Emmerson Share Discussion Threads

[shavian] 08/8/2011 11:44

My small purchase last week looking a bit short-sighted, so may average down if it goes much below 2p. Trouble is, so many bargains about, especially among the junior goldies.

[skyship] 01/8/2011 11:43

Hi Vosene. From my perspective you pretty much answered your own question. EML is a lower capitalised, pure play on a single project. Obviously more speculative, but equally obviously more potential upside.

I deal with the risk simply through allocation. I hold just two speculative resource companies - EMED & EML. I allocate just 4% of my SIPP to each. In both cases I've made substantial returns from trading; and hope to do so again.

As to timing, others here suspect a longer time-frame for EML this time around. That may well be so; but this is still a pretty unknown company; and as with Shavian above, I don't want to be a hostage of either events or press discovery. So, as always, I buy in advance of what I hope to be significant future upside.

[shavian] 01/8/2011 07:51

The key to the IO licences in Cameroon is extraction infrastructure. At least two of these licences are well placed to benefit from the growing liklihood of a southern rail corridor from Sundance's Mbalam project, which will hopefully encompass AFF's Nkout prospect. I'm buying a few today so as not to be wrong-footed by a favourable announcement from Sundance. we could do with a map of the licences.

[timtom2] 31/7/2011 21:24

Would agree with RN. Environment has changed for a while and this is a longer term play now. Will probably be a handsome return but not a quicky imho.

[red ninja] 31/7/2011 20:19

Skyship,

Many of us were in for the Kalahari payout, and hoping for a Ferrum payout in time.

Just can't see this going to the moon again in current environment without news...

[vosene] 31/7/2011 12:04

Skyship, bearing in mind what you say, I fail to understand why you favour EML over Polo. EML only has enough cash to do one thing, Polo is much bigger and can run half a dozen bets like Ferrum at any one time. Why not Polo?

[skyship] 31/7/2011 11:57

Those who backed Frankel for the 8th time last week and queued at the bookies satchel for yet another payout, know only too well that a great winning formula is to follow winners!

As the IC reminded us last week, Co-Chairman Stephen Dattels was a founder director of Barrick Gold - the largest gold miner on planet Earth. He then founded Oriel Resources, which he sold for 7x the flotation price after just 4yrs.

He is also known and blessed by many for his uranium venture with Jim Mellon, as he developed then listed UraMin, raising £37m on flotation before selling out a year later for £1.5bn!!!

EML is a very small corner of his interests; but it is a shell he used to play Kalahari, trebling the EML investment in just 18months, then repaying all of the profit back to shareholders.

Who would bet against the duo pulling off another success with their Ferrum investment? Certainly not me. So, happy to add again this week @ 2.46p.

[shavian] 30/7/2011 21:08

Bring it on Ninja - that's when I fill my boots. Cameroon could be a game changer for this company if SD wanted to make this his new flagship.

[red ninja] 27/7/2011 16:33

Alternatively will US default fears, Euro collapse fears, or China slowdown fears send us to 2p ....

[rbf] 27/7/2011 10:23

Price below 2.5p....and a little bit of activity today....

Will we see Skyship's expected bounce????

[orado] 20/7/2011 16:10

Anybody know what the current NAV is?

[timtom2] 20/7/2011 14:10

I think this time there may be a fund raising. Don't know that it will happen but looking at the possible capital needs and high net worth holders I think it is a real possibility and small players may see dilution. Just mho. That is one thought that is holdng me back at this point.

[pip_uk] 20/7/2011 13:52

Looks a good chance to top up which I have done.
Shows as a sell though.

[timtom2] 16/7/2011 21:37

It is a game changer and medium-long term the value will increase.
There will be swings to trade but investment wide it's a longer term one imho.

[jlo10] 16/7/2011 09:57

Skyship
Thanks for comprehensive explanation
I will research
JLO10

[pip_uk] 16/7/2011 09:57

I`m in again, it has been very kind to me in the past with Skyships input.
Cheers Skyship.
We are in a different ball game now with the money pile at last invested in what could to be a game changer for EML.
I look forward to plenty of news flow in the future.
We shall see indeed.
Pip.

[timtom2] 16/7/2011 09:50

Some cash raising may occur to help facilitate exploitation of the resource. High Net Worth individuals involved. Not sure what impact that may have on dilution. Anyone care to have a stab at what may transpire going forward?

[skyship] 16/7/2011 08:22

jlo. Actually, if you read Post No.1499 I never suggested buying on the basis of the current chart formation; I merely showed the chart as a visual reference to support my suggestion that EML is a great trading stock:

"Looking just at the past year, as this lovely chart shows, EML offered no less than 8 x minimum 20% upsides."

To successfully trade EML one has had to do three things:

# Be brave to buy on dull days against the prevailing trend

# Recognise the importance of the 2.5p pivot price

# Sell into strength without being too greedy

Personally I'm prepared to chance my arm again due to:

# Technically - the proximity of that 2.5p support line and the oversold RSI

# Fundamentally - the words from Dattels regarding potential shareholder value upside from the Ferrum deal. It is highly likely in my view that Ferrum will list; and when it does so EML's holding wil be capitalised at substantially more than cost. We will see...

[jlo10] 16/7/2011 07:45

Skyship
Could you explain the chart and why you think it indicates a possible rise
Not an investor currently (in Polo) but considering getting onboard
Thanks

[enforcer2] 15/7/2011 18:47

Skyship isn't ramping Dattels/Meillon havent let me down yet. holding long

[red ninja] 15/7/2011 17:09

Skyship

Sorry for you I am that your luck has run out.

PS I'd be grateful if your usual ramp job could drag some suckers in !

[skyship] 15/7/2011 16:52

Red Ninja - sorry, but do you actually know how to read a chart. Just a cursory look at the chart and then at your comment suggests that may not be the case!

[red ninja] 15/7/2011 16:16

Mmm from the chart looks like the share price is going down... 15th time unlucky, but you've had a good run.

[skyship] 15/7/2011 14:36

I feel sure we all have favourite stocks. For me that is not a stock to buy & hold; it is a stock to buy and sell!

For much of the past 3yrs I have been trading Emerging Metals. Now 14 times, all profitably.

One day I'll get it wrong; or perhaps one day I'll be caught out of the stock when a big rise leaves me cursing in its wake. It is perhaps inevitable. It is a risk a trader takes, but the risk is surely far less than the Buy&Hold strategy of yesteryear.

Looking just at the past year, as this lovely chart shows, EML offered no less than 8 x minimum 20% upsides. Even that smaller than average rise in Oct'10 when I bought at 2.41p, sold @ 2.8p and bought back in just in time @ 2.625p for the spike to 4p. I had the good fortune to play them all.

Much of the History was conducted when EML was backed by its cash reserves. There is now a difference. As back in 2008/9 when the asset backing comprised a share stake in the rapidly rising Kalahari Minerals, now the cash left after a capital repayment of the Kalahari profits has been spent in a new venture – essentially Iron Ore deposits in Africa.

So, an element of research should be undertaken. Buyers need to be comfortable with the recent acquisition. I come from a background of having profited from Steve Dattels previous plays in Uramin, Galahad Gold and Kalahari; so for me, if Steve Dattels believes the recent deals will provide substantial shareholder value – I'm prepared to take it on trust.



After you've taken a good look at the RNSs issued by EML; and perhaps links from this B/b thread; then you may decide to join for the next run from the current 2.55p-2.60p.