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Iron Ore

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AUS Export value for May - Iron ore $6737m (+5%mom), Coal $3074m (-1.8%), Nat Gas $1307m (-8.9%), Petro oil $845m (-3.5%), wheat $665 (+28%)
 
Port Hedland June exports - Iron ore volumes 33.6 Metric tons (down 6.8% from May or 2.5 million tons)
Is June traditionally less? Given IO stocks had a pretty good couple of weeks in terms of price appreciation.
 
Some-one asked me yesterday, why do I invest in Iron Ore whilst it's price is falling.

My reply; I am invested in a company, not the commodity!
And as notting says, they are not producing.

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burglar said:
Some-one asked me yesterday, why do I invest in Iron Ore whilst it's price is falling.

My reply; I am invested in a company, not the commodity!


]
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That's right, as long as they are producing at a sufficiently low cost, and you made your purchase at a valuation the reflects the low margins you will still do well. These down turns in the commodity price don't really matter, in fact over time they can have a significantly positive impact for the low cost producers, BHP, RIO and FMG are all driving down their costs even further, while some of their competitors are leaving the market, So when the price stabilizes, they will have a larger market share, and a lower cost base.

When it comes to development projects though, it is a dangerous position, it the fear of the fall funding may dry up, and even if they make it to production, its hard to know what their production cost will be. Usually new production is a higher cost for the first couple of years.
 
I usually don"t buy stocks that cost less than a dollar, or even better-less than 10...These kind of companies are in the market only to attract money through IPO and further securities down the road.
 
rimtas said:
I usually don"t buy stocks that cost less than a dollar, or even better-less than 10...These kind of companies are in the market only to attract money through IPO and further securities down the road.
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huh? What the? stock price got nothing to do with the business dilution or want to tap you for cash, it is all about earning and market caps

DMZ at some point sold for $2.20
RFG at some point sold for 60c
NVT at some point sold for $1.98
CBA float at $5.50
CCP float at 50c
TGA 20-40c you can get them for when they starting out
GXL Float at a buck or two
FLT,SEK,CRZ,WOW, VED

all kick ass performer all sold for less than $5 a pop at float or through their life cycle

if you got all those suckers you are mega rich, they all out perform the market by a factor of several hundred percent :)
 
rimtas said:
I usually don"t buy stocks that cost less than a dollar, or even better-less than 10...These kind of companies are in the market only to attract money through IPO and further securities down the road.
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What school of finance did you study Rim?

as already pointed out the share price means nothing when it comes to dilution, plenty of great companies are currently under $10.

whether a company had a par value of $1, $10 or $100 gives you no information about the prospects of future dilution or value.

whether they issued 1,000,000 x $1 shares or 10,000 x $100 shares it doesn't really matter, the company still has a capitalisation of $1,000,000
 
Value Collector said:
... whether a company had a par value of $1, $10 or $100 gives you no information ...
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Methinks rimtas has a psychological fear of penny-dreads.
I pay the roughly the same for my penny-dread parcels as I did for my NAB parcel.

I like $3000 parcels best! :)

Smaller means I work for the broker. :mad:
Larger means I risk too much Seed Capital! :eek:
 
ROE said:
huh? What the? stock price got nothing to do with the business dilution or want to tap you for cash, it is all about earning and market caps
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in-bl***y-deed, ROE

and you forgot a few that I remember:
bought RIO at one stage at $5.85
WAN in the IPO @ $1
FMG started out at a few cents; they even split 10-for-1 because Twiggy thought $100 would scare investors off.

In other sectors, ANZ was $2.95 in the early 1990's;
and look at my current favourite, LNG! Had I waited for it to become a $1+ stock, I'd be up 200 or 250%. Buying at 35c means 1,000%.

But each to his own. Actually, I prefer sub-$1, even penny stocks because of their higher ATR%. Admittedly and unashamedly, I'm first and foremost a trader, earning a wage from swing profits.
 
burglar said:
...psychological fear of penny-dreads.
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Many people seem to harbour that fear. That's probably why they're called penny dreadful :D

I pay the roughly the same for my penny-dread parcels as I did for my NAB parcel.

I like $3000 parcels best! :)

Smaller means I work for the broker. :mad:
Larger means I risk too much Seed Capital! :eek:
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Apart from the parcel size, I follow the same strategy.
On average, my parcels may be a little bigger, even though OM's minimum brokerage is only $13.95. Brokerage is an overhead; without it, I can't make a quid at all.
But I vary the size depending on my specific risk assessment. If a trend runs my way, I'm quite happy to double up or add smaller amounts several times; OM lets me take a dozen bites a day and still sends me only one contract note with one minimum brokerage.
 
The only one I can add to the lists above is Sundance (SDL) - the rest covers my list.

GRR got knocked out of the 300, IOH and GBG not in there. MIN I have as a mining services company.
 
burglar said:
Is GBG GINDALBIE METALS LTD producing?
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Definitely producing. See activities report last quarter 31/7/2014

systematic said:
The only one I can add to the lists above is Sundance (SDL) - the rest covers my list.

GRR got knocked out of the 300, IOH and GBG not in there. MIN I have as a mining services company.
Click to expand...

SDL is not producing anything.

MIN has a large services division but also produces iron ore under Polaris Metals Pty Ltd. Last year 10.4m wmt was exported. So they only produce slightly less than AGO (12mtpa).
 

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