10% guaranteed returns - is it possible ?, page-7

Below is an article on SDL at tradeideas.com.au
"Sundance Resources: A bid offer of 50c cash is currently on the table and prior to this market rout, expectations were for rival offers to emerge for the iron ore company. When we consider that the suitor is China?s Hanlong Mining and China?s growth (albeit slowing from very high levels) remains solid long-term, iron prices will remain high and short sightedness like that seen by the market currently, presents low-risk opportunities for investors once more. The Shanghai B Index dropped marginally on Friday in comparison to other global markets and remains well above its June 2011 lows (unlike Western markets) pointing to a continuation of sustainable growth in China. Demand for steel and thus iron ore won?t disappear overnight and Chinese companies tend to invest with a 30+year horizon so a two-week even two?month market drop is for them an opportunity to buy assets and so it should be for traders as well. Hanlong plans to be the ?fourth force in iron ore? and that won?t occur on running scared because the S&P 500 drops 10%.

SDL trading at 45/46c gives readers a return of 11% (at 45c) with upside potential added to that for any ?sweetened offer? from Hanlong or an alternative higher offer, which the market had been expecting hence it trading above 50c last week. Investors could enjoy returns here of near 20% with what we consider very low-risk."