||EPS - Basic
||Market Cap (m)
Real-Time news about Commoditrade (London Stock Exchange): 0 recent articles
|dean382: I have been looking into Commoditrade (soon to be Mentum) after the company was brought to my attention from an article saying there might be a possible buyout for 4.5p a share, (which came from a newspaper so I really don't pay any attention to that) but having done some research on the company I am now considering buying in as it looks like it could possibly be a good buy at this price (3p) IMO.
I am very aware that this is not a popular company with many as the share price has collapse from it's high of over 50p a share in 2007 and also the a lack of any information coming out of the company of late, but having said that if there is nothing to report there is nothing to report.
Looking at the accounts the company dose seem to be able to make good profits when trading conditions are normal £16.7mn in 2007 on turnover of £33mn (obviously before the markets all crashed) which I thought looked very promising, but I am presuming they got hit by the global down turn the same as everyone else and at the time where doing the restructuring of the company due to buying (AMCO Fund Management in 2008-09) installing a new state of the art trading platform (which I presume would not be cheap) as well as changing to new premises, so I presume that was some of the reasons they put in such a large loss 2008-2009.
It's no secret that commodity trading collapse in 2008-2009 as can be easily seen by the collapse in the base metal prices across the globe so I don't think it's any surprise they made losses during this period with everything going on although the losses are rather eye wateringly large to say the least (2009) US$(14.7) million (2008: US$(40.9) million), however there dose seem to be some positive regarding Commoditrade going forward as they still seem to have reasonable revenues streams generating - US$20.1 million 2009 and US$31.1 million 2008 and with the renegotiation of the contracts with Sucden Financial ltd which they have done giving a much better rate for trades, less shares in issue after they did a share buy back program of 50mn shares in 2009 a new state of the art trading platform which they have now installed plus they seem to have more revenue streams planed for later this year (as yet to be seen or announced!) so personally I think things are looking far more promising this year and looks to me like they are now well positioned to make a good recovery and possibly even starting to show some profits throughout 2010-2011.
The loss they had for the last six month of 2009 was $US2.4mn compared to $US12.3 for the first halve so things do seem to be improving fast and if they can get back to normal trading conditions this year they might look like a good buy at this price IMO, bearing in mind the market cap for this company is only £9.73mn as of today and after all that's going on with the company and the markets ect they still have no dept (as of April this year) which is at least one good thing and I also thought the last RNS on 30th April 2010 sounded very positive going forward with a return to profit expected this year, but this is just the way I read it and I could be way off the mark here and would very much appreciate any feed back or views regarding this company.
I also noticed that the AGM was held in Switzerland!!!!!! On the 27th May and was a bit surprised by that and would be very interested to know if anyone actually went?
Lastly like many on here I would like to see more information coming from the company even if it's just to say hi we are still here!! Plus it would be nice to see some decent director's buys to show the market that the management think there is value in the company and TBH I am a bit surprised that they have not already. (I am not sure when they can and can't buy with the half yearly report expected on or around the 24th September 2010 plus the reported possible take over), although my thoughts are that 4.5p is far to cheap and I would not imagine the management entertaining that sort of offer if they are in fact now making profits, all IMO.
|truffle: Fair enough, but all I am saying is that there is no evidence of either.
As a sour long in this stock I would like nothing more than to see the share price rise, but am looking for substantiated evidence, and can't see that yet.
Anyway, hope you are right.
We'll have to wait and see.|
|kooba: bit more info on fund management side
Commoditrade to Open Asset Management Unit to Outside Investors
February 23, 2010, 2:40 AM EST
Feb. 23 (Bloomberg) -- Commoditrade Inc., a London-listed investment firm, rebranded its wholly owned asset-management unit as Mentum LLP and will open to outside investors as of March 1.
Mentum was previously known as AMCO Commodities LLP and was bought by Grand Cayman-based Commoditrade a year ago. Mentum starts with internal funds of $20 million, handled by five portfolio managers, Keiron Mathias, one of them, said in an interview in London yesterday.
Unlike hedge-fund firm AMCO, Mentum will look after money in so-called managed accounts. Three of the managers trade the six primary metals listed on the London Metal Exchange and two handle energy derivatives on ICE Futures Europe and the New York Mercantile Exchange. The managers include Chris Adams, a former head of the industrial-metals floor trading team at Sucden Financial Ltd.
