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clock Created with Sketch. 14/11/14
10:49
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Originally posted by iron mike
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how is it that IOH holders were being told from many quarters that this takeover was the "best thing since sliced bread" - when it was first annouced = IOH then at 95c ish - and BCI over $3.00?
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Iron Mike ... As I see it, the problem is not the takeover of IOH by BCI. I think the fall in the value of your investment would have been more if the takeover had not gone ahead. Just before the takeover was announced IOH was around 95 cents and is now effectively around 0.44*$0.76 + 0.1 = $0.43. So a fall of 57%. As horrible as that is, it is signicantly less than comparable iron ore companies. The problem has been the fall in the iron ore price brought on by increasing supply and falling demand. This issue had been talked about a lot, but the speed and severity of the downturn in the iron ore price has nevertheless surprised many.
(20min delay)