RMI - Resource Mining Corporation

[YOUNG_TRADER]

There are 550,000 new shares issued.
Can a company do this?
I think issue new shares will make the sp down, doesn't it?

Firstly the company issued these shares as payment for "consultancy fee's"

Secondly re downward pressure, Are you serious?

I'm sure we can soak up the volume of 550k selling with pocket change lol

Volume today has already been 10m,

Personally I think stocks or companies at RMI level are still very far from production if at all, so are mostly speculative, therefore I think that day to day commidies prices have a much closer effect on producers. Since if RMI buyers re speculators, or investors looking at least a few years in advance, then perhaps they may even be speculating at what nickel will be in a few years time too.

bye all

I agree with Toc, as Wowo is speculative I really really doubt Nickel price swings will effect RMI share price shorterm, maybe if SP was pricing in Wowo, atm at 14c = 9c RDS + 4c Iron Ore = 13c Thus Wowo = 1c

I think you get the point

If I were holding NIA shares then I'd be wary as the deposit is uneconomic at a Nickel price below $10 us lb

CUL has blown past my low point valuation, I expect RMI to do at least the same and I firmly believe its fundamentals are stronger given Wowo is a company making project and the shares are much more tightly held



Cheers

 

[YOUNG_TRADER]

As I said earlier,

Currently RMI's value comes from RDS JV 9c and its Iron Ore Project 4c, which means Wowo is getting 1c value at 14c

Now to compare Wowo with another deposit,

JRV's Young Project
The Young project area contains 167 million tonnes of nickel/cobalt laterite resource at a grade of 0.72% nickel and 0.07% cobalt.


Compare

Young 167Mt's @0.07%Ni + 0.07%Co = 1.1%Ni Equiv

Wowo 120Mt's @1.2%Ni + 0.1%Co = 1.7%Ni Equiv

Ramu 143Mt's @1.01%Ni + 0.1%Co = 1.5%Ni Equiv


JRV has 2Billion shares on issue and the Young project is really its only project, so Young gives JRV a value of $50m (2Billion @2.5c)

So if we gave RMI the same value = 10c to RMI

Which means you'd get 9c + 4c + 10c = 23c


I'm not saying buy, I'm not saying sell, I'm discussing fundamentals thats all

 

[Brinks]

Hi youngtrader. I was just wondering if u or anyone else could give there prediction on where u think the price will go in the short term? After hitting 16c today it seemed to have problems with big sellers coming. What should the company be currently valued at? Thanks in advance!

 

[cuttlefish]

JRV's Young project is located in NSW, close to infrastructure, roads, ports, people etc.

Wowo is in the middle in the middle of PNG wilderness with no ports, roads, infrastructure, people or anything nearby.

There are quite a few other Australian based laterite nickel deposits that are arguably also undervalued.

Article on the comparable PNG based Ramu project:

http://www.theage.com.au/news/busin...lues-traditions/2007/07/13/1183833776332.html

 

[juw177]

Hi youngtrader. I was just wondering if u or anyone else could give there prediction on where u think the price will go in the short term? After hitting 16c today it seemed to have problems with big sellers coming. What should the company be currently valued at? Thanks in advance!

There was already a value posted. And if you really want short term trading, just follow the crowd and sell when the big sellers sell. Asking such questions doesn't help anybody.

 

[Brinks]

Sorry for the question. My point was there has been a large breakout so should we be expecting the stock to stay around these prices or is there more to come with this run?

 

[Pommiegranite]

JRV's Young project is located in NSW, close to infrastructure, roads, ports, people etc.

Wowo is in the middle in the middle of PNG wilderness with no ports, roads, infrastructure, people or anything nearby.

There are quite a few other Australian based laterite nickel deposits that are arguably also undervalued.

Article on the comparable PNG based Ramu project:

http://www.theage.com.au/news/busin...lues-traditions/2007/07/13/1183833776332.html

Cuttlefish,

I have no doubts that there are other undervalued companies out there.
Aren't they all?

It's all about working out which are the MOST undervalued by peer comparison.

Please feel free to provide examples of other Australian based laterite nickel companies which are AS UNDERVALUED as RMI.

Cheers

 

[juw177]

Sorry for the question. My point was there has been a large breakout so should we be expecting the stock to stay around these prices or is there more to come with this run?

