down again?, page-2

Hi Diamond Joe,

The Iron Ore sector has been beaten to a pulp.

I've been a holder of CBS for about 6 months, having previously made some money trading it. Yep, under water.

Head & shoulders formation. Encouragingly, volume has increased markedly since early September, about the same time as BC Iron made it known they were looking at Brazil. BC are on the record saying hardest thing in Brazil is environmental approval. CBS is well placed. With the IO price under pressure, the focus will be increasingly on production costs.

SP appears to be in an accumulation stage, where the 'smart money' slowly takes a position. Increased volume started with some large orders, and a resultant jump in price. Quickly the buyers backed off, and are accumulating down low. E.g current bid at 1.8c for 2m shares. Why should they pay more when sellers are quitting? Bored, impatient. SP won't improve until holders stop quitting.

I'm a buyer at 2c, but my next bid will fill a gap at 1.7c (wait, I'll just put that in place).

Drivers? Assay results or feasability study, maybe. Or a prospective buyers visit.....

In terms of other IO stocks I like Mt Gibson, MGX. A mountain of cash, no debt, good ROE, NAV exceeds SP, PE of 4, good dividend yield of 5.75%. Governance issues addressed. Has been hammered, but is also in a 2 year down trend. Keeps getting cheaper!

CBS Posters moan that management isn't doing enough..... But I'm impressed that things are moving, admittedly slowly, and that the cash burn is so slow/low. Hats off to management. One of the better CBS fundamentals is the cash backing, which management continues to preserve as best they can, while moving forward.

Golly, I'm stuck in a couple of disasters at the moment. NMG, Noble Mineral Resources, IMO, has blown $100M on an EXISTING gold processing plant in Ghana, which is nowhere near operational, and reportedly worse than before they started. Nothing but ramp up from management until they're completely broke, and IMO, have been trading insolvent for 12 months! SP has gone from 80c to 12c.

I'll continue to accumulate CBS shares :-)