MGX - Mount Gibson Iron
- Thread starter The Barbarian Investor
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Re: MGX
el_ninj0,
I have MGX consolidating at the low 70c levels whilst the wider market softens, which is a good thing for MT & LT holders - given their guidance of an expected $50m net profit for the 2006 financial year (figure from annoncements) the current lull in volitility will shake a few traders out and the market will soon begin again valuing the stock on fundamentals.
el_ninj0,
I have MGX consolidating at the low 70c levels whilst the wider market softens, which is a good thing for MT & LT holders - given their guidance of an expected $50m net profit for the 2006 financial year (figure from annoncements) the current lull in volitility will shake a few traders out and the market will soon begin again valuing the stock on fundamentals.
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Re: MGX
MGX has dropped below my entry price, however i'm still *Bullish* on this stock and may top up my holdings and average out my price..
MGX has dropped below my entry price, however i'm still *Bullish* on this stock and may top up my holdings and average out my price..
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Re: MGX
Well,
I can admit getting it wrong (re my last post) - although the move down seemed to be on the back of BHP's iron ore backdown and in sympathy with the rest of the market. Given that two others I have reduced my position size in (PNA & LAF) released positive announcements this week but still retraced, it seems some ST ugliness will still be present however my earlier MT entries are still intact (given I don't believe the fall is fundamentally based).
Remember the 5cps profit forecast when MGX was 18c didn't move the price for months, and the doom & gloom at present is remiescent of the discussions during the mid 2004 retrace
Well,
I can admit getting it wrong (re my last post) - although the move down seemed to be on the back of BHP's iron ore backdown and in sympathy with the rest of the market. Given that two others I have reduced my position size in (PNA & LAF) released positive announcements this week but still retraced, it seems some ST ugliness will still be present however my earlier MT entries are still intact (given I don't believe the fall is fundamentally based).
Remember the 5cps profit forecast when MGX was 18c didn't move the price for months, and the doom & gloom at present is remiescent of the discussions during the mid 2004 retrace
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Re: MGX
Sitting at 0.61c now..
Time to sitback and watch the fun over the upcoming weeks?
NEWSLETTER
By Noel Whittaker
18th April 2005
The share market is on the front page of the paper again because there
has been a fall in the price of shares all over the world. Naturally
the press has a field day because scary headlines are great for selling
papers. If the market jumps, the papers take little notice, but all it
takes is a bit of a correction for us to get the full doom and gloom
treatment.
Anybody who has been investing in shares for a long time knows that it
is in the nature of a share market to have periodic jumps and falls.
This is why I have always recommended that anybody who invests in shares
have at least a ten year time frame in mind. This provides sufficient
time for the investor to cope with the normal market volatility.
So don't be concerned about the current turbulence; hang in there and
think of adding to your portfolio if you’ve got any spare cash. Don't
forget that there is now over $600 billion in superannuation and
employers are contributing 9% of payroll all the time. Most of this money will
find its way into the share market and this will provide tremendous
buying pressure year in year out.
Sitting at 0.61c now..
Time to sitback and watch the fun over the upcoming weeks?
NEWSLETTER
By Noel Whittaker
18th April 2005
The share market is on the front page of the paper again because there
has been a fall in the price of shares all over the world. Naturally
the press has a field day because scary headlines are great for selling
papers. If the market jumps, the papers take little notice, but all it
takes is a bit of a correction for us to get the full doom and gloom
treatment.
Anybody who has been investing in shares for a long time knows that it
is in the nature of a share market to have periodic jumps and falls.
This is why I have always recommended that anybody who invests in shares
have at least a ten year time frame in mind. This provides sufficient
time for the investor to cope with the normal market volatility.
So don't be concerned about the current turbulence; hang in there and
think of adding to your portfolio if you’ve got any spare cash. Don't
forget that there is now over $600 billion in superannuation and
employers are contributing 9% of payroll all the time. Most of this money will
find its way into the share market and this will provide tremendous
buying pressure year in year out.
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Re: MGX
The Market in General
Mount Gibson Mining has always been a speculative buy, but a worthwhile stock IMO .
