Friday 4 April 2014

Morning Mumble Par Deux: the lack of news & financing.

Well it would appear the juniors are finally looking at cost savings. Medusa has been plagued with issues and as such the delisting won't help the stock in the short-term either. Intended Delisting and Cancellation of Securities from the London Stock Exchange on the 22 May 2014 . I wonder how the placees from October 2013 feel after the successful completion of placement and increase in size to a $34 million? Well the price will be under pressure till then for parties that don't want to convert their holdings into Aussie Dollars. Albeit not at a bad price/exchange rate.

Kromek Group PLC New Contract Signed in Medical Imaging Market seems they're getting on with the future revenues despite market reactions. Leggie, I note you commentary and only came across KMK when it tanked and hit lows last week. The company's revenues are far from transparent with the announcement on the 28 March 2014 with a trading statement that is significantly below forecasts. As such today will provide support for the stock based on the headline figures. The Tech is quite exciting and its clear companies are starting to view it/rate it, a shame the management were perhaps less bullish on IPO'ing in October 2013. Over-expectation is a recipe for disaster. 

Going back to solar wafers and the commentary about Pure Wafer, the recent director sale should be noted & as such despite reducing significantly higher I am now selling all. Whatever the garb when a director sells it should be acknowledged.

Could someone advise if its an over-expectation that Vedanta apparently ignore most market communication needs. Having heard from a third party, Vedanta appear to have not thought to advise the market of a significant change in guidance for their Western Cluster Mine. Perhaps common-sense prevails they're seeing slack in the market and as such don't really want to be expanding to 20+Million Tonnes by 2017? With capex at $2B they'd be wise to delay nevermind the logistic issues. Are the issues are unimportant to the market if one has to rely on the Washington Post: Billionaire Agarwal Said to Cut Iron Ore Project in Liberia Rajesh Kumar Singh and Abhishek Shanker Apr 04, 2014 for corporate news. More importantly, wouldn't this make the previous buys a related party transaction during a closed period? Seeing as the news is errrr....so recently after buys. Not to worry, I am sure there's only 5% out there with any interest in VED in the UK. So as expected the stock ticks up, totally immaterial to the market and the company.

Continuing with the theme of no corporate news, yesterday at lunch Reuters reports that Glencore are cutting their debt costs: Glencore Xstrata to cut loan costs with $15 bln refinancing-sources One would assume the differential 2.5B$ will be coming from the Las Bambas post April 5th, it's either shortly after the UK Tax year, never or post Swiss December 31st Y/E. Obviously its so insignificant, we'll hear about the cost saving after the event. 

Plenty of phosphate deals coming through, is the bottom in sight? With the Chinese Deals giving some views of future demand, it could be in for a very slow ride up. I wonder if Kier Group will benefit from Mosaic's news? Hmmm

A thought for the knife catchers: Is the slide on RusPetro over with the results: Preliminary Unaudited Results for the Year Ended 31 December 2013 Hmmm one can't help but wonder with the end of the interest deferrment coming to an end, is there enough left over for Shareholder Returns? Yet another company with Siberian (Russian) Assets. For me, the results are a point to close shorts and await some form of consolidation...is it likely? Finance is key and the ability to repay it is slightly significance. 

Atb Fraser

3 comments:

  1. Fraser- lots of ground covered as usual.

    Re MML- Well costs have been cut by delisting on LSE but at what cost? They have pointed to low volumes of LSE trade but I wonder what % of holders are in the UK v Australia. I will hold, as my brokers can deal with Australian listings but I doubt that may of the UK brokers do, which will put an overhang over the price until 22/5/14. I may add around this time, as the sales in the UK will have to come by this date and so a possible opportunity will arise here. The institutions wont care- its the smaller holders that get kicked around as usual.

    Re VED- its very true that RNSs are kept to a minimum here, as Mr Agarwal seems to add most weeks he probably doesn't want too many closed periods. :-)) Seriously though perhaps VED would be better as a private company and maybe this will be the result in a year or so.

    Cheers. The Leggie

    ReplyDelete
  2. Fraser- just saw this and I thought of you....
    http://www.investegate.co.uk/gulf-keystone-petrol--gkp-/rns/fixed-income-investor-meetings/201404041631051356E/
    I wondered what you were up to today, and have you told Ian that he will be buying these junk bonds and warrants yet ???

    Have a great weekend. Cheers. The Leggie

    ReplyDelete
  3. Leggie, I doubt i'd be there :-) Bonds and Warrants, I wonder what the total cost is!?!?! Hope you had a good one! Atb Fraser

    ReplyDelete