Hello, Share Crunchers. One drawback of seeking out companies which may be new to you is this. I delve into what seems like a likely venture, only to discover as I go along that all is not what it seems at first blush. All the deep research goes into the bin and I have to find a sturdier contender for your support. This has just happened (darn it!), but my second choice seems more promising.
Graphite play Directa Plus (DCTA) was not one of the better new issues of 2016. Nomad and broker Cantor Fitzerald earned a good few shekels raising it £12.8 million at 75p in May 2016. The shares roofed it to 200p but the crashed to 32p by early August this year. At that point Cantor's decided to earn its shekels as retained broker with analyst William Game (pictured below) upgrading his stance from corporate "hold" to "buy". Paid for rampers Proactive reports:
Alba Minerals (ALBA) is a company I covered previously as a speculative buy, but its now time to cash in 100% or so profit!
I am beginning to think that I am surrounded by lunatics. I fear a dawn raid on the ShareProphets editorial team by the men in white coats at any stage. Old Malcolm Stacey believes in the money tree, Zak Mir believes in charting, Ben Turney believes in Gulf Keystone (GKP) but worst of the lot, Gary Newman, has today tipped shares in Alba Minerals (ALBA) at 0.23p to buy. Saints preserve me.
Life has not been easy for AIM listed Stratmin (STGR) but top mining analyst Roger Bade has flagged up a new dark cloud hanging over the entire Graphite sector. The great man writes:
Manoli Yannaghas, entrepreneurial managing director of emerging graphite producer Stratmin Global Resources (STGR), has set his sights on taking the AIM-quoted company towards monthly production of 250 to 300 tons from its Loharano project in eastern Madagascar during the first half of this year, after a chapter of delays. He says Stratmin, which sold 48 tons of the stuff in December, would break into positive cash flow at 300 tons a month, with an expected selling price of $1,000 (£657) a ton for large flake graphite and anticipated costs of $700 a ton, which would fall to $500 and below as Loharano’s output increased.
Graphite production and exploration in Madagascar-focused, StratMin (STGR) has updated on performance in a holiday-shortened December and emphasised that its “confidence at the operational level has grown significantly over the last few months”.
Company A on AIM issues good news. The shares go up as private investors buy. Company A then issues shares at a sharp discount to a bunch of coked up City spivs who forward sell and flip the rest post placing so making a quick killing. It is coke and hookers all round in the Square Mile and the poor private investors are back on the cabbage soup. It seems a familiar tale and so after its shares spiked on an offtake deal (great news)…. Stratmin (STGR) duly raised £800,000 at 7p. Bastards. Or maybe not.
Following its announcing it has entered into an offtake agreement and rebound in share price last week, shares in StratMin Global Resources (LSE:STGR) got a second boost on the back of a further positive announcement. Two in a week – it all helps!
Broker Northland acts for Stratmin Global (STGR) so this is not impartial but it has published a detailed note on the stock after the signing of a major offtake deal yesterday. It reckons that the shares (now 8.1p) are worth 19.3p, that they trade on a 2015 PE of 9, falling to 1.5, and it has upgraded its stance from hold to buy. Analyst Dr Ryan Long writes:
AIM listed StratMin Global Resources (STGR) last week announced a 40 tonnes sales contract with a new customer - an “established European graphite trading house”, with delivery of the order expected to be “within August”. But there is more…
StratMin Global Resources (STGR) has announced “extremely encouraging” exploration results showing the presence of previously unidentified graphite mineralisation adjacent to its producing deposit.
StratMin Global Resources (STGR) has announced that it has signed a sales contract with an established US-based graphite trading company and that “now sales channels are being secured, production will be fine-tuned and increased to meet demand and maximise profitability”.
Normally brokers’ research can be described as being similar to toilet paper. That is to say it is always thrown away in the end. The only difference is that toilet paper has one practical use before disposal. We demonstrated this in a statistical manner earlier today HERE. But
On May 6th Stratmin (STGR) announced that its Lohorano plant in Madagascar had produced 107 tonnes of large flake ( i.e. high quality) graphite in April – and that was managed in just 21 days since output started on the 9th. There is more good news on the way...