Morning Mumble: Obviously Chinese et Al (the Samaritans Addition)

So the obvious in yesterday's news was China increasing fiscal spending with the title: China's fiscal revenue growth modest, expenditure surges. Thankfully, relaxing with Wine and Food, I didn’t run to exert my views upon the modest masses of my blog, I elected to consolidate my thought process. Unusually, this is a weighty blog today, as its necessary.

What was obvious was the assistance the Chinese Government has been forced to give to the Real Estate/Construction sectors, with monies spent on social housing increasing massively to 201.9 Billion Yuan for those with only the normal about of toes, that's around $32.51 billion or £19.51B. An increase of what looks like 29% on the previous comparative spending period. 

What the press have yet again missed is the earlier announcement only in Chinese (yes I spend my time in those pages as well) whereby Real Estate Transaction Taxation Revenues are down near 39% between January and June 2014. I wouldn't call it an exclusive, more reading the proper items rather than headlining. So Chinese Taxation Revenue is up around 8.5% which would account for the increase Fiscal Spending. More importantly, for China they're noting an increase in the decline of taxation revenues across the board, with the trend increasing from May onwards, albeit saved by the advancement of stimulus by a massive 30% in June.

Now the Chinese VAT revenues grew fastest in the most obvious spending areas, Transportation and modern services (IT et al) VAT revenue where it grew significantly, an increase of 187% and 88.9%, respectively. No surprises here for the Sherlock’s amongst us whom clearly realised China was adamant on Transport projects and development funds for new/modern services. However, what was unsurprising was….In terms of industries, in 19 major industries, general VAT revenue increased slightly, but the sharp decline in individual industries; Among them, coal, steel billets, wine, oil industry, VAT revenues fell 27.8%, 18%, 12.3%, 11.6%. The stimulus amazingly is equal to the loss in revenues from the above declining taxation revenue sectors. In essence, spending on other items, Housing, Transport albeit focused on a bias to Urban Development, with the Rural development being a poor cousin.

Apologies for the weightiness of the above, but what I’m trying to get at is, with the sectors declining that I have “been banging on about” save for Wine, which I drink sometimes to excess, this does not support the commodity prices at all. The analysis of creating stability in China is ironically also “on the basis” of China increasing (read as bringing forward capital projects/investments) which avoided the slump that was continuing from the first quarter of 2014. So for the leveraged fears, with the Local Governments (LGs) of China have been taking the burden of debt by following the Chinese Central Government Policy, one won’t be surprised to read significant increases in LG debt in December 2014.

The end of 2013 saw an unsurprising increase in LG debt, to around 17.7 trillion Yuan ($2.85tn), up near 70% on 2012. Nothing to worry about in terms of comparison to Japan and the like for affordability, assuming there was not between 20-40% wastage. This year has already seen an increase in spending by LG’s by a further 30% on the previous year. Unsurprisingly, LG spending/borrowing increased as the ‘economy’ slowed. LG debt is likely to come in at around 25.1 trillion Yuan (just over $4 trillion) for the full year. 

If this is the case, with revenues increasing at a more modest rates, one questions when the Government has to consolidate not only the LG debt but the economy. It’s now looking likely that the Growth is now ONLY achievable by yet further stimulus. This is likely to mean additional stimulus as well as bringing forward items already planned. China needs to “condition” the world to a slower rate of Growth. Cutting the slack and waste out, 4.2% looks more likely, albeit I doubt the Global Analysts will like this. So for commodities globally and expansion in to Africa, it doesn’t bode as well in the short and certainly not the mid-term.

Bibliography: 

China June fiscal spending jumps 26.1 percent year on year (Reuters)

Analysisof tax revenues in the first half 2014 (in Chinese)

China's fiscal revenue growth modest, expenditure surges (CNTV)

Ministry of Finance Chinese Searches about Growth.

Chinese Ministry of Finance (MoF) Traditional Chinese) (Non-English Site)

Strengthen fiscal expenditure budget execution management actively revitalize precipitation funds (inc Agricultural Spending).

LocalGovernment Debt (BBC)

Now on to the realities of the market…sheesh even I need a coffee. Try typing and thinking about that crap whilst trading.

My emails have been banging on about Sound Oil (SOU) for which there appears to be a significant change in prospects for the company. Allowing for time, I’ll try and gain more of a view over the weekend. There announcement today is positive for SOU on their Santa Maria Goretti ("SMG") gas prospect albeit it does feel about the money.

