Break-outs tend to occur, "Just like that!"
We posted on Diamoncorp last month correctly predicting that news was on its way regarding their world-class Lace diamond mining asset.
It looks increasingly certain that the company target to mine over 400,000 tons of Kimberlite over the next 17 months or so will generate Approximately £8-£10 million pounds in revenue, The cash will be used by the company on mine development helping to significantly offset production costs estimated to be approx’ £9-£11 million pounds. (“400,000 tonnes of kimberlite is scheduled to be mined from stoping development during the 17 months of mine development through to November 2012 when full-scale commercial production is expected to be reached”).
Operating margins are being quoted at 46%-60% which is an excellent figure in its self but I would estimate that this figure could change further depending on the quality and the quantity of the grade of diamond extracted. It is widely being discussed within the city that lower levels of Kimberlite at Lace are thought to be higher in quality and quantity. The company have stated thus; “‘At current strong diamond prices, the initial minimum operating margin is expected to be a robust 46%, rising to very high levels if the diamond grade improves with depth as forecast in the geological model”.
The diamond market at the moment has been in recovery with auction houses reporting hotly contested bidding . Diamond packages/Lots have risen in value as demand begins to overtake supply. China and India are voracious lovers of the gem. Diamondcorp will have preliminary figures on grade and caret value this month from the 30,000 bulk sample while July will see the company release the final results from the bulk sampling. It is almost certain that these figures should be excellent given what Diamond corp already know from their geological study. The SP has (as foretold here) begun to rise it is up approx 15% since we first wrote on the stock and has been as high as 16.5p. I would certainly get them on a watch list and at the very least take profit now! Always derisk as & when you can. Under-value at the moment? Yes in my opinion but this is stocks & shares. What goes up will always come down. Watchlist and research!!
NB**Interesting to note that all the tipsters are now jumping over Diamondcorp!
Viva!
Dan
“NB**Interesting to note that all the tipsters are now jumping over Diamondcorp!”
You mean the tipsters like you, are regurgitating the RNS, saying they think their is potential for gains?
How dare someone copy you.
Tipsters like us???
Please read the article it states “Watchlst and research” However maybe your understanding of the English language is limited.
Dan
Really?
“the sp should rocket.. way undervalue..”
thats you not tipping it?
“The SP has (as foretold here) begun to rise it is up approx 15% since we first wrote on the stock”
thats not you crowing about the rise after you tipped it?
Dan, you’re a tipster, nothing to be ashamed of, many are grateful for the tips, but for goodness sake, know what you are.
Tsubie your missing the whole point of the Blog. It’s not in any way a tip sheet. When an article states that in its opinion you should watchlst a stock or research it then it’s unfair to suggest that it’s a tip to rush out and buy en-masse. The Blog posts personal opinion of BMD and I’ve wrote more times than I can remember that research is the key to good investment. Hence the new site. You should use ALL information read in articles as a basis for further research as to whether an investment is Good,Bad,or Ugly. we said Diamondcorp would rise in our opinion and Diamondcorp has risen. It’s not “crowing” it’s a statement of fact. Investors need to join up the dots for themselves making decisions on what is known,suspected and rumoured only then can they hope to make gains in the market. “I think the company is way undervalue and should rocket“. It is a statement of opinion not fact.
Dan
Hi Dan,
First of all I’d like to give credit to you for entertaining some criticism instead of censoring things you disagree with, I presume that would be pretty easy to do, so thanks for keeping the dialogue open (even if your response was a tad childish).
Secondly, my criticism was pretty mild, I merely expressed my surprise that you were shocked that other tipsters had posted on the back of the RNS. I still don’t understand why that would surprise you.
““I think the company is way undervalue and should rocket“. It is a statement of opinion not fact.”
Nobody ever accused you of trying to promote your opinions as facts, I don’t understand this response.
What I am saying is you can’t have it both ways, you cannot crow about success with “as foretold by the blog” because that phrase really suggests you WERE making some sort of prophecy, when you state only your opinion – then on the flipside, get defensive when you’re opinions are labelled as tips.
I hope that makes sense, thanks again for the debate and good luck with the new sites launch.
It most certainly isn’t long and boring! You do yourself a dis-service. Informed debate is always welcome on here however it’s having the time to answer it, very busy at the mo’
Email if you decide to pen your thoughts.
Dan
I take your point about the “as foretold” but in all honestly I only post that to annoy the loonertick fringe.
Dan
Dan why do you let mongs like this tsubie post moronic comments. It’s obvious that hes an interactive inFestor spreading hate?
