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I don't like this and it was probably a bullet that should have been bitten a while ago. It is what it is so looking at the company in a month or two's time and it could be debt free with diamonds on the way, an improving picture at BP and fingers in a couple of other pies!
Hi neil777 - found your way here too! Of course, some are going to sell on drops (and possibly take profit... no argument with that) but have to ask why invest in a company in this scenario if you're going to be scared into selling. There will be all sorts of shenanigans going on by MM's and, of course, day traders and shorters - if people are throwing in money expecting a smooth run up to £1.30 then they're sadly mistaken... has that ever happened?
Just my tuppenceworth - SDRY has long been on my watchlist and I've added a few since the announcement on 2nd Feb. Like others, I reckon it is way more likely that JD will make an offer than not. He clearly sees a bright future for SDRY and will know the company inside out. As for those who are saying that shareholders will be wiped out, this is quite a different situation to other situations - for starters, the RNS on 2nd Feb would have been written in a different way and there would be a massive warning that shareholders could lose everything... it's just not that scenario. I think that JD is making a move now because he sees SDRY being a beneficiary of the continuing improvement in the economy for retailers. For him, it's now or never... or, at least, he'll have to pay a whole lot more if he doesn't move now.
One never knows, asi, about the posturing and positioning intended with public statements especially where AP is concerned. It does appear that some talks have been happening so I'm assuming that the diamond issue has been 'settled' if I was to take AP's statement as read. However, I do wonder if 'settled' might mean something different to what we are all expecting. If I was in AP's shoes, would I be cheeky enough to say to the Zim authorities that the value of the diamonds is worth less than when they were 'taken into safe custody' so I'm expecting the higher value or would I be bold enough to say that I'm expecting to be compensated for the loss of interest, etc, etc. As you've highlighted, AP hasn't actually said much about either the diamonds or re-starting mining in Zim and I've got a habit of filling voids with nonsense!
On your last point - I'm of the same view!
Wow... just looked in ahead of the new week and I see that there's some ping pong on the diamonds yet again.
Whilst the value of the diamonds is a factor, I'm of the strong opinion that they're wrapped up with VAST getting back to doing their thing in Zimbabwe... which is absolutely more valuable than a bag of diamonds. If there are or have been negotiations going on then, for me, it's more likely to be about re-starting ops in Zim.
On confirmation that the diamond issue has been resolved, the sp will rise - I don't know by how much but it will rise. If there is also news about re-starting mining diamonds in Zim, then we're in multibag territory.
Oofy - there are a number of reasons that the diamonds have been held up... apart from due process (we can have an arrogant attitude towards the timescales that our Zim friends work to), the diamonds have become embroiled in the politics between the courts, RBZ and the Zim government... add to the mix the potential for VAST to re-start ops and a local community who may or may not want VAST back... one can see the complex nature of the situation. It isn't as simple as AP turning up at the RBZ vault with a wheelbarrow.
Oofy - hope you don't mind me saying that yours is a rather cynical characterisation.
There's nothing gained by RBZ by not complying with the court order.
There's zero evidence that Mrs Mugabe took the diamonds (lot's of speculation but no evidence) - we've been reassured repeatedly that the diamonds do exist.
There are plenty of companies who will steer clear of Zim but I do agree that those who are there know the score. And, yes, there is still corruption but give them some credit for trying to clean up.
Zim certainly want and need international investment. The VAST situation is an irritation, I'm sure, but they have been happy to go along with it and they are open to VAST re-starting ops.
Things are looking very interesting!
Part of the mix, I believe, is that the RBZ and the government didn't see eye to eye (one reason why the bank governor is not getting another term). The government were happy to allow VAST's court moves to happen without objection but the RBZ have been slow to comply with the court order. Reputationally, Zim wants to be seen as 'open for business' so they didn't like AP setting out the issue to the market during the summer... especially when they're supportive of resolving the diamond issue and allowing Vast to re-start ops in Zim.
Having said that, I'm inclined to think that the RBZ are now co-operating and that the negotiations have been allowed to move on to re-starting ops.
Also, there are the sensitivities about 'imperialists robbing' Zim of their assets!
AIMHO. DYOR.