Member Info for Sonic80

Nice updates today.

Share buyback of another 1m shares on open market.

H1 update confirming continued strong gemstone market.

Highly profitable mines.

Faberge continuing to grow.

Net cash over 50% of market cap.

20% dividend return.

Definitely agree that 30p plus is well on the cards.

Mixed ruby auction results due tomorrow.

Hopefully sparks a bit more interest here…

Https://www.mining.com/gemfields-hits-three-records-in-latest-emerald-auction/

Results from next auction (ruby) expected on 21st June. Equivalent auction last year yielded revenues of $96m.

Auction results much better than expected.

Next auction results in 3 weeks’ time.

Profits rising all the time.

Current PE ratio 3.5.

Dividend 20%.

Net cash makes up half of market cap.

Too cheap by far at current levels.

Expecting a strong share price rise from here.

Shipping container costs are down 75% from this time last year. This can definitely be a profitable company going forward. The CEO attempting to take it private for such a lowball offer and keep his salary and shareholding at the expense of all other shareholders is scandalous. Vote No, get a new CEO in and this could easily be a profitable, £50m market cap company.

The £1.2m offer that has been proposed is insultingly low for the revenue and potential of the company, and especially for those shareholders who supported the company from the start and from much higher share prices / company valuations. It’s clearly designed to benefit the CEO in taking the company private, entirely at the expense of shareholders.

The CEO must know the company can be run profitably with some changes, otherwise why take it private and continue to operate it?

IMO shareholders should take a stand and vote No to the deal on the table. The company is worth a lot more than £1.2m. I’ve no doubt larger sector peers are eyeing up much higher offers for the company as we speak. With £50m revenue, no debt, merger cost savings and well in excess of £1.2m in stock, they’d be mad not to. And with it having no debt and several million pounds worth of stock, in worse case scenario, I would even fancy the chances of administrators returning more to shareholders than this deal does!

1.5m shares
No
No

2p still only £1m market cap…

Terry - the deal hasn’t gone through yet, so Baaj no grip on anything as things stand. Interested parties wouldn’t have previously known what the other offers were, but now they do, so will be able to make counter offers. It looks very much like the BOD are putting forward the offer that is best for the CEO, not the company or shareholders, which is why it will get voted down. The fact that he wants to take it private and then carry on running it means he knows it can be profitable.

£50m revenue, no debt, >£1.2m in stock.

Cost savings from merger with sector peer would also lead to strong profitability, so good chance other companies in this sector are eyeing up a much improved offer to the current lowball £1.2m one on the table IMO…

In The Style announces Giovanna Fletcher deal days after sell off

https://www.drapersonline.com/news/in-the-style-announces-giovanna-fletcher-deal-days-after-sell-off

New deal signed for new range. Company not behaving like it’s planning for administration.

Can’t see shareholders approving deal as it stands, so CEO must be looking at alternatives to keep trading. Still think threat of administration is there at this stage to try to get shareholders to agree to the £1.2m deal, despite it benefiting the CEO disproportionately when compared to shareholders.

Could be some fireworks between now and the 24th March meeting / vote date.

I’ll be voting no to the £1.2m deal.

No way the CEO would let this go into administration so easily if / when the deal gets voted down by shareholders, not with him then standing to lose both his salary and large shareholding.

IMO, the threat of administration looks like it’s there at this stage to try to get shareholders to agree to the deal, which is beneficial to the CEO. If the deal doesn’t go through though, there’s no way the CEO would allow the company to go into administration so easily, not with him then standing to lose the value of his large shareholding.

400k shares may only be just over £5k to buy at current levels, but is still nearly 1% of the company, such is the current market cap.
Expecting to see media coverage of this proposed deal in business / financial pages over the weekend and next week.
IMO it would be irresponsible of the likes of ASOS BOD not to be at least looking into making a bid here. Opportunity to pick up a £50m revenue brand with no debt and >£1.2m in stock with current bid being only £1.2m…

They’ll have to release it soon…

Same on HL. Getting harder to buy stock in any volume.

Surely it’s perfectly possible that someone like ASOS might look to make an offer of more than £1.2m between now and the 24th of March? £50m revenue, no debt, more than £1.2m of stock and lots of merger cost savings that would then make it profitable for the likes of ASOS.

Reply was to your 09:44 post (4-6p range)…

I agree, a few days of this high volume churn to dry up the sellers then it’s got a good chance of heading back up to those levels. Sector peers must be seriously looking at a counter bid here at these levels.

Clearly very high risk, but pattern here could easily be a few days of high volume but not much share price movement as those that want out sell and those that want in buy, balancing each other out. Then TR1s from new shareholders coupled with sector peers weighing up counter bids could lead to buying pressure pushing the share price / market cap back up to around the 4-6p / £2m-£3m range sometime before the meeting on the 24th IMO.