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CLE - Cyclone Metals

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This is the last straw for me, I am out

I have to say I'm not altogether surprised at the turn of events, as some of my other recent forays into stocks affiliated with Chinese interests have similarly met an unhappy end. This is not to say I do not believe in the merits of this project, in the contrary, CFE have done their utmost to satisfy Ding and his cohorts, but in this case the lack of transperancy in Chinese business practices in general has led to the current situation. In the meantime, I am happy to sit on the sidelines and see what transpires.

I am merely expressing my own humble opinion here, and this is not meant to be taken as financial advice by anyone. DYOR

Cheers
jman2007
 
It is very sad to see CFE and Mr ding's deal end in a disaster for us.
But I think it can trigger a good buying opportunity. CFE's resource is still there. CFE's huge low grade fe resource is very suitable for China's steel companies' need. There is thorough analysis by MR. in his previous post.
CFE is a resource company. Without Ding's money, it still has sound finance situation. It still can run its business. Ding's step back is far from CFE's management failure. CFE's problem is totally different from RHG and Laf's problem. In my opinion, it only looks like a problem rather than real problem.

If ppl are panic tomorrow after the trading start, it may create a good buying opportunity for us.
 
Hi guys, I am a new investor and by reading your post it seems that this stock is heading south. If this is the case I am already in loss over this stock, should I sell it with loss or hold on to it. Why are the investors running away? Do they know the result of drilling before hand? Also was their any other company in the same boat and what happened to them?
 
Guys and maybe gals,
Cut this total cr*p about in Australia, we do this and we do that. This is business, and people (from wherever they live and whatever colour their skin is) are not about to pay A$250 million lightly. This is serious money going into potentially a serous project of about 10 to 20 years of mine life - read Supply Chain - and if I was the one paying the money, trust me, if I had qquestions or concerns then expect me to be an awkard bo**ocks. The players in question are not here to satisfy muppets like us.

As I have said before, crunch time.

Sadly, I dont think Mr Ding is going to take a controlling 70% stake in CFE. But I do think he is going to take between 20 and 30%, so that he can Equity Account for his investment. He is the current best gift horse and you do not tell them to "pi** off".

I do however hope I am entirely wrong !
 
looks like they did tell them to Pi** off HotinTropics.

man am i glad i got out of this late last week. Made a quick 15% profit and now do not have to watch the share price drop, which i think it wil on open today. Probably one of my best timed trades ever.

CFE still has potential, but a lot of investors who wanted cash in the bank will probably bail now.
 
Oh well, you win some...

Yes, the sp probably will head south in the short term, but i think we cant discount the fact that it has proved that it has a substantial resource, with more to come.

Im holding, will just put CFE in the back drawer for a while. They had interested parties in the company last year, so ive no doubt they will again. An Iron Ore resource like this wont be left alone.

Just disappointing that Ding couldnt meet his side of the bargain. Its not like CFE didnt do everything that was asked of them.

Good luck to those holding.
 


Mate, have you heard of the expression "let the buyer beware" - a translation from the latin "caveat emptor". Ding signed a binding agreement and didn't honour it. So why are you defending him? Are you chinese or something or feel you have to defend or protect his integrity? Of which he has none in my opinion by the way! If I sign something or say something, I honour it - those are my ethics - it has nothing to do with business or anything else. I chose not to do business with people who do not keep and/or honour their word - this has nothing at all to do with the colour of someone's skin or background - it is generic. However, it so happens, that these chinese are renowned for this type of behavior and that is why I would have told him to "P..S" off along long time ago!
 
The announcement reads as "screw you Ding and by the way, we found more valuable stuff!" I'm unhappy with the droop in share price but I think that's short term reaction to the news, I think management is doing the right thing by calling it off now and looking for more serious buyers.

m.
 

They absolutely told him to p$$s off mate

This is not a question about satisfying small fish like myself and other ASF members, but is more a question re the lack of transperancy in Chinese business pratices in general. Let me tell you something, in this game if you do not come up with the goods, in this case a $70M down payment, then you're down the road son.

Ding did not even seek approval from the Foreign Investment Review Board for the transaction, so it shows just how serious he was about it, then had the audacity to try and change some of the original terms and conditions of the sale agreement.

