Merafe Rated New `Buy' by Bank of America on Valuations Share Business ExchangeTwitterFacebook| Email | Print | A A A By Ian Sayson Nov. 23 (Bloomberg) -- Merafe Resources Ltd., a South African ferrochrome producer, was rated "buy" in Bank of America Corp. Merrill Lynch's initial coverage of the company. "Merafe is operating at optimum capacity utilization with its order book full to the end of the year," the brokerage said in a note today. "Merafe trades on attractive valuation," it said. To contact the reporter on this story: Ian Sayson in Manila at [email protected]
I sometimes wonder why an international institution would even bother to cover a penny share like Metrafe. It doesn't really make sense for a highly paid research analyst to spend 5minutes on this. Research analysts sell reports to other institutions. They also get rated based on the quality and accuracy of their research. Why would anyone try and sell a penny share report to institutions that by in bulks of tens of millions of dollars?
Kwagga. The fact that they are actually looking at penny shares in sa means that they are still of the opinion that the sa market still has some value which will fuel the carry trade. On that subject. Simon and other experts. Whats the chances of Merafe being listed on the main board within the next few years?
it is already listed on tyhe main board .. an the Q remains, sure SA flavour at the moment, but why MRF ?? tis tiny and the average US fund manager would be lookign to invest of such size that they would end up owning it all ??
Simon. Who is the typical Investor who would look at such a recomendation? Whe should be able to see if the average american heads any value to the recomendation in a few hours when they go wakey wakey.
Does anyone know if merafe is going to pay out a div? Sa a holds 80% of the worlds ferrochrome ore. after gold its the 2nd most important - how else is the world going to make steel. Yet Marafe is underrated?