What i think is really happening to Debeers"deBeers sells at its sights, a powerful sales system that no one else can touch; and they are reporting disappointing sales results."
The buyers are forced to to buy the whole box at a fixed price set by Debeers generaly 20% higher than market, if they want to be allowed to bid in the next sale. There is a revolt starting and the buyers are refusing to commit to the Debeers system because they can go to the system that MPVD uses . This is a system where they look at the parcel and bid what they think it is worth. MPVD has reported in it first quarter sales they they did not see the drop Debeers encountered but rather saw stabilization and a slight increase. If the trend continued into the second quarter then we should see an improvement in the share price. What is really happening to Debeers is that they are losing control of their sight selling process.