That is the same question you asked before. No need to ask it again because there is no answer.

Like every stock, after a breakout, people tend to take profit and if there are not enough buyers to soak up the profit takers, the price falls. If buyers over power the sellers, the price keeps running. Understand?

Which side was winning today? It's hard to tell but if you look at the high volume and that the price closed a fair bit lower than its intraday high, one can say the sellers were winning.

 

[SGB]

Sorry for the question. My point was there has been a large breakout so should we be expecting the stock to stay around these prices or is there more to come with this run?

Hello Brinks,

Don't be sorry. First of all nobody really knows whether there is a certainty that it will continue to run, its all based on probability and peoples emotions.
Plus everyone trades differently, everyone veiws things diferently, everyone hears things diferently and everyone feels things diferently. Its all based on your internal reference. Visual, Auditory and/or kinesetic.

I posted a chart the other day on what i veiwed as a probabilty and put pressure points in at 16c and 19c.

As you will notice this run has gone up 100 % of its range. To get to 19c this run it needs to climb 140% of range and also break the 16c resistant.

Can it be done? Only you will know this.

Cheers
SGB

 

[sandlion]

Hi SGB,

Your chart is very accurate, and I watched the last one with interest also, thanks for sharing.

I watched this pretty closely today and it ran strong early on to 15.0..scrambled up to 16.0 then spiked at 16.5 then took a smashing back down to it's close (I think 14.0, I kinda stopped watching it after it dropped under 16 a few times). No analysis, just an observation from one who should spend more time working and less time hitting refresh on his Portfolio page..

So given that it flopped over 16.0 briefly, is it possible that with the sell side thinning out a strong run would mop up the sell side up to say 19 or 20c (which as you say is the next resistance point and where a lot of the bigger sell parcels are lurking) or will there be more tree shaking to keep it in it's 14-15c range until the quarterly report...I would imagine that any positive confirmed news will boost this stock up to it's next plateau (sorry I am editing this bit...its a bit obvious that last sentence isn't it.. )

 

[Agusta]

You don't need a crystal ball for this one just follow how CUL performance RMI have similar trend, so 18c easy by end of tomarrow because friday end of month drinks . and if the comming result are good 23c-25c. looking good,

 

[YOUNG_TRADER]

JRV's Young project is located in NSW, close to infrastructure, roads, ports, people etc.

Wowo is in the middle in the middle of PNG wilderness with no ports, roads, infrastructure, people or anything nearby.

There are quite a few other Australian based laterite nickel deposits that are arguably also undervalued.

Article on the comparable PNG based Ramu project:

http://www.theage.com.au/news/busin...lues-traditions/2007/07/13/1183833776332.html

Fair point Cuttlefish and the purpose of me using JRV as another example was to try and introduce another comparison,

And I showed that per my calculations, at 14c, Wowo is being given 1c or $5m value, which when compared to Young is 10% of what JRV is getting

Also you will not the grades are 50% higher at Wowo, surely this makes up for something?

I would be comfortable with say a 50% value to what JRV is getting so $25m or 5-6c roughly which added to the 13c (RDS JV + Iron Ore) gives 18c-19c value




Spot the odd deposit out


Young 167Mt's @0.07%Ni + 0.07%Co = 1.1%Ni Equiv
JRV gets $50m value

Wowo 120Mt's @1.2%Ni + 0.1%Co = 1.7%Ni Equiv
RMI is getting $5m in value

Ramu 143Mt's @1.01%Ni + 0.1%Co = 1.5%Ni Equiv
Is getting probably $250m+ in value

 

[SGB]

Hi SGB,

Your chart is very accurate, and I watched the last one with interest also, thanks for sharing.

I watched this pretty closely today and it ran strong early on to 15.0..scrambled up to 16.0 then spiked at 16.5 then took a smashing back down to it's close (I think 14.0, I kinda stopped watching it after it dropped under 16 a few times). No analysis, just an observation from one who should spend more time working and less time hitting refresh on his Portfolio page..

