december short term trading part 1, page-104

AGO shouldve snapped up BRM when they had the chance with a cash offer and they wouldve got it. BRM is a 20mtpa operation DSO and detrital ore at circa 60% Fe when the detrital ore is beneficiated. There was circa 1bill tonne plus in Fe, and circa 500mill tonnes FE at 60% post beneficiation. Thats a 25year mine life at 20mtpa with port allocation.

Wouldve been a good fit for AGO

Still AGO has NO DEBT unlike FMG and has a very good GROWTH PROFILE, so IMHO it is the BEST IO stock on the market and deserves a PE of 10 (due to NO DEBT, PILES OF CASH and good CASH FLOW and GROWTH). Its definately undervalued! Even if long term IO price goes to 90-100 , they still make great margins with all the DSO they have, and it can only get better the more they produce. I cant see a better IO play . FMG is waaaaaaaaay too RISKY with more debt than equity. AGO is the most compelling 'buy' on the market 2day out of all the mid cap resource stocks in production or even incl those that arent in production. Theyre going to DOUBLE their production , from cash flows, no debt! PE is less than 10. Buy now and in a cpla years u got double the share price at double the production at a PE thats still going to be under 10!

* As far as trading nowadays goes - ive seen what these genetic algorithms do - they go through every possible bollinger band or standard deviation permutation and looks for past trends thru all of them - every permutation of every concievable standrard deviation away from the mean price. i.e it examines 1 std dev, 1.1,1.2,1.3 std dev.....2,2.1,2.2...3,3.01,3.02,3.03 etc to all decimal places, looking for past trends within each. This would take years to work out manually....these programmes do it in seconds! If u split your captial in2 very small trades i.e 1% of capital per trade, you CANNOT LOSE ...coz u win more than u lose, so on average u make money....kinda like a 'season' in sports - if u win 70% of the time and lose 30% and u play many games , youll make money on average.
The algorithms go thru every stock on ASX , checking out all the trends in bollinger bands and std deviations, PLUS any other statistic or pattern u want. The algorithm buys and sells and cuts trades short to go for better opps as they occur.....ive seen it go in a trade for 20 secs and then cut it for a better trade. Its amazing. IT WORKS KIND FO LIKE CLIMBING A MOUNTAIN....my friend incorporates aspects of TEMPERATURE and QUANTUM PHYSICS (ant like behaviour ) in2 the programme....and incorporates things like the 'kelly quotient' in the algorithm to smooth returns etc used by the most famous trader of all time who made 8.8billion using these genetic algorithms etc.

TRUST ME - these upper end programmes BEAT THE STREET, u cannot compete with them - - - they slow down / speed up/ interfere with trends and patterns to out-compete and out-do eachother.....U SIMPLY CANT TRADE THE MARKETS ANYMORE IN AN EFFICIENT MANNER AS A MANUAL TRADER COZ THESE PROGRAMMES DESTROY TRENDS TO OUT-DO ONE ANOTHER...APPARANTLY IN THE USA THEY SELL INFORMATION ON WHERE YOUR INDIVIDUAL LIMITS AND 'STOPS' ARE! THATS THUGGERY! tHE ALGORITHM KNOWS WHERE ALL THE STOPS ARE ON THE MARKET! THUS U REALLY CANT COMPETE AND ITS THIEVERY AND THUGGERY ALL OVER AGAIN!