Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
17 trades SINCE 0800hrs for a total of £40 k shouldn't devalue the company by more than 6%. I wonder whats causing this drop?
Looks like IDP just hit another 52 Week low. Time will tell if Joe Bayer is a competent and respected replacement Executive Chairman and this will go some way to helping the share price recover. I agree the board needs some extra ballast and hopefully this will be resolved shortly.
Not the start one would have hoped for! Still, Rome wasn't built in a day and some buying momentum is needed to get this share price moving upwards!
Geordie. If you start the short (sell) at £30 and close the short (buy) at £2.30, you pocket the difference between the sell and the buy back. That would be a profit of £27.70 per share ,minus any borrowing costs, which is 10 x 100% of the cost for buying the shares back to cover the short sell? Or have I missed something?
15% down on the day. I was going to buy at 2.4 but would be £450 lighter if I had pressed the button.
Its crass to say don't sell don't lose. Of course you lose, the risk being it keeps dropping until you lost practically everything.
Not really are they. It took all of 6 minutes to go back down to yesterday's closing price.
If the shorters increase their positions in the morning the share price will go down. But, what is there in that statement to make them want to increase their positions? On the other hand, if they think the share price has reached the bottom they will have to start to buy back and the share price will inevitably rise. Who knows which way it will swing. I hope to see the share price consolidate and then start a gradual improvement towards £3 -4.
Nothing positive to look forward to. From today's FT.
“It is a tough market,” Mr Duffy told the Financial Times. “But when it turns, it tends to turn quite quickly.”
Petra now expects that diamond prices will be flat for the next two financial years, rather than up by 3 per cent, above a long-term US inflation rate of 2.5 per cent a year, as previously forecast.
Petra, which also has mines in Tanzania, said it had discussed with its bankers the possibility it might breach certain covenants on its loans this year and next. It said the banks had “reaffirmed” their support.
Mr Duffy said the company would look to reduce its $595m of net debt by improving the efficiency of its mining operations. The company said it had “sufficient liquidity headroom” for at least 12 months.
The sell signal is from today. The previous IC signal before today was in Feb when the share price was considerably higher than it is now.
Investors chronicle opinion piece.
IC View
We do not share Mr Duffy’s optimism for the diamond sector. Setting aside De Beers and Alrosa, miners across the London and Toronto stock exchanges have cratered in value. Petra is not alone in struggling but has a difficult debt burden to overcome even if prices improve, so it is not a prime example of a company ready for a price turnaround. Sell.
Last IC View: Sell, 29.4p, 18 Feb 2019
Anyone buying in at the time of that last post will have lost 10% of their investment. Only positive company news is going to help this price improve and Brexit seems as far away as ever. Sentiment is not in Stafflines favour.
No news since 17th September and none due for a while.
Hopefully this forecast will come to fruition but with Brexit unresolved, who knows!
Outlook
· Trading remains challenging and the Board now expects the Group to deliver full year adjusted operating profit (being profits before interest, tax and non-underlying charges) of approximately £20m. Since the publication of the 2018 Full Year results, weak consumer confidence has weighed on our end customers, particularly in food and retail, which has had a direct impact on demand for Staffline's services.
· The Board expects net debt to be c2x EBITDA at the year-end benefiting from the proceeds of the equity capital raise and trading in the second half of the year.
· While the Group's near term trading outlook will remain subject to variances in consumer confidence caused by the unprecedented levels of uncertainty associated with Brexit, the Board remains confident in Staffline's medium and long-term growth prospects.
Some thoughts from Interactive Investor.
Falling faster than Boris Johnson's credibility, Metro Bank (LSE:MTRO) could not be ignored. A bond sale, coming in the same year they announce an 'accounting issue', failed to attract sufficient buyers and the initiative was cancelled.
Their already spectacularly bad share price suffered - spectacularly!
Usually with this sort of thing, when a price experiences a massive 36% reversal, we look hard to try an identify a logical bounce point.
After all, it's often quite possible to snag a 15% rebound, even if any bounce is deemed as to be of the "dead cat" variety.
Instead, Metro presents us with quite a major issue, due to its proximity to the "dead parrot" side of trading.
The company's share price movements, since their fanfare listing in 2016, proved to be utterly dreadful. At time of writing, it's trading around the 175p level with the potential of weakness below this level driving the price further down to 103p.
At 103p, we would hope for a bounce, potentially a fairly useful one but the danger comes if 103p is broken on any initial downward surge.
Our secondary is at 76p and this is a level we cannot calculate below. Obviously, we can but all the answers are prefaced with minus signs.
Before any bounce from the current could be taken seriously, the share almost needs double in value as only above 315p dare we start to suspect the reversal has been a dreadful mistake and things are going to be okay for the future.
When we review how the price was managed on the 24th September, even above 222p is supposed to bring 238p which, if bettered, gives a very slight hope bottom is already in. This being the case, our secondary calculates at an unlikely 338p.
We suspect this shall be worth watching, if it approaches the 76p level.
Source: Trends and Targets Past performance is not a guide to future performance
How can you say "not a single investor will sell at this price"? I can see at least 17 million late reported sells with one at near 12 million. Plenty of large holders have dumped their shares in the last 9 hours.
I agree. Brexit is going to cause all sorts of problems for the holiday companies and this is weighing heavily on the share price. This and the lack of positive news regarding disposals and debt reduction as well as the legacy of last year's financial performance is dragging this down towards 2012 levels and this time the recovery is going to be a lot more difficult. I'm 50% down and can't see where the upside is at the moment.
I wonder what the chances are of getting my investment back? Averaging 4.4p and I know there are a lot of people with much higher averages than that. A long way to go, if we ever get there at all!
I agree. There's not much positive news there and no sign of the much vaunted turnaround on increased profit margins. I fear this will get dragged down lower. More losses equal more debts and the existing debt is already horrendously high.
Sometimes stating the bleeding obvious is the obvious thing to do!!
The next trading update is due on the 7th Feb. The price will drift between now and then I expect. Obviously the update will lead to a rise or fall depending on how good, or bad, the update is.