Pickle
To ‘tip’ synonymous with ‘recommend’. You tipped it for the ‘watchlist’ and ‘research’. That is a tip. Although legally (of course – you’ve got better at this) not an investment recommendation.
The posters primary point was simply that the above is unoriginal information. However, it is a little much to expect every post to be original, so probably unfair.
However, it’s ironic that a reply in critique of another’s ‘English’ contains a spelling error.
More broadly recommending diamonds right now appears risky – presumably if there is a kickback from China (an the wider Asian region) then metals like diamonds will be the first to flat line. I remember in 2008 most were ‘tipping’ Gem Diamonds as a recovery play that’s never fully kicked into gear.
What this site needs is a better macro-economic narrative. You need outline your views on how global growth will be driven, paying particular attention to the ‘drivers’ in Asia. If you believe China to be a ‘bubble’ i.e. over-investment in capital intense industries/a opaque and inefficient financial system, then clearly investing in diamonds is not a good idea regardless of the micro-merits of a particular company. Alternatively, if you take the view (which many do, including Roach) that the Chinese economy and its Asian peripheries have scope for further growth, continued consumption and investment etc then Diamonds are a good play.
Basically, you need to put the macro before the micro and that’s what this sight lacks in any convincing depth. It is also the reason why many of your more religious followers are experiencing a degree of pain i.e. you tipped some good shares which shot up on the back of a commodity boom, the bottom of which has now fallen out, causing a significant correction, which you were not prepared for (see numerous posts classifying north sea oil as ‘derisked’ etc).
Just my opinion and maybe this will change in the new sight when you pay someone with the correct qualifications/expertise to make these judgement calls.
James you’re completely and utterly wrong yet again you have shown your lack of understanding. The posters’ main emphasis in his comment was the assumption that the Diamondcorp post was a tip and that the blog /me was a tipster. It’s plain for all to read. Especially in Tsubies’ follow up comment which makes no mention whatsoever of the Rns. As for your assumption that “metals like Diamonds will be the first to flatline” I need to point out that a diamond is an allotrope of Carbon, and is a non-metal. Your point on Global economic drivers is a valid one and interesting which is being addressed re’ the new site. The Macro before the Micro point is one of perspective both are inter-dependent and one feeds the other. The terrific gains on the North sea stocks that most witnessed and were foretold here have been impacted by a combination of events especially by the North sea tax hike. Which I might add NO one, other than George Osbourne, foresaw. The continuing Global economic grumblings will be with us all for quite some time to come and I expect that most investors are fully aware of this as evidenced by many stocks yoyoing around the markets. There’s plenty of expert analysis out there for Private Investors to make a judgement call.
Dan
Ah, Diamonds…you got me…was writing at pace.
re the post, I believe – the words exactly were:
‘You mean the tipsters like you, are regurgitating the RNS, saying they think their is potential for gains?’
‘regurgitating the RNS’….regurgitating i.e. synonymous with copy and paste.
If you actually understand the research between the interdependencies between macro-economics and micro-economics, then I’ll admit I’m wrong about another point i.e. that you don’t have an economics/technical expertise.
I’m just a post-grad student with a lot of time on my hands…not someone who is angry because he’s lost money. I like to see a bit of rigour and consistency.
Re North Sea – there were a few who saw it as a very risky investment. Which is always has been. Far from ‘derisked’ or ‘nailed on’. From a considered over-view of the posts I doubt I’ve been wrong as often as you, although its also likely that I haven’t been correct as frequently.
Pickle
He lets them on the thread so he can rip em up. Read his response.
Diamonds are a girls best friend never knew they were metal always thought they were made of coal ie carbon. we live an learn eh?
You wicked man Dan. Tee Hee
Mac
Here’s a quick thought for you James if you’d like to pen an article on Global Economic drivers I’d be only to happy to post it on the Blog.
Dan
Dan – the gauntlet aye…that’s very generous of you, but I have to say I don’t think I have anything of substance to add to the commentary already out there.
My continual (occasionally petty) questioning is simply to see if the issues have been thought through in a logical manner.
I will have a review of the literature, however, and see if I do have something to contribute. My guess is I will fall far short of the mark and provide an especially mediocre analysis of an area I have only a passing academic understanding of. (Hence why I occasionally (and unfairly) try and goad practitioners like you into doing it!!). I’ll ask around though – if your interested in getting contributions from qualified economists.
