Alright then, we’re onto part seven of the series aboiut the investment classic One Up On Wall Street. This may well be the last part, at least for now, as I have quite a few companies that I want to write about. Here Lynch talks about “Spreading it around” in terms of what investments you buy.
Hello Share Shakers. I was one of the few saying that growth would go on rising faster than expected in the UK. I started about a year ago when it was clear that GDP was on the mend finally – after the nasty credit crunch of 2007-8.
Yesterday morning the six Horse Hill participants, put out an RNS which the market read wrongly and marked the shares down. We sense some people were expecting an announcement that oil had been found. We also sense that they won’t be waiting long.
Shares in UK vending company SnackTime plc (SNAK) have today been suspended from trading as the company has been unable to publish its report & accounts for the year ended 31st March 2014 within 6 months of the year end. This is because, with refinancing negotiations not yet concluded, “the company's auditors have not yet been able to provide a clean audit opinion on the company's financial statements”. The following updates on unaudited results which the company’s Chairman has “pleasure in presenting”, but which shareholders are unlikely to enjoy reading.
I have made it clear that I believe that even without an escalation of Ebola, the balance sheet weakness of African Minerals (AMI), the debt laden POS AIM Casino listed miner founded by convicted heroin dealer Frank Timis, will be its undoing. Today the company tried to put the best possible spin on pretty dismal interim results.
Today’s epic disaster of an annual report from Range Resources (RRL) cannot have come as a shock to anyone. Worse is still to come. By any stretch of the imagination Range is vastly overvalued. At 1.07p (last seen), Range is valued at £53.4million. The company has just announced a $102.5million loss, has never been able to cover its costs, has substantially written down the value of its “assets” and has just been forced to borrow another $15million (what happened to the “game-changing” LandOcean deal?!). To top it all off Chief Executive Rory Scott Russell made the hugely embarrassing admission the company is “unlikely to meet [his] previously stated target of an exit rate of 1,000 barrels of oil a day by the end of 2014”. Apparently Mr Scott Russell is now confident of achieving this goal in H1 of 2015. Given the steaming mountain of manure he has had to shovel his way through since he took charge of Range in February, perhaps Mr Scott Russell has earned a little leeway in hitting his production target. This doesn’t change Range’s overvaluation problem. Nor does it solve the cash flow problems. Nor does it answer a far more relevant question. Just what has happened to all of Range’s money?
Although it’s given a fairly brief place in One Up on Wall Street, Peter Lynch’s attitude to shorting shares is interesting. Now I have to say that I have never shorted a share in my life, but I know plenty of people who have made good money out of it. I’ve read the recent Quindell (QPP) articles with interest for example. At the end of the day, all money made is good for a share investor, but it’s still interesting to hear Lynch’s perspective.
Faldi Ismael, chief executive officer of Kalimantan Gold (KLG) says the company can now give prospective ‘partners and shareholders confirmation of the potential’ of its Beruang Kanan (BKM) project in the centre of the Indonesian island of Kalimantan (formerly Borneo) following delivery of a maiden inferred resource for the project. This suggests BKM’s main mineralised zone could hold some 4.7 million tonnes with an average of 0.6 per cent copper, for a potential resource of nearly 622 million lbs of copper.
Last week I had a deco at Next (NXT) shares, noting that the share price had weakened somewhat. The share price then was 6,905p and arguably the share looked as though it had found some linear trend support. But something stayed my hand. Was it the god of markets placing a forbidding index finger on my shoulder? More probably it was the rating the market had given the shares. On consensus estimates for the current year to January 2015 the share at 6,905p was on a prospective PER of nearly 17 times. Next is a remarkably successful company and deserves its premium but even so……?
I identified decent value in the shares of international recruitment and outsourcing services group Harvey Nash (HVN) with them trading at 70p last year. Following results for the six months ended 31st July 2014, does this remain the case at a current more than 104p?
Peter Lynch’s ‘final checklist’ for selecting shares in One Up on Wall Street makes interesting reading. I’ll aim to pick out tips which haven’t been mentioned explicitly so far.
