time to buy , page-5

Time to buy. We are a long way off IMO. The prospect of this stock is looking more and more like the Nickel version of MMX, BSL and OMH.

With the advent of Chinese NPI, Nickel has become a bastard metal for ever. The only investment choice is an Australian nickel miner in WA with resources in Forrestania (I have to be subtle), a true high grade, long life, low cost producer that can turn a profit even in this environment with high upside leverage.

MBN is being diluted so badly and most likely yet again, this stock is now pure junk. The fundamantal problem is that there is no prospect of the company turning around (I smell a rat in those regugitated feel-good half-yearly investor presentation about a better future). Things look just marginal even on very rosy assumptions. The mountain of debt it owes means even if there is a buyer, the price will be very distressed and depressed. As per usual, the directors will accept anything along with an independent expert report justifying why MBN is worth 20 cents and still "fair value".

There is a reason why this stock is cheap. If NI prices stays low or worse still falls further, then it may be receivership time. That's when a buyer may emerge. When that happens, we won't be looking at anything above 50 cents.

As I said, the pump and dump story about MBN being taken over last November sucked a lot of people in.