Australian (ASX) Stock Market Forum

JML - Jabiru Metals

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What is everone's views on the entitlement issue of 1 share for every 10 at the price of 85c?

If you hold JML (like me) you would probably think its a good deal (when considering future prospects of the company and so no etc), but if the price keeps going the way it is it will be cheaper to purchase shares on the market (market closed at 90c today).

What a pitty it will be if the price drops below 85c on the market as JML will have to resort to debt finance to make up the shortfall (after having spent substantial sums on the entitlement issue).
 
Its purely zinc price going down thats affecting all the zinc plays. Unfortunate for Jabiru that the price tumble is happening at the same time they are doing the issue. Long term outlook for Jabiru is still intact.
 
Has anyone been able to work out why all the activity with JML shares began on 6 December 2006 (6 Dec 06 had a volume of nearly 6 mil)? There was no positive announcement coming (only a negative entitlement issue announcement on 22 December 2006) and the share price rose 22c in that time (from 80 to 102). I would expect the price to rise as we get closer to production but 22c in 3 weeks doesn't sound right. Buyers wanted in and were willing to buy up big and push the price up, but why? Shurely they could have spread their purchases apart to avoid pushing the price up??

Can we expect the price to continue rising after the entitlement issue effects settle? We are getting closer to production. When do you think the price will peak (near the end of production, mid way through??) Anyone have any views on this?
 
:banghead: I posted my cheque today to accept the entitlement issue. Maybe i should have waited till closer to the closing date in case the market price dropped below 85c prior to closing.... doh! (its all part of learning i guess...)
 
steven1234 said:
:banghead: I posted my cheque today to accept the entitlement issue. Maybe i should have waited till closer to the closing date in case the market price dropped below 85c prior to closing.... doh! (its all part of learning i guess...)
Click to expand...

What happens if you "stop the cheque"?

thx

MS
 
To stop the cheque the bank will charge a fee ($30 i think) and I expect it will charge a fee for each attempt made at banking the cheque.

No need to worry about it at this stage as the price is .98 atm. Might be worth considering should the price drop before the cheque is banked. I would expect JML to bank the cheque into trust immediately upon receipt to avoid such issues arising.
 
looks alright at the moment as a Trend Trade

GMAs are o/k

ADX pulling up

TMF UP ABOVE " 0 "


just a bit of consolidation ?



Cheers
 
It's normal for shares to drop a bit when a rights issue is announced, (a) because the new shares represent a dilution, offset by cash, and (b) as some sell enough shares to pay for the issue.

(a) should have been about 2c/share, and (b) unknown but maybe similar, but with a sharply dropping zinc price the damage was greater. Zinc appears to be recovering, JML share price is recovering, zinc is going to be one of the hottest metals in 2007 if the supply/demand forecasts I have seen are even half correct, so I am taking up my full entitlement and holding on for the ride!!
 
Made a nice move today. Nice TA breakout above $1.01
what do other trader think volume growing on the daily chart
MACD moving into place, I might be aggresive and jump on today
or wait for confirmation tomorrow.
 
These broker reports from the companies website estimate the price as follows:

Hartleys report dated 5/01/07 - valued at 116c with a 6 month target of 140c. Indicates strong potential to re-rate once production starts.
http://www.jabirumetals.com.au/BrokerReports/RBC_JML_121206.pdf

Pattersons report dated 4/01/07 - valued at 103 DCF valuation and could see the price moving towards a price target of 118c with a seamless transition to production in June 2007
http://www.jabirumetals.com.au/BrokerReports/Pattersons_JML_2007_0104.pdf

RBC capital markets report dated 12/12/06 - valued at 111c and listed a price target of 120c
http://www.jabirumetals.com.au/BrokerReports/RBC_JML_121206.pdf

JML rose to over the 100c mark in the past few days. Are these just marketing materials or do people really base their trades on such advice? If the broker believed in its valuation wouldn't he get his clients to buy up big and hold until production starts??
 
For anyone interested , this is AGET's veiw
 

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steven1234 said:
And then there are the valuations brokers are pushing for BHP.... but we wont go there
Click to expand...

Don't think they are wrong about BHP...its just market sentiment...brokers don't decide what happens on the market.

Simple calculation shows BHP capitalised at about 100 million. Profit expected of about 15 billion???? then that equates to a company that can pay for itself almost 7 years......I think thats pretty good
 
LifeisShort said:
Don't think they are wrong about BHP...its just market sentiment...brokers don't decide what happens on the market.

Simple calculation shows BHP capitalised at about 100 million. Profit expected of about 15 billion???? then that equates to a company that can pay for itself almost 7 years......I think thats pretty good
Click to expand...

I do hold BHP (i thought it was a great time to buy recently) but find it frustrating the price and dividends are so low. Hope this changes soon, but i expect not.

Then again who am i to complain about BHP when JML is paying me no dividends and keeps asking for more money from shareholders!!
 
JML is now one of my largest holdings, because it has gone up so much ( I bought just over a year ago). It is nearing my valuation of around 1.20, so I've shaved a little off the top (money to live on) and if it goes on up I will probably go on shaving bits off, but I'll hold a substantial amount for a while yet. Interesting you mention BHP, as I have just bought some. Thought I'd have a go at owning a larger company for a change. I have done particularly badly with big companies in the past, so I had been sticking to the lower divisions. It does seem to me that the larger companies are much more difficult.
 
Jabiru is climbing nicely, I guess the closer we get to the date when they start mining the higher the value of the shares barring a drop in POZ. :)
 
The price rise can also be attributed to take over rumors. Have a look at what is happening to CSM, the 31.7% shareholder. CSM is going to partner with Pallinghurst Resources "a strategic investor who has both acess to capital and access to opportunities in Australia and overseas..."

Will the new company formed try to take over JML?? From what i have read so far it looks like such a purchase will complement the current investment of CSM by Pallinghurst Resources and fit nicely with the "vision" of the new company.

Timeframes?? CSM sharelholders will vote on Pallinghurst proposal in May, so the new company wont be able to make a bid prior. Production is to start for JML in June. Will the price rise in anticipation?? If the price doesn't rise in anticipation could this arise interest from other parties? You would expect any takeover to take place prior to production, so this may rule out the CSM take over?? But then what if the new CSM company sells its holding in JML... Who would buy it? What if JML finds more reserves?? So many questions!!

Some days (well most days) i just wish i had internet access to the future... i don't care to travel there, i just want the information.
 

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