platinum price, page-2

Nyc2k,

Fair question mate and most people wouldn't know the value of this asset if they tripped over a pile of valuation reports.

The US government has turned on the printing presses to the tune of $2 Trillion. Eventually this will turn a deflationary environment into a raging inflationary one.

Base metal prices can only go one way over the next 2-5 years and this is why the chief of Xstrata was bashing his gums this week saying its a great time to make acquistions at these depressed prices due to the oulook for base metals over this time period. They are after Coal, Copper and Platinum mainly.

The down side risk of the IGC share price from here must be carely considered. The market cap is at half the valuation range provided by two independent valuers plus it is a greatly desired piece of a large world class orebody. The shear fundamental balannce sheet value of IGC puts a brick under the share price in my humble opinion.

If the 40 cents doesn't come to us, then you will still be sitting at these levels until another deal is formulated or the Platinum price starts to really improve but I just can't see it tanking from here given the thrashing it has already had the that the market has already concluded this deal is not going to happen. Its already priced as a failure. This exactly at what point I like to enter a stock with a classy asset on its balance sheet.

Sagey is 100% confident they will deliver this takover to its intended conclusion. If it falls over, it means he was wrong and failed in the execution of the endeavour but I can assure you, I have not seen him this confident and more relaxed about a deal for a very long time.

The way I see it, there is not much downside risk to the share price from here due to the quality and value of the main asset but there is a hell of allot of upside potential (100%) if they complete it.

My cheque book is happy to have dip on the basis I reckon he and the others working on the deal have broken the back of it and will deliver and deliver by 30 June 09 while the shaere price is fundamentally undervalued by a long way. I believe it is hard to blow yourself up at these prices if it doesn't happen.

The problem about entry, is that once the deal is formally done and dusted the punters will get a sniff and take it from 21 cents to say 35 cents in about 5 nanoseconds. I have no interest entering the stock at 35 cents to get 40 cents back through the mail. I'm intending to bank 40 for 20 cent outlay nd whre the risk that it falls over at the 11th hour. As well the company should be full of cash come the conversion of most of the oppies at 30 June 09, so that will put a reinforced concrete slab under the shae price at 20 cents. Classy asset worth 40 cents plus a truck load of cash in the bank. I think I can suffer having to sit on the stock for 12 months if I really had to (In a blink I could)