Gem Diamonds Share Discussion Threads

[salpara111] 26/6/2013 13:10

Share buybacks increase the eps but if there is no divi then it is largely academic as they rarely lead to sustained rises in a company's share price
They know what they have to do to turn the share price around, the question is do they have the ability to do it?

[don777] 26/6/2013 12:42

well, if not divi, at least share buy back.

[salpara111] 26/6/2013 11:26

All well and good but all that ever happens is that they use incremental cashflow to fund further capex and nothing to the shareholders.
The day they announce that they are winding down their never ending capex and start paying a divi is the day that I will seriously look to take a stake.

[togglebrush] 26/6/2013 08:00

Gem Diamonds Limited (LSE: GEMD) is pleased to announce the recovery of a 100 carat, white, Type IIa diamond from the Letšeng mine in Lesotho on 22 June 2013.

To read the full press release click on the following link:

[undervaluedassets] 21/6/2013 13:20

The utterly unique white diamonds at Letseng do not give a xxxx about the fed.

These diamonds do not go off or go out of fashion they wait patiently to be uncovered. they are not like any other commodity as they are a unique franchise in the gemological universe.

The GIA recognizes that these stones have a unique unreplicable gemoligical fingerprint that makes them the most expensive in the world carat for carat.

[luminoso] 21/6/2013 12:07

Don't think its being 'lumped in with gold'. I think the fall is more to do with recent Asian and particularly Chinese data suggesting slowdown and, by inference, less consumption of luxury items by them in future - and of course irrational market reaction to announcement of tapering of QE to start later in year. trouble is market can stay irrational longer than we can stay solvent, to quote someone wiser than me. Don't know where the floor is with this one.

[undervaluedassets] 21/6/2013 11:28

being lumped with gold.

This is not gold (obvious but true)

Also stones from its principal mine are peerless in terms of qulality and size.

This is the most unique diamond franchise on the planet.

[varrirob] 17/6/2013 23:47

You have to question when the shareholder value is going to come out. This has been in decline for over a year now. It seems to me that this is not the gem it makes itself out to be.

[luminoso] 14/6/2013 11:44

That was a bit of resistance at 115 !

[salpara111] 13/6/2013 11:35

Well the diamond miners in S.Africa want a 15% pay rise, they have been offered 6% let the strikes/violence begin!

[don777] 12/6/2013 17:45

they also mentioned buy share back at 2012 AGM, but did not do, so they might not do this year as well.

what a pity.

[luminoso] 12/6/2013 17:31

A few well timed trades in volatile 2012 would have made someone some money out of this lot ! Sadly not me ! You must be tempted at this price, Salpara, surely ? I know I am, but am resisting, as slide may not be over yet.

[salpara111] 12/6/2013 16:40

The only people to have made any money out of this company since it listed over 6 years ago have been the employees!
If they could afford to buy back their own shares they could afford to pay a divi!

[don777] 12/6/2013 16:20

it might be good for it to buy back it's shares.

[varrirob] 12/6/2013 11:55

All time low i think now. Doesnt look as if we are in favour with anyone at the moment, even with the ratings and bullish outlook on the diamond market. Maybe there was more expected of the AGM?

[salpara111] 11/6/2013 12:16

Big article in IC this week about the diamond industry, pretty bullish as well.
Doesn't change my view but offers hope to holders.

[haywards26] 08/6/2013 20:32

There were a couple of broker upgrades last week. Hopefully we are at the bottom currently.

In regards Salpara's comments about a divi. I would say this is not currently possible due to the capex requirements of the new mine being invested in and the work on the current mine. If you look at the bank/cash balances, they have reduced due to the diamond price downturn. A divi for me is 3-5 years away.

[varrirob] 07/6/2013 22:35

I couldn't believe it when i saw this. I hate to think where this share is going now. We dropped masses from the last rating.

Gem Diamonds: Goldman Sachs shifts target from 170p to 180p upgrading from neutral to buy.

[salpara111] 07/6/2013 16:28

Well, the historic low is around current level but again I don't see where the catalyst is going to come from to get them moving up again.

[don777] 07/6/2013 15:01

some ones are trying to call the bottom here.

the volume is very high today.

[salpara111] 06/6/2013 17:01

As I have mentioned many times before, this is a "nearly" company.
They have been listed for over 6 years but have never paid a dividend, sooner or later investors give up if they don't think they are ever going to get a return on their investment.
I lost a bit of money here in the past and would not invest again until they start paying a divi and it would appear that I am not alone!

[varrirob] 06/6/2013 10:43

I have to say, i thought this would be a good share to compliment some of my other diamond shares but it's turning out to be a bit naff. I can't understand why the broker ratings are a 'buy' and yet we have dropped no end in the past couple of days.

[varrirob] 03/6/2013 22:42

Blimey, lets hope we dont get tipped for another re-rate cos this will drop through the floor if we do.

[alan@bj] 03/6/2013 13:50

Hope so. Unfortunately it's a case of good news at a bad time, as markets are undergoing a correction. However, I like the fact that GEM will get a share of the downstream profits of this exceptional diamond, and it'll be interesting to see what the 103-carat stone brings at auction.

[varrirob] 03/6/2013 13:22

alan - looks like the markets didn't read this over the weekend. Hopefully they play catch up towards the end of the week.