Atlas iron is one of the up and coming excellent performers in Australia.... I watched this company grow from nothing to a successful entity by following a smart strategy... It acquired a number of other companies I had shares in.. I didn't hold AGO because I was overloaded with iron ore stock... But to see it gutted like a number of other successful resource entities I hold, and its SP falls from 190c to 90c in few months really makes me angry... What has changed to cause this 100% drop in share price?
Not much really.... Spot is around $140.... they shipments are steady if not increasing and they're continuing their strategy of more growth.... therefore, their valuation hasn't changed much,,,
what has changed is a trend of lack of confidence in the market and resources in general created by a so called China phobia and alot of nervous brokers making thousands of tweets,even one had the audacity of calling BHP a sell???... Yes all that and Korea... Iran... the end of the world and mining tax etc.... should have a negative effect ... say 20 to 30 %... but 100 and in other cases more and down to GFC prices... this can't be real... !!!
I am certain, and posted my opinion on HC many times, That what I call Terminators are responsible for the destruction of many good stock... They are a band of High frequency traders, black pools, and shorters.... Shorting has become the most effective after a number of famous local investment banks are leading the charge to gain more fees and commission...
Nevertheless, I think that companies like Atlas should fight back to preserve their true valuation, by any mean, like supporting their stock with share buy backs even if it's necessary to stop paying devidents ....
Destroying stock of successful companies in Australia has to stop or we'll have no stock market ... companies will be shells and investors will not support them... So come on AGO build a war chest and push these shorters back... let them lose money like we are losing money... as a previous poster said... their action is not illegal but it's immoral.... just like when dairy farmers get paid less than cost for their milk...and so on...
AGO Price at posting:
93.5¢ Sentiment: Hold Disclosure: Not Held
