Tuesday, 15 March 2016

Holding The Cat By The Tail - 88E & MTR

During the last few weeks It would seem that offering an opinion has been met with an unhappy response, if you dare to offer a contrary view or in fact question a valuation you are dragged over the coals and hung out to dry! ironically enough most of the companies mentioned and gaining the most attention over recent weeks are companies that I've either penned articles on earlier in the cycle (at a much lower share price) or I've held ongoing relationships with management. 

A year ago I penned an article on the decline of social media along with the psychology of junior market participants (Investors) today it would seem a war zone by the virtue that your subject to vitriol if you offer up a side order of reality. Below I link a few articles that are completely overlooked instead replaced by the unsophisticated approach of decrying democracy or free speech. At risk of sounding like Tommy gun I accept that those that really don't know any better react this way but its the sure-fire way to lose ground and quickly. I accept calling top or going against the tide can be a pain at times but life's full of chores. 

Interview by myself with PJ or Metal Tiger here conducted in 2014  (always happy to offer PJ a platform and in fact urge he consider revisiting the story for interview) he could explain how the business '' Metal Tiger '' warrants today's £12m market cap based on data. Grab/soil samples, drill samples and rock chip samples coupled to heavy director buying. As I understand these type's of results so far are not enough to give a JORC compliant resource estimate. Adding a well-heeled director or chairman offers no guarantee although accept that true quality is hard to come by. As things stand my opinion is it smacks of spoofing the market, I have no problem in commending PJ and his team nor do I have an issue in commending investors who have made a turn from MTR however It's pertinent to understand how today's valuation has arisen. Paul and I would often talk about the lack of valuation being given to a company which was working hard to get noticed and prove it's concept.I'd like to see the now CEO give a rationale on £12m valuation and where Metal Tiger is in the cycle? 

Clearly the concept is good or at least has now been accepted by the markets, I just feel that to advance operationally then the company will need capital finance or investment to do so. Which explains why commenting on the reality of today's state of play is such a hard pill to swallow as the savvy or the certain GR Inv. friends know as I do that this really isn't being taken seriously on its merit. I wish PJ, MTR and all investors the best of luck and should this continue then I'd say it would do so firmly supported by a bull run or super cycle in the commodities area they focus. If anyone can make things work its a spivy accountant and a 100 bagger chairman in Grammer. 

88Energy oh the initial bain of my life, late last year I covered this company suggesting that now was time to consider the buy case or punt on the company, The article is here: Titled ''time to punt on 88Eneregy'' the shares traded at 0.50p yet calling for people to consider derisking at 0.90p and consequently scaling back further or in total at 2.65p was met with a backlash from the faithful 88 investors following a Waco style investor commune in believing the business is fair or worse undervalued at a £110m market cap. I've covered much of my rationale to buy and sell (even if the imbeciles only choose to focus or see me as negative) however the testament of time will show true value.

The train wrecks coming, just remember who whooped and hollered for you to '' jump on-board ''



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