preventing conditions on future bids., page-8

Hi all

Welcome to the rice market.

wholesale rice price is 10 dollars,

Hanlong to SDL: i will give you 6.0 dollars for your rice.

SDL: NO 10 dollars

Hanlong: 6.5 dollars

SDL:NO, 10 dollars

Hanlong: 7.5 dollars


Hanlong noticed that comodity prices are going back up again(including rice)

Hanlong:8.5 dollars

SDL: 12 dollars


Hanlong:10 dollars

New buyer arrived: i give you 15 dollars


Hanlong: Crap, china get screwed.


I have experienced and witnessed similar situation in my life, and let me tell you, i sometime deal with people in the exact manner as hanlong to buy at the price that i am happy with. Sometime works, sometime doesn't.

The only exemption, i do that when i am confident that product is overpriced, and usually stick to my word when i make an offer.

I think Hanlong and their advisers know the IO price will rebound for the short term and therefore SDL may become a target to some big mining companies.

Also, they try to create a panic in SDL board, make them feel that their product is overpriced, therefore stops SDL from being too optimistic and refrain from asking a price increase.




cheers

bouhr