at what price would you suggest entering. why is the market negative about the news. I thought the split will result in cash inflow. I would like to buy but not without knowing what is the support level.
One has to ponder the timing of this announcement. Directly after record dollar strength and gold lows, after shares have been pummeled. This looks as if it was timed for maximum share depreciation so that an old boys club, leveraged in shorts, can cash in big time. It stinks from start to finish..... Done investing in resources.
Hmmmmmm!!!!!! I have always loved to trade ANG over the last few years, definitely my favourite gold share on the JSE, this came as a big surprise to me..I was holding this a month back and made a small profit in the high 180s and just before gold plummeted below 1306 support. I would be major pissed off if something like this was announced if I was in. Major profit to be made in the long term but this is going to plummet like crazy in the next few days until some news come out of numbers as no-one knows where they stand. hmmmmmmm...............what I can make out is they need to raise an unbelievable amount of 21 Billion Rand which is what they need before they can split the company. A company that was valued at 68 Billion this morning, lost 10 Billion today in market value. So, I wonder how low it can go over the next few days as there is not much support in the charts, say 125 to 130 area and then 115 area of lows. Another 10% down tomorrow... easy!? Ouch! Also, are companies allowed to make such a call without a cautionary to drive the price down before an official rights offer has been announced, as this is obviously going to drive the share down so they can make a cheaper rights offer and even lower the price further? Then split the company off cheaply and they make a killing back in the long run. I don't know much about rights offers and haven't really followed the woolies one that is currently happening.. but hey.. any thoughts from you guys?
Following up with what I wrote earlier, based on this article their new CEO and Investecs analysts values the company at around 7 to 10 billion dollars? This meaning you getting the South African mines for free at the moment and more discounts to come over the next few days it seems hmmmm #mahala .................................................... Charles Carter, currently AngloGold's executive vice president for strategy and business, has been lined up as chief executive of the new company....... Carter said in a conference call that he expected the new entity, the operations of which currently account for 65-70 percent of AngloGold's earnings, is expected to join the blue-chip FTSE 100 index and will be valued at about $6-7 billion....... Investec analysts, however, said they expect the new company to be valued at about 3 billion pounds ($4.83 billion)........ AngloGold's market capitalisation before Wednesday's announcement was 68.77 billion rand ($6.25 billion), according to Thomson Reuters data...........