Caledonia Mining Crp Q2 2014 Production Update & Revised 2014 Guidance update  comes as no surprises and their guidance of 45K ounces looks likely to be missed as well, one should be wise to price in 43K ounces for the year. CMCL have had a nice appreciation in their SP recently, so expect some knee-jerking in the SP. The company is one of my favoured purely on dividend.  

Weatherly International’s Quarterly Update is a positive for the company dogged by various issues. With the figures and production costs looking to improve, I’d envisage a cash cost of sub $2.25/lb for the 2^nd Quarter of WTI’s financial year (albeit the end of the quarter). One can but hope, at the price, it’s certainly a punt. The company is funded through to first copper, which reduces some of the risks of the past, albeit it’s likely another £1m is needed surely not below 4 pence.

Rumour of the day is Mothercare have another suitor at 315 pence, this would not bode well for those still short on Mothercare, the shorts should have been closed on the results. Alas, this is not hindsight but common-sense.

Parties will note my PLUS500 short, the trading update (1st July)  did little to stem the flow of sellers albeit for myself, despite having a target price of 185 pence, the market may not, so am closing positions as it drops to lock in that ‘thing’ called profit.

Atb Fraser

Morning Mumble: the rise of the yellow stuff &...

If parties think back to the trade a few weeks back of near $3B in NY on gold, you'll note the pricing since with a consistent support and little arbitrage ability between the US & Asia. The likely tapering of QE within 3 months is providing some security to the gold bugs, with the continued pressures in the economy, one would be wise to consider greater exposure to gold. With a quick estimate that I now hold 1.5% of portfolio in gol,d time will tell if this is a shrewd move. The motivation was the safety investors need and demand for gold starting to increase. China's issues will promote the return to gold rather than the "silly" yields previously tempting investors including Coal Bonds etc...just have a look at the global industry of coal including the debt of Chinese coal companies. 

Speaking of which, Columbian coalworkers are looking at another strike. Mechanics at Colombia coal mines strike, could hit output is a ruse as most workers cannot afford a protracted strike due to the dire pay they already receive. People would be wise not to get excited about the coal price escalating with the over supply and various other issues including the pressure on pension companies not to hold coal stocks.

These Eco-warriors need to get a life, when an eco-warrior comes to me and informs me that they've not got a mobile phone and not got a flat screen TV etc...because of the massive ecological issues that the supply of metals/materials causes just in making their "favourite" items I'll perhaps listen. Then again, the benefits warrior's I observed in West-Sussex recently, whereby they've "cleverly" justified not working to protect the planet. Perhaps working and paying taxes would have more benefit to the world/country? 

With gold, save for a few companies that should be rated, I was thinking about Aureus Mining and today they had further confirmation of good news/good asset. However, I cannot motivate myself to buy, even with their recent fundraising at a premium to the current SP. The market is penalising companies because so many lost money previously. Today's AUE announcement on the Ndablama drilling is positive, ticking all the boxes but...what does the market do? Rewards the company with?! I'll perhaps get excited post the NI 43-101 Resource Estimate in Q4 14. Until then, I'll continue to monitor (with interest of a long). 

Today's news on Premier Oil (PMO) is exactly what the company / holders needed to stop the rot in the SP. Production well ahead, expect some revisions even on the sell side. PMO is a long-termers dream, pending time I will review in more depth once I've spoken with Indian Jones whom is allegedly work on something of interest. Surely not LGO?

There was some excitement in-light of the Shaft (SHFT) update today, its fair to say if one is holding this stock they can describe their investment by the addition of "ed" to the end of the company's EPIC.  This company's making or position is partially a result of being focused on certain areas/countries and the dire state of mining margins. I will save commenting on the issues regarding receivables and how to improve this post any draconian financing plan that doesn't look likely to leave much for many current holders. Suffice to say, save for some pillock in May 2012 sending me a disgusting email about what the "hell do I know about the industry" after my comments on ML, I still rate the company as a sell to ZERO. 

More later perhaps, including Cairn whom a friend has been working on the reasoning for the positive moves. Apologies for the lack of comms D, been busy Holidaying but keep them coming I'll get round to it in due course.

