Will ignore the fact that
ICE Futures Europe are
to start
cocoa contracts in Euros from April and save it for
another day. One hopes
United Cacao (CHOC) will be aided by
this seeing as prices have fallen to the lows of 2010. With
chocolatiers (term
used loosely for some companies mentioning no names) committed to higher
prices, could
Cocoa have the
glut that Oil is
seeing today in 12 months? Buyers are totally absent from immediate physical
markets (cash). Price increases will obviously have to adjust to demand, thus
the consumer being the price dictator will dictate the supply chain. Amazingly
similar to coffee, with a drop in prices 24-27% pending supply. Who'd have
thought it...see my commentary on FTML in October 2014 for more detail on
coffee.
With
food pricing becoming more
transparent globally, one envisages consistent pricing with greater speculation during periods of uncertainty. This has not been the case, as evidenced by the spike in coffee last year, which was
unfounded (the short). We have
Tesco's informing us of their
trading update and plan of action. plus flogging Blinkbox and their Broadband Customers
to TalkTalk. Goodbye Divi...but its a lot better than the market thought! Later perhaps get some response from Duncan as he's been on the ball so far!
As a side thought to
TalkTalk, do parties join up to Tesco on price or because they don't want to be part of another network. One suspects customer loyalty was the primary focus...good luck with the margins there, albeit it would be interesting to see the acquisition costs
Caledonia Mining (CMCL) 2014 Production Update and 2015 Production Outlook does not bode well for the recovering SP with grade declines a poignant reminder of the issues facing miners on a day to day basis. Its disappointing the lack of commentary on how the recent oil price drops have impacted on CMCL energy costs and all in costs. The
un-interruptible power supply agreement must be under review in light of diesel costs coming down in
Zimbabwe. Is it time to review their needs and consider the stand-by generation costs once again seeing as they're paying a hefty premium for assured supply which still has interruptions (albeit the company perceive these as acceptable.) Hope/Jam placed on the
revised investment plan. It will be very surprising if
CMCL hit the same production as the year just gone...
Kenmare Resources (KMR) decide today's update should be related to the share price which is exactly where it should be in light of the risks associated with refinancing and
Iluka Resources determined and demand approach to their Due Diligence. One can only assume
Iluka Resources will know beyond doubt if
KMR is for them. With a significant amount of leverage again
Creditors (ransom),
Iluka may just be able to structure the deal so all
KMR holders debt or equity take a hair cut in the process. Not one for those whom like premium bond style investing.
The words
"potential default" should not be ignored in this RNS nor should the returns to shareholders when compared to associated board costs and remuneration. Clearly I should consider another career...perhaps at the Pru? If certain parties are reading, they'll be wise to think about my thoughts once again about
KMR. Forget told you so, parties would be wise to consider what justification there was in holding the stock with the outlook, the debt and management. You have been told.
Some cheer for
Victoria Oil & Gas (VOG) whom are now in receipt of the
$6.4m balance of $10.1m Cash Call Received from RSM. However there's gossip that as a result of Oil declining significantly certain parties wish to revisit their pricing contracts. Perhaps
VOG will update the market on this
if it's correct or clarify where possible the contract terms
. Obviously there's more to the price than just oil, security of supply, economic and environmental benefits, however at the end of the dead, one is always wise to consider there bottom line (the client). The risk is common-sense and should not just be ignored as unlikely...
Now as a frequent traveller on trains the intention of
thetrainline.com (I'm refusing to link) the
RNS cannot be ignored. The deal with
ATOC is viable, however one cannot help but wonder the replication of the APP and business now the value has been placed on the IPO. Those die hard IPO's of IT will be obviously queuing up, the shorts would be wise to wait post the steam and puff.
With rumours bouncing around regarding
Circle Oil (COP), the director changes cannot go without a mention over the past two days, with the
appointment of Susan Prior as Group Finance Director and
the appointment of Mssrs Antony Maris and David MacFarlane as Non-Executive Directors of the Company. Next door to
Gulfsands (GPX) whom are not without issues above and beyond the current global pricing crisis for the minnows, could we be seeing some more consolidation? With casualties starting to come thick and fast,
Europa Oil & Gas (EOG) states the obvious today
with an update. In the absence of any improvement in oil futures above circa 20% one has to question why you would hold any tiddler stocks save for higher risk take-out speculation nevermind the debt issues of certain companies!
With an unsurprising setback in
Sirius Minerals (SXX) application process things bobble along without too many issues. Phosphate prices will be further under pressure due to declines in food prices this will only benefit
SXX's marketing approach and offtake agreement process.
