they are taking over GIR - Giralia so maybe the market is seeing the synergies of such a match. looks good to me too!
AGO - Atlas Iron
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they are taking over GIR - Giralia so maybe the market is seeing the synergies of such a match. looks good to me too!
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How about analysts noting a 7.5% increase in the price to china last month for IO and predicting another 7% increase in the price of IO in 1st quarter 2011? This saw most IO producers increase in price this week.
Reasons given for the increases are
"the likely causes of the increase include higher USD operating costs for producers due to the weaker Greenback, problems with short term iron ore supply out of India, an uptick in steel production (IISI crude steel index +4.6% for the month), and seasonal restocking by Chinese steelmakers."
imo, GIR went up due to their AGO offer linking to the share price of AGO so GIR increased proportionately to the AGO Share price.
There were quite a few articles this week regarding the IO price predictions.
http://www.ironoreteam.com/content/iron-ore-prices-rise-77-q1-2011-reports
A possible scenario for upside (with very little evidence of activity so far) for me is that AGO have a few JV's with BHP. Wouldnt it be nice if BHP decided to mop up number 4 on the list of IO producers in Australia?
AGO will continue to grow shareholder value without an offer for takeover and i am comfortable holding for the mid to longer term however a BHP bid would provide most of the long term gain quickly (some cash would be left on the table by holders as AGO is a 30 year story minimum with what they have so far).
All is good for AGO holders in my view.
Sean K
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They've paid a pretty decent premium but long term an excellent fit. Creates scale to be a major player and potentially build their own infrastructure if required. Should bring a great deal more tonnage into market. Long term AGO looks very good with this addition. Won't be their last acquisition I feel. Unless they are taken themselves...
Dunno if there are many around who are/were in on the AGO/GIR takeover-merger.
Anyway - AGO now have 87 odd% of Giralia. so all looking good for them there. The 'new' company should be have a great potential to develop and ship the combined resources I believe.
AGO Have also just booked their maiden half year profit at $30 mill which is forecast to be even stronger in the next half.
Argonauts new research report (link below) has given a value of $4.30 with a buy recommendation.
Research reports
without going into alot of detail of the report - 1 thing i see and really like:
- they forecast FY2011 Earnings Per Share at 16.7 cents per share.
Rising significantly to 37.4 cps in FY2012
... suggests a good couple of years in the making for the new improved AGO.
I was thinking about selling off some of my holding after the takeover - but, given this outlook and capital gains issues I think I'll just sit for now
Anyone else still in here... ?
Anyway - AGO now have 87 odd% of Giralia. so all looking good for them there. The 'new' company should be have a great potential to develop and ship the combined resources I believe.
AGO Have also just booked their maiden half year profit at $30 mill which is forecast to be even stronger in the next half.
Argonauts new research report (link below) has given a value of $4.30 with a buy recommendation.
Research reports
without going into alot of detail of the report - 1 thing i see and really like:
- they forecast FY2011 Earnings Per Share at 16.7 cents per share.
Rising significantly to 37.4 cps in FY2012
... suggests a good couple of years in the making for the new improved AGO.
I was thinking about selling off some of my holding after the takeover - but, given this outlook and capital gains issues I think I'll just sit for now
Anyone else still in here... ?
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Dunno if there are many around who are/were in on the AGO/GIR takeover-merger.
Anyway - AGO now have 87 odd% of Giralia. so all looking good for them there. The 'new' company should be have a great potential to develop and ship the combined resources I believe.
AGO Have also just booked their maiden half year profit at $30 mill which is forecast to be even stronger in the next half.
Argonauts new research report (link below) has given a value of $4.30 with a buy recommendation.
Research reports
without going into alot of detail of the report - 1 thing i see and really like:
- they forecast FY2011 Earnings Per Share at 16.7 cents per share.
Rising significantly to 37.4 cps in FY2012
... suggests a good couple of years in the making for the new improved AGO.
I was thinking about selling off some of my holding after the takeover - but, given this outlook and capital gains issues I think I'll just sit for now
Anyone else still in here... ?
If there was a like button i would click it. In and holding. My SMSF will not be selling in the immediate future.
Lot to like. The sliding valuation scale for the price of IO insightful and indicates that the $4.30 ps valuation is very conservative.
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No your not alone. Ther's a few of us around although we are fairly silent. I've been on this one for a couple of years now.
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Should be all systems go however looks like the shorts have got AGO at the moment and maybe a bit of a pull back short term but still LT bull here.
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I just remembered this morning that the 18th is the date which the funds will be filling their boots with all the new inclusions to the indicies. Looks like they will be picking up some bargains...
I usually avoid commodity "price takers" stocks, but atlas iron appears to be trading at a quite nice discount to my projected value. Great prospects for this one, not letting the short term worries influence my decision on this one.
I usually avoid commodity "price takers" stocks, but atlas iron appears to be trading at a quite nice discount to my projected value. Great prospects for this one, not letting the short term worries influence my decision on this one.
Whats your projected value?
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As a long time fan of AGO just thought I would check it out today ..
Looking at three year chart is quite eerie in that we have just hit the same high as in June 2008 when it tumbled back to 40c.. $4 seems to really be a nemisis for AGO ..
Dont think that will happen again but definetly have AGO on my list of potential buys
Looking at three year chart is quite eerie in that we have just hit the same high as in June 2008 when it tumbled back to 40c.. $4 seems to really be a nemisis for AGO ..
Dont think that will happen again but definetly have AGO on my list of potential buys
pixel
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Good idea, adobee
I checked them out a few weeks ago and decided to "buy a lotto ticket" as you would call it, on the expectation that the current area around $3.20 should really hold, based on the role this price level has been playing as support or resistance several times since last November.
I checked my tea leaves on the 5-minute chart and decided it's worth the risk.
Note how AGO has a habit of closing gaps before too long, I also find the only open gap enticingly high, promising a return of about 15% on my 3.20 entry. No sheep stations, and a Close below $3.10 would stop me out.
PS: I also like the confluence of 200-day EMA with the mid-point of the 12-month range. Even if $3.10 were broken, I'd give it another shot around $2.80.
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Hi Adobee/ Pixel
You two have been posting on AGO.
Is there any new update on AGO and its movement ?
Regards
I note today AGO says it is issuing an additional 22 million securities.
This will surely dilute the SP.
I don't know what is behind this capital raising. Does anyone know why?
(pay off debt, buy more assets or simply capitalising on the market)
At least they have advanced to the realm of "dividend payer" albeit 3 cents/share.
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Can i suggest you do some research? Something along the lines of AGO by Ferraus should answer your questions
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And the takeover is happening. This couldn't have come at a better time to tell wham-bam-no-thanks-mam to go away. Looks like wham bam helped Atlas to get over the line too. >90% acceptances in a little over 2 weeks. Quite impressive and it shows people were very keen to get this takeover going.
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AGO having a little picnic all by itself today, not really anything that I can see as to why. Looks short term positive?
Feel free to add anything if there is something technical going on.
Otherwise I'd suspect something positive to come fundamentally.
I have a little
Feel free to add anything if there is something technical going on.
Otherwise I'd suspect something positive to come fundamentally.
I have a little
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From my experience, AGO seems to have a mind of its own...
Although it is a great company IMO (I hold)
Although it is a great company IMO (I hold)
