Member Info for ToS1963

Massive. Confess to having my doubts, but fair play. Doubt market will react too significantly, but this is huge.

A bit of sell the news going on here this morning.

Solgold strategy becoming clearer now.

1. Discover a tier one asset

2. Use it as collateral to borrow money to pay massive salaries and bonuses for as long as we can get away with it

3. Flog it cheap

Well, I’d say it’s decent, but far from spectacular. Given recent good run on the SP, I was expecting better, but perhaps being greedy. Liked the outlook for full year (well ahead of expectations), but the Q1 figures suggest slow, steady growth rather than anything explosive. Happy to hold, but more likely to take some profit and hold the rest, rather than add.

Zaco, I do have a simple global tracker fund as well. Diversity is key. The comparison was with a bank account. To do this, you need to assume a static SP. We shall agree to differ on the calculation regarding the overall 5 year return, as you need to take into account SP when reinvesting the dividends. I couldn’t be bothered working all that out, however I’m reasonably sure it’s considerably more than 30%.

And, for arguments sake, even if you assume a completely static SP of say £2.50, LGEN has returned, over the past 5 years, 6.7%, 7%, 7.4%, 7.7%, and 8.2%. That’s a compounded return of roughly 43%, and is increasing each year. If you want to make quick money, go to a casino. If you want to get rich, there’s few better than LGEN out there. IMHO.

You must let me know who you bank with. 12%+ is a heck of a return for a current account. (Annual SP change + divi reinvested over past year).

No leaves or fruit left on those trees they’ve been shaken almost daily for 10 years.

Blithering idiot.

So just to be clear..... the MMS don’t have enough shares to fulfil the orders they’ve got flooding in, so in order to do so, they are dropping the price. That’s what you’re telling us?

Very positive here lately, and happy to see us back over 10p. Price action since Xmas has been ridiculous. That said, and ever the Solg pessimist, we’ve all seen too many false dawns here for me to allow myself to get over excited just yet, especially in the absence of news.

Zaco.... I think the theory is that buybacks increase the SP, as long as the shares are cancelled. If I own a company worth a million quid, with 10 shares each worth £100k, buy back and cancel 5 of the shares, the remaining 5 shares are now worth £200k each, as the market cap is unchanged. It also reduces the cost of dividend payments by 50%, and increases EPS by the same. That’s the theory, although I agree with you, it never seems to work like that in practice. I’d rather see excess cash returned via special divs.

Thank you Quady. Please keep it Solg related. If you and 1984 wish to continue your discussion, please take it elsewhere.

Zzzzzzzzzzzzzz

Driftking.... you say

“ We cannot just throw all your money into one 7%+ yield and sit back, because that’s very naive in doing so. ”

Whilst I agree with the “all your money” bit, what’s naive about a safe 7%+ return on your money? Personally, I quite like that. Have done for years. Perhaps I’m naive. I’m also invested in a medium yield corporate bonds fund, capital in that doesn’t increase too much either. Is that also naive? To my mind, it’s naive to chase solely growth stocks, as in times of a market retrace, not only do lose capital, it hasn’t been shored up with ongoing income. At the risk of stating the obvious, it’s all about diversity. LGEN has an important role in that (for me) that’s probably why it’s a major holding in almost every single UK Income fund you can name.

BBG for someone who has allegedly speculated an awful lot of money here, you are unbelievably naive regarding who owns what, and the near globe wide laws regarding mining and ownership of mineral resources.

I quote..... “ we can potentially expect corporate activity from anyone not wanting the government involved”

On what planet, and under what circumstances, could any end result here NOT involve the government of Ecuador? I suggest you stick to Premium Bonds.

Sharket... I obviously agree it’s positive news, but am more questioning whether or not it warrants a near 25% increase to the SP (albeit from a stupidly low level). I don’t think the trashed share price was a result of any concern over mining jurisdiction/ Naboa issues. Those have always been in play here, even pre Lasso. Yes, it’s good to know he’s onside, but I felt the lack of a clear strategy, direction on funding, or takeover news, was why we were as low as we were. None of those things have changed yet. But I’m not complaining, or peeing on anyone’s chips here, long may it continue.

Markets opening over the pond seems to be propelling us towards the leaderboard. It’s been a very long time since that happened, there has to be more news incoming. For me, today’s RNS doesn’t justify this. But what do I know. Ever the pessimist (sorry folks, it’s just a LTH Solg thing) I really hope this isn’t another false dawn.

Scoping around for somewhere to put my SPT windfall, landed on this one. Seems to have steered its way through Covid reasonably, given the nature of the business, that can’t have been easy. I’m not a fan of buybacks over dividends, so that was a negative, but I’m slightly hopeful they may be on the verge of changing tack on that. An announcement of any dividend, even a small one, is certain to boost the SP from here. I also think it’s undervalued, and as others have said, has to be a takeover target at these levels. The fact that they got a placing away during Covid at a price higher than today’s speaks volumes. All just my opinions, and who can tell. I’m hopeful.

Very nice, and a long awaited pleasant change, to see a good, solid day here. Hopefully the first of many. Not sure the announcement warranted this increase, but then again the low SP was always ludicrous. And remains so. Fingers crossed we’ve turned a corner at least.