Member poll: Invest further in Ramsdens

[garindan]

Members,

There has been some discussion in the Ramsdens share monitoring thread. I've raised the idea of investing the remainder of our cash holding (~£800) in Ramsdens now the company has given an update on their financial footing. The company seems to have very good cash reserves and significant valuable metal stock, which in these difficult times stand the business in good stead. Additionally the shops are considered essential status this lockdown, thus the business is not restricted from trading like it had been before in March.

Having significant funds in the bank is not going to help our growth, so we should now be looking to invest that cash. The decision is whether to back Ramsdens again or choose something completely new.

Please do your research, share your findings and discuss below. Let's try and conclude a vote as soon as we can.

[garindan]

So my view here is that we already have experience in this company, and before the lockdown it was doing really well for us. I don't see how the lockdown (beyond the business risk of it being closed) has negatively impacted the importance of such a business in society, in fact I think it will have the opposite effect in the longer term. With strong financial reserves in the form of cash, as well as precious metals, and a significant network of shops it makes the company available to a wide section of the population. There are some short term negatives in terms of potentially reduced use of the shop network during lockdown, though of course the shops are actually open this time.

Personally, I'd far rather we invested in a company we know a little more about than find another at this point in time.

[burwin]

I tend to agree... rather be in the market than sitting on hands.
Personally I would prefer gold but that boat has sailed I suppose, so I back the plan to use cash and buy Ramsdens, its as good as any.
Sooner or later we will recover.

[Beachboy]

I think the above observations all seem sensible and would prefer to be investing that sitting on cash so happy to support another purchase of Ramsdens shares.

[garindan]

Personally I would prefer gold but that boat has sailed I suppose

The thing with gold is we already have a large raw exposure to it, in terms of our current holding in Pure Gold Mining. At least with Ramsdens we have exposure to it, allbeit in terms of the precious metals formulated as predominently secondhand jewellery "in stock" but additionally a much larger exposure to a positive cash ballance, which in these times is even more king than normal.

[BeautifulSunshine]

Ramsdens has potential but I favour that we diversify once we reach our now standard £1,000 investment threshold.

[garindan]

Still a couple of votes out there to be cast but the poll looks to be quite conclusive.

[BeautifulSunshine]

Still a couple of votes out there to be cast but the poll looks to be quite conclusive.

Indeed, the share should be bought as soon as possible.

[burwin]

Still a couple of votes out there to be cast but the poll looks to be quite conclusive.

Indeed, the share should be bought as soon as possible.

Agreed time to purchase

[garindan]

Yes, I am just waiting to see if Rich can transfer the money over from the bank account to the share account. All the details are packed away as I had to pack my house up for the workmen!