merrills rates it a takeover target, page-12

Oversold....?

Maybe, but symptomatic of the whole resources sector as well... MGX is not alone.

The bid was constantly getting hit today, by fairly sized orders.

It indicates that there is still severe and significant de-leveraging out of commodities by global investors (read: hedge funds), who are still reeling from the volume of redemption driven activity, as well as the declining value of the stock from a global investors perspective, who has to convert their AUD into a stronger o/s currency.
And whilst this deleveraging is taking place, capital outflow from Oz will remain strong, placing further downward pressure on the $AUD as all the commodities sellers convert their proceeds from $AUD back into their native currency.

Compounding this, is the complete global freeze in the wholesale lending market. Aussie banks who "were" active in this global lending arena provided solid buy-side support for the AUD as they converted their internationally denominated borrowings into AUD everynight. Their absence has left a vacum of buy-side strength for the AUD, and hence another reason for it's spectacular fall from grace.

Lot's of global sentiment/lending variables need to improve before MGX, AGO, FMG and all the other stories out there pick up again.