ASX

[Pumba]

ozl have announced they are closing a mine in tasmania. the price of nickle has apparently dropped 68%. i assume china buys most of this? i dont think this will help things, 189 jobs gone too... are all the metal prices reliant on China? i know they are in pretty poor shape but are they taking steps to turn things around there?

[Punk Rooster]

I may have heard somewhere that OZL may be considering selling Prominent Hill?
It is next door to BHP property I believe- is there a chance BHP could purchase this site?

Also, my 3 portfolio's are charging along nicely at the moment-
BHP ($24.87) $32.60 +$7.73
FMG ($3.00) $2.27 -$0.73
GDY ($1.05) $1.315 +$0.265

[Pumba]

i am not sure if BHP are interested or not, it would be interesting to know... many analysits are tipping that Prominent Hill will be sold by ozl for between $1billion and $2billion however it has approximately $4billion worth of metals underground. although i have recently heard that ozl have refinanced all of there loans (except about $300million with a bank in socotland who are now backed by the government and playing hardball, apparently not an issue tho) so they many not sell prominent hill. instead they may sell a smaller mine values at about 300 million or tough in out until production starts and the metal price goes back up. i hope this happens personally!

i am looking at getting at fmg soon, what do u guys think is a good price? i feel money may be pushed into the market and prices may start to rise slowly as people will approach with caution. anyone else have any ideas? is the worst behind us?

[Pumba]

I may have heard somewhere that OZL may be considering selling Prominent Hill?
It is next door to BHP property I believe- is there a chance BHP could purchase this site?

Also, my 3 portfolio's are charging along nicely at the moment-
BHP ($24.87) $32.60 +$7.73
FMG ($3.00) $2.27 -$0.73
GDY ($1.05) $1.315 +$0.265

Punk i finally got on FMG today @ $1.76, my broker said much higher risk than BHP but potential for much higher reward, the have been traded at $12 in the past 12 months (although we now are in very different times). He tried to get me into BHP but feel they are priced too high currently but will keep watching with interest

[Punk Rooster]

well now is as good a time as any to buy.
I got them at $3, so they're currently a (paper) loss for me at the moment.
I keep hearing that the building boom in China has slowed dramatically, affecting the share price/profit forecast of the mining giants (& not so-giants).
However, i'm holding them until they do show me a profit, so I have no real concerns.
Same with my super invested in shares- some pain this year, but some gain (hopefully) over the next 5 years.

If BHP drop further, it would be a great time to buy- they've fluctuated between $20 & $32 over the last 3 months, & they are a solid prospect.

[Pumba]

wat is everyones take on the fmg situation? is it best too take the profits now or is it likely that the current talks will continue to push the price up higher?

[Punk Rooster]

wat is everyones take on the fmg situation? is it best too take the profits now or is it likely that the current talks will continue to push the price up higher?

please elaborate?
beware of selling shares you've had less than 12 months, as I believe the taxation is quite high on profits

[Pumba]

wat is everyones take on the fmg situation? is it best too take the profits now or is it likely that the current talks will continue to push the price up higher?

please elaborate?
beware of selling shares you've had less than 12 months, as I believe the taxation is quite high on profits

http://www.news.com.au/business/story/0,27753,25100680-31037,00.html

not really sure what to make of all this and the trading halt?

[Punk Rooster]

wat is everyones take on the fmg situation? is it best too take the profits now or is it likely that the current talks will continue to push the price up higher?

please elaborate?
beware of selling shares you've had less than 12 months, as I believe the taxation is quite high on profits

http://www.news.com.au/business/story/0,27753,25100680-31037,00.html

not really sure what to make of all this and the trading halt?

i'd say that's a good thing?

[devilsadvocate]

There's good and bad points regarding FMG raising further capital via an investment by Hunan Valin.

BAD:

- Dilution - each of the shares you guys currently own will effectively be worth less now, as there's more fingers in the pie.
- Selling out an Australian company to the Chinese, who will have demands on where FMG's ore is sold - ie to them, which may not necessarily be in the best interests of the company.

