When have they kicked the can down the road? I don't remember them ever missing any of their own deadlines. Mainly because they rarely set any, but even when they did (e.g. 2 weeks for the mining plan) they hit it.
It means the board of directors personally own 50% of the shares in the company, so it very much in their own personal interests to get the best deal possible for shareholders. This is critical on AIM; look at the likes of David Budd at Genedrive for example. He's apparently on £400k a year salary, but holds only about £50k worth of shares, so his interest is very much in keeping the cashflow rolling in for his salary and bonus, even to the detriment of the shareholders, typically via sub-market price placings that massively dilute the shareholders but give his balance sheet a glossier look.
They say in gliding that when you're worried about height, the best cloud is your nearest cloud. You sacrifice speed (and so your hopes of winning the race) by scratching at weak thermals to maintain your conservatively high height out of fear that you'll not find another cloud before getting too low. So you top up at every cloud, even if its only 2kts up. Hell, 2kts up is better than 2kts down right? And you then burn that 2kts you've just earnt getting into another 2kt climb further on. You don't make any real height gains, but then you don't lose much height. You're always at a comfortable height. And you're never on the podium in the evening. That's trading for you. Skilled pilots can forecast the sky much better - at both longer distance and longer timeframe. They pick their clouds more wisely; they can spot an 8kt stonker and know how long it will take to reach it (and so how much height they will lose along the way). They'll put the nose down to get through the surrounding sink quicker, and so burn more height. And they'll pass a few 2kt-ers on the way. And once they get there, they'll soar much more quickly and reliably to cloudbase. All because they had enough faith in that big cloud on the horizon to burn height and pass weaker clouds to get there. And that is investing.
See that huge cumulus a few miles away - high, white, puffy cloud with a dark grey flat bottom? 8kts up, that thing. Anyone can see it. Doesn't it look great?! But if you take a top-up or two en route, it'll have cycled by the time you reach it.
But also note that whispy, lacy spread of steam a couple of miles away, curling around, tentacles grasping the blue around it? You might even see it getting a little bigger, perhaps a little more opaque? By the time you're there, it will have started to develop into a full-on cumulus, and you can ride it while it builds. That's investing.
Sure, use your cash to invest in the big market, gaining a percent or two a month on a large cap, or even save up your cash to pump into a recently established hike, hoping the hike will continue until you've made the same return the pre-hikers already have.
Or you can put your money in that whispy cloud just building - cheap shares about to boom in value.
The reason this is different is because the dividend is based on the asset sale price not the market share price, and it will be paid directly from the company to the shareholders, without the market being involved.
But you'd know all of this if you'd actually DYOR.
Tilly, You already know that you and I view the relevance of daily share price movement differently, but I must say, for those who do need to focus closely on the SP, you do provide an invaluable service in calming nerves, explaining the background and underhand activities and tracking Mia and kippers from sources us mortals don't have visibility of. So, just a big thanks. Cheers, Stonk
Never drift downwind of the airfield...13 Oct 2021 14:46
Or so they teach you on day one of learning to fly a glider. A glider's best glide speed is about 50 knots, depending on model. If the wind is 20 kts on the ground, it will be about 40 kts at 2000ft (the friction of hills, buildings, trees, etc. slows the lower wind down). So if you drift down wind, you only have 10 knots' speed to get back home, which may well be too slow - you may well have glided down to ground level in that time before you even get home.
However, there is an exception they then teach you later in your training. Thermals drift down wind too as they climb - perfectly logical given they're in the same moving airmass. So, if you are in a thermal giving you faster lift than you would burn to get back upwind, drifting down wind in such a thermal is not actually a problem after all but a benefit; you basically climb faster to a better "get home" height than the wind pushing you away from the airfield.
And this is where we have been with EUA for a while. Normally, a share price drifting down not only can leave us in the red, but it may also take a long time, thus burning past other opportunities and just the erosion of value over time due to inflation and lost accrual of dividends, etc. And this is exactly what is happening with EUA - certainly if you bought in the 30s a year ago.
However, as we drift downwind in terms of duration and share price drop, we are in a much stronger thermal of rapidly increasing value of the company. Sure, a sale a year ago at £1 would have been fabulous, but I firmly believe we are now looking at a company worth £1.50+ within the next few months, and the JVs, JORCs, FSPs, etc. are all just adding to that each month. So I'm very happy to sit in this stonking thermal as I drift down wind - take all the time you like, EUA.
Of course, when that accumulation of value levels off, that will be the time I leave the EUA thermal and head upwind back to the airfield. And my money is on me actually needing to pull the airbrakes out to get down to circuit height once I get there.