Morning Mumble: Stuffed &...blind hope (CRND)

The Ironveld placing today should be congratulated for getting a placing away anywhere near 7 pence. Having been short on the company there's potential for a good headwind on the company, it wasn't worth 20 pence a share and it the current form its not worth 7 pence in my view. 

The company's offtake agreement is key and rumour from South Africa (SA) is that its progressing well with two interested parties. Peter Cox is very experienced in mining to a significant degree, Having met the chap a few years back in a meeting and in the brief conversation knows his stuff. Time will tell, but its certainly under review, perhaps it should have been at 5 pence but I rarely review items when closing shorts . The brokers should be put on the naughty step for not showing the market the difference between Pig Iron and Iron Ore, perhaps that's harsh but not when the company has such a stale shareholder register. (Please note the term).

The NED's decisions to take their fees in shares is somewhat ironic, one would normally consider this to be a positive. There is also an exception that can be met whereby the fees are paid pro rate in arrears each month which would remove the issues relating to closed periods, that's one for the NOMAD/Brokers. So lets see if my thinking is correct that the shares will be issued at "low periods". Call me sceptical, but there is no reason why a monthly plan of allocation cannot be agreed which removes all the issues and makes the risks equal with share holders. 

Yesterday saw my email box ranting on about Central Rand (CRND) so it was wise to ignore it, apologies. Its wise when taking a view to try and find out what's going on. So after a couple of phone calls  there's a real risk I will be eating my words of a "no deal" for CRND. The  Memorandum of Understanding with the Third company Shengbang Jiabo (Beijing) Consulting Company Limited should be looked at more closely, in fact the associated parties with companies.

We'll leave it there for now, but having been told off for laughing when it was mentioned that there's a real possibility of a deal for circa $82M it might be wise to pay attention. For me CRND is an avoid, the risks of profiting long do not outweigh the material downside. Surely all parties could save money and have one due diligence and all chip in some small change. Wonders will never cease...

It was disappointing to see that the lead in FTFirst wasn't the Vale eyes $14bn base metals spin-off Samantha Pearson in São Paulo. There's been an obvious need for cash and either ramp up or mothballing of some Vale operations for some time in light of the tank. Vale also have another option that was not mentioned about a well-known company acquiring a 50% interest in the Nickel Assets...over to the Chinese on that one. If one wasn't so sceptical they'd assume the PR by Murilo Ferreira was not to force someones hand. The comedy being what does Vale want to use the Nickel Cash for? Iron Ore ramp up! Diversification or what!?!?

For  Just Eat (JE.) , one must feel truly stuffed having bought any stock at 320 pence. Perhaps they'll be dining out on the story for years to come! Sorry for the puns, but consider the sale with the utmost scepticism. Thankfully the sell side with have some rump to tuck into and a third course of shorts ordered. That's some multiple, for the trigger happy, it might be wise to wait a little longer.

Overnight it was delightfully pointed out that Atlas Iron has turned and the end is no longer with a certain contingent hoping I eat BEEP BEEP when the price hits BEEP BEEP $1 (AUS one assumes). Unless I'm mistaken Atlas Iron's share price is circa AU$0.17...that's a hell of a turnaround! Get in there you longs you've thrown the gauntlet down at $2, $1 but there might be hope for you at $0.17! There's always time for AGO.

With volumes coming back in to Gold & Silver it could just be what the market needed to stabilise it i.e. no vote, negative Chinese figures and the inflationary issues globally, or should I say, deflationary! Over to the EU for some QE. Gold has performed very will in light of the strength in the dollar and weakness in oil, surprisingly so. 

No time for FTML due to commitments...one would welcome a statement by Vodafone about a discussion with Sky. Rumour has it there's some more Chinese Property shares needing a home, get your lovely equity now or lower later! Gossip on Firestone Diamonds at the moment with a potential suitor but if I'm honest, its more than likely to be around 3-4 buy recommendations coming through over the past few days. My final thought goes to what does the oil price mean for a leveraged oil stock...

Where's that frock I must dash! Any emails will have to be delayed its been exceptionally busy so don't expect any immediate response. 

Atb Fraser