Anglo Asian Mining Share Discussion Threads

[polaris] 23/4/2020 11:36

The spread is definitely a barrier to trading as well as for new short, medium and long-term entrants.

The 5 k (£50 pp) I banked here last week and reallocated the 75 % margin to positions in CEY and HUM has paid off and some position auto-close targets hit for CEY this morning. That 100 % return on margin in less than 2 weeks, never to be sniffed at when spreading risk.

In the same time, AAZ has just expanded the spread from 125-130 to 120-130. As i said at the time, successful SBing is about allocation of margin. Some of my AAZ positions were just not value for margin employed. £900 margin for every £10 pp above £600 pp cf. £280 margin per £10 pp at CEY. I banked a few here to pick up a lot more elsewhere.

Targets for long positions in AAZ remain in the 220-240 region, given current pog. I'll revisit that if gold breaks higher. It's just the timescale that hasn't gone to plan here so far. That's a lot of margin that i cannot employ elsewhere, while the market finally realises the cash machine that AAZ is today.

[lefrene] 23/4/2020 11:30

Walter Walcarpets, I have found plenty of references to him thanks, an uber bear, always of interest to see how others think this mess is going to pan out. Interesting to see that he thinks the US dollar will strengthen due to there being so much dollar debt owed by businesses outside the USA. He is also a fan of Bitcoin, which I find an artificial construct unless they back it with gold.

so not a pun on wall to wall carpets! I too used to be the 'helpful' type, it took me a long time to realise that my fellow bipeds saw this as a weakness to be exploited.

[walter walcarpets] 23/4/2020 11:17

lefrene: unfortunately you would have to sign up for twitter :-( tag is because in the past I've let people walk all over me :-)

[lefrene] 23/4/2020 11:07

Thank you Walter Walcarpets, I hadn't heard of him. I hope I don't have to sign up to Twitter to access it? I guess there's a slow start that then becomes exponential, although with something like 30% of the workforce now employed by government, the collapse in tax income will lead very quickly to large scale money printing. The 'cure' for this bug is going to cost way more lives than the bug itself.

I guess the carpet business is as dead as most other things at the moment? I'm guessing from your tag, that's your area of bread and butter?

With gold looking quite firm at $1725 this morning I'd have thought that worth a good 5p off the AAZ price :¬)

[walter walcarpets] 23/4/2020 10:57

lefrene: funny you use the word "unfolding" There is a great piece by Raoul Pal on twitter called exactly that - the unfolding. 120 page (mostly charts) FREE document - all you have to do is supply an email address. He is co-founder of Realvision and advises major hedge funds. I recommend it highly.

[lefrene] 23/4/2020 10:48

WW, no most people fortunately seem to have no idea what is unfolding. I say 'fortunately' because I fear what might happen if they knew that the Weimar re-enactment society was just about to put on a show for them.

[riggerbeautz] 23/4/2020 10:35

Kicking King this is the guy that interviewed Chamath



He’s also had the likes Ray Dalio, Rich Dad, Poor Dad Robert Kiyosaki and Raoul Pal who is interesting, Peter Schiff too. Some good people get interviewed, clearly a new one for my radar.

[supercity] 23/4/2020 10:11

We know it's going to happen.Surely it can't not happen.With so many awful shares rising at ridiculous percentages we sit here with gold about to burst to year highs and roll our eyes in disbelief that AAZ (an extremely undervalued dividend paying gold miner) is still 120-130p.Positive thinking - it can't be too far away before it heads towards 200p surely.

[riggerbeautz] 23/4/2020 10:05

Mf I find it odd, I always test the bid/ask of stocks I hold before doing either, seems an obvious thing to do before loading up or disposing?

[riggerbeautz] 23/4/2020 10:04

Well that depends if you get fixated on the bid price and keep checking or looking lol.

