UK pub owner and operator and FTSE-250 constituent JD Wetherspoon (JDW) has today provided an update on current trading ahead of its results for the six months ending 27th January 2013, which are expected to be announced on 15th March. The share price has risen from a little over 370p in May to 518.5p at the close today but I am struggling to see why anyone should get that excited about the state of play.
London and Australia listed Philippines gold producer, Medusa Mining (MML) is a top recommendation from my past. I recommended the shares on t1ps.com, the site I founded in 2000 and left in September 2012 to establish the Nifty Fifty, at 49p in August 2008 and recommended selling at 426.5p in December 2010.
The observation about things being in the price is usually a prelude to the conclusion that a share price is well up with events; more than discounting prospects and one where a profit should be taken. On this occasion, in respect to that dullest of shares, the National Grid, (NG.) it means the opposite. Dull and boring, as my friend and former t1ps colleague Tom Winnifrith often says in relation to shares, is sexy. At my age I have long forgotten what he means by that but I think I get his general point and agree.
It was not a good Autumn for AIM listed Shanta Gold (SHG) but the last two RNS statements from the company demonstrate that it is both soundly financed and that, at last, it is delivering operationally. The shares have always had clear latent value it is just that investors have had a number of (utterly valid) reasons for not believing. But the times they are a changing.
The Christmas trading reports from the retailers do not make for pretty reading. There are some who simply cite consumer confidence (or lack of it) in austerity Britain. But I would suggest that there are far wider structural changes afoot, ones that make me wonder if some companies really have a raison d’etre at all going forward. If it did not exist already would anyone bother to establish Mothercare (MTC)? Somehow I rather doubt it. Certainly when it publishes its Christmas trading statement on Thursday it will be grim.
Medical matters are on my mind as I have the Norovirus. But it takes more than that to stop me writing about companies but naturally my mind turns to drugs. Well I was a young man in the sixties – the 1960s not the 1860s before you ask. Talking of ancient history, the market long ago abandoned the assumption that GlaxoSmithKline (GSK) would automatically build a pathway for shareholders to a starlight future of endless profits and earnings growth, by simply spending 15% of its sales revenue on R&D, and turning that into an approved blockbuster therapy every few years. In truth, costs rose and progress became more difficult – the return on R&D capital was not acceptable.
On January 10th IQE (IQE), the Wales based supplier of advanced semiconductor wafer products and services IQE announced a $75 million ($60 million on completion and $15 million payable on the third anniversary of completion) acquisition, a £16.5 million placing of new shares with institutional investors at 29p each and a 2012 trading statement. Having tipped the stock at a 28.75p on this very website on November 19th -I am feeling rather smug
FTSE-250 constituent Pace plc (PIC), a developer of technologies and products for PayTV and broadband, has today announced that, following a strong second half year performance, its “full year results are anticipated to be ahead of the board's previous guidance”. The shares have responded by trading approaching 5% higher at 202p, capitalising the company at £625 million. The following reviews the investment proposition here…
Yesterday Greggs (GRG), the leading bakery retailer in the UK with more than 1,670 retail outlets, released an update on trading for the Christmas and New Year period (5 weeks ended 5th January 2013) and for its 2012 financial year (52 weeks ended 29th December 2012). This included that the company anticipates that it “will report full year results broadly in line with expectations when we make our preliminary announcement on 13 March 2013”. However there were caveats and with concerns about the UK economy and consumer spending – particularly on the high street, the following is my take on the current outlook for this company…
Centamin (CEY), the London and Canada listed gold miner operating in Egypt, has announced record quarterly gold production of 85,543 ounces for the period closing December 31st 2012 – taking full year production to 262,958 ounces, a 30% increase on 2011 and above guidance of 250,000 ounces. The shares have responded by currently trading just over 5.5p higher at 49.75p, capitalising the company at just under £550 million. The company emphasises the numbers as “particularly pleasing given the challenges faced during the year” but the announcement also makes clear that challenges remain. The following details my current view…
Domino's Pizza (DOM), now a FTSE-250 constituent, has been a stellar recommendation from me historically during my 12 years at t1ps.com, but I am currently nervous about the UK economy and consumer spending outlook. Does that dim my faith?
AIM-listed blinkx plc (BLNX), which describes itself as “the world’s largest and most advanced video search engine” , has today announced a further partnership deal – this with KoldCast TV, an international television network of original entertainment programming.
