Golden Prospect Precious... Investors - GPSS

Golden Prospect Precious... Investors - GPSS

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Stock Name Stock Symbol Market Stock Type
Golden Prospect Precious Metals Limited GPSS London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 0.65 01:00:00
Open Price Low Price High Price Close Price Previous Close
0.65 0.65
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Top Investor Posts

noirua: Please note that ii Investors and HL will not allow any transactions in shares in GPSS after close of business on AIM today.
ultrasharp: GPSS top of the advfn leader board of biggest percentage fallers again today. Am I glad that interactive investor wouldn't let me buy them back in the summer, though hopefully I'd have had the sense to get rid of them months ago.
12string: 1jbrisky, I was luck and sold CEY a couple of weeks ago. The collapse of part of a major pit is a big deal and today's 2012 guidance has disappointed investors causing sales to out-weigh buys. Anglo Asian (AAZ) has cratered to due to military conflict in Azerbeijan. Such are the risks with investing, and mining will continue to have more than an average share of black swan events. That's what is most attractive about GPM. Our risk is spread across tens of miners/developers/explorers. So GPM is the safest way to invest in PM mining. And GPM shares are clearly trading at a significant discount, GPSS even more-so. The only single mining share I'm holding is Shanta. Currently a 80,000oz very profitable producer, it has two development projects that will take it to 220,000 oz within 4 years. But most of my money is in GPM in the form of GPSS.
12string: OK, back to the Share Price and what is happening to GPM as well as GPSS: We've seen the GPM discount to NPV steadily increase from 1% in mid August to 6.5% early Sept to 22.5% now. The NPV has increased, yet GPM share price has fallen. So it's pretty obvious that in the run up to GPSS conversion (and the issue of 50% more discounted shares @46.14p) GPM investors have been selling in anticipation of the dilution effect on the GPM share price. The conclusion that I draw from this is that GPM share price, fairly soon after the new shares go live, will return to the discount to NPV that we saw in early September of around 6% when gold was consolidating. This assumes that gold remains supported at around $1900. In mid-August when gold was rising and above $2000, GPM discount to NPV shrank to 1%. So projecting forward; once the new shares trading has settled down I'd expect GPM to be trading comfortably above 60p at today's gold prices and significantly higher if gold is starting to move up. That makes buying GPSS at 10p, for those who have the cash to pay up 46.14p/share on 30 Nov, a pretty safe and potentially quite exciting trade. Odds seem in favour of a Biden election victory, so fiscal stimulus will quickly follow and the expectation of future inflation will increase.
andymunchkin: kenmitch27 Aug '19 - 18:13 - 12 of 443 0 3 0 Stoneme. To keep it simple:- 1. These subscription shares give investors the right to buy Golden Prodpect shares at 42.3p on November 30th this year people or 46.14p at end of November next year. IF that investor wants to. That is the case whether the share price is £1 or, say, just 20p. 2. Investors do not have to do that. They can buy and sell the subscription shares themselves at any time up to the end of November next year. 3. The arithmetic is simple. If share price is 46.14p or lower, then the sub shares will end up worthless. If the share goes to 60p then the sub share would be worth 14p compared with 6p now. And if share goes to 70p then the sub share will be worth 24p. 4. So IF the share does very well the sub shares have far more upside. But if share does not do well, then the sub share will end up worthless, but the sub share can be sold before it drops to zero. 5. Finally at Nov expiry date next year, investors holding the sub shares can let them lapse. A registrar is appointed to exercise sub shares still being held at expiry date, but relying on the registrar can be risky. Better to exercise if wanting to switch to the shares (assuming the share then is higher than 46.14) or sell the sub shares ahead of final expiry date. I hold some, but they are a gamble. Is a big gold/precious metals rally likely? If confident that IS likely then the subs will be a great way of playing it.
