I've been watching ARI for a long time now, and after first being attracted to it's shocker of a fall under 50c in 2014, I made a number of trades with it, the majority were not good :/
It's been on my radar since my last trade in Jan last year and I've avoided it till now.
Now, I haven't even read the latest financial report. Bonkers, I know.
But here's why I (finally) bought some ARI today...
It looks oversold, and that's largely thanks to Alan Gray.
Going off their change of interest notices:
almost half of all the RED here is thanks to them.
methinks now that they are empty, selling pressure will ease and a bit of a snapback can occur.
Of course now it seems there is the addressing of debt, and dilution of shares again.
but 2 more reason's I've finally decided to give Arrium another go.
IO prices have been rising since the middle of December, a bottom may just have been found after Iron Ore's ridiculously long fall.
Lastly, there seems to be a lot of media attention with the government helping one of the ARI plants, so I take this as some indication that the company isn't going under just yet.
I'm almost shocked at myself for bothering to touch it again but the above reasons feel compelling enough in my mind so that's why I'm back in for another trade.
For anyone else thinking of taking a punt, maybe give it a few more days and see if you can get better value than this? I'll be considering topping up if we get down to 1.7c again as it might test the recent low again, but it can break up at any time IMO now that we know AG have run out of ammo.
ARI Price at posting:
1.9¢ Sentiment: None Disclosure: Held
