The share price has gone from 1.78 in Feb to 1.35 today. I have made a packet shorting ARI! Just because GS bought some shares does not mean they love ARI. FMG has Twiggy stepping in and buying a bundle of shares every time the SP goes down. Good management, good company if they didn't have the enormous debt they wouldn't be so sensitive to the IO price.
AGO's problem is the managements failure to deliver on their promises. The other problem is when the IO price drops below $100/dmt US they stop making any money!
Although down today the Dalian futures market for IO is fairly strong, especially over the next few months.
IMO all of the Aussie miners are a fairly good long bet (for a few months at least).
I suspect most people who short the miners don't get very emotional about their positions, so you will find they will start making more long plays soon.
AGO Price at posting:
98.0¢ Sentiment: None Disclosure: Not Held
