183 replies to this topic

[SoleTrader]

You are right @DividendTycoon, without clarity the stock is going nowhere. I just wonder why the mining license is not being awarded

[DividendTycoon]

5000 bid at 306c, 3000 bid at 305c according to my broker. That's it, nobody wants this share. And the company has got no bloody idea if its invested in a diamond mine or not????

Nobody selling below R3.65 either, I know I would not be a seller at that price. Not sure if I would be a new buyer until more clarity though. The FM article does touch on the profit guarantees for more share issues, so did not think it was all bad.

[SoleTrader]

5000 bid at 306c, 3000 bid at 305c according to my broker. That's it, nobody wants this share. And the company has got no bloody idea if its invested in a diamond mine or not????

[SoleTrader]

Another horrible article on TTO in this weeks Financial Mail I see, once again questioning the diamond deal.  The impression created is one of a company and a CEO lacking transparency, a questionable valuation of a diamond mine with unproven reserves and unproven mineability.

 

And this bloody company cannot announce whether there is a deal or not.  My broker tells me there are no buyers for the share this morning. 

 

 

[DividendTycoon]

I was quite impressed by what I read in the annual report. The property holdings are massive, if they develop these correctly it should do well, so I personally think the market has this one wrong. Anything could happen with the share price, but there is not actually that much free float with Mr Van Rooyen/Riskowitz/snowball owning over 80% of shares. 

 

I have no idea on diamond deal, only silver light is the fact that each lot of shares to be issued as payment has a condition attached, being profit from the diamond mine, so one would think if it is a dud then shares will not be issued.

[SoleTrader]

The market has decidedly lost interest. Don't know if its company specific or general negative small cap malaise. 500c is a Pipedream shortterm , definitely for 2016. And no communication on the diamond transaction not helping things either. If they stuck to their knitting, the share would be above 600c

[DividendTycoon]

@SoleTrader I think, but stand to be corrected, that the reduction from 360000 to 280000 may be a result of the Zimbabwe contract they had with a cellphone company, which was short lived and ended badly, that was about three years ago I think.

 

I did not realize the annual report was out already, will study that before commenting but it is strange the price so low, but then it was 35c in 2010 when I first researched this company and maybe people do not believe the story or that it is possible for a share price to rise so rapidly. Diamond deal still a concern though, not sure what it says in the report yet.

Edited by DividendTycoon, 29 June 2016 - 08:35 AM.

[SoleTrader]

Sad to see  the share down 7% on what appears to be good numbers

 

Briefly looked at their annual report - their life business is going backwards. from covering 360000 lives three years ago, they only cover 280 000 today. only negative that i could see. Except for the diamonds, that is. the huso transaction now 4 months overdue.

 

So what are investors missing in this business?

[Rulz3]

Sorry only commented on you post. Looked at their financials and not bad actually. If you compare with finbond this seems to be a much better buy.

[Rulz3]

Because the property revaluation is a non cashflow transaction and should actually be totally excluded in my view. Take it out and see what the heps then.

[SoleTrader]

@DividendTycoon - looking at the results seems to be that they are putting their revaluation of the property as a non-taxed profit into the income statement.  If you had to apply a 25% tax rate the HEPS drops down to 48c it seems!

 

So why is the share trading at 370c? Diamonds or doesn't the market believe the numbers? Or a combination of both!

[DividendTycoon]

I was pleased with the results. Dividend of 5c seems low compared to profit, but still a 25% increase on last years final dividend. Do you have any idea why the tax paid is so low? Would think the auditors would need to provide correctly for tax payable.

[SoleTrader]

A solid set of results, they just forgot to pay the taxman!

[DividendTycoon]

@SoleTrader. I was pleasantly surprised at the trading statement, I also now hope that the final dividend may be up to 6c if the div cover is 5 times. I looked at the share register a few months ago and Riskowitz funds held something like 30% of the shares, so at least there is hopefully a shareholder who can see that the deal only happens if the criteria are met. 

I am not worried about the share price in the short term, but as this is for the long term, I would like the diamond issue to be settled and that they stick to what they do well at.

 

Also, Van Rooyen may gain from the diamond deal, but a depressed share price would also not be good for his current 50% holding.
, 

[SoleTrader]

@DividendTycoon. I am surprised that there is no communication re the Huso deal. It is three months late now. Lots of sellers on the market today. The market doesn't like this deal, it has increased the risk profile of the group and hence a derating in the share. I however think that van Rooyens ego is bigger than the demise in the share price! If we see 500c in the next 12 months we'll be lucky!

[DividendTycoon]

Thanks for your view. Share does seem cheap for the PE and growth rate. Agreed, will be relieved if the diamond deal disappears..but not so sure it going to, lets hope there is some news in the results.

[SoleTrader]

Good trading update, and share on a 7PE. Clearly the markets view on the diamond transaction is rather dim. Trustco needs to walk away from this, let van Rooyen list this nonsense separately. Without the diamonds the stock worth closer to 650c in my estimate

[DividendTycoon]

Seems a decent trading update...not sure why stock down. Does not really matter, but just find it strange as it seems better than expected.

[SoleTrader]

@Sugafoot, yes, I have started nibbling again. I think there is no rush given, will wait for a trading update. But no diamond deal is first prize for this company. They no nothing about mining.

[SoleTrader]

@Sugafoot, yes, I have started nibbling again. I think there is no rush given, will wait for a trading update. But no diamond deal is first prize for this company. They no nothing about mining.