Naibu (NBU) NED's request the suspension of trading in the company's shares. If this is what I think it is, it comes as no surprise. For those more versed in such matters the rocket science of Li Ning's struggles represent the issues. China's Li Ning warns of third straight yearly loss, outlook upbeat. Having closed my shorts out the other day, was I premature. I suspect so...but it would be rude if I started complaining. CamKids isn't suspended is it?
It was hoped today there would be time to share some Housing issues that are coming in the UK. Persimmon based on values and the glut First Time Buyers really needing a review based on a number of factors including First Time Buyers, however it'll have to wait as most are now in action.
Anglo Pacific Group (APF) PLC Trading Update is with no surprise, the lack of enticing assets and the returns that are dire. With jam being implied the dividend may provide some support when DRIP (Dividend Re-Investment Plan) or SCRIP is applied. Unless something materially changes in the asset base or an acquisition of a decent size is made the dividend will start to look expensive in terms of risk. Kestrel appears to be the only saviour here....and that's "anticipated" and far from in the bag.
APF with the usual excuses about the commodities market, if one had superior assets even in dire markets the returns are assured. The inferred big deal appears to now be never coming, with limited funds, and a question over whom in this market would support the financing for a larger deal, its not for widows or orphans. Expect APF to give up some of it's more recent gains.
Iron Ore is being bounced around in my inbox with most whom disagreed with common-sense however long ago now surprisingly having a sniff of reality. This morning I was sent this through (Cheers AV) CHARTS: Iron ore price won't withstand 2015 supply flood. With their views only 10% lower than mine (currently), albeit disagree with their views on Copper and so would the market with a near 7% drop in the last month.
With the Chinese returning to speculation (one assumes this time with Chinese finance instead of STAN's / Citi's :-)) Copper could have some support...but for how long with Kaisa's missing a payment . Anyone for a Government initiative for social housing? Anyone for a high risk punt on discounted property bonds? The smaller companies appear to be impacted more so...gaining short exposure is difficult though. With little takers for iron ore futures further out, prices are likely to come under further pressure.
JKX (JKX) Oil & Gas PLC announce Elizavetovskoye Production Update which I suspect will be on deaf ears. The Ukraine has not been forgotten not the limited upside until the issues in the region are resolved. One suspects Putin's weather doll for a severe cold snap to improve his position has taken a vacation.
H&T Group PLC (HAT) Trading Statement is a positive, with some jitters in the market it should be seen as a positively for the Pawnbroker. With Albemarle & Bond (ABM), being the short and the competition across the sector being seen as a positive, HAT are in a position to acquire and grow from strength to strength. Net Debt down, an acknowledgement of need for a retail focus has started to reward them. There's a number of ways HAT could improve their margins, however that's for them to work out. It's a long not without risks, especially with welfare reform, something to consider for all higher cost lenders, albeit HAT do have the pledge. The downside is, with limited upside on the current SP save for a buyout (or extraordinary event) its not that appealing.
Some shipping watch showing the dire state of the industry for dry goods. Around $70m is at stake for Jinhui Shipping following protracted commercial disputes with Grand China Logistics (GCL) and Parakou Shipping. With losses racking up for Jinhui...
Atb Fraser
Fraser- Hi- another Friday another lunch out-- I can quite easily blame Rachael (the Monday to Thursday working wife) for leading me astray yet again... she doesn't seem to understand that the mkts (ie my work) are open on a Friday, albeit it is the quietest day of the week so normally not too disruptive (or costly).
ReplyDeleteStill back now and greeted by -
BLVN and the President signs the Etinde docs, so surely it cant go wrong for them now :-))...
and PFP--- 35% move again, that will pay for lunch but no obvious reason, apart from v low no of floating shares so a few buys will spike it. I have noted the lack of update via the Generals blog, which has normally been quick to comment on developments and pan PFPs angle, so perhaps talks have started. Its a strange situation as the accused have an 18% shareholding in PFP, so they will benefit if they lose their court cases against PFP. Probably not quite as much as if they won but I wouldn't take any bets on them winning through the courts, delaying matters seems to have been the tactic for the last year or so.
APF seems to be pushing the jam tomorrow story hard and pointing at RIO, their cash pile and the tidy dividend and this has won the day so far, but the crack are certainly showing so they will need to deliver on their promises (just as Tesco will have to do via their new approach).
Must go as another job has cropped up that needs a man.... probably uncorking another bottle :-))
Cheers. The Leggie
Evening Leggie, a few gins and early night for me (at my old age).
Deletehttp://www.investegate.co.uk/bowleven-plc--blvn-/rns/etinde-farm-out-update/201501091623348283B/ Bowleven indeed...Some other rumours about them acquiring some production floating about! As oil is my weak point (albeit after today I'm beginning to wonder), I'll await the masters running the news on that.
PFP illquid and easy to run!
Hope the wine was opened
Cheers F.