SDL - Sundance Resources

[Miner]

MHO is GBG and SDL will merge no matter what minor share holders say.
There have been chunk of votes with the top management.
The economy of scale even the mines are in two different countries is enormous.
Risk is balanced with the joint venture or merged company though one could argue GBG risks gone up and SDL riks came down following merger.
The merged company would have good say in next year's price negotiation.
Without any emotion rationally the deal will go through.

Regards

MIner

 

[Fab]

What are the chance of a new bidder coming into that race and pushing up the SP price? I am thinking that still could be an option as SDL on paper is worth more than FMG

 

[nikki]

What are the chance of a new bidder coming into that race and pushing up the SP price? I am thinking that still could be an option as SDL on paper is worth more than FMG

Hey Fab, what do you mean SDL is worth more than FMG on paper - do you mean total potential production?

 

[Fab]

Hey Fab, what do you mean SDL is worth more than FMG on paper - do you mean total potential production?

Yes that's what I meant I think FMG is 25 (not sure the measure) and SDL is 35. I also understand FMG is a more advanced project but then production for SDL is due to start in 2012. I am happy to wait 4 years for the share price of SDL to go from almost $1 to $55 like FMG

 

[IOT]

I think FMG has less than 300million shares on issue whereas sundance has over 1.8 Billion, so you have to take that into scale with your comparisons of share price.

Also I believe FMG is aiming for 40MTPA production starting next year, whereas it will take a long time for SDL/GBG to reach that much - both locations well and truly up and running.

P.S I hold a large amount of both SDL/GBG

 

[Fab]

I think FMG has less than 300million shares on issue whereas sundance has over 1.8 Billion, so you have to take that into scale with your comparisons of share price.

Also I believe FMG is aiming for 40MTPA production starting next year, whereas it will take a long time for SDL/GBG to reach that much - both locations well and truly up and running.

P.S I hold a large amount of both SDL/GBG

Fair comment. What do you mean by a large amount of SDL/GBG? I have 100 000 of SDL and I believe it is a large amount by my standard

 

[IOT]

sorry I guess I meant a "fair" amount which is the same as yourself + GBG

here's hoping to the FMG dream

 

[nikki]

the presentation to the iron ore investor series is on the sundance web page - attached.

nothing new except that SDL has added a few major investors that i did not know about:
Talbot Group Holdings19.9%
Marble Bar Asset Management6.8%
Loxton Investments3.9%
Directors and Management3.7%
Passport Capital2.7%
Sarich Group2.7%
Triangle Resources Fund (AMCI associates)2.7%
Linq Resources1.5%

also, noticed that JP Morgan & Chase has been exiting GBG with large volumes - has shed more than 2% of its holdings in the past few days. they sold around 5 million in the past few days. that explains why gbg/sdl has not gone anywhere compared to other iron ores!!! they have been consistently selling to get those volumes?

worried about them bailing out?

 

[nikki]

what is going on

anyone have any ideas why sdl is getting dumped with high volumes when gbg is now at least 6 cents aways from 2xsdl.

some big fish must be getting impatient or needs to pay for a diamond ring and they are trying to exist!!

 

[Risky Trader]

Perhaps... They all cashing out to buy into GOLD related stock that are running like hot cake at the moment... namely Greater Bendigo Gold, RAU

 

[andres]

what is going on

anyone have any ideas why sdl is getting dumped with high volumes when gbg is now at least 6 cents aways from 2xsdl.

some big fish must be getting impatient or needs to pay for a diamond ring and they are trying to exist!!

Well, not really. Mostly small bundles that have been triggered by .76 cent stop losses - trend line etc... can come back in an instant.

 

[Lachlan6]

I have put an order for (SDL) in the market at $0.72. I really like this set up. It is currently in a Wave 4 corrective mode and the $0.71-$0.72 level coincides with a cluster of reversal levels. The 38.2% level is here and also the wave eqaulity for wave c is also here. The thing that really stands out though is the lack of volume in this wave 4, a very good sign!

 

[nizar]

I have put an order for (SDL) in the market at $0.72. I really like this set up. It is currently in a Wave 4 corrective mode and the $0.71-$0.72 level coincides with a cluster of reversal levels. The 38.2% level is here and also the wave eqaulity for wave c is also here. The thing that really stands out though is the lack of volume in this wave 4, a very good sign!

I agree it looks like a good set up with:

*low volume for the corrective move,
*sp nearing support levels, and
*yesterdays white candle.

BUT if it was me buying I would buy at market. You would hate for the price to do a runner and you missing out (has happened to me before).

 

[--B--]

hi guys,

Im relatively new to share trading and ive recently bought myself some SDL shares. I noticed the announcement released today about issue of shares and employee options but I dont really know what its all about.

Im hoping some more experienced traders here can give me a brief run down of what its saying and what it means for existing investors?

Cheers in advance!

 

[nikki]

it means that your shares have been further diluted by the company having to exercise options that it is contractually bound to honour.

i.e. there are people who are now sitting on massive profits because they have just sought to exercise options to own shares in sdl for which they have to only pay 10 cents (or whatever this bunch is worth).

it also means that it brings an additional amount of money to the company to continue operating.

hmmmm - i do not mean to sound pissed off but i am

 

[--B--]

yeah thats what i thought Nikki.

thanks for the response. hopefully this doesnt impact the SP too dramatically..

 

[nikki]

yeah thats what i thought Nikki.

thanks for the response. hopefully this doesnt impact the SP too dramatically..

it usually doesnt unless the beneficiaries need to buy something more precious than sdl shares

my sarcasm was more about the number of shares on issue so many of which are exercises of options by employees and management.

 

[nikki]

anyone have any ideas why a trading halt.

if it is an annoucement re the merger - which is what GBB's announcement says - then, could it be good

the only thing i can think of is that SDL's SP moved very quickly this morning after the open - perhaps insiders were buying some!!

 

[vjindal]

Guys,
SDL in trading halt this morning - Any ideas what could be the possible news and when this news will be released to the market.

 

[--B--]

i was just logging in to ask the same thing nikki...lol..

as im a complete beginner i have no idea. But my first instincts tell me that perhaps its not good news if its an announcement re the merger.