market rumours, page-5

Great post TAS...though you may have titled it "street talk...

add your collected views to mine on reading the information signalsand things look brighter...but we are not out of the woods yet. Many twists yet. Prepare for some bad ones too, justn in case is prudent.


Peace :-)

repaste: to connect to yours:

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Not hearing any news of a rights issue bookbuild either.Leakage always comes early. They would have to do that now with Chrissie looming. Cant always be certain but a deep discount rights issue is another reason (amongst many) FOR the guarantee/partial guarantee from the government.

Rights issues destroy shareholder value as the London Hedge funds short OZL heavily and then participate in the rights issue to cover...or spread admin rumours for self fulfilling prophecy.

OZL may explain that to the treasurer or Future Fund. Not a good look and IPL, TSE are disgraceful examples.

We need to build a new national champion resource company and that is in our Strategic national interest and a meagre 6 month guarantee from the Govt/FF on PH only would be a wonderful sign to global markets and global hedge funds....hunt elsewhere.

Journos late to the party as usual with old negative newsflow but my read thus far other than "suspension" (i despise those as you know) is actually very very positive !!

Heres why :

1. No administrator yet (usually comes fast)
2. No rights issue yet (ditto admin)
3. Substantial notices by intersting international IB's
4. No sign bank syndicate fallen apart
5. New Banks in waiting possibly
6. Govt Guarantee/Future Fund Guarantee possibility
7. Company upbeat and releasing financial statement shortly
8. Zinc price recovery story building momentum
9. Financials alwasys looked great
10. Valuation is $1.00 - $2.00 in Takeover, $1.00 in breakup (plus costs)


Things look better no doubt. But not out of the woods yet and back on the fairway.