doubt come out over the next few weeks will disagree. I'm surprised at how sluggish this share has been when compared to the smaller players in the sector, but at the same time should I be since its pretty clear now how "irrational" the market can be.