Hello Share Funsters. You can’t easily tell on the day if a share will go up or down. Yes, it will probably rise with the tide of a Footsie that is going up or come down the same way. But that only really applies to giant or medium cap shares.
There have been posts made on several Quenron (QPP) Bulletin Board threads from folks suggesting that they were planning to attend and disrupt tonight’s presentations in Clerkenwell or to have a go at me as I shall be speaking. Just a warning to any morons who are tempted.
In an earlier piece on Greece-originated mobile and telecom software and services business Globo plc (GBO) I concluded that, even if comfortable with the numbers, there looks to remain significant further improvement in net cash generation needed to justify the valuation. What does the balance sheet show?
After reading Union Jack Oil’s (UJO) interim results released today it really did cement the company in my mind as being well placed to take full advantage of the buzz around onshore UK. It’s little wonder people are looking for the safe haven of Europe as West Africa with Ebola, The old Eastern Bloc '' nuff said '' and the Middle East has the dawn bombing raids to look forward to.
It has amazed me how writing for ShareProphets attracts the unwanted attentions of crazies. As soon as you write anything that is perceived as being vaguely negative about a treasured stock, the nutters come crawling out of the woodwork to launch tirades of social media abuse. I won’t name the chief cheerleader for Regency Mines (RGM), but this person took exception to my comment at the end of July that it was “surely only a matter of time” before Regency placed. Tweet followed email followed Tweet about what utter rot (not the word used by my avid fan) I was talking, how I didn’t know anything about the company and there was no way it would place. Well, after today’s announcement, Regency has placed twice in the last seven weeks. What a shock. Perhaps some readers of ShareProphets would do well to spend a little less time frantically bashing keyboards and a little more time reading Tom and mine’s latest book “The 49 Golden Rules of Making Money from Oil, Gas & Mining Stocks”.
In an update on the 2013 annual results from Greece-originated mobile and telecom software and services business Globo plc (GBO) I noted that “the majority of the reported profit was tied up in working capital and investment. The issue here is that the table highlights that this is a consistent occurrence”. Has this changed in the today-announced results for the first half of 2014? Err…
Today Camkids (CAMK) has followed its fellow AIM casino Fujian shoe related China POS heroes Naibu (NBU) and China Chaintek (CTEK) in cutting their dividends despite claiming to be hugely cash generative and drowning in cash. As such we bring you the Monday Caption Contest. Please post your captions in the comments section below:
Interim results from Cupid (CUP) were predictably disastrous and show why it had to see its dodgy Ukrainian dating businesses. In part that was because, despite the KPMG whitewash they were clearly engaged in unethical practises. But Cupid also needed the cash.
The April edition of the UK Investor Show Magazine is live featuring Metal Tiger, BMR, Harley Investments, Action Hotels and much more.
Making money from shares is simple. Well it should be. Buy cheap. Hold. Hold. Hold. Hold, and finally sell when the shares have delivered you big gains. Where so many folks go wrong is getting impatient and not being prepared to hold, hold, hold. Let us tell you about Symphony Environmental (SYM) which we tipped at a 6.75p offer just over three years ago. It did nothing for ages....
This week's contest is graciously sponsored by African Potash, AIM, NEX, Chris Cleverly vehicle that is bound to hit the stratosphere.*
Before I call it a day I want to see the victims of the African Potash (AFPO) fraud get some of their money back, even if some of those victims were fairly beastly to me as I exposed the fraud. Friday's bombshell from Potash shows the game is up but the big frauds happened before this worthless enterprise was booted off AIM. To that end I have been working to help put together a legal action. That action is now almost underway and Peter Petyt, the man running things, wrote to more than 50 victims who have come forward at the weekend. If you lost money and want to try to get it back it is not too late to contact Peter. His letter & contact details follow.
In this video from the storming success that was the 2017 UK Investor Show, Paul Scott finds Nigel Wray's and Paul Mumford's investment strategies. And make sure that you keep April 21 2018 free for next year's UK Investor Show.
Artificial political constructs never last. The EU is great for the “elites” in Brussels; not so much for the average citizen and the tragedy of monetary union is that Europe's political class has gone to extreme lengths to hold the euro together regardless of underlying economic logic. But this has only perpetuated and exacerbated the coming political crisis. "Monetary union has created a conflict between a centralised elite on the one hand, and the forces of democracy at the national level on the other. This is extraordinarily dangerous,” Mervyn King wrote in his recent book 'The End of Alchemy'.