GOOD:

- It allows the project to be financed without relying on debt, which in the current climate is perfect.
- Contra to the 2nd bad point above, the deal does give FMG a sales avenue for their output in this currently soft market. But this may not turn out to be so good in a few years when things turn around.

Just my 2c, which per my comments about on OZL will probably turn out to be worth zip.

P.S. I'm looking at getting in on FMG on current weakness though

[Pumba]

yeah i feel FMG still have some upside but after gettint them about 6 weeks ago at $1.80 i wonder if i should just take the profit now too offset my current losses in OZL? apparently the chinese mob have offered 82.5c for the OZL shares, why are they therefore trading so low currently? i averaged about $1.25 for them and they are currently around 60c! is the price likely too strengthen as a deal approaches?

[Dutchy]

Anyone else doing the NAB Purchase Offer? Shares up to $15k available for $21.50, considering they are now trading at ~$27.00 theres a 25% gain upon issue of shares in early Sept (presuming the price remains around the same)

Im doing both myself and my wifes offer so thats $30k in, will probably sell most of them in Sept at hopefully $27 and make a nice $7,500 - take off a bit of Capital Gains and should net about $5k profit for the offer, free money

Did ANZ's a couple of months ago @ $14.40 and now trading at over $20...think Ill hold them

At the moment with the Banks you can get a 6% yield, you can borrow money cheaper than that so its good gearing

[Pumba]

sounds like a good idea dutchy, do many companies offer these sort of deals? or mainly banks? surley this would pull the share price down offering shares at a lower price? the bump also reminded me of the FMG tip, think they are up over $4 now!

[devilsadvocate]

sounds like a good idea dutchy, do many companies offer these sort of deals? or mainly banks? surley this would pull the share price down offering shares at a lower price? the bump also reminded me of the FMG tip, think they are up over $4 now!

I don't even want to be reminded of how dumb I was not to get in.

[johnny_tightlips]

Is anyone here into the penny dreadful stocks?

I like to have a flutter on them and if anyone has any hot tips im always keen.

[devilsadvocate]

Is anyone here into the penny dreadful stocks?

I like to have a flutter on them and if anyone has any hot tips im always keen.

I love em. Then hate em after they take all my money.

I actually got into a former penny dreadful today. AGS. It's had a rollercoaster, but I made a packet out of it a couple of years back. I think it's ready to go boooom again as they're on the brink of going into production mining their huuuuuuuge uranium deposit which they share with Quasar who curently own and operate the nearby Beverly mine. They also have a nice money spinning gold mine in Vic.

[MW]

yeah i dabble in them, BSR and PRR to name a couple

[johnny_tightlips]

yeah i dabble in them, BSR and PRR to name a couple

I had a short stint in PRR but i got out before the most recent rise.

I'm currently riding ATI. It seems to be moving fairly well.

I'm spewing about BGD i bought 200,000 at 2.8cents. Sold at 4 cents. Earlier this week they hit 38 cents. It could have been massive!

Might go check out AGS now...

[devilsadvocate]

What put you onto BGD in the first place? What made you sell? Sounds like it could have been a very cheeky money spinner if it's now at 38c!

That reminds me of the story of a builder or plumber in Sydney who bought a bucketload of Paladin (PDN) shares at 3-4c. He ended up with around 1.5m of them I believe. When they rocketed to $9 he was laughing. They're now down around $4.5, but he's still laughing no doubt.

AGS is currently trading around 74c, so not really a penny dreadful. I'm holding through until $1.05, then look for another pullback to around 90c before it finally takes off to around $1.50. The plan is to trade around 50,000 each time. Fingers crossed.

[johnny_tightlips]

I got in cause they were going up and I got rid of them becuase i had no idea why they were going up and it looked like they were about to go down.
FYI - When i play with the penny dreadfuls it more like gambling than investing

I also remember trading PDN and FMG. Got pdn at around 4.0 and sold at about 6. Got onto FMG at about $1 after the share split and got out at just under $2. They went to $12