The AMCO fund returned 21 percent from its May 2006 inception through February 2009, when it was acquired by Commoditrade, Mathias said. Assets under management at the time of the purchase were $100 million, he added.
Bluecrest Capital Management Ltd. holds 27 percent in Commoditrade, whose share price has declined 35 percent in the past 12 months, taking market capitalization to 10.8 million pounds ($16.7 million).
--Editors: John Deane, Stuart Wallace.|
|truffle: The results may be somewhat better than they seem at first glance.
A closer look at the results suggest that some of the old, exceptional problems have been cleared out.
The cash position is positive, there is no debt, and the company is positioning itself in other potential income areas which could bring benefits in time.
The CEO was granted options earlier in the year which clearly give him every reason to improve trading results, and thereby the share price.|
|truffle: We've seen a 35-40% rise in the share price in the past 2 days, which is quite encouraging.
Let's hope the trading performance has improved to justify the rise and will be reflected in the next set of figures due next month.|
|amelio: Agreed. Some decent articles on the business over the past few months but nothing to reflect that in share price.
Will continue to hold modest amount.|
|truffle: I imagine on balance that the company is probably doing quite well, and the recent share options granted to the CEO were a good sign, but still a pity this increased activity is not being fully reflected in the share price just yet.|
|mo mentum: | Number of shares under option | Share price |
| 1,000,000 | 5 pence |
| 2,500,000 | 10 pence |
| 3,000,000 | 20 pence |
| 3,500,000 | 30 pence |
| 3,500,000 | 40 pence |
| 2,500,000 | 50 pence |
|bubface: Since the company started buying its own shares for cancellation, in November, it has piled into over 30 million of them!
Commoditrade is an investment company that is building a business specialising in commodities trading. Commoditrade was launched on AIM in March 2005, raising £515,000 before expenses - so how is it doing now? As a business, Commoditrade seems to be doing fine, with two cash generative acquisitions now beavering away. However, the company's share price has been caught up in the general climate of nervousness and has been drifting since June. Now this is an interesting situation! Commoditrade operates in what is conventionally thought of as a risky business commodities trading. However, this emerging era of ever-increasing commodity prices and increased market volatility is bread and butter to commodities traders! So the company, with its metals focused commodities investment team, metal floor traders and black box trading systems working for it, seems to be doing very nicely ...plus, there are none of the new class of high risk assets on its books - slews of mortgages!
Commoditrade completed its first acquisition (a reverse takeover) in April 2006, buying seventy five per cent of the net revenue stream of the largest trading team on the London Metal Exchange for £24.4 million (plus costs) in cash and shares. This was achieved by acquiring an interest in a UK based commodities trading company (Sucden UK Ltd) and as this interest was bought from 'The Tambelan Company', the company refers to it as 'the 'Tambelan interest'. This gave Commoditrade a major revenue stream from trading in non-ferrous metals in London, and also from trading copper, gold and silver via the New York Commodity Exchange.
Gross profits attributable to the Tambelan interest in the twelve-month period up to the end of December 2005, were £7.1 million. In the eight-month period from the acquisition to the end of December 2006, the profit from Commoditrade's Tambelan interest amounted to £13.41 million before tax and amortisation the Tambelan acquisition is to be amortised over three years. The profit attributable to the Tambelan interest before taxation and after amortisation, in this eight month period, was £5.92 million about £8.88 million on an annualised basis.
The London Metal Exchange (LME) has been around for over 100 years and is the leading non-ferrous metals market. It offers futures and options contracts for aluminium, copper, nickel, tin, zinc and lead, and also contracts for polypropylene and polyethylene. Trading on the LME is conducted transparently, creating a feedback loop that helps market participants 'discover' how the market anticipates a particular material will be priced in the future. This helps industry to plan ahead, and LME prices are used by industry for this purpose throughout the world. The LME is a global market, with an international membership, turning over about $40 billion per day.
The LME is a "principal-to-principal market" which means that "member firms" can trade directly using its facilities. There are various categories of member firms ranging from "Ring Dealing Members" (Category One) - member firms who trade in twice-a-day live, face-to-face ring trading sessions - down to "Associate Trade Members" (Category Five) who are the direct clients of other LME member firms. So I hear you asking, "in which category of firm does Commoditrade have an interest?" Well, Sucden is one of only eleven LME "Masters of the Universe" Category One firms!
