MGX - Mount Gibson Iron

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after its sp doubled in less than 3 months, a pullback was in order. Support was found at a strong Fibonacci level, with additional support from long- and medium-term EMAs. MACD momentum has also turned around.



September Quarterly, talking about 38cps cash in bank and solid production and sales data, has been well received and sparked a best-in-class performance today:

By Rhiannon Hoyle

SYDNEY--Mount Gibson Iron Ltd. (MGX.AU) said iron-ore sales in the first quarter were the second highest in its history, as the company increased output from its Koolan Island operations in Western Australia state.

The Perth-based miner Wednesday reported sales of 2.6 million metric tons in the three months through September. Volumes were up 13% on the previous quarter and just below the record 2.7-million tons of iron ore sold in the three months through December.

Chief Executive Jim Beyer said the company expected sales of 9.0-9.5 million tons in the fiscal year through June, in line with previous guidance given to investors.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 15, 2013 18:08 ET (22:08 GMT)

I bought today's Open, traded the first swing, and am now buying again with more buy orders placed around current vwap. If 84 is broken and becomes support, I'll add.

 

[Gringotts Bank]

Cup and handle breakout price = 84c.

Good formation, especially on the weekly.

 

[Knobby22]

The check was nice
It appears that confidence is being obtained in the company. The strong performance is quite pleasing in this choppy market suggesting there is still plenty of upside.

 

[laurie]

Cashed up,no debt and great management the quite achiever and the cream on top....... dividends

 

[stockGURU]

This thing just keeps on going north, and is now very close to breaking $1. Currently it's at $0.975, which is a new 12 month high, and if the trend is anything to go by MGX looks set to continue its current trajectory.

 

[fanger]

Bummer I sold out around 88 cents on Monday, I though it was going to have a breather.

 

[stockGURU]

Look at this chart for a nice uptrend. The movement north has been on very good volume for the last three weeks or so and the buying has been relentless. Someone is seeing value in this cashed up, dividend paying company.

Closed at over $1 today for the first time since August 2012.

 

[stockGURU]

MGX has jumped up to $1.10 today on volume much higher than average. Currently sitting at $1.073.

Tech/a, I notice you mentioned that you had jumped into this one. Considering MGX has been so strong lately, what sort of technical signal would prompt you to get out? A lot of people get out because they automatically expect a pullback after such a strong run, but there are those who won't get out until the trend reverses.

Interested in your views on this.

 

[jdenhaan]

The question is really what they're going to do with all this cash.

 

[Gringotts Bank]

Top of the measured move today. The cup and handle (as per above post) has more in it but probably not before a pull back.

 

[laurie]

Might take a punt and say $1.25 is its target then a pull back for the next leg up assuming IO stays around $135/Tonne long,long term holder rideing the waves hope they increase dividends to 3.5c

 

[tech/a]

Post #95 may be of some interest.

https://www.aussiestockforums.com/forums/showthread.php?t=26840&page=5&p=802821#post802821

 

[jdenhaan]

Any reason why this one is in the dumps (-6%) today? Last time I checked, iron ore forecasts were still rather sunny. or was MGX priced to perfection at ~1.10?

 

[infamous]

Any reason why this one is in the dumps (-6%) today? Last time I checked, iron ore forecasts were still rather sunny. or was MGX priced to perfection at ~1.10?

Similar fate to AGO today, someone dumping their holdings

 

[VSntchr]

See also AGO.
None of the iron-ore miners had a good day, or week for that matter.
FMG has come off a bit and so has BCI (although not as much).

A few stocks seem to be volatile as people come back from holidays, especially given some decent price movements over the holiday period.

Just noticed even RIO came off a bit too.

 

[pixel]

Early this morning, it didn't look like the Market reacted to the Quarterly Report.
I came close to selling. But a second look suggests the potential formation of a Bullish flag.



Reckon I'll stay and see how that pattern plays out. Will there be another test of the channel bottom? Or can it break out for the dividend date in March?

 

[Knobby22]

I did ride this up, but got out as it fell.
My worry is that the mine is running out of iron and will be depleted within 3 years. On that basis the company looks overpriced.
Sure, they say they will make new discoveries or buy other found resources, but the risk seems high. Long term it also looks in a downtrend.

 

[pixel]

I did ride this up, but got out as it fell.
My worry is that the mine is running out of iron and will be depleted within 3 years. On that basis the company looks overpriced.
Sure, they say they will make new discoveries or buy other found resources, but the risk seems high. Long term it also looks in a downtrend.

My attention span doesn't stretch that far, Knobby
If it breaks out of the channel - as it seems to do right now - I'm happy to trade it up to the next resistance. Wherever that may be.

 

[Knobby22]

My attention span doesn't stretch that far, Knobby
If it breaks out of the channel - as it seems to do right now - I'm happy to trade it up to the next resistance. Wherever that may be.

Fair enough Pixel. It does look like it may break out.

 

[brty]

They wont be paying a dividend in March. At the AGM they stated a dividend policy of paying once a year only.