Prosperity Minerals Share Discussion Threads

[philjeans] 02/7/2013 13:52

Good to see a tick-up today.

I have to say the results and commentary were both disappointing.

Whilst the property side is doing very well, I think the divi cut was foolish and unnecessary. No news on buy backs or any other process to boost the lowly s/p.

DW missed a golden opportunity to reward patient and loyal shareholders in his business.

Plenty of good opportunities elsewhere - why wait another year here?

[dr contrarian] 02/7/2013 13:48

Thanks LA - will try to find out some more details from DS and the Company as myself and I believe others would be very keen to participate if possible.

[dr contrarian] 02/7/2013 13:44

In the meantime - noticed that another 5 units have been sold at the development in Guangzhou in the last week, just 40 units left to sell.

[look alive] 02/7/2013 13:43

I imagine its restricted to Brokers and Institutions.

[dr contrarian] 02/7/2013 13:41

Any more details LA, I haven't seen anything on the Daniel Stewarts website recently, though that isn't unusual.

Do you know if the conference calls are open to all investors or just institutions ?

[look alive] 02/7/2013 13:31

They have a series of Conference Calls with investors this week.

[celeritas] 02/7/2013 11:59

Results sellers out the way then, should be time to move up again.

[bbluesky] 28/6/2013 21:20

fft..ures?

[celeritas] 27/6/2013 23:33

The property more than makes up for other investments, that along with ACC.
It's about time DW gave his long term holders in the UK a great rns one morning. Selling acc and returning it as a special divi will do nicely David.

[look alive] 27/6/2013 23:11

This loss was mentioned in the interims so is old news. Pity there has been no recovery in the second half though.

[fft] 27/6/2013 21:12

bb,

read it many years ago. one of his main points was 'scuttlebutt' and spotting oddities. how do you explain 14.7m losses (impairments) on such a small investment portfolio ? DW didn't invest in T-bills did he ! so what was it ? that size of investment (esp. the loss) should be described In greater detail.

[bbluesky] 27/6/2013 21:08

DW specialises in looking at ridiculously undervalued situations. He has been proven more than right in the property game, despite the Chinese property bubble?! If you look across even AIM, Chinese stocks are ludicrously valued, TAIH valued at less than cash?!Still goes down. Always hard to pick the bottom, so I guess DW is something of a value investor, confident and patient. Good track record. Time to dig out Benjamin Graham fft. If he is right it will be big time - will you be there?

[topvest] 27/6/2013 21:02

Yes, not very clever! That's a pretty significant unrealised loss. Hopefully, they will not get further carried away on this.

[fft] 27/6/2013 20:49

surprised that no one has mentioned the following :

"Available for sale investments

The Company invests in listed and unlisted securities from time to time. The total investment as at 31 March 2012 was $21 million and there was a profit of $1.5 million from disposals. During the year under review, the Company made further investments and, as at 31 March 2013, the aggregate cost was $31 million. Based on a marked to market value, however, there has been a net decrease in value which has resulted in an impairment loss of $14.8 million.
"

What are they playing at ? basically at a time when stock markets have been rising they managed to make investments of 10m this year and lost 14.8m ! What were those investments in ? It doesn't sound like its the iron ore txns, so were they friends of David, and what criteria was used to make the investments ?

[topvest] 27/6/2013 12:11

Yes, dividend cut was expected. More than happy with 3c. I suspect there should be a good dividend in 2013/14 with the real estate profits being booked. Anyone know how much profit we are talking about on US$322m of sales?
Iron ore business still looks very difficult.
Anyway still a good value investment as it currently stands.

[dr contrarian] 27/6/2013 09:02

Celeritas - The divi cut may mean something more, however after looking back at the previous results, the divi has been raised and lowered according to the level of profits, In 2007 and 2008 they paid an annual divi of 18c, then in 2009 when profits collapsed they paid 1.4c, then up again to 9c in 2010 and 18c (including special dividend) in 2011. This year will see a very substantial profit being booked.

[celeritas] 27/6/2013 08:47

The divi cut could be a bit of a give away, they don't need to cut it at all. Why keep the cash. You have to think why would I want to keep the cash.

[celeritas] 27/6/2013 08:38

Mm's have been short Dr, I expected it. Selling stock they don't have = shakes to try and get it. Cana do all the pushing around.

I'll also be mailing them with suggestions.

[dr contrarian] 27/6/2013 08:30

Did not expect such a mark down, considering the positive outlook highlighted in the results.

The Company is now valued barely above the value of its stake in ACC, the Company must take some action to reduce the massive gap between the share price and net asset value.

I will be forwarding some suggestions to the Company, such as the resumption of the share buy-back program etc.

Additional suggestions ?

[celeritas] 27/6/2013 08:21

Lets have it down a bit more mm's

[dr contrarian] 26/6/2013 12:26

Cash and Cash equivalents = $100m (£65m)

The Chairman talks about how undervalued the shares are, a decent share buy-back (now we have left the closed period) would be a sensible use of some the cash sitting on the balance sheet.

[eddie catflap] 26/6/2013 10:31

john henry,

I think that means that once the reports are available for download, an announcement will be made to say they are accessible.

[dr contrarian] 26/6/2013 10:22

Agree divi cut was a bit unnecessary given the cash reserves and the cash being genereated from property pre-sales. However I think there is a very good chance of a special divi next year when the property sales are booked.

In the meantime the Company needs to get on its bike and sell the undervaluation story to potential investors.

[celeritas] 26/6/2013 10:17

Keep the cash che7win, I wonder why!!

[john henry] 26/6/2013 10:17

"It was a difficult year, primarily due to a difficult iron ore market. But we have not been idle. First and foremost, the dramatic shift in focus of our iron ore trading business - from agent to principal - continues. Similarly, our real estate strategy of identifying well-located development sites in major cities looks set to pay off handsomely in fiscal 2014."

The Company will release an announcement once the Company's Annual Report and Accounts for the year ended 31 March 2013 are available for download from the Company's website: www.pmhl.co.uk and posted to shareholders.

And the announcement IS ????????????