In all seriousness the tone of my posts isn’t intended to be insulting, but its only through direct challenge/strain that people’s knowledge is put to the real test. Its necessary to ensure that when someone recommends a share they are not simply front running their own book. (which I don’t think you are, although I did have doubts at one stage).
No need to post this – its long and boring for your readers.
Hi Dan,
Do you think you might be able to do a peice on EMPYREAN soon, as I feel they are not getting the exposure they deserve on the Eagleford Shale play in the States
“I’ve wrote more times than I can remember that research is the key to good investment”
Given this recent statement of yours then why is it that you fail to show any research on any of the stocks you highlight?
All I can see is copy and paste of commonly found articles and there is not any detailed research at all carried out by yourself, only agreement of the articles you post and rumours which most times turn out to be complete BS such as MTA from example
I’ll allow this comment from you Mr Spikey (thats if it is you) Firstly if you had been a follower of the Blog then you’d realise just how wrong your “recent statement” comment is. I have consistently for the last two years ALWAYS urged investors to assiduously research their investments. The whole blog is littered with coments on this so you’re either A/ an idiot… OR B/ Too busy pasting articles lifted from other sites. Yes we do post some rumours from city sources and well placed individuals such as the recent RKH OIL STRIKE, Desire dusters, Sefton increase in value (it went to 9p by the way) Niche RNS etc. It’s a Blog it is not and never has purported to be anything other. The reasons why it is so hugely popular with investors is that more often than not it calls it correctly. That is why the daily traffic stats hit tens of thousands and why we have over 280,000. on the Unique UK Global investor following widget. The Blog gets hits from all over the Globe. As for mta watch this space.
Now you are aware that you have been banned from here and the twitter account for posting disgraceful comments much of which has been emailed to the Blog by our genuine followers. So if you wish to post comments in future on here then an apology emailed to the admin email will be required. So until said apology is received your Ban remains.
Daniel
Oh God the biggest muppet on iii is now tryin to infect The bmd blog
Go away u brainless basher + stick to your bashing on iii
This blog is super cool and you’re as we say in Scotland a “Real un!” English interpretation= Village Idiot.
Any thoughts on Melrose Dan?
Dan this is the joker using about 30 aliass’s on interactive he’s a complete prick always cut’n’pasting dross great to see you gave him sort shrift and mugged him off he’s come on here ass lickin tryin to find out info
Do one SpikeyTB you hav been given a lesson in manners and civility while being told in no uncertain terms to sling ya hook! Ya mug!
well done Danno
Mike
Spite dt
Ello ello ello what’s all this then Mr Daniel? I was proceeding along the information highway when i came upon the loikes of the above named suspect who gave his name as spikedt upon further investigation i discovered that he was a she named Maggie devlin it then turned out that she was now a he claimin to be Trotskymac upon further perusal i discovered that it wasn’t trorskymac but goldproduecer i then discovered the actualite protested to be anthracite upon which i called the men in white coats who attended the scene in their yellow van and carted the suspect away to the loony bin. Move along now nothin to see here!
Job well done. Knacker of the Yard.
Bellyache laughter Knacker you should be on the stage or at the very least get your wn show.
Hi dan thanks for the Avesco pointers they are flying up at the moment making good dosh so i will be joining the new site.
Big fan of yours
Have you kept your eye on Avesco Dan?
Great call on them they are on fire my son
Well done.
Blue Moon
Dan,
Good evening sir. Can you shed any light on max petroleum?
Seems the more good news they releae or the more they strike oil the more the share price tanks .
About 5 stikes in last 6 months alone, fully funded for next 12 months, limited downside
75m raised in 2 days when it was expected to take 2 weeks . Debt defered until 2013. 100m Market cap going after over 1 billion barrels in just 8 weeks time . Yet we are at 13p having dropped from the 20p Mark 6 months ago.
Am I missing something or missed a major flaw here? Or is the Market yet to wake up to the massive potential here?
40km from supergiant tengiz , in a prolific area, 5m revenue per month which is being ramped up in 2011.
Each time max finds oil it stays static – today it went down on borky production trial and nars-1 discover . Touted to be a major within a decade some time back, I believe they are on tr brink of great things but the share price doesn’t agree
Seriously losing the will to live, when you see DES jumping 15% each day despite only ever finding water in the sea in 12 years and having zero revenue or success . Can’t believe it jumped to 180p on hype alone , yet max never gets any pre drill hype, it’s always priced in or we need flow rates , yet solo oil can jump 108% in one day without flow rates .
What am I missing here my friend?
They are on the Blog radar.
I’m working on them.
Dan