Good Morning,
Following on from the EMC February comments on DFS Furniture (DFS), today we are
informed (with no surprise) the management and owners of DFS are running for
the door selling around 25% of the company. Advent will still hold
between 50-55.9% of the company, so those realists will be wise to
remember the rules of illiquid stocks at least until the stabilisation facility
has been finished!
With Li Keqiang (and as such the Chinese Government)
acknowledging the downward pressure on the Chinese economy
intensifying. China have finally utilised the over-capacity and pollution to
justify the closure of the mills. It’s positive for the Chinese as they're
openly stating iron ore demand is reducing and there is currently over-capacity
in steel mills even with the closures. With the extended trading hours on
the DCE (Dalian Commodity Exchange), the price reacted very positively (for
the shorts), dropping 3%.
We should initiate the Atlas Iron share price watch again,
with those holders knowing full well the bounce at Christmas was the time to
get out! Only 10% ish off its lows, the holders can fill mailboxes with the
abuse despite knowing the realities. Of course it has nothing to do with cost
of production and the supplied market. We'll ignore the facts of Russia exports
being enticing for India on the back of their currency debacle. As Russia
languishes in a mire of contemplation and ignorance, what better time for military exercises (FT). Often children find comfort
in playing with their toys after being on the naughty step....
With both WTI and Brent sat on levels of support, one
assumes the bulls will return with the ECB printing presses, at least on Brent,
whilst WTI focuses on shipping America to Asia to meet demand. Later today I
hope to catch up with a shipping chap about the current health of rates and
demand. Will update in due course, the delay surely cannot be on the basis it’s
his turn to pay (not that one is counting having paid for the last 4!)
Premier Oil (PMO) are getting busy with the drill bit, so
the fanfare will no doubt be out for Rockhopper (RKH) over the next few weeks.
Wasn't Zebedee a child's spring type character well before my time? RKH Zebedee announcement.
APR Energy, by sheer fluke being short on technicals alone, APR
Energy aided EMC et al with a market update. Time to press that button on APR, with
a trading update/market update not the best timing with discussions with
their banking syndicate in full flow. Its pleasing to see a
number of positions utilise yesterday's spike to sell near break-even, how
prudent to sell positions.
One would be wise to consider how much cash APR banking syndicates will expect shareholders to stump up. That alleged offer late last year isn’t looking so speculative and
cheeky now is it! The EMC Christmas Card list is bordering on the who
do we not send them to.
Limited time to cover GLIF’ s investment, in Open Energy Group, and the dull performance
of Inspired Capital (INSC) not to be confused for those fat fingers with
Inspirit Energy (INSP). Both a longer-term hold since circa 2013/2014.
Atb Fraser
No comments required on Afren (AFR) due to the obvious there. The quote of the day goes to one fund manager with, "whoops."
Fraser- Its Friday so I will leave the mkt to take care of itself and entertain the other half, a nice lunch beckons (again you say, no doubt).
ReplyDeleteRe AFR- It did make my laugh when an "investor" (perhaps from the Miss Piggy and Kermit school) said he had half his money in WRN and half in AFR, so he did have a diversified portfolio.... and the WRN profits would pay for... you guessed "a yacht" whilst the AFR profits would pay for.... a Ferrari :-))) Im not sure if Matchbox still do Ferrari models, but he was quite adamant that he was right and on the verge of becoming a v rich man.... perhaps he is a v v v rich man now, that's all I can think :-))
Re SLE- not in here, but San Leon Energy, one of the few remaining Polish gas prospectors seem to have a nice find there (nice flow but limited info re quantities) and so their share price drops a further 6%--- the only problem with a non duster is the capex that will be needed could be the mkts thoughts today. A bit unfair on longs, so may have to dig out my notes here when the lunch is over... could be a weekend job for me.
Have a great weekend all!
Cheers. The Leggie