Food for thought for people is Petroneft (+), Mwana (+),  Minco (-) with a PEA out today on Woodstock Manganese Project  which assumes an IRR which isn't "too shabby" until those better informed realise it's how much above the current prices for the last 2+ years at an average of albeit  the DJ European Minor Metals shows prices nearer $1/lb for China delivery which is still below the PEA assumptions by 15% as a minimum as its FOB pricing. With such a imbalance in the realities would people be an investor save for some better news on other projects such as Buchans and North Pennine.

Atb Fraser

Morning Mumble: Victoria Oil & Gas, (e)Citement & Centamin Egypt (CEY), PVR

Today's update by Victoria Oil & Gas (VOG) on the Gas Supply & Operations Update. It never ceases to amaze me why there are such delays and why they aren't pointed out immediately. So VOG are producing 4 scuffs (mmscf/d) a day. Its better than I envisaged, it's not where they were meant to be, depending on which forecasts/target's you read. VOG, have now had experience of operating in Cameroon for how long? Yet there appears to be an incapability to forecast an accurate level of production, parts or activity.

For the company it's a positive they've contracted the pipe laying and trenching out on a fixed priced contract. It would be wise of the company to monitor the quality of this work as its well-known in certain countries to mean quality/workmanship is at the lower end of achievement levels. If there is an issue with the work at a later date, there will only be certain people to blame if QA isn't part of the contract/due diligence. Ian can regale people with his "fixed priced" house build a few years back, which was "quality second to none!"

Hopefully parties can feel my despondence with the management here, history has demonstrated their activities/decisions based on their achievements. The Wouri River crossing is delayed with commissioning and engineers not likely to start until "next" week. The rest of the RNS is "about evaluating this, exploring that and considering this. The disappointment for VOG is that it strangely sounds like the past. 

VOG could learn a thing or two about Investor Relations, for which they clearly haven't learnt from the past. If they do wish to contact me to discuss this, I'll endeavour to be chirpy and upbeat! However from a financial perspective, save for any extraordinary costs, VOG are now near as damn it at break-even for cashflow by my calculations. For those wondering why I hold, sometimes the assets are better than the management. The company still has a lot to learn about the market and perhaps if VOG get an experienced AIM'er involved they'd actually benefit. So, for the time being I continue to hold, how the market takes today's news is anyone's guess, it's a positive but muted RNS's with significant amounts of jam, its more than likely to tank as parties realise VOG is further away than they realised (again).

In the interest of balance, and unusal for me, the video for VOG which doesn't put the main issues to VOG that have caused the slide in the SP and the 'error's todate. Save of course for mentioning they have been over-confident.



 

Centamin Egypt Q2 Preliminary Production Results come in very positive. Egypt is going through a period of change and as such, its unlikely for there to be any subsidies and a "greater" commercial market for operations. The benefit for holders (excluding the geopolitical issues) is CEY is very profitable even allowing for no subsidies. 

CEY, assuming parties know that NH4NO3 (Ammonium Nitrate) can be used as an explosive and not to fertilise Sukari, are applying/discussing with the Government to increase the use of NH4NO3 to expand open pit mining. 

With the Stage 4 plant expansion on track, albeit reduced grades below ground, its likely save for any further legal issues and disagreements on explosives, that CEY will maintain 420K ounces per annum. The 450K target is a positive in the management ambitions but one can't help but wonder if its achievable.  Any dividend news is very unlikely until the 'legal' issues have been cleared away. With more clarity CEY's likely to get rerated...for the long-term investors what more could one want? Save for a dividend which won't be far away! Target Price now looking, as stability comes to the region and the legal threats being dealt with of a minimum of eighty pence (80p). 

To the (e)xcitement of XEL, the Directors have put their hands in their pockets for 78,000 shares. One would have got even more excited had the Chairman Mr Timothy S. Jones not flipped 25% of his options to cover their costs albeit is forgiven as I think his salary was around £45K last year...(willing to be corrected). Can XEL surprise us all before the end of quarter.

No time sadly for Providence Resources (PVR) albeit the news of delays doesn't bode well for the SP, in addition to a potential "large" seller there as well. (D if you wish to post the link). 

For those interested in the social elements, last night involved an amazing curry assisted with a 'polite' amount of alcohol haha.

Atb Fraser

Name will be changing to http://erraticmarketcoverage.blogspot.co.uk/

To make it more appropriate rather than focused on Churchill Mining, the name will be changing to www.erraticmarketcoverage.blogspot.co.uk/

This is rather than "changing it immediately" like a numpty that I was...

Atb Fraser

Morning Mumble: Amara Mining (AMA) who are they speaking to...& phwoar!

