to bounce?, page-8

Gees some people sure are impatient...IGO has gone from a listing price of 20c to current pirce of $1.13 (not bad for a mining IPO...take a look some of the other mining IPOS which stagged and are now sub issue price). Obviously some people got in at higher price since its been to 1.49, but u have to ask urself why did you get in? If for long term, then be patient. If for a short term. trade, wheres ur stop loss and why are you still in it?

I'd also love to read the 'commentator' that stated a value of 80c for IGO...remind me not to trade his recommendations...

80!!?!?!?! you have to be kidding me. IGO turned a pre tax profit of 4.6 mill for sept qtr. Thats a post tax profit of about 3 million (more given exploration and interst writeoffs). IF it repeats this for next 3 quarters (and someone please point out the reasons why it shouldnt since nickel price has increased proportinately more that the AUD since the sept quarter), then it will turn a minimum profit of 12 milion AFTER TAX for the year. At 80c, that would put it on a PE (fully diluted) of about 6.5. Since options have not yet been exercised, then the PE is a LOT lower undiluted.

Considering that blue chip miners average a PE of 8-10 (currently more), and small chip profitable miners trade at a premium to blue chippers, Id LOVE to see where this commentator gets his stats from.

Not to mention that IGO is yet to access Victor souths high grade deposit, which it will in june quarter 04 (thereby increasing the proportion of high grade nickel and so increasing profit margins).

As usual though you dont know, maybe the commentator is pushing negative views so as to get his bigger clients in at best price. But im not one to believ that kind of stuff (even though i work for a fund manager).

My tip to you is to get a copy of the IGO quarterly, open ur Excel, and do some sums. Then make up your own mind about IGO rather than listening to some commentator, who for all we know probably just got out of the securities institute and is cutting his teeth on this company.

As for the current price of IGO, admittedly i got in a lot earlier so am not so hard on it than some of those that have got in more recently. We are not going to see IGO quadruple in price over 3-4 months again (although u never know), so if your hoping for that your in the wrong stock. I would suggest taking a look at small undervaued miners in other base metals, eg copper, zinc, lead, with those base metals coming off their lows...those stocks are still way undervalued.

By the way last i heard nickel was at 11,800US.

Cdchi1