the company's or management's worth can't really be judged on the price entry point of your shares.
look, I'm not sitting any prettier than anyone else, whatever I paid years ago is still a lot less than what the shares are worth right now.
The current climate doesn't feel good, I'm not buying new shoes either...
But it will turn around !!! And as poor and sorry as we're feeling now, could it be any worse than Trevor M would be feeling right now. Imagine the embarrassment of having to sell shares in this climate and the backlash this has caused, and then throw in a few death wishes for good measure !
Did you pay 5 bucks for this stock to make a quick buck ?? Judging by your posts and interest in this company you were a believer, and not just a sentimental one.
It's a good stock in a crap market. There are those who think IO stocks have had their day, and yes there will be a slowing in demand.
So CVRD have cut their production by 10% and the whole market soils its pants. All of this needs to be put into perspective. The chinese are not silly, and they will milk this oversupply for every last drop. But can you blame them ? They've had to cough up for up to 95% increases in IO prices EVERY YEAR for the last 5-6 years.
So the result will be a massive devaluation of the IO price, and this will take out all the small players who aren't producing yet or have low grade ore.
And when the whole world economy goes totally to crap, then the chinese will stop manufacturing children's toys and plasma tv's to sell to the west, and they will spend their godzillion dollars in their treasuries to build and develop their own infrastructure. There are some 700 million people over there who still live in poverty, and a world economic downturn is the very best time to concentrate their efforts to grow themselves out of poverty.
While the west is booming and consuming, China has been the workshop for the world. Why build railways and hospitals which cost you billions, when you can use your resources and manpower to manufacture consumer goods for the west and earn trillions ? They've been making hay while the west has been basking in the sunshine.
They'll talk down demand for every resource they've been paying through their noses for. They'll re-negotiate their contracts on terms favourable to them.
Maybe the days of 200 dollars a ton IO spot prices are over, but when things settle and China starts to focus on their own growth and development, they'll need plenty of IO.
I say hold on to your hats, keep your seatbelts on tight and try not to puke when the going really gets rough.
Our day will come !!
BTW, it seems it was a margin call, and I agree with cransky, if he was going to part with them voluntarily he'd have sold them months ago for a few pennies more.
MMX Price at posting:
83.5¢ Sentiment: Buy Disclosure: Held
