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Online Share Trading

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NOT AT THESE LEVELS...

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THRESHOLD
Super Contributor
Skaaptjop - following on from our discussion re KIO and my disinterest at these levels - have a look at the following Bloomberg item: http://www.bloomberg.com/news/2011-09-21/iron-ore-s-four-year-slide-hitting-mining-earnings-commodit...
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13 REPLIES 13
Not applicable
Anything can happen between now and 2015. Iron Ore's current future is driven by Chinese consumption, but in 3-4 years, any number of nations could bick up the batton. But in any case, Kumba's fortunes are hedged a bit by the rand, and upstream projects. So if Iron Ore prices drop, in theory, the $ will strengthen, and KIO's revenue stream will flatline. But with a PE of 8, it can absorb that kind of situation. So right now, KIO is a cash cow of note - it has some downward potential, for sure, since it is not exactly sitting with relative strength to the market right now. My preference is for Exxaro, which gives you the coal assets as well. And coal has some strong fundamentals right now
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suki
Super Contributor
Eish, i wish i worked for them. they are giving employees R500 000 each for their loyalty.
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THRESHOLD
Super Contributor
The Rand tends to weaken in tandem with commodities. Commodity stocks tend to "out-collapse" the market when things come unstuck. Given events in Europe etc., I would rather not own KIO at this juncture.
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prancing_horse
Super Contributor
News of this has been out a while, so you can imagine how the retail boys in the Sishen area have been rubbing their hands and stocking up, especially the furniture and motor trade, I would guess.
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Not applicable
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suki
Super Contributor
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buyme
Contributor
everyones hot stock last night on cnbc,including Simon.
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THRESHOLD
Super Contributor
Usually a good time to run...
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SimonPB
Valued Contributor
an normnally I would agree with you .. cept I said it so can't .. and it top of the Top40 today ..
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Seq3509841
Contributor
Why the sudden increase? A correction....
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SimonPB
Valued Contributor
pesky buyers who apparently didn't get the memo about the end of the world ..
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BoburUncle
Regular Contributor
I wonder if they also moved to Libya?
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sponono
Super Contributor
.......or short sellers caught out by the double bottom on the DOW and DOW Transport with a buy divergence?????????
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