KIO

[Werner_1]

what's your thoughts on KIO right now... its quite low. maybe a good entry point? or is there something dodgy going on? div's were just paid, got a good bit of cash :) but price is quite low, i think on the bottom part of the trading band...

[richardw]

Directors selling concerns me.

[gareth01]

Hi Werner, dont know your strategy, but if for the longer term, then without a doubt start accumulating....I have been at 436 (which is on its 200MA), but still at a div of around 9% - just makes business sense. Also been buying Exx under R170...

[Vano]

KIO seems determined to test long term support line at approx. 42500c. If that support level does not hold, then down we go. omo

[#5]

Werner, I think that Kumba does not carry any more aces up its sleeve. It is at full production, and received an impetus when it was able to cancel its cost +3% contract with ACL. Now it is driven primarily by price of goods sold and the rand exchange rate. I will have to go again to its operations reports to see if there are any big production increases expected, but I think not. So at 9* PE, you are forcasting stable prices for the next 9 years. And you are dealing with a faceoff situation with the DMR, as well as a contractual dispute with ACL which I don't think is resolved yet. To me KIO is tradable at these levels, but for investment, I am not so sure? I have a preference to EXX, which has a 20% stake in KIO anyways.

[SimonPB]

they got new ore coming on stream .. Kolomela mine in the Northern Cape, Q4 2011 if I recall correct ..

[THRESHOLD]

SKAAP - fianlly we have a meeting of minds re KIO - Based on KIO'S valuation WRT tons produced looking forward - ANGLO (which owns two thirds of KIO) will produce 2,5 x KIO's attributable output - so (1211x270)/(323x430)=2.35. SO - when you buy ANGLO AMERICAN - you pay a discount to KIO for her IRON ORE interests - E.v.e.r.y.t.h.i.n.g else is FREE! - Why on earth would anybody buy KIO??

[SimonPB]

the trade is long AGL and short AMS & KIO ..

[THRESHOLD]

And BHP and, to a lesser extent, ARM. These are the value counters in this sector. (And on a less diversified note, EXX)

[SimonPB]

well no .. it on AGL under performing it's two main profits machies .. AMS and KIO .. They have moved out of sync ..

[THRESHOLD]

well no... I'm not commenting on your long/short trade (although it makes sense.) I am interested in long positions only (unless I am hedging my portfolios.)

[KJR]

Is my understanding correct?? that KIO is short and AGL long????

[SimonPB]

KIO and AMS short .. AGL long .. trade was recommended a week or so bak, so not sure if it still 'live' .. logic was AMS and KIO had run while AGL agged yet AMS and KIO are main income for AGL ..