I applaud CFE on their decision to send this guy packing, I personally believe it is in the long-term interests of all holders, large and small. Believe me, CFE will now be vigorously launching negotiations with other interested parties and groups, this project has too much potential to be just left sitting in the ground.

Cheers
jman2007
 
i would have liked to have seens CFE's management try to enforce the contract, or at least mention they had considered legal avenues but thought it would be too costly.

right from the first delay, i think they have shown weak management.
 

Hi Mayk,

There is a fair bit of emotion running through this thread this morning, and a lot of upset investors running around wondering what to do with their stake, leading to some early panic selling. I've just had a look at the buy/sell orders on commsec, and tbh, the damage isn't too extensive, and is not the end of the World as we know it. There are currently some buyers around 49c, and a cluster of sellers at 50c, aggressively trying to bid the price back up. You'll probably find a lot of people will come out of the woodwork and try to pick up a bunch of these at a discount.

You need to decide for yourself whether you want to cut your losses and move on to another stock, or ride out this turbulence and hope that the sp rebounds. Believe me, CFE wont be sitting on their laurels, other interested parties will now come into the fray and we can expect some intense negotiations to begin soon.

Cheers
jman2007
 
Perhaps, although maybe they were giving Ding every opportunity to go through with it. And he was probably adament that he would. CFE would have tried every avenue to keep the deal underway.

But i think what is promising is that they havent been sitting back just waiting for the deal - work has still been progressing, so its not back to square one. Someone else can now walk in on a further advanced project.

I thought the SP would take a bigger hit short term, looks to be holding up very well so far. Shall see what the next few days brings.
 
The gap are filling. some serious ppl are accumulating it despite the bad news. I am holding to see how serious are those ppl's intention to buy.
 

I think CFE management will learn a lot from this,

Perhaps they were a little naive going into this deal, but they certianly wont be anymore, and I agree, it does appear that they gave Ding every opportunity to fulfill his side of the MOU. I actually think they have shown their true colours in terminating this MOU, a very brave and professional management decision.

cheers
jman2007
 

Im with you Ruprect.

CFE has either become a back drawer stock to sit and hold or time to accumulate more.
50c seems to hold fairly well and I mean its not like any of the fundamentals of what they have has changed. Iron Ore is still pretty hot to own with plenty of companies probably having a look at filling the void that Mr Ding has left.
Weren't the Russians looking at securing Iron Ore from another company operating out of Perth?
One could veiw this as a good time to buy.

p.s..though they have the perfect emoticon for todays events....:fan

DYOR
 
Dammit, still holding this one after my outburst last night

Holding up well today around 51.5c, well done to CFE holders who have not panicked and backed the management in their decision to terminate the MOU with Ding. I maintain that the merits of this projects far outway the negatives, I wonder if we'll see another Chinese raid once the new round of negotiations begin.

jman2007
 
Evan is a bad news for market but I think is a right decision. I strongly believe a lot of compamy would like to purchase the "Iron ore project". I rather they terminate the contract than always delay the contract. So to terminate the contract is a right move. Besides, I think the SP is not too bad, still holding at 50cent. May be, next week will get better. I will continue to hold.
 
Whilst there is room for the SP to decrease further, there could be an opportunity to be taken advantage of here.

1. CFE have stated that they will be increasing their resources "It looks like it's twice the size of what we've got and he would have ended up with 70 per cent of that for nothing under the terms of the original deal," Mr Sage said.

Another comment regarding the increased reource from the Age today was "Mr Sage said the upside for Cape Lambert was that Mr Ding had effectively funded about $5.6 million out of about a $7 million extensive drilling program by exercising options in the company and losing a deposit"

Take away number 1 = Doubled the resource

2. There were others who had to leave the table after Ding won the first round who will be coming back for another bid according to Mr Sage.

Take away number 2 = Potentially there could be a bidding contest or at the very least expressions of interest put on the table.

3. The SP was trading around .50 prior to the US led correction which allowed Ding to take advantage and jump in at .40 which was a very small window of opportunity which he seized.

An entry point at around .50 has limited downside when you take into consideration the above 3 points.

I have put my money where my mouth is so we shall see. Good luck to all.
 
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