As I flagged up over the weekend, in a desperate attempt to keep the fraud from becoming insolvent, African Potash (AFPO) has proposed a RTO of a company called Onshore Energy Limited, OEL. Lyin' Chris Cleverley Potash's boss is also a director and shareholder on OEL. But it gets worse. Much worse.
I previously wrote on WANdisco (WAND) in January – ‘one quarter does not an investment make, but offers some encouragement for shareholders’. The following updates with the shares currently on the rise on the back of a “Significant customer win and Q1 update” announcement…
Yesterday we wandered through the first page of search results on the OpenCorporates.com website to look at the record of AIM-listed Advanced Oncotherapy (AVO) Executive Chairman Dr Michael Jeffrey Sinclair. There are rather a lot – here comes page 2.
Stanley Gibbons (SGI) has announced it “has sold one of the rarest pieces of Indian Philately to a private collector-investor in Australia for £500,000, the highest price ever paid for a single Indian philatelic item”.
ShareProphets AIM-China Filthy Forty play Taihua (TAIH) announced last Friday that the EGM called to approve the company’s proposed delisting from the AIM Casino had passed the proposals with the requisite majority. The shares are expected to depart the world’s most successful (but perhaps not for Taihua) growth market first thing on 8 May. In the wake of the announcement – at 4.15pm last Friday, bordering on no-one-is-watching o’clock - the shares again nose-dived, registering a new low of 0.1p on the bid yesterday, but all of a sudden the stock is on the rampage this morning. What is going on?
AIM-listed Advanced Oncotherapy (AVO) – teetering on the brink of having to call an EGM to reduce its nominal share capital under the terms of its death-spiral funding package with Bracknor – has announced yet another director share purchase, the fourth just this month (if we ignore the botched 7am RNS of 4 April). As ever, this is just a spoof in order to encourage more buying in the market so as to allow Bracknor to offload more of its death-spiral conversion shares as Advanced hopes and prays for the next £1.235 million tranche of funding before the coffers run dry.
On 12 April 2017, the fraud that is African Potash (AFPO) announced a change of auditors from RSM UK Audit LLP to PKF Littlejohn LLP. One can understand why RSM UK Audit LLP might be keen to cease its relationship with a company with the frankly appalling track record of African Potash but how desperate does PKF Littlejohn LLP look in taking on African Potash as an audit client?
The COT report reveals the large paper short and long positions in silver. Currently it appears to be indicating a small downtrend in the silver market. In this week's Palisade podcast David Morgan discusses how silver markets move and how they can be pushed to the downside once investors run low on cash, as banks will short the market at opportune moments.
Goals Soccer Centres (GOAL) has admitted “preliminary discussions” with key rival Powerleague on “combining the two businesses”, though emphasises that is “but one of the strategic opportunities currently being assessed by the Goals board”…
An announcement from Blancco Technology Group (BLTG) entitled “Q3 Trading Update, Cash Flow Review and Funding”. Hmmm, I’d guess it ain’t gonna be positive…
Truly, there are no winners from the pool of Bulletin Board morons, only those who succeed in making our eyes roll the furthest.
Together Robert Sutherland Smith and Tom Winnifrith have now been working in finance for 71 years - the last ten or so together. Tom wishes to stress that RSS accounts for most of that, the great value investor starting his City career at the Unilever Pension Fund the year before Tom was born. In this book they outline 71 tricks of the trade for making money from shares.
Get the first ShareProphets Pocket Guide ebook, EIS - Buying shares with numerous tax breaks. Want to cut your income tax bill, get loss relief if your AIM listed shares go down, pay no CGT, avoid IHT - EIS could be the way and this book explains how.
Most investment books seem to be large enough to keep the front door open and while some contain gems it is hard to find them amid the verbiage. The aim here is to produce a short guide which simply cuts to the chase. I hope that it will provide food for thought for everyone from beginner to expert but whoever you are it should be quick and easy to read and digest.
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