They are confident of achieving profits of around $15M per year, i believe they intend(or have done so) to exchange their 54% interest in Mt Gibson Magnetite deposits for a 30% share in Asia iron Holdings Ltd. (just had a quick look at Commsec news- their joint venture with Asia iron in Nanjing begins operation at the end of April also)
BHP didnt get the rise in price they wanted; however i expect the resource boom still has some steam left in it...
I'm happy to hold
el_ninj0 said:Sit back and watch what??
The Market in General
Mount Gibson Mining has always been a speculative buy, but a worthwhile stock IMO .
They are confident of achieving profits of around $15M per year, i believe they intend(or have done so) to exchange their 54% interest in Mt Gibson Magnetite deposits for a 30% share in Asia iron Holdings Ltd. (just had a quick look at Commsec news- their joint venture with Asia iron in Nanjing begins operation at the end of April also)
BHP didnt get the rise in price they wanted; however i expect the resource boom still has some steam left in it...
I'm happy to hold
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Re: MGX
Does anyone else think that Noel Whittaker's article flawed? Down right dangerous even? Would you put your Super into the share market if it was going backwards, no matter how much money you had in it? If the US, Japan, Australia and Europe's economy are slowing, wouldn't that mean less returns for companies therefore would you invest in something that doesn't justify the returns?
It would actually be good to hear from longer term investor's views how they perceive the market and how they would trade it.
The Barbarian Investor said:Sitting at 0.61c now..
Time to sitback and watch the fun over the upcoming weeks?
NEWSLETTER
By Noel Whittaker
18th April 2005
The share market is on the front page of the paper again because there
has been a fall in the price of shares all over the world. Naturally
the press has a field day because scary headlines are great for selling
papers. If the market jumps, the papers take little notice, but all it
takes is a bit of a correction for us to get the full doom and gloom
treatment.
Anybody who has been investing in shares for a long time knows that it
is in the nature of a share market to have periodic jumps and falls.
This is why I have always recommended that anybody who invests in shares
have at least a ten year time frame in mind. This provides sufficient
time for the investor to cope with the normal market volatility.
So don't be concerned about the current turbulence; hang in there and
think of adding to your portfolio if you’ve got any spare cash. Don't
forget that there is now over $600 billion in superannuation and
employers are contributing 9% of payroll all the time. Most of this money will
find its way into the share market and this will provide tremendous
buying pressure year in year out.
Does anyone else think that Noel Whittaker's article flawed? Down right dangerous even? Would you put your Super into the share market if it was going backwards, no matter how much money you had in it? If the US, Japan, Australia and Europe's economy are slowing, wouldn't that mean less returns for companies therefore would you invest in something that doesn't justify the returns?
It would actually be good to hear from longer term investor's views how they perceive the market and how they would trade it.
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Re: MGX
MGX upgraded thier profit forecast due to increased revenues in the second half - $21m for the FY I believe
Yesterday's ann didn't seem to move the market much, but $25 pt on 3 MTPA does provide a very solid base for revenue and profitablity.
Happy to hold, at current levels it seems a little undervalued at 2005 profit figures (just over 5cps profit, if you include the Oct05 22c options in the market cap)
The Barbarian Investor said:
MGX upgraded thier profit forecast due to increased revenues in the second half - $21m for the FY I believe
Yesterday's ann didn't seem to move the market much, but $25 pt on 3 MTPA does provide a very solid base for revenue and profitablity.
Happy to hold, at current levels it seems a little undervalued at 2005 profit figures (just over 5cps profit, if you include the Oct05 22c options in the market cap)
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Re: MGX
That's a little better,
Exploration ann seems to have help price Thurs & Fri - I have the ST DT from 31/03 broken now, although on my weekly chart MGX looks like its trending sideways and 66c resistance is still intact.
Interesting to note one of the areas covered is near FMG's stake - hopefully the same problems FMG had with the increase in costs to get project to production are not going to be replicated.
Notice there is a large sell at 68c (1m shares) - would anyone like to guess if this is legit or just a stacker? (for accumulation). Volume higher on last to days leads me to speculate
That's a little better,
Exploration ann seems to have help price Thurs & Fri - I have the ST DT from 31/03 broken now, although on my weekly chart MGX looks like its trending sideways and 66c resistance is still intact.
