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I've looked to buy in on this stock many times over past years but it never seemed quite right for me due to circumstances, price or where it stood as a company in its somewhat checkered history.
Things seem to me to be better management and direction wise currently with increased production on the cards and reducing AISCs albeit as has been raised with a degree of clarity missing with the ranges quoted but the general direction lower seems to be the way it's travelling.
So I've once again been drawn in by the share price level together with the dividend which is quite a consideration for me although I've read that:
'its yields for 2021 and 2022 sit at 7.2% and 5.3% respectively'.
Could someone please educate me if this is correct and if so why the divi drop when things are positive and moving forward ?
The growth potential + dividend north of 5% is very attractive but because of the low share price I'm wondering if I'm missing any key info here or if the price has just come back with the gold price?
Thanks.
Can you please direct me to the source of the 5.3% 2022 dividend yield? That does seem odd, or a non-too subtle hint.
Yes Older@wiser,the source of that info .
Not possible until final results for 2021 unless a close insider gave it, unlikely though.
The original question was ? Strange.
Who on here would answer or give advice?
Very strange .
Centamin (OTCMKTS:CELTF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Thursday, Zacks.com reports.
The divi info was spotted in a random article from our 'friends' Motley Fool just over a week ago Olderandwiser.
Thanks very much for the Zacks info halfpenny. Not such good news there eh?
Do you have any info on why/how they reached that decision. I'm not a subscriber ( either to their website or to what they are saying!)
During difficult times brokers notes always seem more important, but they are after all only opinions on the day as we know things can change so quickly,also what are the brokers motives and are the notes aimed at short term traders or long term investors.
So always best to consult a numbers of notes from a range of brokers bearing in mind most of these analysts posses very little or no on the shop floor as it were practical geology or mining experience.
https://www.zacks.com/stock/research/CELTF/company-reports
apropos1
1. Have you ever been in a bookies office to bet on horses and greyhounds or whether snow will fall on 25 December in your area. In other words are you someone who is prepared to lose money on a bet that can win or lose. If you are too nervous, than you can not afford to take the risk.
2. Do you have other assets like property that is not fully mortgaged or other funds that keep you in your life style that are well separate from the equity market as although cash loses against inflation, most of us need some to pay credit card bills and so forth and may need to fund emergency use.
3. Do you prefer a company like Hargreaves and Lansdowne that run funds on your behalf. They take a cut but their funds are either sector based, diversified or whatever. It does not stop you having some funds set aside to stock pick on a couple of companies and take a chance in a separate account but you play with small amounts.
4. Are you a trader, an investor or someone who wants to start with trading to build free carry profit that you later regard as part of your long term investment. There is a difference and you need to know what you want to be.
5. If your investment is 30% down at any point will you be sleepless at night, have anxiety or depression or are you optimistic and resilient enough in that it does not bother you. Equally if your investment is 30% up that you can resist greed by not adding what you can not afford onto a winning investment position. Handling emotions is vital.
6. You asked for education tips but the first place to start is yourself. Can you put time into doing research. Do you want to understand all about the gold commodity and what affects it as this in turn impacts gold mining companies. It takes years to make money from doing this and it only takes one very bad year to have 3 or more years to get back to where you were before. If you make 5-6% net over 10 years every year by doing everything yourself that includes a few minus years against the odd year that you got 20% or more than you may have protected yourself against inflation and then you have equalled the same performance from buying gold bars at or above 1 ounce that you bought from a National mint recovering their premium overhead and the differential between buy and sell prices.
All the best Tony
Zacks scoring is more reactive and lags circa 7 to 10 days behind the market. It's meaningless if the SP is volatile, which is the case with CEY.
Look at the full analyses by Stockopedia. CEY is currently contrarian and needs a catalyst to push it back to its rightful place.
"the time to buy is when there's blood in the streets."
I will add some more over the next week or so
Some wise advice Tornadotone, a useful lesson indeed!
if only some of us had realised that the Josef, Youssef and Pardey weren't to be trusted, but complicit in a ramping up excessive guidance by corner cutting and sharp practice we would have taken an excellent profit and gotten out at £2, but instead it suited some of us to trust that all was well and the brokers prediction of £2.90!
