The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
"The Uncrossing Trade at 16:35 @3p last night gave an inflated close price. We are now back to where were trading yesterday, so actually no price change across 2 days (so far)"
Thank you for the explanation.
765,500 shares bought and 122,00 shares sold today yet the price is down neatly 7%. Any ideas anyone?
Hi Nate. If you listen to Paul Johnson's presentation via Twitter yesterday, he goes into detail about how this generates revenue for POW.
"Getting out, waiting for the market crash, and getting back in is a wiser strategy IMHO."
Trying to time the market is never a wise strategy IMHO.
I get your point Sooty, gold miners like Petropavlovsk is up 254% since I put it on my shortlist last November, games developer Team 17 up another 3.4% today to a 100% return since last November, bike company Tandem up 111% over the same time period. With the benefit of hindsight, we'd all be millionaires!
Hi Longlad. Not specifically, but the FCA’s Coll handbook states,
“An authorised fund manager must ensure that, taking account of the investment objectives and policy of the UCITS scheme as stated in the most recently published prospectus, the scheme property of the UCITS scheme aims to provide a prudent spread of risk.”
Most fund groups have their own internal compliance which limits how much they can invest in an individual company. The last thing fund managers want is a big stake in small illiquid companies - this was Woodford’s downfall. Because it was his own company, he didn’t have adequate internal compliance checks. He was investing in some pretty good companies, but he was owning large chunks of small companies which are difficult to get out of if you start having a lot of redemptions within your fund. The problem is, if you are running a decent sized fund and want to hold a small position in Zioc, it may comprise 0.2% of your fund. Even if it returns x 100, it’s not going to make a huge difference to the performance.
Sooty, as someone who speaks to fund managers all of the time, that’s an easy one. No fund manager in their right mind would invest in a company that has no earnings. Fund managers look at balance sheets, and typically look for companies with high free cash flow and showing a good return on equity and capital. Zioc has none of these, plus it’s in the middle of Africa. There are too many unknowns to allow fund managers to commit investors hard earned money into it. Plus you usually have a massive spread and there would be potential liquidity issues, as the market cap is so small. Even for those managers who look at micro cap companies (and there aren’t many), there are other more attractive U.K. companies out there that tick many of their boxes. I have FE Analytics software, which gives a risk score for every fund, share etc. It benchmarks the risk score to the FTSE 100, which always has a risk score of 100 and cash is 1. Last time I looked Zioc had a risk score of around 1000, meaning it’s way out of the risk boundaries that most fund managers would be comfortable with. I’m happy to invest in this as a PI, as I’m aware of the risks, but I wouldn’t want my fund manager to be investing into something this speculative.
It's the condescending tone that's annoying, that he knows best and we are all stupid. We are all know the risks with this stock, we know that this stock is a complete gamble, but I'm sure for many it forms a small part of their overall portfolios. I'm happy to wait this one out until the conclusion - I have no idea what that conclusion will be - but I don't need 'help' from Simon and those of his ilk in the meantime thank you very much.
I remember MM (remember him) posting something a few years back, which said that the sale price for a mine in production is usually a lot higher than the sale price for one that isn't. Maybe that's in their thinking with the EPP?
Figures are from The World Bank:
https://www.theglobaleconomy.com/china/exports/
AS I said in a previous email:
China is becoming increasingly a domestic orientated economy that is less reliant on exports. In 2018 only 19.5% if its GDP came from exports, down from 36% at its peak in 2008. The largest % of its exports are to the USA at 17%. Of the other countries you mention, only Germany (3.2%), Netherlands (3%), UK (2.5%) and Russia (2%) make it into the top 15 trading partners.
A boycott would have some impact, but probably not as much as you'd think.
"The voice of sanity! My son thinks coronavirus is Biological Warfare Gone Wrong and I have some sympathy."
The virus has already been analysed by virologists who can tell that it wasn't manufactured in a lab and most likely came from bats via pangolins, which are considered a delicacy in China.
If anyone's interested, the first half gives a good macro economic view of where we are at the moment, the 2nd half is more about where their funds are positioned.
https://www.cornelianam.com/news-stories/cornelian-investment-webinar-18th-march-2020/