GBG - Gindalbie Metals

[MR.]

Yes we oficially have a breakout, which seemigly has been building since the fall of Jan 22 but definately Apr 1. Next stop $1.25 - $1.35 then little stopping a run upward to $1.80+. I have always loved this stock and even got a slap on the wrist for what was deemed a light ramp, which was fair enough. I really do see the strong possibility of GBG heading over $2 short term, especially after seeing the article on the Chinese value indicator.

Chart says it all.

Nobody wants to miss out!!!!!!
The buyer/s of some 24,000,000 shares just a few weeks ago (if they choose)can now sell for a 50% profit. Hmmm

Can you explain!
On the 26/12/07 Hangseng wrote:
The only challenge at present is the sp. looking at multiple moving averages in 3x5 bands (ranging from 7-250 days) I foresee GBG consolidating around $1.10 to $1.30 until production commences. If $1.10 doesn't hold could go back to long term support at .90-.95c

 

[jonojpsg]

Nobody wants to miss out!!!!!!
The buyer/s of some 24,000,000 shares just a few weeks ago (if they choose)can now sell for a 50% profit. Hmmm

Ya reckon - I think if you tried to unload 24m shares on market you would find the average price you got was significantly less than 50% profit!! I don't reckon either that you would find someone willing to take 24m shares at 1.10 - although maybe you would

In fact if I had a spare $25m I would probably pick them up

Let's hope we see the value we all know is there reflected in the SP over the next 3 months.

I mean if they get close to 2bn tonnes of magnetite at 35% we should be looking at what - equivalent to 1bn tonnes of haematite at 65% - although 50% JV so 500m tonnes

MC of $10 per tonne as per others valuations

Total of 5bn market cap

Makes for wonderful daydreaming anyway - that's about $9 per share!!!!

 

[Djayness]

Not that this post adds much to the thread, but im dancing in my chair atm.


SP makes me wanna dance

 

[anindya_becit]

Hi ... just a newbie in iron ore stocks and overall share market. Did bit of research about the iron ore stocks .... have got a little capital .... is it a good time to shell that off for GBG?

Probably missed the boat for AGO and FMG ... considering my capital ...

Cheers!

 

[oldblue]

Hi a-b

Have a read of the conditions of posting.
It's not permitted to give specific buy/sell advice.
The idea is to read others' opinions, do your own research, and make your own decisions.

Happy investing.

 

[anindya_becit]

sorry for creating any inconvenience ... yup just realized that ... thanks ...

Still researching ...

 

[Djayness]

Looks like the markets consolidating at 1.27 -1.28. Alot of profit takers judging from the last ten sells.

Im in for the long run though.

 

[onebytwo]

Strong resistance at $1.36 it would seem. Big sell order.

Was expecting re-tracement to mid $1.10s - strong bounce from $1.21 and very strong close.

I still hold.

 

[Djayness]

Well looks like it hit above to 1.395. Looking at the chart, it would appear we are inevitably moving towards the right of a parabolic curve. The share price has slowed but i dont expect it to drop though.

GBG is by no means overvalued at present.

 

[onebytwo]

Two new broker reports with significant short-medium term price targets.

See gindalbie.com.au homepage

 

[Golf 16]

Hey, thanks 'one by two! I looked up the GBG site and read most of the brokers reports. Just for everyone's information, The Australian featured the report below in "What the Brokers Say" on Monday, may 19.

Gindalbie Metals (GBG); BBY Limited; Buy recommendation; Share price target of $2.02; Last traded at $1.215

BBY analyst John Veldhuizen is one of the few analysts in the country who can claim to have correctly predicted the rising star of Fortescue from almost the beginning. As for Gindalbie (another WA iron ore with big dreams) Veldhuizen has lifted the share price valuation from $1.65 to $2.02 because of an increase in the house view of long-term iron ore prices beyond 2015. BBY also believes there is "considerable scope" for Gindalbie to expand production from its Karara project beyond that of just 8 million tonnes per annum as the miner adds more inventory. "At a production rate of 12mtpa our valuation rises to $3.12 a share." Karara output is not expected to begin until the last six months of 2010 and Gindablie should soon release an updated review on Karara which has a forecast capital cost of $1.8billion.

