302 replies to this topic

[soutie]

Sub R2 by close today....?

[Magnet]

looks like share going to come under big pressure today

I think there could be some bucks to made early hours by going long.  currently at R2.80

 

Only for the brave

[myusuf]

looks like share going to come under big pressure today

[soutie]

Cap in hand to shareholders on average every 20mths......Kicking the can down the road...Further down this thread there's talk of the "Big Boys" well peops this is their opportunity to get out of Lonmin once & for all with this capital raise......By the way manufactured by them to create confusion & exit under such veil.... Those left behind will be stumping up cash in another 2yrs time..By all means trade it if you know what you're doing...... from my side there's much less speculative counters all over the bourse....Best of luck.

Good article JaDEB

[Magnet]

Only read that article if you looking to invest long term.  I am sure that many here will be in and out within a few hours or a few days trading either the shares or the rights next week and make a killing.  The market cap is a bit low and any short return of sentiment will see this bag a few times.

[jaDEB]

Good article

 

http://www.mineweb.c...-but-no-thanks/

 

Read before buying.

 

The enormous increase in the number of shares being issued means the Lonmin share price will end up at about 35c at the conclusion of the rights offer

Edited by jaDEB, 10 November 2015 - 07:13 AM.

[SLEEKONE]

Yes. We can make a killing. Just waiting for my rights. At least when i get those shares, i will make a profit and will trade cautiously thereafter. We can actually become millionaires by trading mining stocks, we just have to buy the all time lows.

[SLEEKONE]

then surely although the company aint great we can make a killing after the rights and consolidation takes place

[jaDEB]

A high of R4.25 and low of R3.11 that is  26%  swing in one day....

[myusuf]

then surely although the company aint great we can make a killing after the rights and consolidation takes place

[SLEEKONE]

Nah it won't drop that low, but it will be discounted to that price for people to buy into the rights.

[myusuf]

Yes I am aware of that

 

But isn't the rights offer at a huge discount so if I put in the 100k shouldn't my ave cost drop to 23cents

 

Surely the share cant drop that low

[soutie]

Hi

 

I got in @ R3,80

 

Please advise how the rights issue works

By when do South Africans have to pay for it and will our brokers contact us

 

Once the shares are issue - around what price are we looking at this settling

 

For eg if you have 10000 * R3,80 = 38K

Rights issue is 46,000 *R0,21...

 

Net cost is around 23-24 cents per share

 

Where will the share price settle? seems to good to be true on face value if you take up the rights or am I reading it wrong

 

 

TX

Yes you're reading it wrong.....Are you in already...?....You're now on the hook for another R96k

Edited by soutie, 09 November 2015 - 03:18 PM.

[BERT]

Hi
 
I got in @ R3,80
 
Please advise how the rights issue works
By when do South Africans have to pay for it and will our brokers contact us
 
Once the shares are issue - around what price are we looking at this settling
 
For eg if you have 10000 * R3,80 = 38K
Rights issue is 46,000 *R0,21...
 
Net cost is around 23-24 cents per share
 
Where will the share price settle? seems to good to be true on face value if you take up the rights or am I reading it wrong
 
 
TX

Rights issue is 46 for each.
So in your example 460,000 * R0,21...

[myusuf]

Hi

 

I got in @ R3,80

 

Please advise how the rights issue works

By when do South Africans have to pay for it and will our brokers contact us

 

Once the shares are issue - around what price are we looking at this settling

 

For eg if you have 10000 * R3,80 = 38K

Rights issue is 46,000 *R0,21...

 

Net cost is around 23-24 cents per share

 

Where will the share price settle? seems to good to be true on face value if you take up the rights or am I reading it wrong

 

 

TX

[SLEEKONE]

Well done Ninja

[jaDEB]

Ok... Back in with 1st long at R 3.52...

 

 

Awesome, hope u make cr@p load of money ....

[Ninja]

Ok... Back in with 1st long at R 3.52...

[buylow]

Interesting read, buylow, is there not a possibility that Lonmin closes down? Debt and so on? If the rights issue is declined by share holders?

 

 

 

Hi JaDEB,

 

Apologies for taking so long in getting back to you. My job takes me out on the road a few times a day so I'm not always near a computer.

 

Yes, there is a possibility of Lonmin closing down, but I think the percentage for survival is greater that the percentage for failure. Some people look at the share price and base their decision on what they see. I use charting and the like, but I try to read the company like a book.

 

(Let me make a confession, I am a huge Warren Buffett fan and lots of my thinking follows his example)

I believe that the quoted price of a share is merely a reflection of investor sentiment. (Markets are voting machines!)

The share price does not tell you what a company is worth.

This share had lots of bad luck and so the share price does not in reality reflect the true value of this company. 

Marikana hit the share price hard.

 

However....

The decisions management make, which show that they know what they are doing, are one of the many ways in which one recognises the intrinsic value of a company.

In my book, Lonmin management is making the right moves. I believe that if they make one right move, more good moves will follow.

Debt kills a company....   They are being proactive in reducing debt levels which in my book is a big positive.

 

With regard to the rights issue .... I said in my previous email that some "big boys" took some heavy losses on this one. 

When the rights issue goes public, its the big boys who are going to climb in because they need to recover their losses.

 

I've watched this share price drop ... Yesterday dropped by 16% .... today ... dropped by 12% .... C'mon... These are huge selloffs. Its not the small guys driving the share price. Its the big boys.

 

Lots of this is just my opinion of course ... I've bought Lonmin and will buy some more when I see the big boys climb in.

 

 

Have a great weekend guys!

[SLEEKONE]

True this stock is being turned into a cash cow. People are making millions out of this stock. Asset managers have big targets for this one and they will definitely give the nod for the capital injection. It all started when it was R9.5, some ******* asset managers missed the train and suggested a drop would occur, when there was clearly a rally, so now they have the perfect entry point to triple their money. The government's intervention will be through the PIC, which is too invested to let this mine go down the drain. If you have already incurred material losses, all you need to do is ride it out and hope that you at least breakeven.