AQA - Aquila Resources

[Sean K]

Strategic stake taken from Baosteel for 15% of the company.

AQA has had a great run the past 6 months.

What an awesome recovery.

Long term, this is a good deal which should pave the way for finances required to move their projects forward.

A company changer perhaps.

Should set it up for significant growth into the future.

Of cource, will be subject to the general market conditions as well, blah blah.

 

[swm79]

i feel your pain on this one kennas (if you're still not holding) - i was looking at buying into AQA back in April when they started talking to FMG about developing a port in Anketell... then with FLX going its looking even more valueable. Southern Cross Equities has put a short term $8 target on it and put a value on them at a full take over of $12

 

[Miro]

AQA's P/E ratio has gone up to 114.26 today.

How can this be sustainable?!

Debt/Equity ratio is only 7.6% though.

I own quite a bit of AQA and it has had a great rally over the past months but the P/E ratio makes me worried.

Can anyone comment on that? Thanks.

 

[swm79]

AQA's P/E ratio has gone up to 114.26 today.

How can this be sustainable?!

Debt/Equity ratio is only 7.6% though.

I own quite a bit of AQA and it has had a great rally over the past months but the P/E ratio makes me worried.

Can anyone comment on that? Thanks.

tells you that the price is WAY to high compared to actual and projected earnings.

generally you like to buy on high PEs and sell on low PEs but 114 is VERY optimistic... usually a high PE is telling you there is a lot of growth expectation or they've bubbled... it will either have to grow at an astonishing rate or drop in price... given the connections with china, the fact that coking coal is THE industry to be in right now and their strategic alliances with FMG it has potential written all over it - but DYOR!!!!!

still cant believe i didnt get in when they were at $2!!!!!!!!!!

 

[skc]

tells you that the price is WAY to high compared to actual and projected earnings.

generally you like to buy on high PEs and sell on low PEs but 114 is VERY optimistic... usually a high PE is telling you there is a lot of growth expectation or they've bubbled... it will either have to grow at an astonishing rate or drop in price... given the connections with china, the fact that coking coal is THE industry to be in right now and their strategic alliances with FMG it has potential written all over it - but DYOR!!!!!

still cant believe i didnt get in when they were at $2!!!!!!!!!!

Depends on whether that PE is historical or projected.

If their E was an unusally small number last year, and the PE is based historical E then 114 means nothing. Say if this year's earning is 10x last year, then a forward PE of 11 doesn't look too silly.

 

[swm79]

Depends on whether that PE is historical or projected.

If their E was an unusally small number last year, and the PE is based historical E then 114 means nothing. Say if this year's earning is 10x last year, then a forward PE of 11 doesn't look too silly.

true, that WOULD be the case if it was retrospectively calculated... but most brokers are listing weighted average: (most current actual E + projected next year E)/2

even using that AQA's PE is 114

 

[Miro]

Depends on whether that PE is historical or projected.

If their E was an unusally small number last year, and the PE is based historical E then 114 means nothing. Say if this year's earning is 10x last year, then a forward PE of 11 doesn't look too silly.

CommSec doesn't have the data. I'm not sure who it was but someone valued the company at $8 / share. I guess I'll wait a bit longer, then sell. I don't like to speculate too much and try to stay away from companies that don't pay dividends.

 

[Zird]

Aquila SP has been steadily rising for some time. Yes Kennas, I am still crying in my beer that I could have purchased an AQA share not so long ago for less than a packet of beer nuts.
I bought in last year pre recession when AQA was going gangbusters and slowly getting getting my money back.

Anybody got any projections on where this company longterm SP will end up and when?


Alex Wilson | October 08, 2009
Article from: Dow Jones Newswires

CHINA'S Baosteel Group has been asked by Australia's Foreign Investment Review Board to resubmit its application to take a 15 per cent stake in junior coal and iron ore group Aquila Resources.

China's biggest steelmaker plans to invest up to $285.6 million in Aquila to earn a stake of up to 15 per cent and to provide the Australian miner with sources of low-cost financing from Chinese institutions for its projects.

FIRB has 30 days to make a ruling on foreign investments and can then extend for a further 90 days if it decides it needs more time.

