We know you will never get back into NZO (for 80c you need 9/11 to happen) because your sentiment to it has been permanently soured. Don't let your emotions rule Macd. NZO is oversold & you know it!!!
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MacDunk may well be right about the capacity to go lower. Those little blocking stakes that you see from time to time are the brokers/CMC making sure that those who are highly leveraged don't have much money to work with. (one earlier with PRC 1610@1.01 and another 3000 @ 1.04) They also force holders to sell at the lower price and hence force the price down. It all feeds their market shorting activity - that why shorts become such a good bet at this time - just be ready to take your profits quickly because the dealers atke theirs first. No one wants to enter the market in this situation as the controllers of the Margin lenders/CFDs (in OZ 30pc of the trades CFD) controls the market. They increase spreads and stop people buying or selling - all part of the game. Might be better to hang onto your money until we know when the end of month announcements is coming out.
Listen THIS IS NOT MANIPULATION!!
As MacDunk has said before - a big boys game. No rules other than that the biggest bully wins. What you stand to gain isn't worth putting your money in for...not much fun if you are caught with it in there but it is all part of the process of them taking their cash back.
A timely response to my post on PRC. Just put 50000 at 1.01 and said buy them if you can....or if you want to get screwed some more...
16 January 2008
NZOG SUPPORTS PIKE RIVER FUNDING PACKAGE
New Zealand Oil & Gas Limited is playing a major role in the completion by Pike
River Coal Limited (PRC) of that company’s funding of the Pike River Mine
development.
NZOG has agreed to underwrite $17.5 million of the $60 million rights issue of shares
announced by PRC today (Offer) and will satisfy this underwriting obligation by taking
up its rights under the Offer.
The PRC issue is being fully underwritten through lead manager McDouall Stuart
Group Limited and PRC’s three principal shareholders – NZOG, Gujarat NRE Limited
and Saurashtra World Holdings Private Limited.
NZOG Chairman Tony Radford said that NZOG was pleased to support the PRC
NZ$60m rights issue.
“The combination of this equity capital raising with a US$30m bond issue to Liberty
Harbor, also announced by PRC today, is expected by PRC to fund the Pike River
mine development through to completion. NZOG’s previous undertakings of support
for PRC will be met through taking up $17.5m of entitlements under the rights issue.
“I expect NZOG’s stake in Pike River Coal to increase in value as the Pike mine
passes remaining milestones and moves into production; certainly, the demand and
price outlook for the high quality coking coal which the mine will produce is currently
very bullish,” Mr Radford said.
The heads are looking better and better every day. The options are now almost worthless and yours truly is on the verge of picking up a truckload. First thing first is i will wait until a clearer picture of the subprime market rippling effect. It is mostly likely to get worse before better. But my gosh, all of a sudden i have found extra cash waiting to put into the market.
On a seperate note, Bush is upping the campaign to attack Iran and believe this will happen before he ends his term. If i am correct then the price of oil could hit $200 in no time.
Watch this space..
Duncan - good luck with your 80c sentiment is driving the market at the moment but I expect fundamental values to return; besides NOG has fared reasonably well (until today I guess) in this market.
tim23
You are correct. This is where fundamentals come in moe than ever. Of couse most stocks will cop it to some extent but the ones who have strong fundamentals dont get punished as much.
The blood being spilt on the some of the mining stocks over the last 6 months in Aus show the difference what "hot air" does.
For the savy investor, they will stick to fundamentals and cash during these times. A good guide during these times is to look at the balance sheet
Rights issue explains the weakness of PRC and NZO and the large crossing of 20M shares. Good opportunity to pick up some cheap shares during rights trading. Bring it on!
TIM, its not good luck or bad luck that has nothing to do with it. Its following market sentiment which in turn has nothing to do with a companies fundamentals as you are finding out with NZO. Its times like this you get out the market completely. We are in for a very rough year with Bush threatoning IRAN, plus the American economy tanking fast dragging other markets down with it. Company fundamentals have no bearing on the market sentiment.
Traders are fleeing the market, leaving the mum and dad investors holding the baby. The time to buy NZO is when the market stabalizes, and starts a long slow uptrend. Who knows when the market will come good, it looks like a crash is imminent. That is why fundamental analysis is useless, and trading is by far the safest option. Macdunk