Hameldon Res Share Discussion Threads

[ivor hunch] 12/11/2010 14:55

English, I accept that much of what you say is correct and that the case for investing is not very logical on the surface. However, I am assuming that the directors will not sit back having made the odd investment, but raise money and make strategic investments in early-stage projects. Certainly Malcolm Burne's experience and knowledge from his days at Ambrian and Golden Prospect are second to none, and I imagine he will want to make some significant investments. I agree that Jim Mellon's recent track record is far from brilliant. I did very well with Speymill - bought at 5p and sold on average at 82p - but since then it has crashed. I looked at EML quite seriously but couldn't bring myself to buy it.
I have bought directly into gold mines, most successfully into VGM, but I feel that I know very little about them and VGM was good luck rather than good judgment. So I am hoping that HRE will prove interesting.
That said, I've only bought 100,000 shares representing about 0.3% the value of my total portfolio (which is almost entirely in oil and energy shares)
Ivor

[englishbeakfast] 12/11/2010 12:40

Ivor

What am I missing here if anything ? Why would anyone invest ?

Jim Mellon's EML hasn't produced the stellar returns that he indicated would happen. Now EML appears to be just another trading company.

If HRE are investing up to £43,000 in various companies that isn't going to majorly impact on the share price of the companies in question. If you are attracted to their investments then why not just invest in the company yourself, rather than through HRE while paying directors' salaries which will erode your profits ?

The company website has little to say apart from that they are registered in the Cayman Islands and investors may have less protection because of this !

Please let me know if I am missing anything.

[englishbeakfast] 12/11/2010 12:40

Ivor

What am I missing here if anything ? Why would anyone invest ?

Jim Mellon's EML hasn't produced the stellar returns that he indicated would happen. Now EML appears to be just another trading company.

If HRE are investing up to £43,000 in various companies that isn't going to majorly impact on the share price of the companies in question. If you are attracted to their investments then why not just invest in the company yourself, rather than through HRE while paying directors' salaries which will erode your profits ?

The company website has little to say apart from that they are registered in the Cayman Islands and investors may have less protection because of this !

Please let me know if I am missing anything.

[ivor hunch] 11/11/2010 10:08

I bought in this morning, on the basis that it's a good idea to follow those who have made you money in the past. I did well with Jim Mellon's Speymill (although I got out at the top before the share price collapsed with the property share price fall in 2008) and with Malcolm Burne' Ambrian Capital (the company has never really performed since he left). So rather like following Tom Cross into PMG and Alan Burns into BPC, I took a modest holding in HRE.
As far as I can see the company is capitalised at £1.6 million which seems low. It also seems to be below most PI's radars at the moment.
I would appreciate any comments.
Ivor

[andrbea] 07/11/2010 12:35

We continue to have faith in gold and silver and as such maintain a heft weighting of Medusa, Angel Mining and as of last week Hameldon Resources (soon to become Athol Au). And you should watch this space for our next investment in this area! The argument for the precious metals against paper currencies (notably the US dollar) is stronger than ever. Indeed we believe that the mid-term drubbing of Obama and his Democrats (predicted here) will only accelerate the process of QE in the US which will, in turn, accelerate the slide of the dollar.


Monthly Smaller companies Growth Fund Newsletter
Issue 27 - November 2010

[4johnb] 03/11/2010 10:58

The RNS is positive in many ways. It answers the question about why only £500k was raised (that was the limit of the director's mandate) and it shows where the new group is going. The current share price, regardless of the premium, is not a reflection of the underlying rationale and in my view is a buy, which is why I have decided to carefully invest. Once more capital is raised the NAV will change, as will the upside possibility. A nice addition to AIM's offerings. I note some of the other concerns, and therefore, given the micro cap nature of the stock, I will be careful to manage my exposure to relatively small levels.

[21richyrich] 02/11/2010 19:15

all valid points above, saw the RNS saying TM appointed and considered buying 8am but spread was .40 - .60 and thought all bozzys arguments very valid and therefore ignored... the following day share price jumped and could have sold above 1p, even now can sell at .70p so still would have been a marginally profitable trade..

[atlantic1953] 01/11/2010 19:00

Bozzy you make valid points.

I was just trying to say that there were circumstances where hre could still go up in value despite its inflated current value.

