traders and smaller investors have done a great job in seeing value here and supporting this stock in the last 6 months. Problem is they have nothing left to offer, despite the fact that MGX has been well exposed in the press and chatlines.
eg. I am already overweight on MGX and just can't buy anymore.
MGX would have about $90 million cash and a market cap of $245 million at the end of the year, if the pellet deal does not proceed. Even still, I am not prepared to put the house on it. Thus without new money coming in, the share price cannot rise anymore.
Anyway you look at it, this stock is about the equal of at least 25 cents under what it should be, based on what other stocks in this sectors trade at. Around this time or even prior to now, it would be expected that aussie funds managers would start to support the stock, now that it is proven. However, they are no where to be seen.
To compound the problem even more, there may be some selling coming in from ONE of the top 5 shareholders who purchased their shares 3 years ago for about 10 cents. This entity is close to Pattersons, who would have been disappointed in not being asked to fill they recents placements, which MGX asked Shaws to undertake.
MGX have programmed a record ore shipment this month of over 300,000 tonnes. They won't manage that, but it could reflect having two trains on route to the port, allowing for increased export.
Announcements out in the last week where NAB buying JBM/Barclays buying LHG and Merryl Lynch buying into Kim. Hard to believe they have given this one a miss.
OEC Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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