#EUA cooling off period was due, although it's not nice seeing negative commentary, some driven by shorting, some by enmity. For the former - there are ways of shorting without being aggressive - @Smudgedann @Blowster85 proved this. For the latter - celebrate, it's great for AIM!
Onto #EUA: both interviews have been terrific. The interviewees could not have been more clear that Monch at the very least will be acquired in the near term.
- Pd has in the past 24 hours hit another ATH. Demand from auto industry is rocketing and supply pipeline is negligible.
- Pd has in the past 24 hours hit another ATH. Demand from auto industry is rocketing and supply pipeline is negligible.
- #EUA is the only viable UK listed Co left that offers direct exposure to Pd. A lot of cross ramping flying about on Twitter and BBs about other PGM players. I don't want direct exposure to primarily Pt plays - the market dynamics aren't appealing. Pd, however...
- The contract with Sino has been put on hold. #EUA could commence work there at any time, as the contract is binding - and thus be in receipt of the $50m subcontract. They have paused it as potential buyers might want to use other EPC providers. That's a huge show of confidence.
- Precedent transactions in the Pd space are significant. Given the dearth of independent Pd projects, premiums are being paid. Hence two investment banks signing up with #EUA - on a no win, no fee basis - to sell the assets. They're evidently confident in a successful outcome.
- Site visits have been going on for weeks. Lesego Platinum is one named suitor, but #EUA mgmt. stated in interview: "we are in discussions with.. some others", and in the RNS that it's in "ongoing negotiations".
Mgmt. can't sell on this 'spike' - they'll be aiming for higher.
Mgmt. can't sell on this 'spike' - they'll be aiming for higher.
It's understandable why some are calling it a P&D, the obvious question being, why would someone pay 10x for what #EUA was valued at only last week? The answer is, as I've written of extensively in the past, that AIM is an extremely inefficient market. Just look at #RRE #MKA #HZM
#EUA's extreme undervaluation has gone unnoticed owing to:
- region of operation - many won't touch Russia;
- Pd - a relatively obscure metal with a small market means that many missed the steady rally in the price;
- Glacial pace of development at Monch over past 15 years.
- region of operation - many won't touch Russia;
- Pd - a relatively obscure metal with a small market means that many missed the steady rally in the price;
- Glacial pace of development at Monch over past 15 years.
People see a 500% rise and automatically assume it's a P&D. I have named 3 stocks above where, if they rose 500% now, many would think they're fairly valued.
Many struggle to adapt their opinions on stocks. The big sell sign put out by #EUA should catalyse an opinion change.
Many struggle to adapt their opinions on stocks. The big sell sign put out by #EUA should catalyse an opinion change.
Mgmt is fatigued. It's been developing its assets for many years. Monch is now permitted (a long-winded process in Russia, as #EUA has learnt the hard way!) and construction ready. This has coincided perfectly with the Pd price explosion.
No wonder mgmt is seeking to cash in.
No wonder mgmt is seeking to cash in.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
