OZL - Oz Minerals
- Thread starter LeeTV
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Once again they were EP (exercising PUTS) so it may indicate that those with put options think it won't go much lower. Which I suppose is a good sign! Got a letter from them today saying:
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I had similar thoughts. I presume they would be worried if their price goes too low, someone might buy them up? That's if anyone has any money!
I remember buying ZFX for around $9-10 with a 10% dividend, that rapidly dropped before the merger, then after the merger the stock kept rapidly dropping quickly to $2 now $1.50 with an 8c dividend.
This has been a bad investment. Somebody must think their earning power has rapidly diminished.
I actually thought the merger was a good deal for both companies.
Luckily I never put more than $4-6000 on these type of companies, as its lost over 50% in a very short time. Still $2-3000 and rising is alot to lose.
I'll spare the name calling. I'll be paying more attention to the actual metal prices for these stocks, but even then the share price has fallen worse than that.
Lesson 1 Learned : If its mining and it ain't BHP or RIO or ain't something to do with either Iron Ore, Coal or Gold (and even then) presume it to be risky unless proven otherwise.
Lesson 2 Learned : Don't buy stock that you aren't prepared to heavily research or cover when needed. (almost like the rule, Don't sleep with anyone you aren't prepared to marry)
Lesson 3 Learned : If you buy stock on a company that you don't know many details on, prepare to lose money.
The market has seen this merger in a negative way as if 2 failing companies are simply merging to survive before failure rather than to leverage mutual benefits. Hopefully they can turn that perception and the balance sheet around.
This has been a bad investment. Somebody must think their earning power has rapidly diminished.
I actually thought the merger was a good deal for both companies.
Luckily I never put more than $4-6000 on these type of companies, as its lost over 50% in a very short time. Still $2-3000 and rising is alot to lose.
I'll spare the name calling. I'll be paying more attention to the actual metal prices for these stocks, but even then the share price has fallen worse than that.
Lesson 1 Learned : If its mining and it ain't BHP or RIO or ain't something to do with either Iron Ore, Coal or Gold (and even then) presume it to be risky unless proven otherwise.
Lesson 2 Learned : Don't buy stock that you aren't prepared to heavily research or cover when needed. (almost like the rule, Don't sleep with anyone you aren't prepared to marry)
Lesson 3 Learned : If you buy stock on a company that you don't know many details on, prepare to lose money.
The market has seen this merger in a negative way as if 2 failing companies are simply merging to survive before failure rather than to leverage mutual benefits. Hopefully they can turn that perception and the balance sheet around.
Yes, "implore" was a bit over the top, "urge" would have been a better choice and would have conveyed the same strong message.
On the positive side at least they show concern for their shareholders and much of the slide in value has been beyond their control.
Long term they should still be a good performer and the recent DRP dividend assigment of a larger number of extra shares is welcome.
We have not been kept up to date on the progress of the exAGM nickel mine and it's contribution to the company. It should be making a useful contribution by now.
As per OZL's September 23 letter to shareholders,
Quote:
.... we are delighted with the development of our projects, and we want to remind shareholders of progress to date.
· The Avebury nickel mine in Tasmania has been commissioned and shipped its first nickel concentrate to Jinchuan, our customer, in August this year – right on schedule! We are ramping-up production at Avebury, and we expect nickel to contribute 5% of the Company’s revenues in 2009.
Unquote
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Thought I would spread my misery around with all my holdings. Maybe my losses will brighten up someone else.
OZL -34.90%
OZL -34.90%
It's not working, roland.
Some of my losses bear an uncanny resemblance to yours!
eg. BPT/OZL..............
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Roland, maybe this will make u feel better....
My FMG average buy price is 8.62. Down over 60%
Whats worse, at one stage I was up over 40%!
My FMG average buy price is 8.62. Down over 60%
Whats worse, at one stage I was up over 40%!
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It's not working, roland.
Some of my losses bear an uncanny resemblance to yours!
eg. BPT/OZL..............
at least we both know that we are in good company - I decided not to list my worst one - BBP
Nyden
G.E. Money Genie
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Really sorry to hear about that guys I at least hope you sold a few days ago, and haven't been around for all the current rippings?
... sorry to rub salt in the wounds, but I've had no losses for a year:
I at least hope you sold a few days ago, and haven't been around for all the current rippings?... sorry to rub salt in the wounds, but I've had no losses for a year
:
subaru69
Just keep swimming...
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I have been in and out of OZL. I now hold no OZL. I trade between MCR and OZL and traded my last OZL at the ratio of 1.4 MCR for 1 OZL. It is interesting to compare the charts for these. I bought my original OZL by buying 1.1 OZL for 1 MCR. Suggest OZL holders check this angle out. It is one way to stay ahead in this volatile market.
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Hey. I've read about alternating trades between some other company and am abit confused. Can you explain to me why you do it?
Cheers.
Cheers.
OZL is worth more.
The shares are not being valued on the basis of earnings but fear.
It is all sentiment
Currently the cash is worth 38 cents of the 98 cents or about 38% of the share price
The mines must be worth 60 cents or about $2 bn
on the books all mines and the equipment is probably worth about $1.29
equity – the cash = A$4219m
number of shares = 3,261,092,506
$1.29
so they put a fortune into these mines
about $4bn and all they have to show for it is 98 cents on the stockmarket
should be about $1.67 minimum on cash and equipment
the reserves are worth at least $1.52
based on long term price assumptions
nickel $8
gold=$700
copper = $2.50
zinc = .70
resources worth may be $7.50
so the company has invested about $1.29 in mining equipment and has about .38 in cash
for a bear minimum return of $1.52 and anything up to $7
and it is selling for $1
The shares are not being valued on the basis of earnings but fear.
It is all sentiment
Currently the cash is worth 38 cents of the 98 cents or about 38% of the share price
The mines must be worth 60 cents or about $2 bn
on the books all mines and the equipment is probably worth about $1.29
equity – the cash = A$4219m
number of shares = 3,261,092,506
$1.29
so they put a fortune into these mines
about $4bn and all they have to show for it is 98 cents on the stockmarket
should be about $1.67 minimum on cash and equipment
the reserves are worth at least $1.52
based on long term price assumptions
nickel $8
gold=$700
copper = $2.50
zinc = .70
resources worth may be $7.50
so the company has invested about $1.29 in mining equipment and has about .38 in cash
for a bear minimum return of $1.52 and anything up to $7
and it is selling for $1
Nyden
G.E. Money Genie
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Sorry, but you're simply wrong. You cannot make long-term price assumptions right now. Commodities could very well have a whole lot further to fall (if and when our savior China crashes as well), and the current price of base metals right now could be something of a distant memory ... for quite a while. If the world goes into a long global recession, do you honestly believe commodity prices have already factored in the worst?
The current SP is based on sentiment, yes - sentiment for a terrible future, which may just come to pass. It's easy enough to say that yes, in 10 years time this could be a fantastic stock - but anything could happen in those 10 years.
The current prices and outlook in base metals completely justifies the current price, imo.
