Morning Mumble: Kingfisher (KGF), GKP (Part 2) and....SLP + CMCL via ANTO

Good Morning, 

Kingfisher's "ONE" is now to a point of being unworkable. Any expansion for B&Q is capped, with Screwfix LFL sales increases hindering the 'one kingfisher' B&Q's turn around. Simply put, KGF cannot continue without closing stores and expanding the Argos DIY model we know as Screwfix. 

With FX issues, and European woes the market will, for a perverse reason, like the store closures and yet another grand plan. Blah blah, customer needs etc...If one gets the product offering correct, avoids competing against its own margins, and expands the model, it is simple. The market will embrace the cash return and go in denial of a growth impaired model, incapable of identifying an acquisition and resorting to a cash returns.

EMC's KGF analysis wasn't far off the pace from earlier this month. What is worth considering is whether Kingfisher's operations devalue Screwfix or vice versa. Would open competition via a separate listing be more beneficial? Margins, all under pressure, many thanks Screwfix, forcing B&Q into higher promotional activity. 

GKP raised US$40,693,235 / £27,488,000 via the placement of 85,900,000 shares at 32 pence with Simon Murray leaving.  With a caveat of significant gossip and a lot of it being BS, it’s been suggested this morning that Mr Murray is leaving due to a potential conflict of interest. Surely this would have been disclosed?!?! With one company disposing of property assets and being alleged to be on the hunt for petroleum 'opportunities', time will tell whether it’s anything to do with GKP. 

News on Sylvania Platinum (SLP), with  "future" management options, another  broker change, and a Grasvally update. The chrome license is historic, notoriously difficult to work with but apparently this overcome with 'small and shallow pit type operations. One day the market might be informed who owned the Grasvally license prior to SLP? 

The broker at the time of the ' Grasvally deal' didn't seem to want to answer this question. Despite the managements' assertions of all is well, the lack of share price movement is starting to test the patience of those long-term investors, even those willing to trade the stock! Perhaps holders should watch the SLP space. 

With AIM also becoming tired with Chinese companies leaving the investors disappointed, Aquatic Foods Group (AFG) revisits the positives in a statement in the hope of over-coming a disinterest in their stock. Simply put, one doesn't envy the position of the broker of any Chinese related entity in the current environment.

Limited time for Caledonia Mining (CMCL), the results do not read positively and investors will hug the potential expansion. With a shrewd analyst picking up the complexity of assessing any shareholder returns (at the moment), it would be wise to not buy in to the potential. Unusually the EMC doesn't have a long or short view, but there are whiffs of potential. (Apologies for the art weaknesses). Simply put CMCL's taxation and returns should have been better, especially allowing for FX benefits. 

The no news award goes to Antofagasta (ANTO), what is not said is more telling for the Copper producer! Going out of favour with the market in terms of growth and "potential" ANTO's management are under pressure. 

Atb Fraser

Relating to an earlier question, T5 Oil & Gas Strategy.