In August 2006, Commoditrade acquired another seventy five per cent interest; this time in the net profits of AMCO Commodities Asset Management. AMCO is a commodities investment management company, regulated by the FSA, which manages the AMCO Commodities Fund. This fund is focused on trading opportunities across the range of base metals such as changes in price direction, relative values, arbitrage and changes in the volatility of futures markets. By the end of December 2006 the fund was worth £59.5 million. Commoditrade paid £0.5 million in cash with 5,000,000 new shares at a price of 17.75 pence per for the AMCO interest. The fund has a goal of raising its value to US$500 million within three years of starting out.
So with these two acquisitions, these Commoditrade dudes are now trading some serious metal - and plan to trade some very serious metal!
So who are the folks behind Commoditrade? Chairman, Christopher Adams, is the head LME trader for Sucden on the London Metal Exchange. He has spent about twenty years in the commodities industry and most of his working life at Sucden. He has also held down jobs at other commodity trading houses, including Billiton Enthoven Metals Broker. He has traded for fifteen years and held managerial positions for ten. In 2005 he co-founded AMCO and held an initial fifty per cent interest. Executive Chairman, Graham Butt, is a director of Fulcrum Administration LLC (based in Dubai) and he is also a director of Corvus Capital - which holds 21.1% of Commoditrade's equity. He is an expert in the formation and use of trusts, and a former director of the Castle Trust Co. During his career he has spent time investing funds for high net worth clients. Non-Executive Directors, Joanna Barrett and Geoffrey David Conway-Henderson, are also directors of Corvus Capital, and both are experienced in the ways of the finance industry and money markets.
The most recently released interim results, to June 30th 2007 - compared with interims to June 30th 2006 - showed gross revenue up 71% to £15.2 million. Profit before tax (after amortisation, issue of management share options and corporate overhead costs) was £3.5 million. During this period the company secured the services of key members of the LME trading team for a minimum period of three years, re-negotiated its contract with Sucden - which will lead to cost savings from May 2008 - and upped its holdings in LME shares, entitling the company to Category One "Ring Dealing Members" membership of the LME.
So what has happened since June? Well there have been thirty-two announcements by the company. Eleven announcements deal with holdings in the company and the most significant of these is probably Ambeson Ltd, an overseas management company trust registered in the Virgin Islands, which piled into 23.3% of Commoditrade's equity in December. Fifteen announcements reported share buybacks by the company. So, while the share price has drifted lower the company has continued to trade, talk deals (one fell though in December - so no trading in oil, bananas or plywood yet) and pile into its own shares for cancellation! Since the company started buying its own shares for cancellation, in November, it has piled into over 30 million of them!
Graham Butt, CEO, recently told the market that the company still has a strong balance sheet and the share buyback programme does not alter any of the company's investment plans indeed, in late November the company reported had it had about £19 million in the bank and no debt. So, when Commoditrade's results to 31st December come out, I think I'll be having a look at them. A company that seems to be a thriving cash cow with a shrinking equity base and a drifting share price? This can't go on forever ...
from proactive investor jan 2008
it's a good recap in terms of what commoditrade is.
also looked up mob below which looks interesting
In short and brief, bollinger bands were developed by John Bollinger (see his website bollingerbands.com) a time back. They measure standard deviations of the share movement over a period which in simple terms shows up as 2 lines either side of the share price on a graph. As of themselves they have very little predictive value but used in conjunction with other measures can help determine share price movement (ie educated guess). When the lines are tight to the share price this implies that there had been a period of low volatility, which usually/can break with a large share price movement.
Look at the CMM bollingers and you will see that they are getting tighter togther (press charts when on this page and take a short time scale). This implies to me that there is likely to be a decent move in the share price Which direction? Well Bollingers do not help on this by themselves. I have noted how the MACD has gone down while the share price has stayed the same which implies strength in the share price so I believe up(I actually believe that it's being managed in CMM's case now).
Please note that I am not a TA expert in any way and I came to CMM on the fundamentals. I only use TA for timing.
I hope this helps, and please anyone else please feel to comment/add/correct my errors!|
Commoditrade share price data is direct from the London Stock Exchange