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Charles Archer's avatar

The most frustrating thing about POW is that it has it all; decent cash position, solid assets, capable management - and yet for years the share price has been disconnected from the fundamentals.

It does mean when the rise inevitably happens, it will deliver relief akin to breaking a fever or perhaps reaching the top of a mountain during a summer biking trip....

I remain of the view, like you Mr Bloke, that POW remains an obvious buy and look forward to the day we can share a bottle of whisky (even virtually) to celebrate when our mutual patience becomes financially rewarded.

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Funding Freedom's avatar

Share buybacks and / or returns of capital are potentially the answer.

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Taff2's avatar

Not really possible Richard - they need the cash from sale of GMET to re-invest. The market believes it will blow it all.

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Taff2's avatar

Good piece. For me the crucial moment was selling the GMET stake to get some cash - prior to that point I was genuinely concerned cash was a problem. What I am surprised at is the lack of movement since then. I can only put it down to the market believing they will blow all the cash in projects like Haneti. There's a fair rationale behind that but I'd say it's too negative.

Just picking up this point :

"Since GMET, FCM, RRR and AAJ are all listed if you liquidated those into cash"

Large holders can't just do this though - whilst it might be logical mathematically you'd tend to pay a price for unloading large holdings around market price.

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