Hi all,
I haven't held a position in MGX previously due to my personal views on iron ore prices and the impact on producers. However, my mind has now changed and I'm in.
MGX is clearly a bargain, however I believe the problem with the share price has been driven by deteriorating global conditions and a difficult equity market. With my market indicator indicating that now is a time to be bullish, as well as iron ore prices trending up, I see MGX as very well positioned in this environment.
I'm not so worried about the geology as it is not my area of expertise, however I understand that MGX has quality assets which are flowing through to the financials. I believe that the main factors driving the share price from here are the macro factors (equity markets and iron ore prices) which allow prices to move towards fair value.
If anyone is interested, I've posted my workings here:
http://macrovalueinvestment.blogspot.com/2012/01/asx-stock-highlight-mt-gibson-iron-mgx.html
mgx a buy
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Last
43.5¢ |
Change
0.005(1.16%) |
Mkt cap ! $528.4M | |||
| Open | High | Low | Value | Volume |
| 43.0¢ | 44.5¢ | 42.8¢ | $959.2K | 2.205M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 4985 | 43.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 44.0¢ | 192573 | 3 |
View Market Depth
| Last trade - 16.10pm 04/07/2024 (20 minute delay) ? |
| MGX (ASX) Chart |