The regulator and the Australian government have been wrestling with a fresh influx of investment in the nation's key mining sector by Chinese state-owned enterprises, and have been asking many investors to withdraw and resubmit their applications as the 30-day deadline approaches, rather than trigger the 90-day extension.

FIRB has said the Australian government's preference is for state-backed entities to take minority stakes in junior Australian miners, a requirement the Aquila deal meets, and that it will assess whether deals are in the national interest on a case-by-case basis.

 

[Miro]

Aquila Resources enters trading halt

Shares in Aquila Resources Ltd have been placed in a pre-open trading halt at the company's request, pending the "imminent announcement" of the Foreign Investment Review Board's (FIRB) response to a $US240 million bid for the iron ore explorer by China's largest steelmaker, Baosteel.

The trading halt follows a request from the FIRB earlier this month for Baosteel to resubmit its bid for Aquila, in which it is seeking a 15 per cent stake.

In a statement to the Australian Securities Exchange (ASX), Aquila said it will remain in a trading halt until an announcement is made, expected to occur before Tuesday November 3.

Shares in the company last traded at $7.18.

link: http://www.businessspectator.com.au...ng-halt-pd20091030-XAUFN?opendocument&src=rss

 

[TheAbyss]

Black Rock have taken up 5% of AQA which explains the continued SP rise lately.

Link below from The Australian as to what Black Rock look to buy which augers well for AQA.

http://www.theaustralian.com.au/bus...-copper-platinum/story-e6frg9df-1225798252166

 

[enigmatic]

Aquila is a definitely long term play. Seem to have continue demand for the shares. However i believe its true potential is arround 2012-2015 once all there exploration targets both coal, iron ore, Manganese start coming to producing..

with the API project providing a Rail and Port of possible 350mtpa in the future if it is done right they will open up the West Pilbara to many smaller projects great potential.

DYOR.. long term holder of AQA.

 

[jag6275]

For any short-term traders take note of yesterday's shooting star formation. Just something to bear in mind...

 

[Out Too Soon]

For any short-term traders take note of yesterday's shooting star formation. Just something to bear in mind...

Thanks Jag, yes it's a shooting star formation= otherwise known as "the horse has already bolted"
I was considering a BUY on this a few days ago
(PS: I didn't )

 

[bryan_palmer]

AQA has been rising pretty fast in the last few days, anyone know why? I would've thought the Baosteel investment was priced in already.

 

[Miro]

AQUILA ANNOUNCES BONUS ISSUE

Aquila Resources Limited (ASX:AQA “the Company” or “Aquila”) is pleased to announce that the Company will issue bonus shares to its shareholders, to recognise the significant progress that the Company has made in its coal, iron ore and manganese projects over the last 12 months and the Strategic Co-operation with Baosteel Group Corporation.

In addition, the free entitlement is intended to encourage greater liquidity in the Company’s shares which in turn, should improve the likelihood of the Company being included in the ASX100 Index.

Official announcement: http://imagesignal.comsec.com.au/asxdata/20091130/pdf/01017218.pdf

Shares up 10% two hours after opening.

The 52 week low is $1.90 per share, now trading at $10.70!

 

[Zird]

nice steady continous climb up - not sure where it is headed but closing in on the highest sp of 18 months ago. Nice going boys glad I kept faith.

 

[bryan_palmer]

AQA probably going into ASX100 on higher market cap and more liquidity following the bonus issue. When does the new S&P/ASX100 list come into play?

 

[theresem411]

Hi everyone, I'm new on the forum. Anyone have any ideas about where AQA is going in the short term? It seems to be sliding as fast as it had risen!

Am enjoying the correspondence - the more I read, the more I need to read!

 

[Sean K]

Hi everyone, I'm new on the forum. Anyone have any ideas about where AQA is going in the short term? It seems to be sliding as fast as it had risen!

Am enjoying the correspondence - the more I read, the more I need to read!

Well, disregarding any fundamentals, the faster a stock goes up, the faster it will go down during a consolidation/correction. A steady climb, with longer periods of consolidation is much healthier for long term consistant rises. Have a think of the mechanics of why that might happen on a psychological level.

 

[theresem411]

Thanks Kennas, I will try and work out what it is you are trying to tell me! Being new to the whole trading thing, sometimes it's necessary to be bludgeoned with the obvious!