Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Pirate Flag - Fair point about Inmarsat, but I've no idea how much the final price was relative to NAV. Was it discounted? Ultimately the SP here is heavily discounted to NAV. I don't think anyone disagrees on that one. Thus any buy-up price would need to be near double or more the current SP.
Longlad - True, but then the question would be "how different is NAV to the bid price and if significantly more, then why would anyone sell at the bid price?
Slightly off topic, but because we talked about Kwarteng recently and Minfordonomics, I'd like to point out that today's events show interest rates the terrible economic hit subsequent to Kwarteng's mini-budget were directly linked to that mini budget and were not part of a world wide trend as some have claimed. I hope people recognise that just being posh and going to Eton doesn't actually result in you making good choices for the country. I know Rees Mogg claimed that world wide trend was to blame and not his rightist friend Kwarteng, but Rees Mogg is of the same ilk as Kwarteng. The sooner we rid ourselves of this peculiarly British servile admiration for privilege and top hats, the better voting decisions we will ultimately make.
I wouldn't sell at this point if I was in. I'd add that I think you're on the wrong track if you think getting a right wing Swedish political party to thump this through is the answer. It isn't. It never has been and never will be. As I've always said, there is a win win here. And once there is peace with the Sami, then investment will pour in. It's an inescapable fact, one that the board will be aware of. They'd be nuts not to be working on it. It'll still take a couple of years to achieve that but the price is too low now to sell out completely ...... .
Talking to a friend (on a capital raising round) today who pointed out appetite for risk plunged to zero post feb 2022, and not helped by Kwarteng, but now slowly returning. It'll come back my friends. Nice to not be panicking at this stage and taking calm positions and waiting. I wonder if an election is on its way. Party politics aside, getting a government with a decent growth strategy injecting optimism into the country would be good. I thought that we had all agreed austerity doesn't work?
Other small caps have gone down a lot more in the last few weeks. ITM, CHAR, EML, CWR etc all looked like solid companies but down. SEED beat them all of course by being the first to drop 50% but has since maintained a solid presence in the 2.4-2.7 range.
On Germany, don't get too disappointed if it doesn't happen straight away. The point will be that it is the first step to even consider it. EU law (to which German law is subservient) won't allow any immediate change, so the question is really how Germany will look to get around that - so it's a path we're on. At least it's Germany (EU powerhouse) that we're talking about and not, say, Slovakia (not an EU powerhouse). Biden's recent pronouncement only helped the German ambition move forward.
It's really Kwarteng's resignation that will spark markets upwards in the UK.
Decriminalisation of marijuana in the US - first steps. US marijuana stocks leap this evening!
https://edition.cnn.com/2022/10/06/politics/marijuana-decriminalization-white-house-joe-biden/index.html
Decriminalisation of marijuana in the US - first steps. US marijuana stocks leap this evening!
https://edition.cnn.com/2022/10/06/politics/marijuana-decriminalization-white-house-joe-biden/index.html
All really interesting stuff. My bet is there’ll be consolidation before long, with takeovers of the star minnows. One nice thing is that I’m guessing SEED are well positioned within those particular minnows.
Akafatman- I agree. It’s really really hard to see why the company would go for less than 5p (or more). I’m back on my ‘firm bet’ territory, looking at the assets we have, with the highest probability trajectory of the SP being upwards. With the disposal of LEAP, an ocean of similarly cheap assets out there, for us to buy, the only way is up as far as I can see at this moment.
In a sea of red, SEED stands out as holding its course this week, against the odds. I ducked out of CHAR to increase my stake here. Speculative bet but glad I did. GLA, even Longlad (hope you get your money back at some point).
With the markets down across the board, this does provide decent buying opportunities as Ed has pointed out. We may not get £12M for LEAP but then again, our possible purchase may be 50% cheaper too.
What would you (if you were CEO) buy with the expected £6M from LEAP? 0.12% of IAG? Or summink else?
I'd add that I learnt not to take CEOs word for SP value in the school of hard knocks. You should do yourself a favour too and understand that Ed isn't unique in that aspect, sooner rather than later. They're ordinary guys with ordinary weaknesses (ego - look at me and how brilliant my company is; lack of awareness - I haven't thought through the impact of what I'm saying; inability to take responsibility - oh those whining shareholders! When will they stop; and so on. They aren't God. Trust yourself first and no one else. Look at the fundamentals. And with SEED, the thing is that despite Ed being a bit of an idiot in what he's said, the fundamentals look okay to me and so I believe they will pay off.
AkaFatMan - I apologise unreservedly. You are right. It was rude of me to label shareholders 'a bit idiotic' if they believed a CEO who claims his company is worth £X. But the point remains. It will always lead to disappointment. And when they give dates, they are indicative (unless there is something set in stone, via, say an existing written contract). It's bad practice of CEOs to speculate this way as (1) they may have their VIEW of the value of the company but this is not the MARKET's view and it is the market's view that prevails and (2) things change - so indicative timelines do not take into account unanticipated hazard. If you've ever had builder's who say they will finish the job in X days you will know what I mean. You notice that Noel Quinn doesn't get involved with what the SP of HSBC should be, nor do you hear him giving dates about HSBC corporate action until it actually happens or is certain to happen. There is no deliberate misleading, and really I should say that Ed is a bit of an idiot for even voicing an opinion on those matters (presumably trying to appease shareholders) than keeping schtum. He really should know better. And he doesn't gain any respect for that unprofessional behaviour, as innocent as it may be.
I'm sure we've misunderstood each other Midas 3316! By inside, I mean 'inside the circle of knowledge'. Thus, it doesn't matter if you are only attending meetings for ten weeks over the year or one (so I don't mean 'inside the building'). If you are on the board, you will be privy to information and conversations that ordinary punters (like you) won't have. All the time. So he can be accused of using that information to his advantage if he traded SEED shares. Of course, that may just be a convenient excuse, so ultimately it's a choice of whether you believe him or not. And then it would be interesting to hear what marks him up as a liar? Of course, speculating about your company is not at all unusual in AIM. I recall the CEO of KNB saying the SP should be 60p just after the IPO! That doesn't make him a liar. It makes investors who take that as the word of God a bit idiotic though. It's a characteristic of AIM (admittedly a bad one) when Directors get involved with petty PI chat. On the point of the valuation, well it is only as valuable as those interested say it is - not what the owner of the asset thinks! Remember Lloyds pharmacy and the CEO's frustration with the market? And the time of the LEAP IPO? It isn't as straightforward as one might think. I recall a certain crisis in February which didn't help. Finally, the cash pile - there's enough for a full year from last published accounts. So much more than a couple of months.
An interesting volley of responses. Thanks. I'd add:
a- he is on 'the inside' whether one judges that it is advantageous or not, so it is illegal
b - IPO'ing a company ain't straightforward especially if it is in a bit of a mess. I believe this point was expanded on at the AGM.
c - The aim of the sale is to focus SEED on the CBD/cannabis/food science market.
d - is it worthwhile to hold on to LEAP? That's the million dollar question I guess. But the board reckons it's better to focus SEED on it's core strength.