capitulation tomorrow, page-4

Hi Folk,

It doesn't suprise me, in fact with selling AGM and LIM, I bought a few JBM (as well as adding MCR to my weighting limit. No IGO as long ago maxed out on.) I am down 4% on JBM.

My logic was/is:
1) that JBM was being priced on history, and on the distant future, not on the current, nor even the 27 month pon. Therefore would not suffer sharply.
2) The largest (that I know of) pure nickel left, and therefore given the large and still growing high grade/low cost resources will always attract a premium, including as a takeover play. It has world class long life rocks. These attract the BHPs. With this sort of long life probability you can just about use industrial PEs imo.
3) Huge low grade resource, that they fell over, and if looking for would no doubt find more of. Not factored in imo, partly because imo they are being lazy in developing it. That must change.

JBM needs some good news, like a more aggressive expansion plan, progress on the low grade resource, or a new ore body. Or a takeover offer. I wouldn't like to be shorting it then.

EL