Bloomberg postulate AGO is a buy at low valuation ie MCap v income/profit compared to peers. Bloomberg is market maker and splash this across world headlines, watched by US edge funds and Chinese.
AGO make good profits at current IOP, speculation dat FMG RIO and Vale no interest in AGO but chinese maybe, other interest not mentioned US investors flush with cash watching for bargains, chinese buy Aquilla takes many years to build at large capex, AGO its all there already very cheap cost. Dis convince 20% investor to take it up for capital gain alone.
Bloomberg is spruiking dis stock well with international coverage as OZ holders undervalue their own stock , Bah Humbug. AGO very low debt ratio of ~10% compared to FMGs 70% debt to equity ratio and well below all other IO producers on MC/income/profit ratio.
AGO costs higher than others - dat is why its SP 85% lower than its highs of $3.50 in 2011 but dis is due to massive infrastructure spend and mine development (5 mines in 5 years) an incredible result for smaller miner trucking dirt long way by road and still profitable, should have went into loss wit dis massiv capex spending but has very low debt way below FMG (compare FMG at 70% debt to equity - 10B debt/bonds v 15B MC).
IOP hit double/triple bottom at 88/90 USt, it now $95.60USt friday and if crack past $100 den go back to $120USt or stay range bound 90-100USt. Dis mean AGO still profitable at $80USt,
I buy AGO at dis low price and rode chart up~~~~ to $1.
AGO Price at posting:
66.2¢ Sentiment: Buy Disclosure: Held
