Beardy YIP -saw Alinta trashed to 1c then back to 10c and that...

Beardy

YIP -saw Alinta trashed to 1c then back to 10c and that was definitely going down the gurgler.
It's tax losses were worth 10c in the dollar to the new owners and that is what they paid shareholders in the end.

ARI is a different kettle of fish,but even the tax losses add residual value here.

There is a big difference in SENTIMENT between the two Aussie steel makers -One makes flat products i.e. sheet steel,very much a commodity product and exports around 600kt into still falling prices at a loss.All that Aussie steel is from Blast furnaces from bought shipped ore and coal.
It has had better public relations skills and informs the market and has even bought out a partner in its scrap mill in the US for a positive re-rating lately.
It also exports Iron sand from NZ a lesser valued product than ARI's.Debt around $800m

ARI by comparison is in the domestic long products market -heading for a boom ,got Tarrif protection and international prices for long products have stayed relatively stable for a month or two,if not edging up.
Half of its production can be ARC furnace from scrap right where its used in Sydney and Melbourne at considerably reduced cost currently.
The BIG NEGATIVE is the BOARD.
They can be perceived as having broken an unwritten cardinal rule ,in not keeping institutions and the market fully informed of their current economic situation until too late and then going/disclosing to a market maker for the float.Poor-Very Poor.
They have IMHO by comparison very poor public relation skills,e.g. Capital Raising without making themselves an embarrassment to shareholders.
Its not the company or businesses that are negatives - but the Board.
ARI's prospects are no different,in fact you could argue better than its other Australian counterpart,but the market is emotion driven.
ARI has no market goodwill - Period
ARI has no Shareholder goodwill- Period

ARI is also ripe for picking - but at what price/cost.What debt???

This board has to start winning shareholder brownie points to even get looked at by institutions again.
Even a quick announcement to shareholders saying ARI finsished the last financial half with debts of ----- in $AU and US$ and what has changed since could possibly double the share price,if debt has remained substantially the same.
If it takes months to get these figures then they must still be using paper which I doubt.

Then it could simply announce its intention to in the future reward shareholders by allocated funds for on market purchases,while the shareprice is below NTA,until such time as it is confident of supplying shareholders with tax imputed dividends.
Say e.g.at the rate of 1/10th or 1/20th the value of its debt reduction ongoing.

Simple give next to nothing away ,but give shareholders certainty of NTA appreciation,no matter what.

There are no positives going forward for shareholders,but there are two easy ones,worth a lot more than the few million they could spend on market buy backs and probably spend on promotion.

DYOR + DYODD