Sold out of all of my resources except for LON and started buying back IMP today. I am afraid of the more general stuff - KIO, AGL etc. and I assume everyone feels this way. Too low to short, too early to go long in any meaningful way. So - just watching... silently
At this point, don't kid yourself, they are all "trash." At least with LON you don't kid yourself. LON is undervalued on a sector relative basis. LON has precious metal exposure and that is what the market may come for. If general commodities take off - she will go along for the ride. I have disposed of 40% of my LON at these levels - which means the rest are almost free; AND last but not least because LON has made me a chunk of change and looks set to break higher. If PT moves up - so will LONMIN.
They were clearing positions a year ago. Why technically insolvent? Her assets exceed her liabilities fairly stated, she has the reasonable expectation that she will continue in business and is generating (or reasonably expects to generate) the cash to meet her liabilities as they fall due... surely!?
Now we (I) need to hope that PLATINUM gaps up to $1030-1050.Through that and we could be eyeing $1200.So selling the rest and keeping the "junk" LONMIN and buying back IMPALA at R32ish is starting to look like a less insane call....