Iofina Share Discussion Threads

[ansana] 28/2/2014 12:05

THE WORST WINTER THEIR FOR MANY YEARS , lower than 25 c at times, just shows you what they are capable of. Nothing stops IOF, the Polar Vortex or the turbulent situation in the Ukraine, like you say IOF multibagger let them get on with it. There is no point in applying unrealistic expectations to a young company, they are still on a steep learning curve - but they learn fast and we are going from 3-6 units pdq.

[1madmarky] 28/2/2014 11:59

I do like that they have got the brine signed off early this time. Shows that they are learning. the regulator sign off, I'm thinking they need to demonstrate safe handling of the chemicals and probably more importantly keeping the iodine safe, due to its may uses. As it's not the first site I'm sure it won't delay us long. once 4&5 are running it's cash machine time.

[freshvoice] 28/2/2014 11:41

Frog
Very good analysis of shorting.
Most people forget the opportunity cost/benefit.
Cash flow is king. Any accountant can create a profit!

[frog1] 28/2/2014 11:39

IMO a good rns, well within normal expectations for a roll out. Having been involved in many managed service roll outs, I am not surprised by small slips. This is still only the 4th time they've done it so they will still come up against unforseen niggles.

However, the market will still want hard numbers and re-assurance on the financials imo before the share really starts performing rather than making limited recovery.

A note on shorts, those that have taken them out near this figure may choose to close to tie in a profit, but those like Enissmore have more to think of than the profit if their short involves borrowed shares rather than spread bets. It is the opposite psychology to buying. Say Enismore borrow a 1 million shares and open their short at £2. They are not just making a bet on the decline of the share price, they are getting £2 million for selling their borrowed shares so effectively a £2 million loan. If the price falls to £1, they effectively have a £2 million loan that they only have to pay a £1 million back on. They will use the £2 million for their business just as IOF are using their £15 million loan. The timing of closing the short will depend on what they have done with the £2 million as well as the profit they have. When they close their short, they are still effectively choosing to buy IOF above other stocks on the market. So in addition to a £1 million profit, they have a £2 million loan for the period of the short.

[iof multibagger] 28/2/2014 11:34

Momentum will now start building as the plants are nearing, and production will
be growing through the course of the year.

"The completion of IO#4 solidifies Iofina's capabilities of constructing and operating multiple plants simultaneously. Production from IO#1-IO#3, shortly to be complemented by IO#4, together with anticipated production from IO5# and IO6#, further advances Iofina as a major player in the iodine market."

Read this paragraph very carefully and then think about where they will be in
mid 2015 with 6 plants mobiles running. Happy day chill out. et them get on with
it.

[rhwillcol] 28/2/2014 11:29

It looks as if L2 may be about to pop, although one can never be certain about these things .....

[captain_kurt] 28/2/2014 11:23

Looking at the chart and the newsflow to come short term, I'm a buyer at these levels

[che7win] 28/2/2014 11:15

Bad day at the office for the shorters.

[veldt] 28/2/2014 11:15

The share price has hit the bottom. Only way is up from now on. Excelllent time to buy IMO. Not often you get the chance to buy at a low and be pretty certain it is the low.

[rhwillcol] 28/2/2014 11:07

That mini-iceberg at 79p just got gobbled up in two seconds flat!
Edit: resistance at 80p appears to be crumbling .....

[neddo] 28/2/2014 11:05

my daughter lives not far away on the Kansas side of the state LINE, THEY HAVE HAD THE WORST WINTER THEIR FOR MANY YEARS , lower than 25 c at times , so the time delay is acceptable, even though I moan about iof.

[battery] 28/2/2014 11:01

A good update this morning. Confirmation of progress at 4&5 despite atrocious local weather conditions is to be commended.4 into production phase next month with 5 soon after or at the same time.Q1 production update due end of next month too, so maybe 4&5 initial rates will be included in that.

[che7win] 28/2/2014 10:56

engelo,
The two 50k trades look like a rollover, don't see anything else.

[engelo] 28/2/2014 10:54

100k sale at about 10.15 my iPAD says. Someone's out there with a bucket and mop IMO :-)

[che7win] 28/2/2014 10:52

rick,
I agree, I have taken plenty of losses when the picture changes or my valuation changes.

Here, I see 11p EPS forecast for next year at $45kg by the Nomad, no water included.
When compared to other stocks, the potential here looks good.
Forward P/E 7 right now compared to 15 at SQM with static profits. SQM would love a bolt on that is earnings enhancing and growing 35% plus a year.

Iodine prices are at or near the bottom, a $5 increase in iodine would have 25% increase in gross profits and earnings upgrades.

As long as the company continues to roll out, I'm happy to accumulate at these levels as I've been doing aggressively this year.

[engelo] 28/2/2014 10:44

Rick (and many others today): wise words.Sometimes think that sales are due to Pis with no access to advfn for some reason. Shudder to remember how I made decisions a few years back. lucky not have been wiped out.

[phoenixs] 28/2/2014 10:41

At last a well balanced and positive rns. Given atrocious weather conditions in the US not surprised to have a little delay. The progress needs to continue and then I believe there will be substantial re-rating of share price

[rhwillcol] 28/2/2014 10:39

Just to reiterate the positive comments at the end of today's RNS:

".... further advances Iofina as a major player in the iodine market"

-------------------------------------------------------------------------------

Commenting on today's news, Iofina's Chief Executive George Lantz commented:

"The completion of IO#4 solidifies Iofina's capabilities of constructing and operating multiple plants simultaneously. Production from IO#1-IO#3, shortly to be complemented by IO#4, together with anticipated production from IO5# and IO6#, further advances Iofina as a major player in the iodine market."

[engelo] 28/2/2014 10:31

Che: good summary :-)

[rickcanning] 28/2/2014 10:31

If I were short I'd cash the profit right now. What a huge risk to take when water could be announced any day, and more plants are coming online within weeks.

I'm holding a paper loss. I'm not afraid to cash in a loss, I've done so on other shares when things went wrong, and I didn't see them getting better.

But I'll sit on this paper loss cos I believe water will be granted in some former another. But, most importantly, iof are now making cash, every month, and the more time that passes, the more cash they will make each month.

Happy enough with today's RNS. Compare it with other iodine producers who are suspending operations for a year or so!! We are growing while they are collapsing.

Nobody can accurately predict share price movement (especially Shonny!) Anyone that could, even for one day, would be rich beyond his wildest dreams. But what you can do is look at the fundamentals of a solid company and take a position for the future. I think it's called investing. And whilst I don't like my paper loss, I'm still satisfied with my investment.

[che7win] 28/2/2014 10:18

Shorters starting to sweat a bit, feeling the squeeze? Another few pence and they'll be running for the exit.

[testuser123] 28/2/2014 10:00

Hi All,

Not posted in a while but thought I'd pop my head in now we've got something worth talking about. Personally after digesting today's RNS I'm pretty chuffed. Particularly in terms of IO4 it's not a "we've built it but it's not commissioned" RNS, it's "we've built it, and connected it, and in a week or two it will be producing".

Given the well publicised weather problems in the states that's a good result, and we might even get an IO4 contribution to the Q1 numbers which is something I'd previously discounted.

The million dollar question of course is what will the brine feeds be like. My personal opinion is that IO5 might take a while but IO4 will be by far our quickest rampup to full production (although I'm not exactly going out on a limb thre given how long IO2 took).

At the end of the day though the company is now self sufficient and growing. The share price can do what it wants but Iofina will do just fine.