AIM listed Funeral homes group Dignity (DTY) is one of those companies whose shares always look expensive, but then always seem to head higher. You always kick yourself for not buying the stock, after all we have an ageing population and so death ( like taxes) looks a sort of one way bet. As it happens, that is not the case. At a share price of £11.02 the company is now capitalised at £603 million. Is this justifiable?
Normally I would consider that a company that will be loss making unto, calendar 2014 but which at 493p trades on a 2014 PE of 103 would be a slam dunk sell. Wandisco (WAND) is just that company and it cannot be described as a tradition Benjamin Graham style value investment. But before Lucien Miers thinks about shorting the stock, I suggest that he reads on. This is not as simple as it sounds.
Ruspetro (RPO) has already served up a profits warning in 2013 and for its timing as much as its substance it is already in line to win an award for the biggest shock of the year. The shares closed Friday at 83.5p, valuing the firm at £278.4 million but given that the release went live at 6.30 PM the stock will be hit hard on Monday. At what point should you buy if at all?
Shares in AIM and Canada-listed Xcite Energy (XEL) hit 395p in January 2011 as it reported on a successful “transformational well” drill on its flagship Bentley oil field in the UK Northern North Sea, 160 kilometres east of the Shetland Isles. However, market disappointment at a 10th May 2011 reserves report on Bentley saw the shares fall from 316.5p to close at 110p just seven weeks later. They hit a low of 67.5p in July 2012 and currently trade at 92.75p – capitalising the company at approaching £270 million. The stock is a darling of the Bulletin Boards. But is it good value?
Because the yield is too low for a bank (in historic terms), Barclays Bank (BARC)shares are clearly viewed by the market as a ‘momentum’ stock; the elementary investment principle being, that because the shares are going up, buy some more?
On 20th December fully listed gold miner Centamin (CEY) announced that “following the recently-announced export of gold and resumption of fuel supply, operations have now resumed at Sukari.” The market read this as meaning that output and cashflow generation was now back on track. The shares have thus rallied to 39.3p. But this morning, top broker Fox Davies has published a research report stating “We also understand that gold exports have again been suspended.” Well have they? A RNS statement from Centamin is called for pretty urgently. This is a critical matter but the answer does not matter but the episode reminds us of why the shares are a sell.
Suddenly the price of Iron ore has picked up, spurred by a recovery in Chinese Demand. Iron ore stocks have responded with a number showing sharp gains in the past month. Among the winners is Anglesey Mining (AYM) but also Bellzone (BZM) which has assisted its cause with news on both of its projects in the West African country of Guinea. The Bellzone share price has pushed ahead by 3p to 16p over the past month valuing the company at £117 million but some brokers reckon that it could still double from mere. There is a bear case as well as a bull case.
I promised you something for everyone in my 7 tips of the year 2013 and so I now bring you a profitable, cash generative gold producer with exploration upside. As a relatively low cost producer it will keep throwing off cash if the gold price does noting or even falls. At the current gold price it looks very cheap but if, as I expect, gold moves ahead sharply it is very cheap indeed. My sixth tip of the year 2013 is Archipelago Resources (AR.) which, at 60p, is capitalised at £345 million. This is a stock where at $2000 gold you will double your money within a year.
The June edition of the UK Investor Show Magazine is live featuring three resource shares to buy, two more share tips, a voting guide for investors, and where to emigrate if the wrong party wins a special offer expiring on June 14 and much more.
Queenie smears journalists and spins for all the worst companies on the casino from fraudsters Eden to Advanced Oncotherapy to Norfolk's finest Fusionex. He truly is a posterboy for AIM and thus a fitting sponsor for this week's contest. The challenge: We're looking for exemplary examples of sheer stupidity from those founts of brilliance; the Bulletin Board Morons who dwell on the cesspits that are LSE.co.uk, III.co.uk and ADVFN.co.uk. The deadline to post your entries in the comments section below is midnight, Sunday 2 July.
Slater & Gordon (SGH) spunked £649 million on buying the worthless, fraudulent assets of Quindell (QPP) in 2015, a deal that has seen its shareholders suffer a 99% wipeout. It has now filed a UK High Court claim against Watchstone (WTG), Quenron as was for £637 million and we have obtained the papers and, in a major scoop, publish the Claim in full below.