Further encouraging drill results update for Yaoure Drilling Results aren't actually that exciting, but it would appear they're sending out the right messages via Morse code. Now, forget the speculation for Amara (AMA) / Yaoure project and look at the facts and that's without fine tuning the Yaoure's prospects. It hits the criteria for all the big boys and perhaps one company with some Sovereign Wealth links looking to acquire and get into gold. 

With Randgold's and all other producers needing to acquire projects that produce significant higher returns they're left with either their higher cost projects (stripping out costs) or acquisitions to substantiate their valuation. At 22 pence, there's not much upside now but with a potential 50% return in weeks/months its better than 99% of the crap out there, even if AMA were to go it alone, surely financing at a small discount is possible? Albeit this is very unlikely...

Staying with all things precious, Petropavlovsk Plc (POG's) Statement regarding Share Price Movement sounds more like Mork calling Orson (read as Awesome). The share price is weak because the company is in dire straits. Save for the obvious movement in gold POG won't be paying anything soon to shareholders unless a curve ball appears. However more importantly, POG need to contact their BONDholders. Perhaps one would be wise to entitle an RNS, calling all bottom draw bond holders to root through their "long-termers" to contact POG. So a statement regarding share price movements isn't like to get the desired response...or am I being petty. 

Now here's some "irony" for those long suffering folk at Kenmare Resources plc : the Q2 2014 Production Report. So when running through the debt laden, underachievers performance KMR holders can take comfort in the fact that the company is clearly in negotiations still with Iluka Resources Limited ("Iluka"). 

In applying common-sense (shocking on AIM) why has KMR organised temporary power? You're thinking the grid in Mozambique cannot handle the power demands for the seasonal increase in December-February. Well actually that's perfectly correct. However neither can KMR handle producing through the months of December-February as they have sufficient stocks to sell through this period as of this update, KMR have 177,900 tonnes in stock. They actually have such significant stockpiles they can merely sell their stock and avoid the additional power commitments. So by the next update, if all things remain equal by Q3, they'll have near 217Kt's of stock sufficient for more than a quarter's sales.

Notwithstanding the true realities of the market for titanium feedstocks, and the assertions that KMR will benefit from the Pigment Industry restocking from the overstocked levels of 2012. One hopes that they can achieve a better price for the company before the half year results on the 27th August 2014, where the dreaded D word (Debt) will have to be mentioned (whispered) and the true realities of the company become live again. Its my view, that the pigment industry is restocking with a better approach than their knee-jerk reactions of 2012 that caused a spike and crash. So over to Iluka, whom are well-managed to consider a further offer, anything above 20 pence wouldn't be a positive for Iluka. Its over to the man at the Pru to see the realities and hammer out a deal pre-half year results.

Caledonia Mining (CMCL) declared its 3rd quarterly dividend. The yield is around 6% today, which isn't to be sniffed at. As a cursory reminder for those looking at decent aim companies (not without political or geo risks) the company is well-managed, has around £15m in cash post divi payments and no debt. The realities of their production are an all-in cost (which includes the investment in expansion projects) US$1,109 per ounce, which isn't to be sniffed at all. The risks are, with rumours increasing of a further acquisition, one hopes this is in cash rather than the issuance of shares! Perhaps in due course we'll hear about this "potential" company changer CMCL are sniffing at in Zambia and Namibia. We shall hold our breath and dream of spending the dividend...

Perhaps the longs on Copper would be wise to consider Freeport says draft MoU agreed but not signed, no export timeframe. Yes the New Government may have issues with the MoU, however its more than likely any processed metals will be allowed to be exported 'with conditions' by any new Government as common-sense sets in. The Smelter Bonds appear to be the way forward for Indonesia....finally someone whom hasn't a full lobotomy.

Sadly no time to cover, AO., Greggs, Monitise or Just Eat. For those following Markets Live the prudent discussion I had regarding Monitise about the risks and the share price have been realised in today's trading statement . However I will be sending AO. a thank you card for paying for my latest purchase!

Now for the hater's amongst the market, some of my work around (formally) Smiths News Group now known has Connect Group has been wasted due to the early than I had envisaged deterioration! It was my intention to get stuck into shorting Connect Group, whether the time has been missed I'm not sure, however today's update doesn't bode well for the holders... Connect Group Plc Interim Management Statement my initial research was looking at a target price of around 84 pence...I'll review it in due course with a fuller picture upon the end of my Holidays. 

