Cape Eu-eur Discussion Threads

[maty] 28/1/2010 16:54

I love it when a company changes its name

!!!!!

[garry14] 10/1/2010 11:54

yeah it time to sellb

[smartcommuter] 03/12/2009 16:17

does anyone know whats going on with this one, it seems to be losing a lot!?

[mickieblue] 26/10/2009 15:40

Horrid spread.

[gimme sunshine] 26/10/2009 14:28

They don't like u buying these do they. Took me 25 mins to get 100k

[longfish] 26/10/2009 13:16

good though!

[kindlm] 26/10/2009 11:08

why this up

[maty] 14/10/2009 13:46

any news..not sure if this bad news or a shake?

[mickieblue] 29/9/2009 09:09

this is getting boring but not selling

[topinfo] 20/9/2009 10:26

Have heard takeover may be on the cards here. However even without any takeover this looks very cheap indeed given pick up in diamond demand.


Diamonds begin to sparkle again
Signs of stabilisation in the market are cause for cheer


By Garry White
Published: 7:10PM BST 19 Sep 2009
Jewellery is one of the first sectors into recession and one of the last to leave

'Archaeologists tell us that humans have been wearing jewellery for at least 50,000 years to denote wealth and their position in the community. The recession of 2008-09 isn't going to derail 50,000 years of cultural affinity."

The diamond industry might be mired in the toughest downturn in living memory, but Ken Gassman is upbeat.

The former Wall Street analyst and founder of the Jewelry Industry Research Institute in Virginia is convinced that the diamond market will recover – he is just not sure that they should uncork the champagne in Hatton Garden just yet.

Gassman is well placed to comment – Americans are the nationality to talk to when you consider the diamond industry. About half of all global diamond sales take place in the US, making it by far the most important diamond market.

So, as companies including Rio Tinto begin to reopen diamond mines and speculation grows that the industry is on the point of a renaissance, experts are looking to the US for any signs of recovery.

Many of the signs are far from encouraging. US unemployment may not peak until 2011 and home foreclosures are not expected to peak until late 2010. Against that backdrop, it is difficult to see the market bouncing back any time soon.

"We may well be at the bottom," Mr Gassman says, "but we haven't turned. Polished diamond prices have been flat since April. Producers have tried to raise prices since then, but to no avail."

That implies that the small positive signs that can be seen in the diamond market are signs of stabilisation at best. But, after the most torrid year the industry has seen for decades, the fact the market is stable is significant cause for cheer.

One important thing to remember about the jewellery industry is that, because of the discretionary nature of the spending and high ticket prices, it is one of the first sectors to enter a recession. It is also one of the last sectors to leave, so polished diamond process could be flat for some time.

But there is no question that diamond industry players expect the market to recover – and the green shoots are promising enough for miners to prepare for that day.

Last week, Rio Tinto said it would restart expansion work at its Argyle diamond mine in Western Australia in the second half of next year. Kevin McLeish, Rio's chief operating officer, said that underground production at Argyle, the world's largest single producer of diamonds, should start in 2013.

Meanwhile, at De Beers, the mood is also upbeat. "There is no doubt in our mind that the diamond market bottomed in the first quarter of this year," says Stephen Lussier, a spokesman for the South African company. "The second-quarter saw the beginning of a recovery in sales."

This trend can be seen in De Beers' interim numbers, with total sales of $400m (£246m) in the first quarter rising to $1.31bn in the second quarter.

Conditions in the first quarter were truly grim – De Beers slashed production by 91pc, cut 23pc of its workforce, and was forced to borrow $500m from its shareholders just to keep going.

However, improving market conditions mean the diamond giant expects to ramp up production at its mines in the second half of the year, to 70pc of the level seen in 2008. Mr Lussier said that sales in Asia had virtually recovered, but the key US market was still significantly slower. "The recovery is expected to be steady, but protracted," he said.

Other companies to announce a restart of operations in the last few weeks include Russia's Alrosa, which went back to full production on September 1, and US diamond giant Harry Winston which said last Wednesday that it planned to cancel a winter shutdown at its Diavik mine in Canada.

Harry Winston's second-quarter results also showed that the market may have passed its nadir. Its July rough diamond sales realised prices a full 50pc higher than those seen in March, as the diamond pipeline regained its poise after the near collapse of the previous six months. However, its retail business remained unprofitable during the quarter, although the number of transactions rose.

"It is the large ticket sales that are being missed during this period as the world struggles to find its economic feet again," Robert Gannicott, its chief executive said.

It is clear that the positive signs of recovery in the rough diamond market have not filtered through to the important polished diamond market as yet. This implies there is some way to go before consumer demand picks up – a view shared by legendary investor Warren Buffett.

Berkshire Hathaway, his investment vehicle, owns jewellery retailer Ben Bridge in the US. It has closed three stores already this year and Mr Buffett recently told Bridge employees not to expect a rapid turnaround.

"We are deeply in this [recession] and it's going to take a long time to get out of it," Mr Buffett told executives at a recent Bridge lunch. Berkshire also owns Helzberg Diamonds Shops, which has shed 19 stores so far, bringing its total to 233. It is clear that the market is still suffering.

However, for those concerned that the diamond market is going to stay in the doldrums forever, Mr Gassman is reassuring: "Historically, Americans revert to their prior shopping patterns after a recession. And one fact is irrefutable: Americans are born to spend."

When they dig deep once again, the diamond market will sparkle once more.

[maty] 11/6/2009 08:46

looks like something might be happening again, possible refinancing, looks way too good the assetts in my humble opinion, also diamonds are a good way to keep money for inflation i suspect

[outsourcer] 14/5/2009 15:52

the spreaad is way too big as well

[qfh] 14/5/2009 14:38

dilly4.. worth a punt?..well check out jan statement..3 months money remaining with little chance of raising further funds.. administration a real possibility...we are 5 months down the line now..I would be delighted to be proved wrong.

[chesty1] 14/5/2009 12:30

Thats one big spike...Hope nobody got caught on it.

[dilly4] 14/5/2009 12:23

Don't usally invest in this type of share! surely a good punt for a couple of hundred long term?any ideas how low this will go?

[aim gambler] 01/5/2009 18:29

left a limit sell of 6p on td waterhouse, 50,000 + 40,000 last night. just got home and could not believe my eyes...both sold at 8.5p, thought last night it was going down and wanted to get out fast. best luck i have had.

[traidemark] 01/5/2009 17:29

canny, im not saying it will happen but im suprised it has not, the company usually do so under pressure from the market.

so i can only assume the market is not struggling for stock, an incredible rise of late, it has to come back at some point though ... or does it.

[canny lass] 01/5/2009 15:19

traideMark,

I hope not.

I did think the share price was going to drop significantly today, but it seems to be holding.

The last hour of Friday trading might prove a problem though.

[traidemark] 01/5/2009 15:05

i know what is coming, either today or tuesday

"the board have noted the recent increase in the sp, but know of no reason currently why this is justified"

[joemillion] 01/5/2009 14:56

I was saying up again! Good time to top up?

[traidemark] 01/5/2009 12:27

sellers, have a look at HAWK .... currently waiting on news of partial sale.