Valuation

[Wino]

Are these shares worth it at current prices? I did a NAV check and observed the following: Current NAV =R101.89/share. Shares issued increases by 180% therefore new NAV=R36.39/share which equates to a share erosion value=64.3%. The average share price before rights =approx R66.00 therefore post rights(taking erosion into account)should be R23.57.Based on this simple calc seems that whether one buys the NPL's or the shares they are currently to expensive and could fall further post rights?

[#2]

never a good idea to re-inforce failure. best to get out now rather. Besides, how do you determine the NAV of a platinum mine anyways?

[#3]

and remember, you have the luxury of being able to get out. The big guns, the heavily invested institutions are not so nimble, and many of them are more or less compelled to either prop this up, or write off.

[phd]

Dump and run.... as quickly as you can.

[phd]

Dump and run.... as quickly as you can.

[Pepi]

Shaaptjop $........ why has no one spoken about shorting LON the day before the issue ie 20 Nov when LON was R70?? - everyone was talking about the huge dilution that was forthcoming long beforehand.

[3JN2]

No way to short LON plus some others on OST that I can see

[kwagga]

Lon is like a car crash, you don't want to look, but can't help yourself. Personally I don't know if all the bodies have been pulled from the wreck, so I'll pass on this one without looking.

[Wino]

Do not hold any LON. I was purely looking at it from a possible profit opportunity. NAV simply calculated by ordinary shareholders interest divided by ordinary shares in issue. Not ideal for a mine but had to base it on something as charts are out of kilter at the mo.It has great assets and XStrata may be suitor in the near future or may force a management change. As the old saying goes, when everyone is shouting cut and run that is the time to enter after the price drops significantly. No harm in doing some homework beforehand.