Gem Diamonds Share Discussion Threads

[salpara111] 17/3/2015 17:36

Well, it held the 140 line by the skin of its teeth so I stay for the moment but the next opportunity that I really like the look of will see me sell out of this.

[dr_ex] 17/3/2015 13:22

macd and rsi also diverging on daily candles. bullish

[dr_ex] 17/3/2015 13:20

wedge forming from the 220 peak, approaching apex. which way will it go.

im hoping north obv :D

[airwalk1971] 17/3/2015 11:19

Liberum Capital reiterated their buy rating on shares of Gem Diamonds Limited (LON:GEMD) in a report issued on Tuesday morning. The firm currently has a GBX 230 ($3.39) price target on the stock.

Shares of Gem Diamonds Limited (LON:GEMD) opened at 148.5600 on Tuesday. Gem Diamonds Limited has a one year low of GBX 135.7500 and a one year high of GBX 223.0000. The stock has a 50-day moving average of GBX 152.06 and a 200-day moving average of GBX 172.81. The company’s market cap is £205.01 million.

[salpara111] 17/3/2015 10:05

Very nearly topped up yesterday, very glad I didn't!
The 140 level is critical if it crosses that I am out.
The divi is simply not enough to keep people holding.

[luckymouse] 17/3/2015 09:41

Salpara - agree - that bounce didn't last long :) made a few shekels tho.
Obv lack of love for mining sector is suppressing the story

[salpara111] 17/3/2015 09:16

On reading in more detail I have to say I am rather more nervous about Gaghoo, the price per carat was never going to be anywhere near as high as Letseng but equally they say they are targeting it to get to EBITA breakeven by the end of Q2 2015 which seems like a pretty modest target considering the huge investment made in developing a new mine.

[clinton baptiste] 17/3/2015 09:08

The Gaghoo grade and/or value per carat are going to have to improve markedly. They aren't going to make much money, if any, mining $40-odd/tonne rock from a small, underground mine with water issues in the CKGR.
I've reduced slightly on account of the disappointing $210/ct realised from the first sale. Revenues should improve as they optimise plant performance, but you never know.

[lfc1990] 17/3/2015 09:07

Even cheaper on price to free cash flow. Ridiculously undervalued imo and I'm more than happy to wait and accumulate more at these prices with the introduction of a dividend.

[salpara111] 17/3/2015 08:57

Well, a collective shrug of the shoulders!
If you strip out cash of circa £64M then the enterprise value of the business is only £140M and they made £21M profit so that suggests a p/e of less than 7.
If you use PDL as the closest surrogate then it would suggest that GEMD should be trading around 220p but here we are.
I will hold for a week or two but if there is no clear upward momentum I think I will take my money off the table as I have waited far too long to get any sort of return out of this one.

[cestnous] 17/3/2015 08:15

Excellent. 261 would be nice.

[addison17] 17/3/2015 08:12

Agree salpara - needs a bit of a push.

[salpara111] 17/3/2015 08:11

Divi is less than I had hoped for but overall a solid set of results.
EPS was $0.24. Most companies are happy to pay out at least 1/3 of eps so I would have been looking for a divi of 8 cents. 5 cents is a bit of a token payout.
The critical question is....is there enough here to get some momentum behind the share price or will it just continue to bump along the bottom?
I am holding for the moment.

[ichyja] 17/3/2015 08:02

Positive results and a maiden divi (as expected). Looking good for the future

[aishah] 17/3/2015 07:55

finnCap retains BUY and 261p target

[aishah] 17/3/2015 07:40

Maiden dividend and plenty of cash.
"The strategic focus for the year ahead will remain on creating value by focusing on mining and selling diamonds efficiently and responsibly. We remain confident in our ability to continue delivering returns to our shareholders through this focused execution of strategy as is demonstrated by the Group's dividend policy."

[cestnous] 16/3/2015 10:08

Well looks like we're on the way :¬)
Fingers crossed for tomorrow.

[luckymouse] 13/3/2015 16:55

Gonna bounce imo - traders bringing it down to old buy zone - if it lands perfectly mon you know. Ballsy neckline moment - chess
Revs yoy 40% up
Mkt spooked by liquidity supplier Antwerp Bank closing oct & mining sector
But behind the scenes Dubai has stepped in - not broad knowledge yet
D.Mkt cautious/softened - forgotten these guys barnstormed H1 imhv
Plus new mine open & producing - plus new div - plus 10 miles below trgt
Dyor blah
LM

[cestnous] 12/3/2015 14:16

Hopefully rufio:¬)
Incidentally, of three online Co's I deal with, only one had stock to sell.

[rufio90210] 12/3/2015 13:43

Shares mag tips usually take the weekend to rally when everyone's read it

[cestnous] 12/3/2015 12:54

Been watching for a while. "Shares" article this am made me look again, and have taken an initial position.

[salpara111] 12/3/2015 12:53

Well it has certainly had the opposite effect!

[alan@bj] 12/3/2015 11:42

Thanks for posting that, rufio.