The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
LaticsRule,
the job of the mms is to ensure the smooth running of the exchange for buyers and sellers. No more than this. If a situation develops between bids and asks and neither will budge, the mms may call a halt to trading for 5 minutes until one side or both come to their senses :)
LaticsRule,
If a deal is made close to the mm asking price, it is classified as a 'buy'. If a deal is made close to the mm selling price, then it's a 'sell'. Deals exactly in the middle are classified as 'unknown', which does not happen often. I notice that a large buy order came through a short while ago. Consequently the mm asking price has been increased slightly.
Re: "start looking at the facts"
For example, if we compare RKH share price with other UK fossil fuel energy developers since Aug 1 2022 we find the others have doubled in price. Reflects the panic about future energy prices of course. The only reason RKH is the laggard is OM. But will a poor OM result affect RKH long term? Not at all. So QED RKH SP has a lot of catching up to do imo :)
Forget OM. The world is entering a catastrophic inflationary period. Many ordinary people will die. RKH is one of the very few companies that can survive and is also an extraordinarily cheap investment. Sorry to paint a bleak picture
'So, in view of everything you've listed - why aren't we c.100p?
Dodger, you remind me of a science professor who used to wear oversize boots because he was afraid of disappearing into the void because atoms consist largely of space.
Thanks OG.
'If you thought the Buckskin oilfield was large, you should see Sea Lion. Located in the Atlantic Ocean north of the Falkland Islands, with a potential estimation of 463 million barrels of oil (2C) for Navitas in the Sea Lion and adjacent fields.'
" Note how quickly FIG has recently responded, for example. by extending licenses."
For those who do not understand investment decision-making , FIG want to extend RKH licenses because RKH has recently acquired a wealthy and experienced partner - Navitas - and does not wish to miss out on RKH transforming from a £40 million to a £1 billion cap company.
New mining projects take at least 10 years to reach first oil, gold or whatever. For RKH the OM affair is now irrelevant to this process as RKH is partnered by Navitas, which has proven under-sea mining success and has access to cash. For me, oil is a much better commodity to be invested in right now than any other commodity. Note how quickly FIG has recently responded, for example. by extending licenses. IMO.
I hope you are right LTT. But a deep recession won't affect the price of oil very much. The Covid pandemic was very bad for oil because all economic activity ceased, including travel and manufacturing, 97 per cent of which involves oil and its derivatives, such as plastics and many other products. Imo, oil and precious metals will be among the few assets that will hold up during a deep recession or runaway inflation.
Sirius may have been a scam, Michael. But AA are also victims. The problem is you cannot mine mushy fertilizer more than a mile down without the voids collapsing. Compared with the risk of that happening RKH is a stroll in the park :)
On the bright side, RKH is worth £1,9 billion for phase 1 (of 3 phases) with oil at $75 per barrel and 250 million barrels. This is RKH's share, 35 per cent of total (Navitas owns the rest). According to my broker HL, the current value of RKH is £41 million. The future value of RHK is therefore roughly 45 times greater than this. In other words, 7 pence per share becomes £3.15, just for phase 1, as I mentioned. I don't see oil at less than $75 PBB in five years time, possibly double?