IGO - IGO Limited

[porkpie324]

Looks like sme long awaited support comning through for IGO, perhaps I was a little tough on myselfe. porkpie

 

[porkpie324]

IGO up 7% at 3.00 pm my long pos looking good now, appears IGO is making up at last. porkpie

 

[chops_a_must]

Looks good. The MACD turned two days ago.

 

[porkpie324]

Yes and it's turned up from below the zero line, here's hoping IGO continues. BTW with the late profit taking with SMY I hope it's not forming the dreaded "Gravestone Doji". porkpie

 

[danc]

I reckon you have called the btm spot on porkpie,

 

[porkpie324]

I could'nt make out why IGO's share price has lagged MCR&SMY, could it be that IGO has dropped out of the small Co's index and is now in the ASX200 ?. anyway I think it was only time before IGO made up lost ground.
Also found this interesting article on the possible labour strike at Sudbury mine and if the strike proceeds the impact on nickel stocks
"Xstrata Plc rejected an offer from a labor union at its Sudbury nickel unit in Canada and withdrew an earlier proposal to end a dispute, threatening to halt production as the metal traded at a record.

Both sides will have to renegotiate from scratch to establish a labor agreement, Richard Paquin, chairman of the Canadian Auto Workers Union local 598, said in a phone interview today from Sudbury, Ontario. He didn't give details of what was offered by either party. Workers have threatened to strike when the existing labor contract expires Jan. 31.

Nickel, used in stainless steel, rose to a record in London today for an eight consecutive trading session amid concern that supply may not be meet demand. Sudbury was acquired last year by Zug, Switzerland-based Xstrata in its C$19 billion ($16.1billion) takeover of Falconbridge Ltd. The unit's smelter accounts for 4 percent of world nickel supply." porkpie

 

[michael_selway]

I could'nt make out why IGO's share price has lagged MCR&SMY, could it be that IGO has dropped out of the small Co's index and is now in the ASX200 ?. anyway I think it was only time before IGO made up lost ground.
Also found this interesting article on the possible labour strike at Sudbury mine and if the strike proceeds the impact on nickel stocks
"Xstrata Plc rejected an offer from a labor union at its Sudbury nickel unit in Canada and withdrew an earlier proposal to end a dispute, threatening to halt production as the metal traded at a record.

Both sides will have to renegotiate from scratch to establish a labor agreement, Richard Paquin, chairman of the Canadian Auto Workers Union local 598, said in a phone interview today from Sudbury, Ontario. He didn't give details of what was offered by either party. Workers have threatened to strike when the existing labor contract expires Jan. 31.

Nickel, used in stainless steel, rose to a record in London today for an eight consecutive trading session amid concern that supply may not be meet demand. Sudbury was acquired last year by Zug, Switzerland-based Xstrata in its C$19 billion ($16.1billion) takeover of Falconbridge Ltd. The unit's smelter accounts for 4 percent of world nickel supply." porkpie

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 30.7 58.4 50.6 48.0
DPS 9.0 11.0 11.0 14.0

EPS(c) PE Growth
Year Ending 30-06-07 58.4 7.2 90.4%
Year Ending 30-06-08 50.6 8.3 -13.4%

thx

MS

 

[Kauri]

Hi Porkpie,
I'm just starting out on E/W so don't read too much into my charts..
On the posted chart I have labelled the last top as a W(5) and am looking for the ABC to complete.... alternatively my count may be wrong and the last top may have been a W(3) in which case W(4) is complete and we are now indeed tracing out an impulsive W(5). Ah, the subjectivity of E/W.. wouldn't have it any other way.. Does any one else have an opinion where IGO is at at the moment??
Sometimes I can't help being right for being wrong..

 

[Freeballinginawetsuit]

Kauri,

It would seem logical that any move in IGO's SP direction would be entirely dependent on Nickle spot,their upcoming quarterly and punters perception of their market value relative to current SP. Without an increase in buying volumes, IGO is going nowhere ( stating the obvious) and its lacking those ATM.

IGO is a strange one to trade on price action alone, as any uptrend bounces intraday, support levels are weak and it always seems toppy. Regardless, this to me seems the only way to trade IGO and its comparative value>opposed to other Nicklers and current spot prices

Your wave count will validate this after the fact and any likely SP move is subjective at best. Nice charts though!.

 

[Kauri]

Hi Freeballinginawetsuit,
Thanks for your take on IGO, just a couple of points...

Kauri,

Without an increase in buying volumes, IGO is going nowhere ( stating the obvious) and its lacking those ATM.

IGO's 10day MA of vol has increased from 260,00 a week ago to 851,00 for the last week.

