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I flagged up on the third of January an explicit allegation that fully listed gold miner Centamin (LSE:CEY) was not in fact selling any gold. The allegation was originally not made by an attention seeking share commentator (i.e. me) but by a well regard research analyst in a published note distributed by a respected London broker, viz Fox Davies. If the allegation is true then the implications for short term cashflow/ working capital at Centamin are profound. The response from Centamin? Er…
Centamin normally comments on market speculation. But this is a clear allegation and yet the silence from the company is deafening. That makes me think that the broker is bang on the money and thus, until the company clarifies the exact position, anyone holding the stock is taking a very real gamble indeed.
As it happens I view the upside at Centamin at 39p as minimal if it is selling gold as I explain here. If it is not selling gold then the downside is not something you wish to contemplate.
Tom Winnifrith writes for 10 UK and US financial and political websites. For alerts on all his articles and thoughts follow him on twitter @tomwinnifrith
Tom is also managing editor of ADVFN’s new service, Onefreesharetip.com which sends out a free share tip every working day from one of a panel of 20 leading share tipsters, bloggers and analysts. Next week sees tips from (among others) top chartist Zak Mir and resources gurus Brokerman Daniel and Sam Bottell. To ensure that you join thousands of other investors looking for free ideas register HERE today.
Tom Tom shame shame!!!! Read your article “http://www.advfn.com/newspaper/tom-winnifrith/13761/centamin-shares-collapse-time-for-bulletin-board-morons-to-apologise-to-me-still-a-sell”
That says “At 27p your upside is maybe 10p, your downside is 17p. The shares remain one to sell.”
Already I made 100% today, within a month!!! So I ask you again “STILL REMAIN SELL??????” Reckon “Time for you, The Failure, to apologise for making a panic and set few to sell”
Silence is golden! ;0)
So where is this comment from Fox Davies then.
Do you mean the one dated January 2013, Mr Winfrith. !!!!!