Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
either the daily p on us PI's or is it a tree shake to try and scare people into selling ... the MM's need shares
You can buy 10-20k again now (could only buy 100shares 30 minutes ago) thanks to the couple of people who have sold ... NB sp is still going up despite there being more sales than buys according to LSE this morning .... sells are just putting liquidity into the market that gets bought up. I don't think I have ever been in a share before that could re-rate if only there were enough shares available for people to buy!!
Daisan, I think you have followed OVG for as long as I have -the big difference for me from the last 4 years is that management are talking to us, they recognise the gap between assets & market cap and they are talking about what the are going to do about it. I have copied Foggy's post on the press after the recent AGM below where they talk about the O&G assets but also mention dividends. Clearly nothing is likely to happen until the court case is resolved but the slow steady growth in sp IMO is driven by the build up to that in Feb/March. In the interim if the market spots this share then it will go through the roof as there are minimal free shares ... just look how easily the 100k was sold at 12.5p this morning. Hence I'm continuing to quietly build my holding 29th November Press: OVG is considering opportunities in the oil and gas sector as it seeks to close the gap between its market capitalisation and its net current assets. The company is valued by the market at just over £7m, despite the fact it has cash in the bank around $6.5m (£5.5m) and a stake in gold and silver mining business Polymetal currently valued at around £15m. Around half of the shares are owned by Russian board members, and the company's exploration assets are located in Russia. The company is currently embroiled in legal action after a loan it gave to another business went into default. Chief executive Kirill Golovanov told shareholders at the company's AGM in Dublin last week that Ovoca management believes there is the potential to acquire oil and gas assets on foot of this process. "That would fundamentally change the business of the company and for sure we would need to seek shareholders' approval to do that ... there is a big fight regarding these assets among the creditors. "Before we resolve this issue we cannot consider any dividends because if we are to acquire that property ... we would need funds to develop those assets," Golovanov said. "I do understand there is a substantial gap between our market cap, and the value of our cash in the bank and securities that we have. We can argue why that is going on but there are probably some issues because of the Russia issue - that the company has all its assets in Russia - which is not true technically because the cash is in foreign banks and Polymetal is an international public company. Its shares are traded on the London Stock Exchange." Golovanov said he believed the best way to close the gap between market cap and assets was to acquire new projects."My view on our company is that we have enough of our own funds, and we are in a better position than other companies. So for us it is more a question of finding the right project which would create value for the shareholders and change this gap." "I can fully appreciate the fact that it's been a while [looking for a new project] but when we find the right project we'll have enough money to actually do
So we got our 12p today and Oli is understandably calling for 13p tomorrow. Despite having two days with fudged closing prices (whether MM mischief, KGB or admin glitches) the reality is: people paid 12.5p today, it is very hard to get any shares; OVG's Market cap is still a fraction of cash, poly shares, assets, etc. Let's just keep enjoying the steady rise to the court case results in Feb / March. And if the market spots the opportunity before then and everyone piles in then welcome very quickly 16/20/24p and maybe beyond if a purchaser teams up with mgt (who still have their 51%)
Still Cheap indeed ... the 20p + assets doesn't even factor in the tax benefits of historical losses ... depends on details of the 2013/14 losses but there could be a £4-5m cash benefit by offsetting corporation tax (great for a profitable purchaser of OVG ... all a purchaser needs to do is get management, with 51% of the shares, on board and they get 25p+ of assets for a bargain with a potential bonus from the £5-6m court claim) Purchasing the 49% not held by management would cost a purchaser only £4.5m + the bid premium required ... if I had £7m I would call management!!!!! Naturally DYOR but I am quietly adding today with the sp over 12p
yep - have a look at the 7th ... two uncrossing trades at 11am (100,000 shares) and 2pm (99,990) both at 10p ... so 10 shares difference made up today after closing!! So an MM sorting out his admin 5 days later or a bit of artificial price trashing ... either way I will take 12p tomorrow
Its even labelled as an uncrossing trade ... an MM playing games with an artificially low price or an admin error a day or two before? New 52 week intraday high of 11.9375p ... anybody for 12p tomorrow?
