Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Disclosure
I’m not a tamper, I’m invested.
I did reduce my exposure at 33.6p but have increased again at 24.3.
Holding some reserves as anything is possible and if we see 20p again I’ll be throwing my kitchen sink in the hat.
My average now 31p so I’m down but not out, what a ride this has been,
Remain convinced the SP is severely underpriced.
All the best
They all have to be bought back by the shorts.
That’s a lot of buying pressure.
The longer the cash flow issues drag on the more fear is spread, it looked like it was all over on the 20th December update but sadly not and although some short sellers left the playing field, others have thrown the kitchen sink at it although they seem to be loosing strength as all they’re doing now is keeping a lid on PFC, the downward pressure has eased regardless of shorts increasing. As for yesterday’s pleasant rise and fall back, who knows, perhaps one short reduced and later another increased or there is a buyer out there quietly accumulating????
The business is progressing well the issues will be resolved, the shorts will leave.
I’m not so sure Mary
If the next RNS is another contract win then perhaps the shorts can bring the SP back down after a surge as we’ve seen a few times since the first Tennet announcement back in March.
However if the Next RNS states liquidity issue solved and guarantees in place for all $8 Billion won in 2023, wether it be by non core assets sale or legacy contracts completed and funds owed collected then the brakes will be off and the shorts won’t be able to stop the rise and will have to buy back their borrowed shares which will drive a remarkable rally IMO.
The trolls are in overdrive.
The real question is who will bail first. Shorts playing a dangerous game and they know it. PFC are not in financial trouble they have a cash flow issue because they’ve won too much work and have to supply guarantees in the order of huge sums of cash.
Please read the latest trading update before panic selling and giving your money away.
Worth a closer look.
Under the heading Cash flow and net debt
Measures taken by management resulted in positive free cash flow in the second half. Even in the absence of advanced payments. Offset by collateral required of $100m for guarantees. As a result net debt expected to increase marginally.
150p takeover bid will be an insult, current SP is a joke, shorts need to exit ASAP or risk collapse IMO.
As for the 1 year rule, I know someone very close in M&A and typically any bid would be max SP over a 12 month period plus 20% or so.
GLALTH
Good post Mary,ie: straight from the company itself.
PFC are getting on with business.
For reasons known only to shroeders they sold a portion of their holding.
Short players had it off with the SP in the lead up to December 4th as they perhaps believed a dilution was imminent. It isn’t and the company has made it clear what they are looking into in order to resolve the cash flow in the SHORT term. This has enabled the shorts to put further downward pressure as they are praying on weak shareholders with any remaining doubt that’s out there. It’s one hell of a gamble for the shorts from this level IMO as the inevitable reversal in SP and sentiment has the potential to put the smaller shorts out of business.
79
Positive RNS???
Have you read the latest RNS’s
All positive, yes the company has a short term liquidity issue which they are open about and dealing with they also have many billions of dollars worth of contracts awarded with the initial financing in place.
It’s been a tough few years but the worm is turning, the current SP is a joke and not reflective of the company’s true worth.
Long and short of it and pardon the pun
The business is severely undervalued based on future earnings ie:backlog. We’ve all believed that the SP has dropped purely on the shorts increasing, that’s now clearly not the case. MW have conveniently cleared out(the sensible shorts) the rest are perhaps a little more opportunistic and less experienced.
The business has a backlog of $8billion and growing, 8500 employees and growing, the energy sector is exploding with growth.
Legacy contracts are closing, the only way I see is up but then I am invested so perhaps I’m a tad biased. If you don’t believe the BOD’s sell and take your money but you’ll kick yourself in the not to distant future.
79
Shorts increased yesterday
Wait and see if they reduced today and tomorrow etc,etc. Did the shorts borrow from shroders, did they know the TR1 would drop today?
The shorts don’t know everything
So, we all understandably speculated that the price drop was due to shorts increasing which was most likely a factor however, the main reason is now out in the open. Who knows what problems schroder are facing that caused them to sell at a loss but the shorts perhaps we’re aware from October???
We all know now and the game is up. The company is only posting positive news and without a seller the shorts have run out of room.
Next few weeks should be interesting without a seller?
Up she goes ladies and gentlemen
And so the negative posts start piling in.
No doubt some poor PI’s bought in at 40p thinking they’d make money. How many times has this happened?
I’d say, hang on in there but anything is possible with PFC. I’m holding but won’t be shocked by any price be it 15p or 500p obviously happier with the later. Second guessing is pointless, read the RNS’s make up your own mind but ignore the doom mongers, they’re trying to rob you.
Glalth
The SP was around 90p the business had ended a tough year and the shorts were smelling blood, the SP was worked down to 45p in March when the business reported a joint venture with hitachi worth €15B half of which is for PFC. reinstated in the UAE with a $700m gas contract and a $600m carbon capture contract, a further $1.5B in Algeria, grand total for 2023 $8B expected, a fine turnaround in business and yet the Mcap is not even 10% of most of the announced contracts. Who wouldn’t buy a company with $8B lined up and more expected $580m debt (not unusual for a company of this size) growing headcount 8500 and still recruiting.
The naysayers will highlight cash flow but that’s been addressed and continues to be addressed by the BOD’s.
Rant over
Are all these trades from late December being shown now the MM’s cleaning house as they fear exposure?
ADVFN trade page is full of trades from a week ago apart from one 600k plus sell which is most likely a short reduction
USA up 3.9%
Bonds up 0.27%
LSE down 4.38%
Shorts at 9.99
Rodeo time
Fundamentals don’t seem to matter anymore.
Soo much work over the next few years, huge revenue,
I give up trying to guess SP directions could drop to 20’s could rise to 200p plus. I do however think the upside is beyond overdue. Been here a few years now and still scratching my head!!
GLA