I tipped shares in Saffron Energy (SRON) but urged folks to take profits some months ago. The shares were then 8p+ having listed at 5p. In recent weeks the shares have slithered back towards that 5p and I have been urged by folks to re-tip. I resisted that urge. Something was wrong. Now we all know what some folks have clearly known for a while, what the problem is.
It has taken more than two decades and exposed the Greek planning system for the total joke that it is but Minoan (MIN) now has the all clear to go ahead and develop the spectacular Cave Sidero site in North East Crete.
You may know Tom Winnifrith as the man who exposes fraud on AIM and gets a stack of death threats and lawyers letters for his troubles. Just on Tuesday he has published a massive exclusive on Quindell, the biggest London stockmarket fraud for 30 years, and a con the regulators thanked him for exposing. That breaking news is HERE.
It is good to see a CEO putting his money where his mouth is and the share purchase by Erik Henau should also scotch the silly rumours that a placing is imminent. The Concepta (CPT) head honcho has purchased 80,000 shares at 12.175p. He now owns 293,333 shares so in that context this is a decent purchase. We'd hope to see more boardroom buying soon but expect also to see more hard news on order flow very soon.
I guess if you write for a website that makes the Official Jimmy Saville Fan Club website seem well read and popular, it forces one to also post on Bulletin Boards in order that your words of wisdom/attempts to ramp your flagging portfolio reach an audience of more than three men and a dog. Speaking of dogs - Watchstone (WTG) is stock which bear raider turned Bulletin Board Moron Evil Knievil has long argued is worth 500p. The shares are now 140p ( and falling) after yesterday's massive revelations from me HERE.
I bet the BBC News picks up on it and runs with it too. But its sister publication is quick out of the blocks...The Guardian today runs with a raft of misleading headlines and other fake news as is its wont but the one on Brexit driving EU workers abroad wins the prize. The left wing rag with plunging sales and spiralling losses states: "Almost half of highly skilled EU workers 'could leave UK within five years". The sub head is "Deloitte study finds 47% were considering leaving after Brexit, while overall one-third of non-British workers could leave". Right, okay but hang on what did the survey actually say and was it big enough to be statistically valid?
AIM-listed Advanced Oncotherapy (AVO) has released its full Annual Report. Having looked yesterday at a few things I thought it would be worth a second look – especially in the light of a clean audit report from RPG Crouch Chapman. Mea culpa to myself and Tom who expected something different, but hang on a minute…
Another day and another director walks, a new strategy is adopted and yet more confetti is issued by AIM casino uber dog Mayan Energy (MYN), formally the hound known as Northcote Energy. But this latest move just makes no sense at all. Let me explain with a little bit of help from a friend....
I warned you in explicit terms yesterday that the doubling of the Strat Aero (AERO) share price to 0.14p on the back of results which can best be described as a shit sandwich with dollops of jam tomorrow on top, was not justified. The shares have now slumped back to 0.09p-0.11p (TW 7, BBMs 0 once again) but do not BUY now for there are still deluded fools abroad.
Metal Tiger (MTR) has updated on exploration at the Logrosan Minerals joint venture in Spain – helping the shares currently slightly higher to 2.03p mid.
A year ago Ronald Stoeferle stated that we were at the very beginning of a bull market in gold, He was wrong. He says that was stopped by Donald Trump. Gold and commodities are dirt cheap when compared to stocks. Equities, bonds, and real estate are at or near their all time highs. He thinks the dollar is close to rolling over.
In a sense this is not that relevant as Advanced Oncotherapy (AVO) is within a couple of months of running out of cash and going tits up but on a point of principle I have written to the my very good friends at the Financial Reporting Council as there are aspects of Advanced's 2016 annual report and accounts which stink more than a pile of rotting kippers left out at a sewage farm in the scorching midday heat. The letter follows:
A few weeks ago I penned a piece on Blenheim Natural Resources (BNR) in which I was highly skeptical of the recent holdings RNSs from a certain Pershing Nominees/Valbury Capital.
Worthless AIM listed piece of excrement Servision (SEV) always seems to report its results at the last possible moment to avoid suspension on the casino. In 2016 calendar 2015 numbers (piss poor) arrived on the 30 June deadline day. For 2016 its a slam dunk bet that the numbers (piss poor) will arrive this Friday on deadline day. Why is that?
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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