Golden Prospect Precious... Share Discussion Threads

[greenrichard] 21/7/2020 08:16

Actual spread on this at the moment is 10.8 - 12.5

Not good for encouraging a market.

[noirua] 21/7/2020 00:29

Golden Prospect Precious Metals Limited GPM NAV 67.55p

Gold shares up again in the states and Canada,

[kenmitch] 20/7/2020 17:23

Agree with much of the above, but it’s not unusual for subscription shares to trade at a discount once they are well in the money. They shouldn’t and in theory since there is 4 months time value to consider the subs SHOULD trade at a premium. But what subs should do and what they actually do is what counts. They are a fantastic bargain though and I agree....why hold the share when the subs are such a bargain and sure to go up faster.

[davebowler] 20/7/2020 17:09

Net asset value as at 17.07.2020 of Golden Prospect Precious Metals Ltd
subscription shares of no par value
(TIDM: GPMs):
NAV-bid: 60.42 GBP

[phoebusav] 20/7/2020 15:56

As time value is probably 2-3p and GPM bid is 14p over GPSS exercise price GPSS should probably be around 16-17p.

[phoebusav] 20/7/2020 15:54

I think you're spot on Riverman. share price should definitely be at a premium to reflect time value. Current discount is laughable.

[riverman77] 20/7/2020 15:21

I switched all my GPM shares into the subs. At 11.5p they are trading at 5p discount to the GPM shares. Call options should trade at a premium because of the time value, so make no sense for these to trade at discount.

If you want to have exposure to GPM long term, then it's better in all scenarios to hold GPSS over GPM at the current price. If the price stays around 63p then you automatically make 5p profit on the sub shares. If the GPM price falls to say 46p they expire worthless, but at 46p you'll be able to pick up GPM shares 27% lower than today - the saving here will more than offset the loss suffered on their sub shares.

Best of all, losses are capped - so if GPM falls to say 30p your only lose what you invested in the sub shares, and can then buy GPM shares for half their current price.

The key thing to remember is leverage - so 1 sub share gives exposure to around 5 GPM shares (63/11.5) - therefore if you want 10k exposure to GPM then buy 2k of the sub shares (obviously this ratio will change depending on the current prices).

[sunshine today] 20/7/2020 13:54

Buying started

[sunshine today] 20/7/2020 13:41

Silver also on the roll

[32campomar] 20/7/2020 13:24

Gold performing strongly today $1818 August contract

[sunshine today] 20/7/2020 11:15

Vaccine is only any good on about half the population, ( same as flu jab )

Looking at the number of people wearing masks today, just the fear these people are living with ,will prevent any economic recovery

[richardly] 20/7/2020 11:13

Tricky now after such a rise; any positive news on any of the dozens of potential vaccines is likely to be out between now and the expiry date, however overly optimistic, which could, at least temporarily, crash the gold price and even more so especially the junior miners.

[noirua] 17/7/2020 19:29

James Rickards Video: Depression for At Least Five Years, World Changed For a Generation
17 July 2020

[noirua] 17/7/2020 17:29

Gold shares in US and Canada are all up today with rises to 10%. If that's is the case overall then on Monday or Tuesday the NAV should rise about 3.5% to about 69.5p.

[sunshine today] 17/7/2020 12:18

Yep gold firm today

[sunshine today] 17/7/2020 10:47

But thanks

[sunshine today] 17/7/2020 10:46

Personally I don’t think they will stay 40% off for long

I can accept a 5% to 10% might be the case at times

[kenmitch] 17/7/2020 10:44

Exactly ceaserxzy. Very few know about or understand subscription shares/warrants. That applied even in the days when there were hundreds of warrants with many linked to Investment Trusts. That’s a key reason why sadly there are hardly any left both on shares and Investment Trusts.

Hence sunshine Today, there really isn’t much point trying to ramp the case for the sub shares on this and the other thread, as the few who know about them already know! The GPSS will take care of itself and do well IF the share price continues to go up, and GPSS will go back down if the share price goes down, and ramping won’t help the sub share rocket while share price stable or going down.

And note, as posted before, and Noirua pointed out again using the example in my earlier post, it is quite likely the subs will stay at a discount and closer to expiry the discount on the sell price could be several pence, with exercising or risking the trustee the way round that.

[sunshine today] 17/7/2020 10:29

This might come to light in tomorrow’s interview

[sunshine today] 17/7/2020 10:29

Yes dead right.

[ceaserxzy] 17/7/2020 09:52

The point is if you buy gpss now at 11.5 p and then you will get gpm in about five months' time at 46.14 p, so the total outlay is 57.64 p. Then why pay 63 p now to buy one gpm and not buy gpss? It shows most investors don't have the knowledge to get a much cheaper option.

[noirua] 17/7/2020 09:09

If the gold price goes to $1,900 and GPM to 80p then the value of GPSS becomes approx 34p and allowing for a 6p risk discount 28p. That's the gamble though £500 invested in GPSS is the equivalent of about £3,000 in gearing terms against GPM. It is for gamblers to work out if the odds are fair game.