Your wave count will validate this after the fact and any likely SP move is subjective at best. Nice charts though!.

I hope so... but I actually trade by the charts in realtime and post my trades usually as a possible set-up before they happen and again at the time I enter, as opposed to waiting for the trade to validate and move into profit before claiming it as a trade.


By the way, at the last top with IGO spot nickel was around 14... at the last low it was about 14.5. Over the same period IGO went from 5.25 to 3.65..

 

[Freeballinginawetsuit]

Hey Kauri


IGO's volumes are relative. Certainly they have increased but definitely not in line with other Nicklers, hence the lagging nature of their SP. They simply need some more interest to maintain/increase momentum and soak the profit takers, ATM its not quite their compared to a few of their peers. Maybe its as simple as the market perception of their value


I still feel their choppy on daily price action (also difficult to get a feel for trend direction) . The same cannot be said for a few of their peers. Just my opinions and I still feel IGO will bump on a bit more once their quarterly is released, similar to MRE, Their both value ATM

As with all Nicklers recent pullback was a result of profit takers and Insto selldowns, certainly not Nickle Fundamentals. Hence you would have required mental retardation not to have accumalated on the pullback.

Kauri, I like your charts and youre posts are accurate and youre opinions valued.

Cheers

 

[Kauri]

Looks like it may have resolved which direction to take..

 

[mmmmining]

Check a few things with MD Chris Bonwick, decide to buy some IGO. With forecast PE at 5, and the Tropicana gold discovery is real and huge (30%) with several millions oz potential. At current price, worth to give it a go.

Nickel+Gold, and very fashionable combination only second to uranium+gold...

I try to purchase it a couple weeks ago at 3.76, only see my order was missed by 2c. But not this time with at market order, seeing the forming of double bottom.. (I am not a chartist)

 

[Kauri]

After shorting into what I thought was an ongoing correction in early March IGO has more than made up for it to the long side. The last minor correction (blue W4) is not all that convincing so far, time will tell if it is correct as is or is maybe yet to come.

 

[Kauri]

Have closed out original and pyramid longs as price met the typ W5 and max W3 before retreating, due for a corrective wave W4??

 

[nedsbirdeye]

an extract from the latest ASX announcement:

"Independence Group NL is pleased to announce the commencement of a pre-feasibility
study at the Tropicana gold project in Western Australia.
The study is expected to be completed in mid 2008 and will focus on the Tropicana and
Havana zones. The study will only consider open-cut resources."

open-cut resources!


how big is this mine going to be?
is IGO the next Fortescue Metals?

 

[Kauri]

Having closed out all of my positions quite possibly a little prematurely I have re-entered on the last correction looking to take a bit out of what appears to be a W5.....

 

[michael_selway]

an extract from the latest ASX announcement:

"Independence Group NL is pleased to announce the commencement of a pre-feasibility
study at the Tropicana gold project in Western Australia.
The study is expected to be completed in mid 2008 and will focus on the Tropicana and
Havana zones. The study will only consider open-cut resources."

open-cut resources!


how big is this mine going to be?
is IGO the next Fortescue Metals?

Cant really compare IGO to FMG, as FMG is vulnerable to a Nickel Price crash any time, while iron ore prices are more "reasonably priced" at the moment?

thx

MS

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 30.7 100.8 68.2 62.4
DPS 9.0 12.0 12.0 11.0

 

[Col Lector]

Gidday...
Whilst IGO, like all other Ni producers (& particularly explorers yet to produce) are vunerable to Ni price downturn I rate IGO as a top-notch resource stock/long-term hold. Top-quality management, great tenements & demonstrated ability to control costs. Money in the bank & good dividends. Friendly with BHP.
Recent Ni drillings (eg,McLeay) are very high grade & likely to increase resources , & production profile,& reduce cost of prod markedly.
Elsewhere their pipeline of projects will broaden the diversity of production to Ni/Cu(Matrix)/Au/Fe....
Tropicana has the potential to be awesome....as well as increasing further the attractiveness of IGO as a takeover target.
Held this sinc 2003 and the one I am least likely to offload.
Yes I guess you could label me "bullish" with regard IGO.
Alternatively would not consider holding FMG......even if I was given them...(lol)

 

[nedsbirdeye]

Cant really compare IGO to FMG, as FMG is vulnerable to a Nickel Price crash any time, while iron ore prices are more "reasonably priced" at the moment?

thx

MS

Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 30.7 100.8 68.2 62.4
DPS 9.0 12.0 12.0 11.0

Yes, i agree in terms of comparing the two businesses - i was thinking in terms of an appreciating share price - FMG is over $30 a share now and some predicting it could reach $100 - with no ore yet produced!