Leggie, having just seen your post on VOG, its perhaps noted there was a switch play between LGO (Leni Oil & Gas) and Victoria Oil & Gas. Please note neither of them I am holding because of the management. Bowleven, I wholeheartedly agree...

Oops the blog name will be changing to http://erraticmarketcoverage.blogspot.co.uk/

Atb Fraser (slightly ropey).

Morning Mumble: Extremely early addition + hopefully it makes sense...

This morning finds me in Scotland with a potential hangover and our daughter deciding its much too exciting to be staying in bed and wanting to play with our hosts. So with the Queen of Curiosity coaxing the entire house to wake up at stupid o'clock there perhaps beckons a pub visit with siesta before the night time events!

Last night we were discussing amongst other things, China, and it dawned on me...when I was working through China's issues and their flow money, the wastage may have an exponential impact on the economics when the over production is dealt with. China is attempting to share the burden of expansion and growth the with the West with the kind offering to finance China's railways and the like. So in the absence of a more realistic growth expectation and more commercial terms of business, China's head for a train wreck within 3-4 years.

It dawned on me reading the FT and seeing Gowex going bankrupt and all sorts of shenanigans coming to ahead there. It was a lucky miss for two individuals whom wanted to invest there and couldn't decide on a valuation/entry price. It was not so long ago that whilst going to France four of us were discussing the over-valuation of IT and Tech firms and Gowex came up. My muted response to IT is normal, I see companies like that as trading opportunities, not long-term investments and often short. It would explain why I made paltry amounts on MSOFT and APPLE, but I've also missed a bucket load of failures as well.

For some reason the appetite outside of America for Tech/IT companies is either Uber-bullish/bearish and very little middle road. Irrespective of the companies offerings online, big data etc...there is an apparent lack of understanding and a general over-expectation of performance. The analyst notes for ASOS, Ocado, Supergroup, Boohoo etc....clearly have been under pressure since being penned with revisions, this includes Bagir Group a more recent IPO. The herd clearly can't think for themselves and are considered contrarian if they are realistic or its viewed as being negative for the sake of, amazingly very similar to the contrarian definition. 

So for those looking at investments, try my view, negative from the start and if it passes the test of being negative you're more than likely getting to a decent long case. As Leggie rightly pointed out it's been a good run for Hurricane, Victoria Oil & Gas and QFI (Quadrise Fuels). The latter surprising me as not dropping further and a few% above when I sold. I needed more clarity on the future for Quadrise to warrant holding, as such, I sold I believe at 34p. Post holidays I'll review it properly...Maersk appear happy! Half Year Update on Active Programmes for QFI covers it much better than I.

Disappointment for Faroe Petroleum (FPM) today with Butch South West exploration well results coming in with a a contradictory "good quality reservoir" but no hydrocarbons. So time to look at getting Butch into play, expect some selling as people no doubt had over-expectations. 

SXX (Sirius Minerals) (why they don't change their name to York Potash I'll never known...look to be making headway. York Potash Project approvals - status update clearly showing the LA (Local Authority) and the Company are progressing in the right manner. Will first production in 2018 be too far away for most? Leggie, your longer term ethos will no doubt pay wisely, if SXX are allowed to go it on their own. 

Finally, AAL looking a little more positive with their Lafarge Tarmac deal raising £885m. If they could find someone to pay them for their "unloved" assets AAL would be more positive. The company knows this and apparently are working hard on this. If rumours are correct, AAL can hope to wave goodbye to Anglo American Platinum shortly!

Other gossip is BLT/BHP's takeover of BG, I have always maintained this is the best marriage and most affordable of all possibilities for BG Group. Off piste and questioning the reasoning is an all share offer for London Mining by African Minerals. After the most recent update, it wouldn't be complimentary, in fact I don't think it would be earnings enhancing unless an expansion to their concentrator could benefit LOND as well?

Atb Fraser (considering a nap)

Morning Mumble: Rounding Up the Week + Hiatus +++Stupidity

What a week for the markets. America's Non-Farm Payrolls (something I'll never get right) coming in better than expected. So America, save for a few billion spent is near enough back in the same spot pre-crisis in terms of employment. Their Debt however I don't think ever will be lower, for me that would be an issue...I dislike over-leverage it gives a false market and America is certainly starting to see the signs of that. So with the avoidance of pain, America's deficit might be met sometime after I'm pushing up daisies.

