Hi aquamale28, I too would be buying at 4c. There's a difference...

Hi aquamale28,

I too would be buying at 4c. There's a difference between perceived value in the moment and potential value. Our potential value is 20c+ next year - but fear, margin calls and mass selling will rock the boat of perceived value.  People underestimate how bad China really is. As an analyst it's my job to look at the big picture - China's in for a hard landing. It will take the AUD with it.

P.S I hope your right aquamale  and I'm wrong. But the analysis and the banks that are shorting shows me otherwise.

Laza.



I feel differently, the Chinese Government intervened again yesterday and demonstrated that unlike a lot of western Countries - they still have interest rate cuts and currency depreciation they can enact to support their economy. Remember, they still have VERY large reserves also - https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves

Whilst there may be more pain, with CNE up and Brent recovering slightly and drilling approaching; 4-5 cents to me seems like a pipe dream. If it gets anywhere close - I will certainly be buying large on weakness as I am sure a lot of others will be. We seem to have support in the mid to high fives.

Everyday brings us closer to drill. I understand that the Athena could be at site as early as the 16th of October.