I'm not sure about that. Maybe, but I suspect this is so serious that it will be resolved politically. No way will ACL be allowed to fail. And I think this has been reflected in the price movement of the other players (KIO HVL). So, I will be buying if the price takes a serious knock tomorrow.
Im just glad my EFT's have no exposure to ACL , just brings home the concept of diversification/and dangers of leveraged products...but i guess if you where playing by the rules - the 2% of your total capital then this set back is not so major - problem is people of over leveraged
Yep, MO has a point. In the mean time until the issue is resolved, ACL will have to pay market related prices for their feedstock which means margins will take a klap. Share will take a knock tommorrow, pity because it had reversed and was on a nice bull trend, contra to a lot of shares on the market. They can be forgiven for the mining rights situation as they are not a mining company but, I seem to recall this issue raising its head about 6 mths ago and it seems they did not give it the necessary attention. Anyway, for some reason I got out of the share last Wed despite the bull trend. Maybe tweetie bird went "cheep cheep", I dont know, but I will look at buying again at lower levels. For those still in the share, best is not to panic. Remember the trend is your friend and because of this, the share may not necessarily take the big knock everyone expects.
So, who's to blame at Arcelor ? Name them and shame them - this is a public company. Is this another Eskom without government backing ? Another domino to fall in the ever growing list of companies being run into the ground. Let's face the facts on this one. People at ACL involved with the Kumba deal screwed up on a massive scale. Just shows you how the wheel can turn on a CEO bragging that she headed the company when it made it's biggest profit ever a mere few weeks ago.
if you listened to the CEO a few weeks back affter their results she was sayign scarey stuff .. when asked about eskom and the potential 35% increases her answer was that they hadn't looked into that dark corner .. If I was a share holder that comment would have made me sell immediately ..