Now the reality is apparent under the Josef,Youssef and Pardey Sukari was being run like any other pyramid scheme and we are now paying the price.
Dec 08th was not only a confirmation of the true future potential but also the appalling mess that has been created at Sukari and although very competent no doubt Martin Horgan has a formidable task in clearing it up and turning Sukari into a fit for purpose world class mine, unfortunately it will tale some time and as we know the markets and traders want everything in 24 hrs!
Hi Sid,
Also very relevant points!
Peel Hunt restated their buy rating on shares of Centamin (LON:CEY) in a research report sent to investors on Wednesday morning, Price Targets.com reports. Peel Hunt currently has a GBX 140 ($1.86) price objective on the mining company’s stock.
A number of other brokerages also recently issued reports on CEY. Morgan Stanley reissued an equal weight rating and set a GBX 100 ($1.33) price objective on shares of Centamin in a research report on Thursday, November 11th. Berenberg Bank cut their price objective on Centamin from GBX 137 ($1.82) to GBX 134 ($1.78) and set a buy rating for the company in a research report on Tuesday, October 19th. Peel Hunt reissued a buy rating and set a GBX 150 ($1.99) price objective on shares of Centamin in a research report on Tuesday, October 19th. Finally, Liberum Capital reaffirmed a sell rating and issued a GBX 88 ($1.17) target price on shares of Centamin in a research report on Tuesday, December 7th. One analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of Hold and an average price target of GBX 116.40 ($1.54).
Shares of LON:CEY opened at GBX 85.74 ($1.14) on Wednesday. The business has a 50-day moving average price of GBX 95.95 and a 200 day moving average price of GBX 100.44. The company has a market capitalization of £991.54 million and a price-to-earnings ratio of 9.42. Centamin has a 12-month low of GBX 83.90 ($1.11) and a 12-month high of GBX 137.12 ($1.82).
In other Centamin news, insider Ross Jerrard bought 15,000 shares of the firm’s stock in a transaction that occurred on Monday, September 13th. The stock was purchased at an average price of GBX 92 ($1.22) per share, for a total transaction of £13,800 ($18,299.96). Also, insider Mark Bankes bought 40,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 29th. The shares were acquired at an average price of GBX 92 ($1.22) per share, with a total value of £36,800 ($48,799.89).
Many thanks to the various contributors who responded to my current predicament!
Your overview of recent broker notes/targets was very useful to get an overall feel Halfpenny with NewSids advice kept in mind.
Your additional comments were also appreciated mrtibbles not least the line to the effect that Sukari was being run by Josef, Youssef and Pardey 'like any other pyramid scheme'. In Egypt. Nice :)
And thanks for the thoughtful post Tornadotony (thoughts with all those affected in Kentucky btw) and briefly reply to your points that:
1. Never been inside a betting shop but would take a calculated risk
2. No longer any assets to pay off and only using 'money allocated that I can afford to lose'. For CEY will probably be cashing in on some of my 35% rise in my Blackrock Energy ETF.
3. Primarily an invester. I manage my own portfolio (past 35 years or so) using the Interactive Investor platform.
4/5. Have a core portfolio but prepared to trade around that. Sleep not an issue thanks.
6. My request for 'education' was actually only with regard to the apparent decreasing annual dividends which I am now understanding is arising out of rising AISC amounts required in a bid to turn things around to a more dependable model by the current management.
Have a substantial (for me) silver ETF holding so as this is a geared play on gold very interested in what happens in this market.
Thanks too for the Stockopedia tip (can't just find who that came from) which is where, olderandwiser, it appears the 2021 5.3% divi estimate came from! So we've got roughly divis of +13% for Centamin's 2020 year, 7.2ish for 21 and 5.3 for 22 - so bearing that theme in mind in my ever more fraught decision to purchase!
Might simply rest on the case that there's enough going for it to justify a bounce plus the possibility of an updraft of an increasing gold price in the new year.
Will see what happens tomorrow.
Just for the record for better or for worse finally made an initial buy this avo around the 82.5 level.
I'm sure it could well be for richer or poorer too :o