Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Morning guys,
I'm very happy to see the large trades being worked on through the last few days. They show we have some large pockets taking a position in the company.
Confidence in the business is growing, the three month chart is looking excellent and the company are making the right moves and noises. The recent 20% or so rise has been held and I predict the next three months will show the share price steadily climb as we will return to a decent mcap. Brian has made it as clear he can that he thinks the share price is way too low at current levels.
The recent podcast, https://total-market-solutions.com/2021/06/harvest-minerals-3/ discusses and mentions the sales target is on track, we have repeat customers, we are cash flow positive and he mentioned distribution of cash annually to shareholders (dividend).
We are in for an interesting year!
The only reason a HMI, a profitable business, would need to raise would be to buy another business. That is not on the cards at the moment. Brian discusses this in the podcast: https://total-market-solutions.com/2021/06/harvest-minerals-3/
Quoting my own post:
"On the other hand, maybe what they are saying is kpfertil is up and running, the processes and procedures are tuned and we are getting great sales so we have time to diversify and compliment our product offering."
This is exactly what Brian is saying in the podcast. Great news.
I'm not sure yet what to make of this news. The RNS raises more questions than it answers.
There are a number of pros:
1. selling additional products to existing clients is much easier than selling to new clients
2. the products compliment each other
3. the existing sales team should know how to sell it
The cons:
1. The distance between the two locations
2. CAPEX to get the limestone project up and running
3. New marketing, branding and certification
4. New distribution systems
Is this a distraction to the core business? My fear is they take on too much and lose focus. They could also dilute their brand message if they don't get their marketing right.
It does bring really good potential but it also brings cost and risk. I would have much preferred they started diversifying their offering after they had shown they were up and running with kpfertil. I feel this would be a great project to add to their portfolio in 2022 or even 2023. On the other hand, maybe what they are saying is kpfertil is up and running, the processes and procedures are tuned and we are getting great sales so we have time to diversify and compliment our product offering.
The share price has been lacklustre on this good news RNS so I suspect many investors are unsure what to make of it.
It does look as if someone is putting though automatic trades but they are showing up as O rather than A in the trade history. Any way you look at it, someone is building a position.
Momentum is building. If we have a positive week this week then the three month chart will look rather good and I suspect a lot of investors who have been waiting for the turnaround will take notice. We are now in the main buying period with a new marketing campaign. The results at the end of this quarter will be extremely interesting.
Place your bets!
https://www.investopedia.com/ask/answers/06/bidaskspread.asp
"I won't be wasting my time with him anymore.". Means I won't be wasting my time arguing with you but I will be calling out your misinformation. Stop the personal attacks and deflection. You accused me previously of ad hominem, how about you look at your actions?
Now why don't we debate the question you posed in a civilised way?
Every single company when asked the question as phrased in question 15 is going to answer it in exactly the same way as HMI did.
If the person raising question 15 had asked the question in a different way such as "Triunfo Mineracao posted at this official-looking link the following sales figures '...'. Please confirm if this is accurate representation of sales figures." then I would expect the company may have answered the question more directly.
As to the link posted, there is no context to the document. It is unclear what it includes and what it does not. Perhaps you should adjust question 15 for the next shareholder Q&A and invite the company to respond.
He has absolutely nothing good to say. His arguments are poor attempts at slinging mud and seeing what sticks. When challenged he deflects with insults and other "facts". All he is doing is ****ing people off. Any credibility his local knowledge once had is gone. I won't be wasting my time with him anymore. He obviously feels wronged by HMI in some way and has made it his personal crusade to besmudge their name in the most crass and ineffective way possible.
It reminds me of advice I was once given as a teenager (a long time ago). The quote is: https://www.goodreads.com/quotes/539867-never-argue-with-an-idiot-they-will-drag-you-down
The new size bags are another way of getting the product to market. That sales vector might work, it might not. I think it will. It should generate sales which HMI otherwise would not have had and it has the potential of opening the retail market up.
Thanks Swingy, the crypto is going well and I've made a tidy profit so far. It's a new world for me but, thankfully, there are many good news articles and resources to read.
I intend to keep building my stake in HMI for the next few months, then put it aside for a year or two.
We should start seeing news items coming from the new marketing campaign soon, see last RNS. I'm looking forward to seeing how the company are going to build awareness and sales. I think it will have a significant impact on the Q2 results.
I had thought the share price would drop over the last few trading days, it may still, but I am very happy with my holding. It looks like the new support level is 3p. From a company perspective, I really can only see upside from here. The covid-19 situation in the country is a major concern and that may dampen things down. Other countries have shown it is possible to get the virus under control, I just hope we don't start seeing news reports from Brazil that we have seen from India.
On balance, I do think we will get a nice price jump at the next trading performance RNS. After that RNS lands I see a new stable mcap of a little over 10m. The real fun will start towards the end of this year. I think long term holders will all have nice Christmas presents!
The company is maturing well. I'm hopeful news flow will be slow and steady over the next 12 months.
For the moment I am off to trade crypto. I've made more there in the last couple of weeks then even my PLBY holding was able to do. After last years mess this year is shaping up to be a great recovery.
I think a target of 15,000 tonnes would be a really good level to set. I believe the company can easily do more than that but I'm worried about the covid situation in Brazil. So, on balance, 15k is a sensible and achievable target.
smalleyus,
I'd love to see your calculations. I'd really like to see how you account for the seasonal sales variance on your trend line. Are you using a cumulative moving average or a weighted moving average? How confident are you in your trend line with so few data points? Did you use interpolation?