Unless there is political or shareholder pushback, it appears another higher bid is in the offing. I’ve jumped on board. Either way, limited downside makes this a reasonable play compared to other blueish chips out there, for the moment. I’d expect two more offers, depending on how generous the next one is. 230p as an opening salvo would suggest closer to 300 -320 would be expected…. .
I agree more with luckyorange. The fundamentals are so, so much in our favour (if we included expected news stream in our definition of a 'fundamental'). There really seems limited downside here, and I can see some large sells today in £10k chunks taking advantage of yesterday's uptick. Makes sense. Nevertheless, a 10-20% downside perhaps, but an easy 50 - 100% upside? Triggered by whichever piece of significant news we see released first? It seems like an easy decision to make here to invest or stay invested. With some news, movement up, I can only see a steep climb following rather than a gentle climb.
The reason is people were greedy, this pushed the share price to beyond what it was worth as everyone thought they could make a quick buck on the hype. There isn’t anything wrong with the company at all. You may get your money back but when is anybody’s guess. One year? Five years? Ten years? Or it could be three months. Or even never! But you do need patience my friend. If you want a quick gamble with a quick result, stick to the gee gees. Or better still, just get a job and put your savings in a building society.
Aug59-possibly as far as BEM is concerned he shouldn’t need to ask for more information , but he needs to put together a new proposal to UNESCO to get a clearer steer. This is fantastic for Baylan and the opposers to a mine. It’ll take at least 18 months to submit something to UNESCO and then another 12 months at least to consider it. BEM is likely to fold before any concession is given. Baylan (and his replacement) will have successfully avoided making a decision with political consequences.
It's been a week since the 'big seller' has sold any (if it is a single big seller). In any case, given the positive news stream expected in the next few months, this seems like a bargain at this price, right? It doesn't 'feel' like there is any bad news in the wings, and it DOES feel like there is now a strategy for FFWD, which, admittedly, looking at pre 2020, it didn't really seem to know what it was. Thus, is this a time to build up our positions (frustration aside)? What do you guys think?
Does it feel like the big seller has now gone away? That, in my estimation, is the only thing depressing the SP at the moment. There seems to be enough demand for the SP NOT to go below 8p. But, until that single big seller goes away, the steady demand won't have any effect on the SP.
Summer recess is here I believe so nothing for a few months until parliament opens again. So I’d add a few months to the first step. Ultimately, where there’s a will there’s a way and unfortunately there is a will to do nothing here. I love the idea that some posters have of simply sitting on your hands but, well, it won’t achieve anything at all here. Now, where’s that magic rabbit?
Johnthegolf: Could do. No one really knows. But we all have our prejudices. Me included. I’m sure it’s a good prospect but so is any small miner. What made BEM special for the wider market was kallak. But I’ll happily be proved wrong.
Hi Stratosfear. I was responding to a question that WIW asked. And yes, I've sold up. But I have to admit this is a really interesting board, not least because of some of the characters here! So I'm going to continue to read and post. I may jump back in at some stage. Or, I may miss out on a dramatic rise should a rabbit be pulled out of a hat. Good luck my friend. I hope you do well whatever you are planning to do.
I appreciate all your posts guys. I’m not a LTH, just bought in prior to the last drop from 10p. I’m wondering: who is the large single seller off loading? Any ideas? The second thing I’d say is that it isn’t healthy looking at the SP every day. You can’t base a long term view on a short term seller. I can’t think anything has changed fundamentally. The company is now focussed on a single product. We’ve got the expertise, haven’t we? So what’s going wrong? Perhaps someone is selling for ideological reasons, or because they were invested because of their interest in part of the company which is no longer core. Or something else. The reality is we don’t know and the only thing we do know is that transformation takes a bit of time, the seller will be gone soon, and then we’ll see a bounce back up. I guarantee it. Thanks.
Wotitsworth - Again I find myself agreeing with you (and many of the other posters here but, unfortunately not the rampers), so the reason for my expectation of a drop? There’s enough in the Inesco report to warrant an enormous amount of time and work. Eventually, the licence will be granted, albeit in five years, twenty or fifty years for all the reasons stated above. But it’s the OPPORTUNITY COST of holding here for what will only be a four or five fold rise, for which you can buy in anyway-even when it is up 30-50 percent. It’s all about investment strategy. There’s enough wise people on this board to conclude it’s a no brained to jump out at this point until the ground settles. And that’ll be in 12-48 months. In the meantime, there’re plenty of other stocks that will get you a return. You can even sell now and buy back in when it hits 1p or 2p. Double your money easily then. But yes, BEM has got a good case, but it’s got a formidable opponent. So it’s going to take time. The risk is that it takes too long and BEM runs out of money. Then you lose everything.
Again, I find myself agreeing with you WIW. It’s a good response from Budge. However, the ball has been kicked far along the touch line. It pretty much guaranteed that nothing will be done for many, many months at least until this is disentangled somehow… if at all. The best response we could have received was UNESCO admit to they had nothing to do with it and Sweden had to make a formal application for an extension of the Laponia region. Unfortunately they have commented. Roll on 2p … and perhaps lower? Unless Budge pulls a rabbit out of the hat… .
Whilst I agree with you in principle Wotitsworth, the reality is that there will now be no reason for anything to happen for at least the next 12 months and more likely the next 24 months. Why should anyone hold these shares? Bail out now, and come back in 12/24/?? months' time. In the meantime, make money elsewhere. Thus you've derisked here completely until the risk calculation looks worth investing in. The ball has been kicked further down the line, so now what matters is whether BEM survives. I'm thinking it's got around £7M in cash? That'll last it how many years? I'd say Oaktree is right about the timing of the fundraising. BEM won't be able to fund raise again for at least a couple of years I'd venture. A court case won't do anything for the SP that a wise investment in another stock couldn't do. And you're likely to get a better return on the other stock.
It feels like we are at the edge of a precipice, balancing on the toes of the foot, with a large heavy rucksack. It's got particularly windy, the gusts are picking up. Don't look down! Should we ditch the rucksack? But it's got all our supplies and we're likely to die without it! Is this going to be a buy at 2p? At 1P? Or is Kurt going to pull out a clanger of a strategy beyond sitting on hands and waiting for the process to unfold? Is it the life saving helicopter we've all been waiting for? Oh dear. Perhaps we should have thought about building something to make the walk near the edge of the precipice a little more secure. But it's too late now. And a helicopter may only make it worse.
Last chance to sell at this price until we get down to 2p? I hope Kurt is able to develop an imaginative approach to resolving this one. I'm afraid that the strategy of sitting on your hands simply hasn't worked!
I agree Gardeneye - though at the same time, the cannabis sector has become slightly unfashionable, after the debacle around the Cellular Goods IPO. It'll come back, somewhat obviously, but for the moment, I'm guessing people are waiting for it to become fashionable again. The slightly mixed news is that there are another two or three cannabis IPOs on the cards this year.