S32 - South32 Limited

[UMike]

Opens today

Forecasts of it's debut price range between A$2.00 and A$3.00 a share.
The top end would value the company at A$16 billion, making it Australia's biggest new listing in 15 years and the biggest mining listing since commodities giant Glencore Plc in 2011.

BHP is about $2.00 down so it would appear that S32 would open near the bottom of that forcast range.

 

[Miner]

Opens today

Forecasts of it's debut price range between A$2.00 and A$3.00 a share.
The top end would value the company at A$16 billion, making it Australia's biggest new listing in 15 years and the biggest mining listing since commodities giant Glencore Plc in 2011.

BHP is about $2.00 down so it would appear that S32 would open near the bottom of that forcast range.

It is finished at $2.05.
I am a bit perplexed to the semantics.
south means it goes down.
Did BHPB deliberately use it so that investor gets warned of the southwards direction ?
Just kidding

 

[SilverRanger]

It is finished at $2.05.
I am a bit perplexed to the semantics.
south means it goes down.
Did BHPB deliberately use it so that investor gets warned of the southwards direction ?
Just kidding

I thought it's a new infant formula

According to DB, S32 is a 55% aluminium company (and 15% manganese), maybe AWC can finally have a friend

 

[MrBurns]

Love the spin on this stock, broker saying they are quality assets HA that's why BHP got rid of them.

 

[skc]

Love the spin on this stock, broker saying they are quality assets HA that's why BHP got rid of them.

BHP didn't get rid of them. It was spun out. Big difference.

 

[MrBurns]

BHP didn't get rid of them. It was spun out. Big difference.

That's not what I heard

 

[skc]

That's not what I heard

May be you should obtain information from more reliable sources.

It is finished at $2.05.
I am a bit perplexed to the semantics.
south means it goes down.
Did BHPB deliberately use it so that investor gets warned of the southwards direction ?
Just kidding

This would become really funny if it sinks toward 32c.

 

[MrBurns]

May be you should obtain information from more reliable sources.

Like you for instance

 

[notting]

BHP didn't get rid of them. It was spun out. Big difference.

Which allows the BHP share holders to choose to sell the none core assets themselves and perhaps reinvest in the core - BHP, or retain holdings in both.

Makes BHP slightly less diversified so it's a considered move. There seems to be a general chorus from people who have observed this kind of move before that the spin outs tend to do quite well over time, better than the core!
So far that theme is going ok, up 10% today. I took a bite yesterday as they went to the bottom of the most pessimistic range.

 

[Wysiwyg]

Anyone know why this ASX 200 company made a 7.5% drop today after looking like a share price recovery was happening?

 

[UMike]

Anyone know why this ASX 200 company made a 7.5% drop today after looking like a share price recovery was happening?

Commodity Prices and general market sentiment are going to be the main drivers of the price for the unforseeable future.

 

[Miner]

S32 alongwith commodity price effect also suffers from management and total operation philosophy explaining why BHPB got rid of it as hot potato. The shareholders who got it at $2 unfortunately got ripped off.

 

[Klogg]

S32 alongwith commodity price effect also suffers from management and total operation philosophy explaining why BHPB got rid of it as hot potato. The shareholders who got it at $2 unfortunately got ripped off.

It's probably worthwhile understanding the psychology of spin-offs, in order to set expectations correctly. Have a look at Joel Greenblatt's "You Can Be a Stock Market Genius", great explanation.

 

[Wysiwyg]

It's probably worthwhile understanding the psychology of spin-offs, in order to set expectations correctly. Have a look at Joel Greenblatt's "You Can Be a Stock Market Genius", great explanation.

Thanks for thoughts all.

Wondering if a brief reasoning for spin-off psychology could be revealed considering there are different reasons behind every spin-off? I believe the demerged assets are high quality. In their commodity overview they use the words "low cost" and "largest" frequently. If I am wrong on my current buy in price I will drop it but will rebuy at or near bottom.

 

[Wysiwyg]

Seppos anti dumping investigation notice today. It seems TEMCO exceeded the 11.93% limit for their product. Some large trades go through with this stock but a below average volume day for an above average price drop.
Personal interest has dissolved now. This commodities scenario gets worse.

 

[Toyota Lexcen]

Amazing run on the share price,

Yet companies suffer double digit losses on stable results

 

[peter2]

Another company that doesn't get regular comments in spite of its price performance +100% /2 years.
The chart looks promising and the recent corrective move looks complete. The initial target of 4.00 doesn't look enough as price can get volatile, but any swing higher may not stop there.

 

[Porper]

Another company that doesn't get regular comments in spite of its price performance +100% /2 years.
The chart looks promising and the recent corrective move looks complete. The initial target of 4.00 doesn't look enough as price can get volatile, but any swing higher may not stop there.

View attachment 89280

Yes, strange it doesn't get more interest. You shouldn't have favorites, as a pattern is a pattern etc. But, I'm not a robot and I do like trading S32 as it just keeps moving up following shallow corrections.

Weekly chart wave equality target = $6.34. Typical wave-3 target = $8.27. Longer term trade of course.

 

[peter2]

We shouldn't have fav's but we're only human and I'll admit that S32 isn't one of mine.

It looks like S32 is within a larger running flat correction. Wave 'c' might be a truncated wave which is bullish or a much larger triangle might be forming with the level of resistance at 4.00. If that happens I'll be all over the next weekly HL just before the next break-out.

 

[Porper]

We shouldn't have fav's but we're only human and I'll admit that S32 isn't one of mine.

It looks like S32 is within a larger running flat correction. Wave 'c' might be a truncated wave which is bullish or a much larger triangle might be forming with the level of resistance at 4.00. If that happens I'll be all over the next weekly HL just before the next break-out.

Yep, if wave-(c) is locked in it's a nice example of a bullish running flat as you say. Even if it develops into a running triangle it's extremely bullish...just take a while longer for the impulsive price action to commence. Either way, next move should be up.