 

I was in the smoke on Monday for a few meetings before officially being on holiday. My latest enterprise is leaseback financing for the construction industry. It’s something that I noticed awhile back in terms of the difficulty they are having in financing even essential and low risk projects. In addition, it was to discuss a buy out of a firm that provides 'business management solutions.' Pending any deal in the near future I'll update further. It was a pleasure to pop into one of my old haunts, Montpeliano ( SW7). It's Italian, one of those places you get what you pay for. Its been run by the same folks for a number of years, 5 mins from Harrods/Tube and the like but off the beaten track in terms of damn tourists and plonkers. Unless you like it hot, avoid the chilli pasta (regrettable mistake a few years back). Anyway, enough of ‘the eats’ as Ian calls it, whom is still lacking a post on LGO Vs. MOG. Is he hope I’ll forgot?

 

Wednesday came with myself attending CampAlpha via bot, it was a strange affair albeit with some phone and a pleasure to chat to a few folks. I wish to thank Sarah for rearranging her top in my “mirror” ha-ha…it was most shocking to pop back with a coffee to realise…what was staring me in the face. Hell of an ice-breaker!

 

I did take some notes on the CampAlpha Chinese discussion. What is concerning is, the consensus is so broad or disagreeing. They, with the utmost respect, appear to be hedging their bets, in terms of how the Chinese economy is doing and growing. Whilst I was sat there listening, it occurred to me, that if “Chinese” surplus (what was called waste) is growing and also their economy, if you strip out the 25-40% waste, a real terms growth of around 4.8% (max) is achievable in China. This will become more apparent over time.

It was a pleasure to speak to a few chaps from a well-known major whom not only read my garb (as one called it) but assumed I was negative on China, as in declining. I’m negative in terms of the realities happening, not on their growth (currently), however my view is in within 3 years the Growth will be near to Zero. If one strips out stimuli from the Government (which is slowly happening but they aren’t telling “us"). 

There’s too many mistakes still happening in China and the transfer of wealth to the people is warped only by the Government intervention and protection. So expect more coverage and perhaps some criminal proceedings in regard to commodities being leveraged on a multiple level. Speaking to Xin (friend on the ground in China) he’s of the view around 20% of base metals could be leveraged multiple times. What Atarashi called Ghost Lending / Leveraging…The discounted inferior ores are being supported as China has realised they can’t just shut the doors of the polluters without a plan. Save of course if they do an Indonesia Re: Unprocessed Ores.

Staying with Iron Ore, it would appear that Africa Minerals is on the news flow front. Most people are starting to get sceptical, aka what are they up to. It may come RNS'ing the type of coffee they have in the morning! What is concerning is they have reduced their capex on the concentrator by $1B. Yes I’m not joking when I say that, whomever was in charge of the calculator on the original estimates perhaps needs a few European Computer Driving Lessons! African Minerals Ltd Phase 2 Concentrator Engineering Study Results are stupendous, with a muted reaction on the market. Reducing capex out as far as 2020. With margins based on their ‘study’ improving near 33% as a minimum it begs the question why they’re not falling over themselves to get this completed ASAP. However, lets see if my figure of $381M for the concentrator will be closer than there’s, I’m allowing 13% over-run not in that price. For that reason, I’ve taken the unusual decision of going long on AMI! This won’t be the bottom, but I suspect near it. There’s plenty of time to increase exposure, so I’d not be putting the house. Sadly, it means one of my predictable LOND/AMI trades will be lost as AMI gets rerated. Not one broker that I have read has realised the 18$/t bottom line improvement by spending a meet $388.

 

Currently with the Holiday season upon me/us, posts will be limited. There’s so much I wish to discuss as well, including the changes at PCI (Petroceltic) the future for Providence Resources. Perhaps Amara (AMA)will surprise us as well, with alleged discussions taking place with Randgold. As you know I'm long there. For those out there screaming about the positives of Worldview, one would be wise to check the share price of Ruspetro before getting too excited. Its getting concerning that my longs are up to 32% of portfolio. This is entirely unacceptable…!

My stupidity is:whilst at CampAlpha I was politely informed shorters are scum and they should be outlawed. Having asked why that is, as its making a market and you have to buy to short, sell to long etc...the chaps reply was...they should ban selling! There we have it folks, ban shorters, ban longs and ban selling stocks. 

 

Have a very good weekend. Atb Fraser

Will post pending time holiday commitments.