I thought the CCZ report was even better than the BBY report. Lots of comparisons with other Magnetite producers/ explorers including AX0.
I do not hold this stock. cheers....

 

[oldblue]

Yes, the CCZ was very impressive. Quite the most comprehensive broker's report I've read for a long time, it finally convinced me to take a small position in GBG.

 

[onebytwo]

Hi all,

Some interesting buying in the midst of a lagging market. It got rather strange towards the end of the session. Anyone want to take a guess at whats up?

I hold.

 

[Djayness]

Good call on the hold, went up by 9% today. The markets fell today but shares like gbg seem unaffected by what the big movers are doing which is positive.

JP morgan reduced their holdings which slowed the share price early on this morning but there is a clear interest in these shares. The 8 million volume was above average certainly.

The markets been consolidating a bit, but the share price should move along now that its hit back upto 1.30.


DYOR

 

[mfunksta]

I have been in this for a while. The largest movements are always reserved for the couple of days before big announcements (news leaks out like a seive). With the upcoming releases, is it possible they're related?

 

[richo78]

Hi all, new to this forum and first post so Hi.. If any1 can help me out with this chart it would be appreciated. Am i seeing a bullish engulfing pattern?? If so any idea how much it is expected to run? Have only just started looking at charts and am really interested to learn. It went up nearly 10% yest and another 5% today but also had a difference of over 10% today. After reading all the posts and doing research it looks like it could be a good stock.

 

[Sean K]

Hi all, new to this forum and first post so Hi.. If any1 can help me out with this chart it would be appreciated. Am i seeing a bullish engulfing pattern?? If so any idea how much it is expected to run? Have only just started looking at charts and am really interested to learn. It went up nearly 10% yest and another 5% today but also had a difference of over 10% today. After reading all the posts and doing research it looks like it could be a good stock.

I'd call it a pole and pennant/flag with a target of 1.70/80 ish, depending on where you think the break up is and the top of the pole.

 

[richo78]

thanks kennas, can i ask how u got those 2 lines making the flag sign? r they closing prices? Also is it best to use closing prices or highs and lows 4 resistance/support lines and other trend lines? another good open this morn at $1.39, hopefully another good day. Happily holding gbg

 

[Sean K]

thanks kennas, can i ask how u got those 2 lines making the flag sign? r they closing prices? Also is it best to use closing prices or highs and lows 4 resistance/support lines and other trend lines? another good open this morn at $1.39, hopefully another good day. Happily holding gbg

Hi richo, closing prices are much more reliable IMO. In fact, the way a stock finishes on the day is generally a much better indicator of support from what I've seen. Even though we have to wait for all the overnight noise from OS...

The lines I've drawn in there are just a general indication of support and resistance within the pattern. It's probably more a flag than a symetrical pennant. I like to see an ascending triangle on a pole in a general upward trend and you can be pretty confident of a break up. Doesn't happen very often though. So, this formation looks good enough to me for a likely break up. These things are only just probabilities based on market psychology though. If you're trading just on these patterns, then you need to be ready to jump ship without hesitation too.

Notes on a pole and pennant/flag for info:

Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. Flags and pennants require evidence of a sharp advance or decline on heavy volume. These moves usually occur on heavy volume and can contain gaps. This move usually represents the first leg of a significant advance or decline and the flag/pennant is merely a pause.
Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag/pennant. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level. A line extending up from this break to the high of the flag/pennant forms the flagpole.
Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines.
Pennant: A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.
Duration: Flags and pennants are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. A pennant more than 12 weeks old would turn into a symmetrical triangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
Break: For a bullish flag or pennant, a break above resistance signals that the previous advance has resumed. For a bearish flag or pennant, a break below support signals that the previous decline has resumed.
Volume: Volume should be heavy during the advance or decline that forms the flagpole. Heavy volume provides legitimacy for the sudden and sharp move that creates the flagpole. An expansion of volume on the resistance (support) break lends credence to the validity of the formation and the likelihood of continuation.
Targets: The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.

 

[richo78]

cheers kennas thanks for the info. Either way it looks good tho. Any good websites u no of that can give me a heads up on reading charts and so forth?