1 How to make the market work for you? – And other observations The evolution of the City Nature gives us all the parallels we need to assess the market.

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How to make the market work for you? – And other observations

The evolution of the City

Nature gives us all the parallels we need to assess the market and its characteristics

Darwin explains it rather well…

John Meyer – Managing Director / Metals & Mining Analyst

No1. Extel rated mining analyst for smaller UK listed companies, 2009, 2008, 2007, 2006.

No1. Extel rated analyst for all UK smaller companies in 2006 by fund managers.

Ex: SocGen, Goldman Sachs, Montagu Mining finance, T Hoare & Co., Numis Securities.

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The city is a jungle

On the surface it looks like a nice friendly place…

But under the foliage, its wild, dangerous and a constant battle to survive

(Actually it’s a $1 billion forest according to a recent BBC documentary on the rainforest of Kenya)

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Beneath the surface its full of hungry, dangerous predators.

Some might look a bit “Slow” but appearances can be deceiving…

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Some of the slow looking predators can move surprisingly fast

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Exploration companies are like Wildebeest,

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There are a few of them and when the ground is fertile you can get caught in the stampede

You don’t have to follow the heard but you do want to get ahead of the stampeed

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The vast plain is your market: The grass that covers the plain your potential investors

So where are you in the food chain?

Investors are at the foot of that chain and are liable to sway with the prevailing wind

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These guys control the market

Traders, Sales, Corporate financiers and Analysts – Definitely in that order!

(Some corporate financiers always think they at the top of the food chain!)

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The trader has the power to execute….

It is definitely a good idea to have him on your side

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Sales are an early form of caveman

Hunter gatherers, up early to catch their prey and fill orders to feed the tribe…

but they do need to be told what spear or club to use!

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Analysts are like gods

Their wisdom is indisputable but they are sometimes up in the clouds

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The migratory Journey a growing company has to take is fraught with danger

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Predators lie in wait where least expected…

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Have you met a corporate raider before?

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Sometimes they take one down

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The lucky ones get away!

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Look out for the vultures

Short sellers

Insider traders

Vulture funds

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Majors do sometimes take out a mid-cap

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In the lean times, when the table is bare, all members of the food chain suffer

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Salesmen are normally offered for sacrifice at this point in time

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Investor Relations are busy tweeting but sometimes forget the dangers of the market place

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Its hard pushing this stuff uphill

Must be a PR beetle

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Its not an easy life being a corporate financier

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Some companies try to act bigger than they really are

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Lehman Brothers torched the financial planes

Recovery has grown from the ashes but which broker will set fire to the new growth

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Don’t be a Dodo

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Make sure you wear the right camouflage and come prepared for the weather

Make sure you are ready to tell your story. Be prepared to climb the financial ladder

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Make the ecosystem work for you?

befriend a human who introduces you to the tree of financial life

make sure you find a good watering hole

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10 Commandments of the city

1. Honour your investors so they continue to support you

2. Don’t lie or exaggerate ‘beyond reason’

3. Try not to miss your targets

4. You shall not commit closeology

5. You shall not take the name of your broker in vain

6. Remember the weekend - it is time off for brokers

7. You shall not divert funds into non-core ideas

8. You shall not rubbish your competitors

9. You shall not steal your broker’s analysts

10. If you have a beard, shave it off!

Ps Analysts are gods!

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If a London Taxi driver tells you to buy a mining stock its time to sell

Make sure you have a good drink at the end of it all

You can CALL ME! On 0794 303 1001