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Share price falling

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moe_1
New Contributor
Why is lonmin Falling so rapidly... Should we hold or get out
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10 REPLIES 10
Super Contributor
There is a bit of a discussion on platinum in general in another post, should give some guide lines
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Super Contributor
Moe, Hope this is not another African Bank in the making!!
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Highlighted
Super Contributor
Moe, when did you buy the shares? The mining sector has serious issues as of late. Platinum prices have fallen a lot and with the strikes and wage hikes and all these issues lining up, I think these companies are having serious issues to get their heads above water...
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Valued Contributor
an Glencore ditched their LON, they know way more than we do so why would we want them ??
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Super Contributor
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2012Trader
Occasional Contributor
Don't really look at Lonmin but read somewhere they are in business rescue. Can't confirm that but I'd stay away. The huge up and downs lately in share price is not a good sign.
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Valued Contributor
They are not in business rescue
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Nkhweti_Mozambi
Contributor
I agree, most of the fall is due to falling commodity prices and falling platinum demand from Asian economies. But the speed of the fall may be due to the trauma that investors had from the lonmin marikana story which had resurfaced because of the 6000 job cut. But really, personally I think it is the best time to buy.This is one of those opportunities that come few times in a life time.
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Super Contributor
They will need to raise capital to fund their debt book. How are they going to do that ? Virtually impossible for them to do it with the current share price and raising capital from it. They could end up having to sell assets at a huge discount in order to stay sustainable. Not a pretty picture. Eskom, the unions, the platinum price, and a hostile government made this a dog company. I'd stay away from this.
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Super Contributor
PIC could fund this. In line with govt nationalization strategy.
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