noirua: Sometimes things go wrong. EK lost £60k on Oxus gold and I was caught out to the tune of £21k myself. My reason was different as my confidence was high after buying and selling for two years netting over £10k in margin trading. My eye was off the ball as Oxus was taking on a country, Uzbekistan, that had American bases installed and China had over 90 companies based there and many European including French. A French Arbitration court surprisingly decided against Oxus and that was that. For some investors it was a case of 'Blood on the Tracks'.
noirua: atlantic57 et al, this buying of GPSS at 20p by Simon Cawkwell was a surprise to me. It explains why the shares went up after profit taking in gold and silver shares in Canada and America on Thursday - only Newmont the exception due to positive vibes in the media. GPM came out with the reduced NAV of 72.88p rather later than usual on Friday. There was some recovery Friday evening with NYSE:DRD, a favourite gold stock of mine, bouncing back strongly, though overall not making up for Thursday as gold/silver royalty stocks TSXV:EMX and TSXV:ELY reversed further. Evil Knieval's article is one I dare not go against. Evil increasing his great gamble on Tesla, £250,000 in the red a week or so ago, is one I must back. My own short position, taken out last today, is only via, 3:1, and commission around 4 - 5.5% per annum. Afterall, EK has balls the size of planet Jupiter. An article by another poster here pointed out some reasons for the discount of GPSS. One that eventually new shares will be issued in early December with GPM receiving 46.1p per share against today's price within the 68p - 71p spread - a discount of 33% and 37% to the NAV of 72.88p. Another is the problem for investors once we reach November and a lesser extent in October. If you build up cash at 46.1p per share, 100,000 shares = £46,100, then things are hunky-dory - though meaning good for partying. The possible squeeze at some stage would be a pullback in the gold price, if only temporary. Gold podcasters have views presently from $3,000 for gold within two years to one Swiss guru Marc Faber, normally bullish on gold seeing a pullback for reason of losers on other investments having to sell gold to cover losses elsewhere. Https:// My own view is that the $2,000 fence is likely to be a Beechers Brook and Chair combined: If only in the short term. However, that is precisely what GPSS shares are 'short term'. Just don't get caught out in the second half of November. What will happen then? If GPM share are 70p in the final days of November the MMs might show a spread of 10p - 20p against the present 19p - 20p. Some will be caught out and especially if sadly laid low by covid-19.
kenmitch: Perhaps of interest so worth putting in a separate post. What IS surprising about GPSS is the large numbers trading them. In the past warrant trades both on shares and Investment Trusts were so few and far between that even one small buy or sell could move the sub/warrant price. The lack of investor interest in them and with covered warrants is a key reason there are now hardly any left.Subscription shares used to be a fabulous way of getting far more upside with Investment Trusts than by investing in the share, as is the case now with GPSS. The surprising extra interest in GPSS could well be because of posts on ADVFN and also on Mike Walters (ex Deputy City Editor Daily Mail and always a friend of smaller investors even then) subscription Investment site, where I posted on them for many years. Also for those who might not realise this. Warrants and Subscription Shares are exactly the same thing, but if called a Subscription Share they can be held in ISAs but if called a warrant they can’t!
sunshine today: As we get closer to expiry, some will sell simply because they don’t have the cash to pay the 46p odd to exercise. The market makers will also play their part, as will the share price of GPM. Today we are in a position where the NAV of GPM is going up so fast, that in a flash the situation changes, because investors suddenly push up the price of GPM towards NAV that is over 63P today. That will then produce buyers in GPSS. The higher the NAV of GPM the more confidence investors have in both shares.
sunshine today: As the price of gold rises at a rapid rate in the next few days, week, and months these will move higher in leaps and bounds. As soon as a safety margin is hit, over the strike price, the fear of investors losing the lot recedes. That brings in the second wave of investors who only need a daily 10% rise in the underlying security, to make massive profits of over 50% in a day. This gets magnified because their are so few of these issued. Demand exceeds supply.
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