Gem Diamonds Share Discussion Threads

[salpara111] 30/7/2015 08:22

Well that has given a very long awaited boost to the share price ...NOT!
I am sick and tired of the never ending "despite a difficult market" statements, China has a huge middle class with proper western levels of disposable income and the US economy is growing at a solid rate so if these two major global consumers aren't enough to support prices the future is not rosy as China is clearly slowing down.
I will sell as soon as I see another opportunity I have waited too long now for better news.

[alan@bj] 28/7/2015 14:24

Fair comment. Only a couple of days to the 6-month trading update so we'll soon find out. The news from Petra Diamonds wasn't very encouraging though, was it?

[superg1] 28/7/2015 14:12

alan

You never know though, I watched Tung the other day, they talked that up in the same way just before news which was awful, it got the spike.

Not suggested Gem results will be awful, but the diamond market is on a see-saw at the moment if you look around at diamond market news. Many stones were withdrawn for the mid year sale and indications are they are being loaded into Aug/Sept sales. The reasoning being to avoid a bit a a recent weakness, but that may mean a glut in Aug/Sept. At least that means they hang onto them rather than sell at low prices.

Gem did a 4 month results instead of 3 so it captured the big stone sales in the figures, otherwise there would have been a big difference to report on the price per carat, and that wouldn't have given an accurate view of the Gem operations. After all they are about big stones, that's the game in Lesotho.

[ards] 28/7/2015 08:12

market suspended for some reason

[alan@bj] 27/7/2015 17:34

Quite likely, thanks superg1.

[superg1] 27/7/2015 16:49

Maybe this did it

[alan@bj] 27/7/2015 16:33

Crikey.....I had to do a double-take!!!

[dr_ex] 27/7/2015 16:30

Maybe they found another diamond!

[alan@bj] 24/7/2015 12:26

Not long to wait for an update then, just to next Thursday.

[alan@bj] 21/7/2015 09:48

My thoughts exactly. It's always worrying when a share price drifts lower like this, in the absence of any firm news, and unfortunately quite often there turns out to be a good reason for it.

[salpara111] 21/7/2015 09:01

Well, either there is some seriously bad news that we are not aware of or the company is seriously undervalued if you compare the metrics against Petra or Gem so I will hold until the next results.
When you strip out cash the company is trading on a p/e of about 6.
My big concern which has yet to be allayed is what the Botswana mine is going to contribute given how much money has been spent on it over the last 5 years.
If it turns out well then the share price has to double.

[jovi1] 17/7/2015 22:58

I see Lucara got well over the amount they expected to raise in their stone sale, good news for us when we get going.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 16, 2015) - Lucara Diamond Corp. (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX Stockholm:LUC) ("Lucara" or the "Company") is pleased to announce the results from its first Exceptional Stone Tender of 2015.

The special tender of Karowe diamonds was completed on July 16, 2015 and consisted of 14 single stone lots. All 14 diamonds, totaling 1,647 carats were sold for gross revenues of $68.71 million ($41,028 per carat).

Highlights:

12 diamonds sold for more than $1.0 million each including 5 stones which sold for in excess of $4.0 million each.
Lot 701, the 341.9 carat Type IIa diamond (discovery announced April 20, 2015), sold for $20.55 million ($60,114/ct).
Lot 702, the 269.7 carat diamond, sold for $16.54 million ($61,304/ct).

For the catalogue and images of the diamonds sold in this and previous Exceptional Stone Tenders, please go to the Lucara website at www.lucaradiamond.com.

William Lamb, President and CEO, commented, "This is another amazing result, demonstrating not just the sustainable quality of the diamonds being produced but also the robustness of the exceptional stone market. The sales values achieved for the two large stones demonstrates the quality of diamonds which the south lobe is producing.

[jovi1] 17/7/2015 22:48

i think with a company worth 200 mill of which more than a 3rd id in cash is a buy, yes the share price has been disapointing for many years but now that thye start paying dividend the fortune can change quickly.
this company has been quite ulucky i believe every time they had good news the overally marcket had bad ones especially in comodity.
i believe this company will be worth more than double within 2 years and i suspect the rise will happen on very short time
i may well be wrong but the potentyial is there,

[alan@bj] 17/7/2015 15:42

I could of course be regretting it on August 20th, unfortunately!!

[cestnous] 17/7/2015 11:30

I see your point alan and if I hadn't got in so recently, I would probably take the same course of action. Best of luck.

[alan@bj] 17/7/2015 11:24

Good for you, Cestnous. If the rest of us could get out at breakeven we would. Biting the bullet on a loss is a more difficult decision, which is why I'm risking hanging on until August 19th.

[cestnous] 17/7/2015 09:34

Well I'm not; I got out at breakeven last week. May return if things look up, but I see no good reason to sit on a loss here.

[salpara111] 17/7/2015 09:31

The reason I have held for so long was largely down to the fact that the Chinese middle class (which is properly rich, not like what is referred to as "Middle Class" in other developing countries like India) was growing at such a rate that I expected a large increase in demand but that demand never really seemed to take off and now we are faced with a slowing Chinese economy and a busted Russian one.
Like most holders here I am going to wait till the next set of results but it is clear that time is running out and I would like to see a change of management here to try and inject some life into the share price

[alan@bj] 17/7/2015 09:11

It's most certainly linked to the diamond price, which is of course driven by world demand, so partly from Russia, China, etc. The half year results, due 19th August, should indicate better how Ghaghoo is performing and give some full-year guidance.

[pj 1] 17/7/2015 07:04

It has been on my w/l for what seems ages. Im half coming to the conclusion the depressed share price is linked to Russian demand somehow, although GEM to not directly supply that Market that I ccan find? So was the possibility of increased Russian demand priced in before somehow?

[alan@bj] 16/7/2015 17:33

Tipped today by ADVFN's "One Free Share Tip".

[alan@bj] 08/7/2015 13:56

Could well be China-related. Fewer investors making money out of their stock market = reduced demand for luxury products.

[ards] 07/7/2015 19:56

looks like risk off for time being till crooked greeks get their cupupence

[salpara111] 07/7/2015 14:06

Interesting article on Bloomberg recently about the diamond market basically saying that the supply shortage that has been talked about for years has never materialised and does not look like it will in the near future.
I don't have another alternative for my investment here so I will wait but if I see any other alternative I will get out of what has been my worst investment of the last 2 years.
Seemingly so full of potential but not able to deliver any sustained rise in the share price