[bozzy_s] 01/11/2010 17:53

But Atlantic, wouldn't investors be better off investing directly in the gold companies themselves, for 1/7th of the price of investing in them via HRE?

I'd have thought an annual subscription to TIPS (I am NOT suggesting this by the way) would probably reveal the majority of HRE's investments. And indeed I'd have thought the details would have to be made public at some point eg announcement of final results.

So when the investments are revealed, let's put a hypothetical situation forward. HRE has 10 x £40k stakes in companies A - J.

HRE has a diluted market cap of £2.8m. So buying HRE today as an investment tool in companies A - J would not be a viable option. You'd have to pay the equivilent of £280k for £40k of investments.

Quite simply, at this incredibly high premium to NAV, it would be a better choice to try and work out who HRE has invested in, and take a punt that way. Or wait for full disclosure of their investments, and buy directly into the said companies yourself. That way you'd 'only' pay £40k for £40k of investments, and you'd keep all the future profits instead of being charged 25%.

[atlantic1953] 30/10/2010 10:46

Just to add another perspective.
Yes the shares do seem ludicrously overvalued , based on bookies post the fully diluted value is a multiple of 7x net asset.
Yes tw and his fund will do very well out of this.

Howeverif gold goes ballistic and we ever enter a kind of dot com equivalent mania stage then gold juniors will rocket.I Understand that in the last gold frenzy 1981 ish some juniors went up by a multiple of 70.

in january 2009 you could have bought mml for 38p.

I am not a holder and this is not a stock for me but it could still prove to be a winner.

[chrissey] 29/10/2010 16:49

like hailing a cab, getting charged the fare as well as putting new tyres on and filling the gas tank!

[chrissey] 28/10/2010 19:37

I agree Bookie, this is casino mentality at its worst and whether the pi gets a good deal or not, TW and his bussies have given themselves a nice cushion.

King Canute comes to mind, nice gold connection too!

[bookiebuster] 28/10/2010 14:02

So...

10 equity investments of £40k, presumably same companies as in the t1ps gold fund

The loan used to buy these will convert to hundreds of millions of 0.25p shares, taking the diluted market cap here to £2.8m. Which is around 7 times overvalued.

and t1ps get paid 25% of any rise in NAV as a fee, paid in 0.25p shares which will dilute HRE holders even further

A dogs dinner of an investment proposition. SELL.

[argy2] 28/10/2010 11:29

Don't know but they will need to do very well to justify recent hike in the share price.

[2magpies] 28/10/2010 11:27

So,which ones has he put the dosh into?

[andrbea] 28/10/2010 11:21

can't understand investing such small amounts of cash eg 30000 quid.

why, this 'company', and its level of investment, are no more than a private punter?

why didn't they raise 3m instead of 500k, then it might have had some 'wellie' to it.

The venture at this level of investment is not really company-making IMO

[seagreen] 27/10/2010 13:17

Think the share should be suspended for the bare nerve of the man his company has its own gold fund what on earth does he think he is playing at the amount of cash is neither one thing or another

[argy2] 27/10/2010 09:10

No but he cleverly placed loan notes rather than placing shares to create an initial hiatus as pump'n dumpers piled in and now look to be taking their turns. That helps his creation of an illusion of grandeur as small investors worry they have missed the boat. Sad.

[atlantic1953] 27/10/2010 09:01

You have to pay tom 25% of inceased net asset value as i understand it.
As this is going to be a golden prospect type of investment rather than a shell company, i would envisage a substantial period of time as asset value increases.

Unless of course they can exchange their paper which i don't think is the case.

[4johnb] 27/10/2010 00:08

Bookie, is the real issue not the premium to nav, but the fact that the loan note will actually be converted, and that the performance of NAV is effectively the reason why a stock will be traded ? I don't know how accessible most retail investors find t1ps funds, but I have been watching this story unfold, and I don't see this as a dump/pump trade. I am not yet convinced its a buy either, but I cant imagine that the placement announced today is the end of the story. Rather it surely is the start. £500k is just not worth the effort. Sorry if I am missing the point here, but I thought I would jump in.

[andrbea] 26/10/2010 19:14

ok bookiebuster

maybe you're right.

as for 'stake players' in other companies...

other plays like rrr with worthwile stakes in real asset companies is a preferable bet, I concede, for someone's (large) investment.