Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Every buy results in a tick down of the actual buy price. It was 83.66 for the first buy, then 83.4, then 83.35 and now it’s 83.3 to buy.
The reason for this is that multiple market makers are trying to offer the lowest offer so that they can sell shares on behalf of sellers.
Due to competition law, market makers aren’t allowed to be able to see the prices the other market makers are offering.
So each time there is a buy, one of the market makers who didn’t get the buy will reduce their offer price to compete to get the next buy.
Whilst this pattern continues (watch it for yourselves), the price will get continually squeezed downwards and unless there are multiple 10Ks bought to clear out the sellers (obvs Riverfort will never be cleared out but we don’t know the size of the other sellers), the buy price can’t increase.
The SP cannot go up from here without news.
Riverfort are sat on the ask (at whatever level it is) with 25K shares. And whenever any of those are bought, they reload.
On selling, the SP drops.
So it’s only going to go up on news.
Does anyone expect material newsflow in the short term? I don’t know but I’d have thought that last week‘s update was the last for a little while.
So if you believe in the company, surely you’re better off selling here and buying back at a lower price. Then you end up with more shares and make more money eventually if there is good news.
Somebody tell me the flaw in this logic.
Big E
If you’re waiting for the company to RNS that they tried and failed to raise money at a 50% discount, I think you’ll be waiting a while.
If somebody told me that professionals whose job it was was to select investments for their clients were unwilling to pay 50p for shares I could sell for 85p, I’d be doing whatever I could to confirm whether or not that information was true.
I don’t honestly believe there is nobody in this group that is sufficiently smart to have done that.
Which means they probably have, have discovered it’s the true and decided that it’s better not to share that information here.
A fact is something which is known or proved to be true.
Both myself and MAJW know it to be true that SAR failed to convince the city to support them at a SP of 50p. Hence it is a fact to us.
Anybody here who wishes to be up-to-date on critical facts surrounding their investment are able to follow the steps previously suggested.
However, I would anticipate that none will. You would all rather have your heads in the sand than hear the bad news. That is the hallmark of a terrible investor.
Perfectly MAJW
SMT
With your military background, would you agree that it is always best to look at your investments objectively rather than with rose-tinted spectacles and that if you observe that a commentator makes analytical logical observations which prove to be correct, then you should take heed of their observations when analysing your investment?
PS, once you’ve paid off your mortgage next year, if you fancy upgrading, please get in contact. I’ll probably be ready for an upgrade myself next year once SAR reaches my target SP.