Good Morning, for those that had Easter off or celebrated just the fact its the weekend pending on country location, I trust you're frefreshed for the slot through until the end of May. For quite some time now, I've reduced my trading activity coming into May, normally focussing on around 8 stocks instead of the wider coverage.
Iofina came through with the news that should have been factored in as an element of risk by shareholders. Iofina PLC Production Update 23rd April 2014 if you read through the numbers and market expectations there was no way the production could be maintained at the previous guidance, nevermind no mention of sales. However one can pull apart the RNS today to show that there have been limited sales on any front if "cash is limited to £2.3M." Their stock levels must be around $37M so, I'm curious how a production unit can remain profitable if the sales are not being concluded.
Don't get me wrong, I had high hopes for Iofina but at the peek any one that didn't take some off the table needs a chat with themselves. This isn't to rub it in, but what more was one expecting in the short/medium or long-term. Alas the cash conservation starts today, which is a positive in some regards as they're not increasing their stock levels. One wonders if you're building inventory and not selling why one would be producing? Perhaps its too many things I do not understand. So the bulls will be citing the time is right to top up...they aren't far off however the risks are increasing and the cash requirements are also likely to need replenishing sooner, I suspect within 4 months, maybe 6 months. One wonders whether it'll be "an open offer" to keep all parties happy.
So Chinese Data is consistently deteriorating in manufacturing, I'll enclose the Reuters link so people can drool at the Rover 25 I think it was known as over here being manufactured. So if we stick with the facts, the Chinese Government wants a more realistic economy, allowing 'specific' defaults and buy 'assets' from companies to assist with them meeting their obligations/liabilities. They're also made clear statements about "not increasing any stimulus." So consider that based on the data and "slow down" coming out of China, reflected in part by the commodities prices, the Chinese are heading towards stimulus or slow down, take your pick. I'd personally be better on the former as they've yet again managed to amass yet higher foreign currency reserved, nearing $4B. People ask how? Yet they're always on the look out for the cheaper price...so manufacturing goes East with the Currency.
Going wider to Miners, Anglo would be wise to up their efforts to get shot of the platinum 'assets'...
Will complete when I have time, but would be wise to consider the issues with Highland Gold including the main shareholder.
Fraser- Hi- Ive been otherwise engaged today- IOF have indeed stumbled from one fine mess to another and you would have thought that they could have updated the market much earlier given the issue highlighted today. Given that Iofina Chemical is doing well, how will it be affected if their prod drops from the expected 700/1,000t to just 400t in 2014?? Could be too early for a knife catch if they cant get their act together and their past record is starting to look v unreliable.
ReplyDeleteRe Anglo- Any sign of an vendor for their platinum assets? That would be a brave call, given the strike and cost of prod but perhaps they would be at or near to the bottom of the mkt as Anglo seem to be over a barrel :-))
Cheers. The Leggie