Friday, 5 June 2015

Morning Mumble: Iofina (IOF), what next for the company, Vodafone (VOD) and congratulations GLEN Corrr (well-done).

Good Morning,

Having had some high risk binary money on the water permit outcome with a high probability of success assumed, this morning was the time to close the position at a loss circa 11%. Iofina's "hopes" to diversify from an industry where prices have crashed akin to Iron Ore. 

Iofina's balance sheet including the circa £4m cash should last them a few months (9) if prices do not recover or costs significantly reduce. As pointed out EMC: IOF, Finncap may have to go cap in hand. Remembering that EBITDA does not necessarily mean operational profits (EMC: IOF May). Whether the management appeal now is irrespective, there's a psychological cementing of poor performance in the stock, expect weakness. We'll ignore the confidence exuded in respect of obtaining the water permits that was a binary bet. 

For those following the Vodafone debacle with Liberty, there will no doubt be an immense amount of copy and paste on the deal. VOD confirms that it is in the early stages of discussions with Liberty Global regarding a possible exchange of selected assets between the two companies. Fees all round, but more importantly, Vodafone have taken a sensible route instead of some denial there offering will remain attractive despite the entire market place changing! Finally a viable company...

Congratulation to Glencore today, whom managed to obtain £1.3837 or U$D2.1208 a share in its managed share sale of 3,983,350. They have obtained significantly more than anyone should have paid, LMI operationally need cash, they may have lending head-room but the facts remain, PGM prices are low, their costs are not. 

Limited time for a horse or 10! 

Atb Fraser 

More later? after meetings.

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