Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I can only repeat what I have posted before on this company, It is well known in the city for being a company that has an ongoing reputation for milking the business, Hence the poor share price performance. This is not illegal but it is immoral in my opinion. Diamond mining companies are very susceptible to this sort of practice for obvious reasons.And the people running the business can always find a way to cover their tracks. Having said all that I am still a shareholder with the distant hope of the company being targeted in the near future.
To anyone that has any doubt regarding the long standing reputation in the city for GEMD, for being a company that is heavily milked by the management. Hence very poor share price performance. Read small article in Investors Chronicle magazine this week.
I have been monitoring shares using LSE for many years now. One of the things I have learnt is that you cannot rely on this site for accurate information on trades and also some fundamentals, I would suggest further investigation before any action is taken upon viewing such news.
Bluedealer, Sorry to disappoint but on further investigation I believe that the big buy on Friday was actually a big sell, it is very common for inaccurate information on if a trade is a buy or sell. The trade in question was below the ask price and temporary dipped the interday price, so most likely a sell. I to am a bit disappointed. On the other hand I think with the trading update out very shortly if it was a sell he might regret the timeing of his sell.
Well spotted Bluedealer, What really annoys me is the constant inaccurate information that is displayed on this LSE web site, I can almost guarantee that on any given day, on almost every company profile I view I see some inaccurate information, whether trades,market cap or other, I know it is a free to view website, but please get your act together LSE. As for the large gemd trade its long overdue for some significant event to materialize for this company, I can only hope of this being an early sign for a possible sharp upward trend in the share price. ???
It is my understanding that gemd has a long standing reputation in the city for being a company that has been consistently milked over many years, along side of very little prospecect of any sort of future growth, and to top it off, most unlikely to expect any good news regarding a future dividend. Apart from that its a great company to invest in ???
Knowing the track record of the gemd board the ghaghoo mine will be sold at a discount ,with no benefit to the long suffering gemd shareholders. If the mine is seen to be profitable to another company then why cant it be done by gemd. Yet again I suspect the the company is holding on to its reputation for being milked.
I agree with your comment Holeefook, I have a large percentage of my portfolio in GEMD for the same reasoning, I would not dream of selling them at these levels. Hopefully the low share price will now bring attention from other mineing companies for the same reasons you have noted. And I am sure the present management must be feeling some sort of pressure by now. You know what they say, Buy when others are fearful.
If you look into the past of this company the only people who benefit from occasional large finds are the management and their over paid sub contracting companies, Two words come to mind after the recent unusual announcements regarding large finds, they are wool and eyes.
This company mines in one of the richest known diamond mining areas in the world, yet over the past 10 years the share price has gone from approx. £9.00 down to sub £0.90p and on top of that even though they made good yearly profits they have rarely paid out any dividend, But the management have financially done very well for themselves.?? I don't think they need a pat on the back at this point, I think they need to be shown the back door.
Sounds like a token gesture to me, There is still a fundamental problem with the management of this company and the share price performance is the proof of this. It is known to be a company that is being milked. A change in management is only hope for shareholders of this company.
I have been holding a fairly large block of these shares for about three years now, its not what I intented , I prefer to day trade but these didn't go to plan, I brought on the hope of a takeover bid, so coming in and out on the rise and fall I might miss good news. I think I would have better odds putting the money on a horse. Having said that I believe that now with the share price around the £1.00 mark a takeover offer is even more possible. looking at some of the broker recommendations over the past six months or so, I think some are based on a takeover offer. But it is a very long shot I know. It might go a bit lower but at £1.00 my advise would be to buy and hold, long. But I have to say to myself what the hell do I know ?
Share price down to £1.00, The notice of a block listing today partly explains this, this is just more evidence of a very badly managed company, And this is reflected in the share price performance over the short and long term, unless there are management changes this will not be the bottom for the share price.
Looking at Dominion diamounds, petra diamounds, and lucara diamounds, gemd is the only one with revenue that is higher than their market capital which is a very attractive fundamental to a company looking for acquisitions, having said that the offer for Dominion is below the net asset value of the company, so times must be hard in the diamound market at present.
Its good to hear from someone else who is prepared to speak out about the mis management of this company. Many times I have wondered why this company is so undervalued compared with asset value and earnings, And the answer is that in the city it is well known to be a company that is being heavily Milked,The reason nothing has been done about this in the past is partly because speaking for major shareholders it is such a small company its gone under the radar as to speak,And the other reason is the companies main operations are so isolated geographicaly speaking it gives them the opportunity to be a law unto themselves.As for more large stone finds, I would imagine that any increase in large recoveries would probably not make their way through to enhance their final results for various reasons. It would be good to see your post on many other forums to help put pressure on the management and ultimately bring in a new management team.