[mad foetus] 23/4/2020 10:03

That's true but I know a lot of serious investors who won't buy if the quoted spread is more than 2-3%. If the spread was 2p the volume would be much higher that's for sure

[wanobi] 23/4/2020 10:01

indeed Rb, I guess when you have a very large holding the seemingly low bid puts a big imaginary dent on your total value which I'm guessing can be a bit frustrating to see all the time :-) Cheers Wan :-)

[riggerbeautz] 23/4/2020 09:56

Just browsed the main AAZ thread and some debating the spread being 10p, find it a false conversation because it’s artificial in many cases if you just want small beer top ups of say 10,000 shares the actual spread is about 3p when I checked.

[wanobi] 23/4/2020 09:51

many thanx KS, much appreciated review on both,,, cheers Wan :-)

JSE is a monster in the making and as you say, this oil situation may well throw up some wonderful opportunities for them... fingers crossed...

CNG - thanks, yep, agreed, I can see the risk and it's my gold punt money there, although quite a lot of it now LOL....

enjoy your day KS

Cheers
Wan :-)

[kickingking] 23/4/2020 09:51

My mistake buy was £385 kg.

[kickingking] 23/4/2020 09:50

Morning all. Did anyone get any cheap silver the other day. I managed another 5.5kg at £350 kg. Silver is historically too low against gold. Ratio at 112 silver Oz to 1 gold Oz. Average should be about 60-80. Gold will have to come down, which I doubt or silver will have to rise, more likely.

[mattjos] 23/4/2020 09:49

124.6 v 128.75 for 10k either way … 10k available on exchange in the auction at 125

[riggerbeautz] 23/4/2020 09:47

Just a top up for a SIPP from some spare profits. My SIPP and ISA’s for myself and family are totally overloaded with AAZ because of lack of other U.K stocks I fancy and wishing to not be overloaded with cash; it’s an odd balance for me.

Although JAN is having another nice run up too, just don’t mention it much.

[king suarez] 23/4/2020 09:46

Morning Wan/all,

Yes, fantastic numbers at JSE as expected (by me at least) - I have said that they should be heading towards £1bn+ market cap in an ordinary (oil) market and these results demonstrate why - huge cash flow delivered and plenty of net cash in the bank.

I am pleased to see the company can be operating cash flow neutral at $20 per barrel Brent - we know they get a premium to that so I would have liked clarification on whether PB meant $20 as a sales price (inc expected premiums) or not.

Will maybe have a dig into the numbers later, but there will be another 5 months of excellent cash flow until the hedging unwinds and then have to see where oil is then - also will be interesting to see how much they can reduce the cost per barrel of the recent Maari aquisition. It is a shame that the infill drilling has been delayed, but it makes strategic sense to do so for the long-term to get the most return on the CAPEX. JSE will have quite a war chest to go shopping with should any bargains be up for sale, which you would expect to be the case in this environment?

For CNG - I have taken a cursory look and agree it looks v cheap based on the fundamentals. I have not chosen to invest though, as I have reservations about the size of the debt and what that means for shareholders with most of the debt being due to the major shareholder(?) - I am just concerned there may be some debt for equity swap or something of that nature that benefits the major holder and shafts the private shareholders - this is just conjecture on my part and hope it ends well, but I have enough alternative gold investments (POG, SRB, ALTN). I feel more confident/safer with AAZ and the like, but the potential rewards could be higher for CNG. I have my 'gold punt money' in ALTN, which is doing well currently, but suffers from lack of news. Good luck!

[jbravo2] 23/4/2020 09:45

Yes the spread hasn’t recovered from the crash.
CFEQ and WNTS both used to operate with a spread at 7p or better. Now they’ve moved to 10p with the rest we often find this situation.
Volume is poor when it happens.

[mattjos] 23/4/2020 09:42

Gold new highs today in EUR & GBP

[mad foetus] 23/4/2020 09:42

The spread is a huge problem. Nobody wants to buy a share to be 8% down straight away. It creates huge inertia

[jbravo2] 23/4/2020 09:36

Yeah a forlorn hope there mf
We’re relying on...
Results.
Divi.
More JORC.
New mine.
As it seems the plain old economics of our revenue, our profit and our cash pile are just ignored.
It’s back to being as baffling now as it was at 5p. It’s just that daft.