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Alas, can you tell us what share will bring your son "very high growth"?
Bear in mind that LGEN has recently acquired a "significant" minority shareholding in another enterprise. I am not familiar with this. But it could be of importance. Any comments?
Yes AIMoil, 300p will not surprise me. The dilemma for me will be to hold or sell at that price. I've been here for a few years.
Good trading, Trek. I watch your posts here! I had bought more at £1 and at 1.05 before xdiv. At around 12% yield after tax (for me), I am tempted to buy again but I'm held back by fear of over-exposure to one share. Also weaker gas price coming into summer might be a factor. I have some powder left but I think I'll keep it dry!
Hang Seng Index up 4% today on best increase in factory activity in a long time. RIO also up 4% this morning. I had a look at comparative charts for Hang Seng and RIO over 3 months, 6 months and a year and there appears to be a strong correlation. This does not apply over 5 years, however I am persuaded that RIO will track China's fortunes in the near term.
MJackson, thanks for sharing your insights. Having considered everything, including Trek's sell, I am still mystified and I conclude that the sell-off may be irrational. I'm very disappointed at the decision of the company to issue new shares, but £1 is a good price and I have just there added 3k shares at that price. I agree that the SP does seem to follow the trend of the gas price -irrational given hedging. 14% yield for this company also makes no rational sense. I have decided to take an optimistic view. I think it would be a cruel cut for DEC to reduce the dividend on top of the dilution. Surely the company is aware of damage already done to PI's.
A very dire prediction there from driftking. Does anyone here have a more upbeat outlook?!!
Well, as per my last post, that was a mistake! I could be waiting a long time to get back in sub 19.80!!!
Hi Gavster, you say "the quarterly dividends are safe as can be". Current yield is at 14% and if, as you speculate, the SP drops to the 90's, the yield will be maybe 18%. That doesn't seem feasible. I'm surprised that the SP has dipped slightly below the placing price. Am I missing something?
So I sold about half my holding today at 19.82 .But only on the prospect of buying back at a lower price in the near future. I am taking a chance that, with the two 'big' dividends out of the way and inflation cooling, IMB has little to support the SP in the short term. I may have made a mistake. Let's see! Just my personal opinion, no advice intended!
The drop in Thurs seems to relate to some negative news re competitor BATS which fell around 5% on that day. IMB dropped around 2.5% but seems to have more or less recovered. Can't remember detail re BATS and I'm too lazy to look it up!
Thanks Trek for your analysis. I still don't fully understand the implication for the SP of this dilution but your thoughts are welcome.
Thanks for sharing that encouraging bit of news, Trek. I remember a similar placement happened a couple of years ago and I was singularly unimpressed. However I vaguely recall that the company gave some reassurance that it had no intention of repeating this exercise in further acquisitions. I have a question for more experienced investors:
I don't understand fully the timing mechanism for the issue of new shares. My question is: Ceteris paribus, is 1.05 the lowest that the shares will trade at? Forget all other market forces; will the share trade lower at a future date in March as per the RNS? Or is this news already baked into the SP? I can live with 1.05 in the medium term even though it puts me under water in terms of my average purchase price of 1.12. I've been a net gainer due to dividends accumulated over the last few years so I should not complain! I'm still disappointed at the decision to make an acquisition by issuing new shares. I think many might decide to sell when we see 1.20 again. It's something I would consider but I can't see where else I would get a 10%+ yield.
kentio, between funds and individual stock holdings, LGEN is about 8% of my portfolio. I am thinking of adding more. I should have known the obvious buy point at 2.52. The SP keeps testing 2.60 and I will probably buy more at that price.I'm also a potential DEC buyer at 1.11 and IMB at 2020. RIO is also an option to add for me at 6150. Also Asia and China in my pension fund. Best of luck. My opinion only . TG.
Tambo, they've done the same with LGEN today; i.e. cut the price target. This is due to the SP falls we've seen in both LGEN and MNG over the last two days. They don't want to be seen (Berenberg) with egg on their face, touting a high share price. I think MNG and LGEN are very similar businesses. Correct me if I'm wrong. Imagine relying on the advice of these 'Analysts' for investment advice!
Unfortunately I failed to buy more today at 1.13. I'll have another look on Monday. Probably too late. The SP seems to track the price of gas, regardless of hedging.
I delved in again at about 15.4p yesterday. I regard this as a complete gamble. I had made a substantial return on ARB last year and I'm hoping to repeat. Apart from value of BTC, are there any other factors or economic indicators I should watch? For example risk-appetite indicators such as the VIX and Nasdaq index? Asking other holders here - do you see this as a gamble or an investment?
Thanks demar and kp, I may just stick with RIO!
I'm not a holder here but looking more closely. Anyone have any idea why the drop today? Haven't seen any news to drive it. Also looking for a reliable measure of % yield, I'm getting different numbers based on where I look.
If you want exciting, go for AMZN, TSLA, NFLIX where one could have lost a small fortune over the last year. LGEN is a big chunk of my portfolio and defends me against the volatility of my more risky shares. I know there is some downside risk here too but LGEN has been like a rock for me over the last few years and 7% yield (even more based on my purchase points) is bonus. Also bear in mind that it has hit 300p a couple of times in the last 2 years or so, so so there is also the potential of a 20% upside here. Unless the narrative changes I am holding long term and using dividends to continue adding. All just my opinion based on my experience.