Interesting to note one of the areas covered is near FMG's stake - hopefully the same problems FMG had with the increase in costs to get project to production are not going to be replicated.
Notice there is a large sell at 68c (1m shares) - would anyone like to guess if this is legit or just a stacker? (for accumulation). Volume higher on last to days leads me to speculate
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Re: MGX
el ninj0,
Perhaps the decision to build the slurry pipeline has attracted a little more interest, as it will reduce LT overheads as well as avoid problems earlier this year of rail carriage availability (not to mention leveraging against any upgrade in resource estimate or quality). Not far off fair value at the moment methinks on 2005 earnings figures, taking into account they didn't set profitablity figures fr last FY so they still have to prove to the market that they can meet their targets (which I believe they will). Would hope that after the 2005 full year figures are released the price moves up as it starts to trade on 2006 multiples.
Cheers
el ninj0,
Perhaps the decision to build the slurry pipeline has attracted a little more interest, as it will reduce LT overheads as well as avoid problems earlier this year of rail carriage availability (not to mention leveraging against any upgrade in resource estimate or quality). Not far off fair value at the moment methinks on 2005 earnings figures, taking into account they didn't set profitablity figures fr last FY so they still have to prove to the market that they can meet their targets (which I believe they will). Would hope that after the 2005 full year figures are released the price moves up as it starts to trade on 2006 multiples.
Cheers
Re: MGX
It amazes me how terribly stupid the people that sell at current prices in MGX are. This is a company well on track to becoming a huge success, yet the people that hold this stock continue to sell it at lower and lower prices. Even though it had an up today, its irrelivent as it will go down tommorow again.
I'd like to know people opinions, mabey some technical charting, on when this stock will start to pickup again. When is the next report on progress due?
Thanks.
It amazes me how terribly stupid the people that sell at current prices in MGX are. This is a company well on track to becoming a huge success, yet the people that hold this stock continue to sell it at lower and lower prices. Even though it had an up today, its irrelivent as it will go down tommorow again.
I'd like to know people opinions, mabey some technical charting, on when this stock will start to pickup again. When is the next report on progress due?
Thanks.
Re: MGX
As to when this stock will pick up again, I have no explanation.Next report I guess will be the final quarter report. Possibly we will recieve some good news, Re: the new drilling area?
Ninjo, I can't work it out either!! Brian Johnson is a really switched on MD and has built this company into something that is clearly trading cheaply!! When you consider that the All Ords has regained all of it's losses, but yet MGX is trading only really a handful of cents off it's low thru out the downturn of the past 3 months!!el_ninj0 said:
As to when this stock will pick up again, I have no explanation.Next report I guess will be the final quarter report. Possibly we will recieve some good news, Re: the new drilling area?
Re: MGX
Well, I guess my questions have been somewhat answered. MGX has an announcement pending, to be released on the 23rd, Thursday, June.
Any ideas on what the announcement might be in reference to?, obviously some people were predicting this would happen yesterday so they bought up.
Well, I guess my questions have been somewhat answered. MGX has an announcement pending, to be released on the 23rd, Thursday, June.
Any ideas on what the announcement might be in reference to?, obviously some people were predicting this would happen yesterday so they bought up.
doctorj
Hatchet Moderator
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Re: MGX
Chances are many already know what the announcement is, others just bought because everyone else was.
MGX was hit by the market correction but unlike others is yet to come back. It wouldn't suprise me if the news results in strong trading and high volumes as a result, despite the selling pressure that usually comes when a stock is bought up strongly before an announcement.
The price action would indicate that its unlikely that the announcement will be a raising. I'd also discount any takeover of RMI at this stage as they're not in a halt, which leaves it likely to be an announcement on their magnetite project.
Chances are many already know what the announcement is, others just bought because everyone else was.
MGX was hit by the market correction but unlike others is yet to come back. It wouldn't suprise me if the news results in strong trading and high volumes as a result, despite the selling pressure that usually comes when a stock is bought up strongly before an announcement.
The price action would indicate that its unlikely that the announcement will be a raising. I'd also discount any takeover of RMI at this stage as they're not in a halt, which leaves it likely to be an announcement on their magnetite project.
