Kennedy Venture Share Discussion Threads

[chopper harris1] 19/10/2017 16:29

On the contrary, thank you for your advice.

[al101uk] 19/10/2017 16:16

QS99,

I didn't really want to touch on if I thought KENV was a good investment or not, Chopper already has a position and currently has a paper loss. The fact that he's asking here if he should average down or not means he probably lacks a degree of portfolio/risk management.

In my view "averaging down" isn't just about how good or bad the investment is, it's about risk management, about not losing your shirt if things go wrong and about not chasing losses when you don't really have a firm foundation for believing that things will reverse.

A firm foundation in my view is impossible for KENV because they don't generate cash. Your investment case is based solely on your belief that management will come good and deliver on their promises. That's fine and may be all you need for an initial stake... but averaging down is a dangerous game and you need that risk management in place along with a fully thought out strategy and some very strong views to start down that route.

If you need a close to home example, check out Ironveld (another Giles Clarke vehicle), where finance has been imminent and confidence has been high for years, with no progress despite a very resilient looking business case and a fantastic looking resource.

For another example, I was in conversation with investors in another mining company with a defined resource several times larger than Ironveld, that was taken over privately for peanuts because they didn't have the money to implement their business plan.

Cirlce Oil went in to administration and sold some great resources to SDX for practically nothing because they ran out of money.

The list goes on. I'm not saying KENV isn't a good investment, but it has a certain risk/reward profile and your strategy has to take that in to account.

And in the interests of full disclosure, I have no position here, I'm an investor in Amerisur and look in on Giles Clarke companies mainly to assess how they fairing as regards their corporate governance, but also because most of them tend to carry a strong story and may at some point offer an investment opportunity, although my opinion of GC has faded of late.

Probably mainly off topic and Chopper probably has better things to do than to listen to me... but meh!

[qs99] 19/10/2017 11:13

all fair points a1101uk....thing here is that KENV have an operational asset AND supposedly not too far off a JORC resource for the Lithium play, either of which should in theory provide some fireworks, JORC more than the current ops IMO/DYOR etc....so far tho management have managed to be so poor at progressing both we are sitting at less than half the price of a year ago!

[al101uk] 18/10/2017 12:25

I'd argue that for any company with minimal revenue and no profits that averaging down is a bad idea, no matter the story.

I'd also argue that averaging down on a stock that is still trending downwards is generally a bad idea.

Some would argue that averaging down at all is mostly a bad idea:

hxxp://www.investopedia.com/articles/stocks/08/capital-losses.asp

No view on KENV implied, I just assume it's another GC company doing GC stuff, which means there could be much waiting yet to do.

I also note that as of the last time I took an interest here there had been many, many broken promises of imminent production/cash flow. Another reason not to average down in my view.

Having said that a £12 million market cap stock can catch fire on the sniff of news due to lack of liquidity, so defining your own general rules for investing that you stick to is probably the best way to go... and then apply them here.

[chopper harris1] 18/10/2017 11:14

Anybody see sentiment and share price improving here before year end? Am holding back from averaging down at the moment because I'm reluctant to throw good money after bad.

[a2584728] 18/10/2017 10:45

This will be taken out at this price all too quickly.

[qs99] 13/10/2017 12:34

maybe we may start to get some Lithium news?

[qs99] 13/10/2017 12:27

appears that way

[a2584728] 13/10/2017 12:10

This is so much better than the share price suggests

[qs99] 13/10/2017 10:34

well fascinating and hopefully encouraging they are hoovering up stock! DYOR

[ridicule] 13/10/2017 10:32

News just out on a further increased holding by Tracarta. They are in the know so lets keep the faith.

[wrtmf] 12/10/2017 09:45

kenv needs to updates its website with vids of the new equipment and tapping of the new boreholes if successful.

use twitter more effectively. lets see the coring rig when it arrives like emh.

larry could present an onsite tour vid, a walk through along the production line from rock to ta2o5 dust/powder.

no trust in rns.

[tommygriff] 11/10/2017 13:04

Hopefully some buying when the us market opens

[wrtmf] 10/10/2017 17:26

...they could start by announcing whether the 3-4 new boreholes found desired quality/quantity of water and that they've chosen a drilling contractor for the lithium exploration programme....

[ridicule] 10/10/2017 17:11

Something's leaked. 2m shares bought in the last 2 trading hours. RNS tomorrow maybe!!

[a2584728] 10/10/2017 16:27

Seems there is some interest out there

[cloud9surfer] 04/10/2017 18:22

Tracarta back in. Given the reason they went out last time, the optimistic reason i see they are back in is due to possible news.

[paleje] 28/9/2017 12:11

Cannacord over 4%, good price 15% less than Clarke and Wardle paid.

[cloud9surfer] 28/9/2017 12:08

Holding RNS!

[paleje] 25/9/2017 15:33

GC's participation in the 6p July placing and John Wardle's ditto via Tracarta are the only comforts here, the RNS's have been abyssmal by any measure, almost as if they enjoy testing holders to the limit. I preferred when Hibberd was on the scene at least you could get a straight answer from him.

[dailylarma] 22/9/2017 17:33

1. There was a placing on 27 July. The overhang is being worked and should be cleared shortly.2. The odds are that there will not be a placing now. Read point 1 above and go in a loop at a speed that your are comfortable with.

[underhill2] 21/9/2017 13:20

Placings are normal for companies associated with Giles Clarke. Mostly they are at heavily discounted prices. Just like at Ironveld. A placing at 2p when the current share price was in the 4p region. If history is anything to go by a placing here would be around 2 5p. With Giles Clarke companies you just never know. The current constant selling does indicate a placing is on the way and probably at a heavy discount .Only time will tell

[chopper harris1] 21/9/2017 13:19

They've just had one! Not another one, surely???

[goldfinger_1964] 21/9/2017 13:14

Possible placing coming up here

[wrtmf] 20/9/2017 11:36

i think the company should announce to market, when achieved, that the 3-4 water bearing boreholes have successfully been drilled. [drilling starts this week].

this water supply will support lithium exploration and ta2O5 production line.
crucial.