RE: A Breath of Consolidation5 Nov 2019 14:49
Reposting BBN's wise post from this morning as it has been pushed down to the bottom of page 2....which I presume was the intention of someone's subsequent posts.
Morning all,
Something I wanted to share yesterday, which I didn't have time to write about.
I appreciate that any BB, just like a company's share register, is a mix of various characters and investment strategies. Whatever, our individual reasons for investing, our goals, our pressures, both real and perceived, what we all tend to share in common, is that we are impatient.
Many lines have been written on what consolidation of the share price does in order to assist with the next leg up in valuation, particularly when the rise in valuation (SP) has been such a rapid one. Investors making a lot of money in a very short amount of time, leads to profit taking and new investors replacing older ones, whose goals have been reached.
I would think post occurrence, the vast majority of shareholders would agree that said consolidation was a very necessary thing. Impatience and perhaps also fear, may prevent such clarity coming through earlier be it many will know deep down in their hearts it was true.
However, what does not get discussed very often is the need for the company itself to consolidate and get used to the fact that its make up has also changed, also in a relatively short period of time too.
It is not all that long ago that Bushveld Minerals was a junior miner, exploring for resources and little else. Pretty soon they will run not one but two processors, as well as multiple investments in subsidiaries and other businesses. That change of scope requires time to adapt. It requires new faces with new skills, and new expectations. It requires new management systems and a whole lot of new learning.
For all of Fortune Mojapelo's appeal, I don't see much in his history, that says he has walked this sort of path before. One that will soon see him lead his company onto the JSE.
This is no computer game. This is real life. The deals we see laid out before us are not as straight forward as they are being made to look, and the skill sets needed to see them thrive, do not simply get plucked from trees.
A very good example of this is the expansion at Vametco and the experiences seen with the initial expansion plan, which in hindsight are understandable. As a new management team, there will always be those that attempt to fool you or convince you that things are different to reality. It is all part of the learning and development of the business.
So whilst our daily visits to this BB lead to a will to see more sooner, and perhaps be rewarded quicker, there is something to be said for the pause in proceedings, for the collective drawing of breath that it allows, and the support should give us all, when the next stage of growth really starts to take hold.
Of course it may well take some of that hindsight once more to appreciate that it was ever needed in the first p
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