the pick of the nickel stocks?, page-5

re: tsylana -the pick of the nickel stocks? ** bet Tsylana, missed your good post the other day but here is a reply.

JBM is certainly a very good company and just forked out a 24c per share dividend. As to whether it is a better buy or not then Allegiance you would have to say they are two different fish. Certainly AGM has more potential, JBM has already realised a lot of its potential.

I guess the reason why there is a higher value attached to the Ni that JBM has is because they are selling it today and because they already have a track record.

As you state, AGM won't be mining until 2005. Most reports state that Ni won't be going down but will be going up, hence it is not a bad thing that AGM will start its mine at this point.

You sound reasonably well read and I have seen enough to know that just because these reports say Ni is heading upwards doesn't mean it will do so. It is a good point you make from the statements coming out of Russia. Not so long back the Russians were able to dump a large amount of Ni onto the market that they had stockpiled. No one knew they had this supply. It could happen again.

The reason I like Allegiance so much is that I think it has real potential to become the next JBM. It might sound pie in the sky stuff to say that AGM can get its share price to $4 like JBM but in my mind it is possible.

For this to happen a lot of things have to go in favour of Allegiance. They certainly have to get their current resource up and running, they need to find more reserves, they need the Ni price to stay around current levels or go higher, they need for the $A not to run out of control. This can't take less then 2 years.

Even if $4 never happens there will be many opportunities to take some profit along the road.

Chinkiat