Here’s some foresight. Investors who jumped on the iron ore train are getting their dividends. Yesterday Murchison Metals (ASX:MMX) gave iron cousin Midwest (ASX:MIS) an all-share merger offer worth . The market loved it. Midwest leapt 12.3%. Murchison flew 8.3%. Everybody won, except Sinosteel. The Chinese giant was closing the net around its prey, Midwest. The nerve of another prey to go and outdo it.
May 27th, 2008 | Al Robinson | 0 comments | ContinuedArchive for Al Robinson
Born & bred in the very heart of the Victorian gold fields, Allan Robinson was born with gold in his blood. A specialist in Australian mining & resource stocks, Al pens the Australian resource investing publication Diggers & Drillers. He is also a contributing editor to the Australian small cap newsletter The Australian Small Cap Investigator. Al graduated from The Univeristy of Melbourne with a specialisation in finance.
Chinese Wheat Production Hit by Disease
It’s a disconcerting fact that agricultural production today is an oil-based business. We turn natural resources into food. Petrol fuels the massive machinery that mass-production farming requires. Phosphate, potassium and nitrogen make up the chemical fertiliser that stimulates extra returns on crops. Rising prices wouldn’t so much of a problem if Chinese farmers could make up the difference with a good year.
May 26th, 2008 | Al Robinson | 0 comments | Continued
The Profitable Marriage of Two Soaring Resource Companies
The huge run-up in commodity prices between January and mid-March has been a welcome boost for listed producers in the falling Aussie equities market. Oil, sugar, coal, gold, wheat… all these things have gained voraciously. Australian companies drilling, harvesting and mining them have weathered the storm of equity-selling better than other stocks. Meanwhile, listed financials have gone from shaky to shaken…
April 3rd, 2008 | Al Robinson | 0 comments | Continued
Oil Price Momentum Good for Retail Side of Aussie Energy
Yesterday, you saw gold pass US$960. Today, you’re seeing gold at US$970… and the headline oil price is just under US$103 as we type. Now it gets interesting. Real commodities have been pushing pretty hard lately… and the oil price is on the verge of an all-time real high. This means that, despite all inflation in the prices of stuff over the years, oil is more expensive than it’s even been… anywhere… anytime in history. Oil is harder for you to buy than it’s ever been.
February 29th, 2008 | Al Robinson | 2 comments | Continued
Why the Sudden Jump in Gold Bullion?
Gold bullion currently trades a bit over US$960 per ounce. What’s gold’s angle? Why such a sudden move? Falling asset prices and the threat of economic recession are driving worried investors into gold, like bears into a honey factory. People buy gold because when something falls in value, they feel uncertain. And nothing is more uncertain than US economic growth today. So, dollars that were sitting in stocks and derivative assets are relocating to Goldville.
February 28th, 2008 | Al Robinson | 10 comments | Continued
Allco’s Value Getting Close to Zero
Allco recently revealed its falling share price had triggered a recourse loan. This means one of Allco’s creditors included a safety clause in its loan. The clause said if Allco’s value fell below AU$2 billion, the creditor could recall its AU$900 million within three months. Never mind AU$2 billion… Allco’s value is getting close to zero.
February 27th, 2008 | Al Robinson | 0 comments | Continued
China buys, Woolworth passes inflation onto consumer
Nationalised conglomerate China Metallurgical Group (CMG) is forking out AU$400 million for an Australian iron project. The guy on the other side of the deal? Cape Lambert Iron Ore (ASX:CFE). Cape Lambert is worth 50 cents per share. What CMG is offering amounts to around 90 cents per share.
February 27th, 2008 | Al Robinson | 0 comments | Continued
Oil Price Hits $100, Again
The oil price poked its head up over US$100 again this morning. You might wish you lived in a world without oil troubles. Your car would be less expensive to run. Your house would be cheaper to heat in winter. But there are two sides to the oil price. On one side is the bloke who pays it. One the other side is the guy who accepts that payment. When oil prices are high, who would you rather be…
February 27th, 2008 | Al Robinson | 0 comments | Continued
Moving Average: Technical Analysis Every Investor Should Know
Consider the following posers…
“What will a company’s share price do?”
“Why will it do it?”
“When will it happen?”
If you can answer the three questions above, then you know all you need to know about a stock. They should be the central themes of any investment analysis.
“Fundamental” analysis, the study of the business-specific forces that drive a [...]
A Resource Investors Guide to Understanding Drilling Methods
According to a report released by the ASX last year, 7.3 million Australians own shares. That’s over 46% of the population (one of the highest proportions in the world), and all of them want to optimize their returns. One of the best ways you can develop an investing edge over the teeming masses is to [...]
September 27th, 2007 | Al Robinson | 2 comments | Continued