So given that it flopped over 16.0 briefly, is it possible that with the sell side thinning out a strong run would mop up the sell side up to say 19 or 20c (which as you say is the next resistance point and where a lot of the bigger sell parcels are lurking) or will there be more tree shaking to keep it in it's 14-15c range until the quarterly report...I would imagine that any positive confirmed news will boost this stock up to it's next plateau (sorry I am editing this bit...its a bit obvious that last sentence isn't it.. )

Hello Sandlion,

Given there is no news, and i have to confess i'm not much of a fundy, (I rely on YT and chris, they haven't let me down yet ) There is a probability that RMI could go to 19c in the next couple of days but the RSI will be heavily overbought and then you could see a slight sell off. And remember 20c is also a psychological point as well.
Given 16c was sold off today dosent mean it won't reach 19c either as there was a good battle @ 15 - 15.5 and was only sold off late. Another good point was that there has not been too many green stocks in the last couple of days anyway.. which RMI has increased...good sign... volumns up.

The thing i do like about this stock AT THE MOMENT is it has not been over bought in the Major (monthly) chart. A good Bull speck stock can go upto and over 90RSI (just my own research and opinion) and then they tend to have a major consolidation period. As we have just witnessed in AOE and BMN. Then the stock needs good news to retrace back up again. What is happening to AOE ATM.
So as long as the fundimentals are strong, thats YT department,I veiw RMI to be sound until overbought in Major chart.

All comments are my own personal opinion only.

Cheers
SGB

 

[zt3000]

In this time of volatility, (personally i think its the correction we had to have and people have finally found an excuse for one ... a poor one at that), we cant forget to look at the fundamentals of any stock ...

what has fundamentally changed about the market? Yes, there is probably some risk aversion taking place but did the demand for commodities just suddenly stop over night? Did China just say to themselves ... "oh i think we've got enough raw materials ... ect" ... i dare say the answer is no ... the world isn't getting smaller, the poor will become the middle class and want their own homes, cars ect and infrastructure is required with this .. hence a demand for raw materials ...

yes there may be a time for a time out, but i think this is only temporary and with relation to RMI ... wowo gap results are still due within weeks and as YT has so eloquently completed a fundamental analysis, this could be an interesting time coming up.

So when it comes to the crunch each man to himself and as we all know we all have different trading strategies ... good luck to all holders

DYOR

 

[prawn_86]

hi all,

my sources tell me that the quaterly report will be out tomorrow which should provide a good indication of where things are at.

the drill results are experiencing some delays but should be out by mid august hopefully.

maybe a good time to top up beefore the quaterly? DYOR

 

[YOUNG_TRADER]

hi all,

my sources tell me that the quaterly report will be out tomorrow which should provide a good indication of where things are at.

the drill results are experiencing some delays but should be out by mid august hopefully.

maybe a good time to top up beefore the quaterly? DYOR

I actually took some profits today (finally) I hadn't taken any profits yet and I felt my position was just far too large to be holding in a correction,
that as well as the fact that there's alot of traders on RMI who will swing it whichever way they please

Funny thing is it'll probably march higher now that I've taken some off the table, CUL did lol

Be interesting to see what the qtrly says

 

[SGB]

" the fact that there's alot of traders on RMI who will swing it whichever way they please"


Be interesting to see what the qtrly says[/QUOTE]

Watch for the swing back up if qtrlys are OK LOL.

 

[juw177]

Havent sold out because fundamentals have not changed.

Does anyone know if there will be any info regarding Wowo coming out soon? That ought to bring about a quick recovery.

 

[prawn_86]

Does anyone know if there will be any info regarding Wowo coming out soon? That ought to bring about a quick recovery.

there should be some wowo info in the quaterly which is out tomorrow. but the actual wowo drill results should be out mid august at the latest hopefully

 

[Busylion]

My guess the delay could be up to 8 weeks due to recent PNG election (helicopter & transport used by the politicians) and bad weather and one month delay of drilling (refer to 25 May announcement).

The sentiment has also changed (the total buying depth is less than the total selling depth at 4.30pm EST. in the past week is about 2 to 1 favoring the buying). The short term traders may have taken some profits in the short term. However, in the medium term, with increase resources, IMHO, the SP should improve barring a Dow Crash. The change of sentiment could be due to many factors (eg overseas market/DOW correction, expectation of the resource update delay, traders moving to other stocks, etc).

Good luck for holders

Cheers,
BL