Likewise I agree. The big shift (having followed OVG for years) is the board (CEO) talking about doing things ... we've had 4 years near radio silence but the end of the Taymura case may at least spell activity - any or all of: (1) Progress the O&G assets from Taymura (2) Progress their own gold assets (harder) (3) return of cash to shareholders (4) A management buy-out (as the board own 51%) ... all of these from a platform of cash & Poly shares worth c. 20p a share. DYOR but I am holding for the steady rise to February / March conclusion of Taymura case
bit by bit we are getting there .. not much volume for buying and can sell at over 10p now
OLI12 - It comes up as Russian when I open the link ... am I doing something wrong or are you fluent? Thanks The statement we have from them at the AGM and the follow-up press is the first time mgt have properly engaged and said they are thinking about things in the years I have been following OVG. I hope I am not getting carried away but I think we are going to see some activity after the court case concludes early next year and therefore the share price should continue to increase in the lead up to that as more people spot the massive undervaluation (3x assets to market cap) that mgt have now acknowedged
Indeed nada zip nowt ... but we expected it. I'm pleased that common sense prevailed and there hasn't been a day trader stampede for the door with the sp staying above the 8.5p floor price of the CEO's 3m buy. If its time for us to be patient then lets have a bit of fun .... if the court case is due to conclude by the 15th February and we give them an extra month for delays to 15th March ... the lets have a wager on the sp on 30th March!! With all the normal caveats and IMO-DYOR-WTF acronyms and based on 3x assets vs market cap I am starting the bidding with 14.12p
Oli12, With the court case resolution delayed another month or two I have decided not to head to the AGM. I've been in an out of this share over the last 5 years and it has done me well but has also taught me (painfully) about patience. Reality is they may well hold off any big announcements on Wednesday until the arbitration period finishes on 15th Feb (shame the next creditors meeting is 23rd November). Even with no announcements tomorrow the share is still great value IMO (as per previous posts) and waiting till mid Feb is no real hardship even if a couple of day traders jump ship tomorrow and the sp dips back to 8.5p (it would madness for the traders to exit below 8.5p when the CEO bought 3m shares at that price)
As you say Oli12 ... - Market cap (�7.8 million) is c.1/3rd of cash/equivalents (�21.4 million as at 30 June 2017) & annual burn is small (less than �1 million) & further returns likely from the Taymura case & CEO purchased over 3m shares at 8.5p & management/board hold over 50% company (but are deemed to not be acting in concert) Something must happen ... hopefully we will hear news at the agm but even if we don't the shares are still fantastic value IMO
I agree Oli12 - looks like the copied last year's agenda to quickly get it out as they had run out of time ... almost as if someone reminded them last week that they needed to do it inside 15months!!! What gets me though is what are they doing with their time ... they have management & a few employees with minimal workload (only a court case, some prospects and minimal reporting) .... you would have thought that would give them time to write a decent agenda/resolutions and even a suitable update. It is very tempting to jump on a �20 Ryan Air flight and go to the meeting ... its such a frustrating company but I'm trying not to forget that the assets are 3x the market cap and its just a matter of time before something good happens
CEO spent over �250,000 on buying more shares in September at 8.5p .... a very odd thing to do if there was bad news coming. Possibly he is trying to put distance between this and the AGM ... we are now just over a month since his purchase
Can't claim the credit unfortunately - it was a friend & fellow PI who spotted it. I think there may be a few silent investors watching this to see what happens with the AGM and any news. There were personal guarantees on the Taymura loan so, subject to the Russian legal process, OVG will hopefully manage to recover a decent chunk of the debt I've decided to try and get more before the announcement as (1) downside feels much less than the upside ... based on the last few years I could see a downside of 6p (albeit it has gone through this) and an upside of 14p (although it went higher last year also). (2) the announcement of the AGM should include details of any special resolutions such as special dividends (or) a management buy out (or) if Taymura is resolved then even a solvent voluntary liquidation and return of proceeds to shareholders Having said that I have been in and out of the shares for years whilst waiting for any news from Management ... I just hold on to the fact that the asset value is way above the market cap
I got a response from Reneta this evening saying AGM will be announced through normal channels but is still scheduled for November (and the Directors would explain the delay then). So a friend has skimmed the mem & arts and spotted that ovg need to announce the agm by the end of the week as they cannot exceed 15 months between agms (last one 16.08.16) and need to give at least 21 days notice. Could be something brewing ... I topped up today and will try and get some more before the end of the week but who knows if it is just imagination
Oli12 - have you heard the date of the AGM? I've seen nothing yet and we are getting close to end of October so pinged them an email today. I'm hoping silence is golden and so we will get big news in near future. I've also asked them about shareholdings as management must be over 50% as per your figures below. Will share anything I receive. I've been in this share off and on (more on to be fair) for the last 5 years and I'm hoping that this extreme version of silence means something is coming even if its only a positive update on the Taymura case
So KievRetailer, spd entering the 280's .... its time to buy back in ... we were right about 282p last time (even if we weren't about the election) ... I'm thinking 286-288p this time if possible. I still think the big win will come on 20th July (and the 280-315p bounces are an enjoyable distraction in the meantime) if Citi can get through enough of the buy back. The buy back is up to nearly 1m a day so burning through it nicely but time is running out ... I make it another 37m to go. Mike might need another dog ate my homework excuse to keep the sp down until the AGM in spetember and permission to buy back runs out
So KievRetailer we are back in the next phase of the normal pattern ... it wasn't gold taps in the jet or DC issues to get us sub £3 (I'm not sure if it was the NUFC issues that tipped the scales or just UK retail malaise) but we have our buying opportunity in the 280's. I'm going to wait in case I can get 281/282p but fear it may go past that with the current downwards momentum. On the other hand, the buy back is now up to 750k shares a day (vs previous 500k a day) ... I'm not sure whether that's because it's a blind process now that we are in a closed period or whether, as the cynic in me believes, its been calculated as the right rate to get the full buy back complete by 19th July. Either way I'll load up as we get closer to the results