Polo Resources Share Discussion Threads

[xow98] 14/2/2019 13:57

"Phronimos does not dispute Polo's right to "generously" pay its leadership when they help create shareholder wealth, but it noted Polo's share price has fallen 80% over the past five years with no returns whatsoever.

Chair Michael Tang, it continued, has received around USD1 million a year, and his compensation through 2018 to 2020 is estimated to be 35% of Polo's market cap."

[atholl91] 14/2/2019 13:53

Polo's response is nonsensical jargon. When you use other people's money you deliver returns or you go. Polo's returns for shareholders since Tang took over have been rubbish.

[atholl91] 14/2/2019 13:48

Tang must deliver cash or distribute shares in the quoted investments back to Shareholders or he must be removed. Polo will always have a large discount to NAV unless this happens.

[mattboxy] 14/2/2019 13:41

Response to Press Speculation Polo Resources Limited (AIM: POL), the multi-sector investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium, notes that a recent press article publishing the views of a purported minority shareholder of Polo Resources, has served to create unnecessary and inaccurate speculation surrounding the Company. Polo, has, without success so far, attempted to contact the originator of the article in order to formally answer this purported shareholder's concerns. Further efforts will be made to contact the author in order to clear up a number of inaccuracies that appear in the article. Polo takes this opportunity to make clear that it remains a long term supportive and activist investor in all companies held within the investment portfolio and has no plans to dispose of any significant investment stake at this time. The Company continues to focus on our stated investment strategy, which is to continue to support our current investee companies and work to realise and return value to shareholders through timely and appropriate transactions and specifically the appreciation in the value of the Company's shares rather than by means of distribution as previously approved by shareholders.

[888icb] 14/2/2019 11:35

To be fair to Tang he ran with Hibiscus which was a Dattels investment as is GCM and that has done very well accounting for substantial part of Polo's nav. Also as its listed it could easily be sold and converted to cash.

[philjeans] 14/2/2019 08:55

Yes thanks 888.

I've been in and out of GCM and POL for years, but have been buying POL steadily since 3p last year. GCM is good for trading!

Every dog has his day and it's coming for POL - not yet sure of the trigger for significant rises - but it's coming.

[alpal2] 14/2/2019 08:30

888: A well thought-out post. Am I the only one [besides Tang] who needs the share price over 30p to break even.

I am pleased that a major shareholder is being critical of Tang; he has done nothing and certainly not spelled out any mechanism for possible return of value to ordinary shareholders.

[888icb] 13/2/2019 23:36

In the light of today’s movements at Polo and GCM please excuse me running some rough numbers to see what could happen in value terms.
In December Polo’s NAV was put at US$62 Million which is circa £48 Million and this gave a NAV per share of 15.72p against today’s share price of 4.6p.
GCM has a market cap of £29 Million and in those December Polo figures the GCM stake of 17.8% is valued at circa £5 Million.
If GCM gets the green light then some big values have been put on it exceeding £1 Billion. So let’s be a lot more conservative and put a value of £300 Million on GCM which is £3 per share. Polo’s share of that would be £57 million(that’s without Polo converting its loan into GCM shares at 11p!)
In broad terms on thos numbers Polo’s NAV would double and the NAV per share would exceed 30p.
If you think that is likely would you sell your Polo shares for 10-12p?
Clearly if a large number did accept the 12p offer and then GCM went ballistic the remaining Polo shareholders would see their NAV per share go even higher perhaps getting back to Mr Tangs buy in price of 40p.
Just some late night musings about what could happen and obviously you can have your own views on GCM value in the future.

[888icb] 13/2/2019 15:46

Actually there is another Buy showing at the same time as the 225000 and it 241000 so the volume now exceeds 2.5 million

[jamesss1] 13/2/2019 14:58

I refuse to get excited until we escape 10p

[888icb] 13/2/2019 14:44

225000 Buy has just pushed the volume up another 10%

[888icb] 13/2/2019 14:41

Volume just over 2 million and holding an 11.65% gain at present.

[888icb] 13/2/2019 13:14

It seems something of a coincidence that someone is trying to get Polo to return money to shareholders just at the point where GCM is getting very interesting. GCM was the reason Tang bought into Polo. I await a response from Polo with great interest.

[stupidboypike] 13/2/2019 10:20

I have held this share for years and I am glad that some larger shareholders are as frustrated as I am. I for one, will certainly join them if needed.

Best regards

SBP

[failedqs] 13/2/2019 10:04

Letter is very critical of the buffoon Tang. Good, he deserves that!If the board were competent they would have been looking at realising value long before now, but they are Tang's own people so effectively useless.Might buy back in now! Over £100k lost previously thanks to Tang so I'll tread carefully!!!.....

[frrinvest] 13/2/2019 09:40

Full letter, worth a read as it outlines proposed steps ...

[willoicc] 13/2/2019 09:31

Where is Polo going to get the cash for a tender offer? By selling some of their holdings? What will that do to the share prices of the ones they sell?

[philjeans] 13/2/2019 09:20

Nothing like some corporate action to stir the pot.

Been moribund for far too long.


Good potential here now.

[mister md] 13/2/2019 08:48

Well, everyone has to make their own investment decisions, but POLO now seems far less of a risk than GCM. Trading at a fraction of NAV, a large investor is seeking return of capital at multiples of current shareprice, and , if GCM comes good (anyones guess), it will lift the POLO NAV even more ...

GCM is a binary bet - either it comes good and multi-multi bags or you lose the lot

GLA

[failedqs] 13/2/2019 08:41

Good post Alco!
It was always going to happen - the idiot Tang is incapable of delivering shareholder value so someone else will force him to do something about it.
Polo might be worth buying now!
Maybe Tang will get ousted too?

[philjeans] 13/2/2019 08:40

Interesting - pressure building here!

Hold tight.

[mister md] 13/2/2019 08:20

htTTp://www.phronimoscap.com/news

[alco] 13/2/2019 08:20

February 13, 2019--On January 28th, 2019, Phronimos Capital, LLC, ("Phronimos") acting on behalf of beneficial shareholders of Polo Resources Limited ("Polo" or the "Company") (LON: POL), transmitted a letter to the Board of Directors (the "Board") of the Company outlining several proposals that we believe will be beneficial to all shareholders. Clients of Phronimos and other concerned shareholders of Polo supportive of the proposals outlined in the letter (including a return of capital to shareholders via a tender offer at 10p-12p per share), currently hold approximately 14.0% of the total shares outstanding.

[888icb] 12/2/2019 17:32

As I speculated the other day perhaps he has sold some Polo and taken a direct stake in GCM to get the full benefit of a green light for GCM. After all this would be following Polo’s lead as they have a large holding of GCM shares and the option to convert a loan into more GCM shares at 11p. It would be the sensible thing to do if you are confident that GCM will come good.

[alpal2] 12/2/2019 15:39

shawzie: Last RNS from Polo showed Greenwood shareholding down from 5.2% to current 4.3%. So he sold nearly 20% of his holding just when I / we are all getting hopeful of good news from GCM. Makes one wonder why...…….