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Mining Shares?

Discussion in 'Shares' started by Capt'n, 5th Apr, 2007.

  1. Capt'n

    Capt'n Member

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    Anyone got any feeling on Mining Shares at the moment?

    I consider investing in something and this sector looks pretty good at the moment.

    Does anyone have any favourite stocks or recommendations?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Hey Capt'n - welcome to the forum :D

    I will admit to not being an expert on the resources sector - but I've found it to be pretty volatile of late ... many of the shares seem to react strongly to changes in commodity prices, which themselves seem to be moving completely randomly (to my untrained eye).

    For the expert trader, I'm sure that creates opportunities. For the rest of us, I think it just creates nervousness !

    I'm currently debating about whether to get back in to the CFS Global Resources Fund ... I think I'd rather get an "expert" fund manager than trying to pick a good stock myself ... but that's just me.

    I'm sure someone else has something more useful to add in relation to mining shares.
     
  3. bundy1964

    bundy1964 Well-Known Member

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    Speculation or Blue Chip?

    I do hold BHP and WES and would like RIO and posiably PDN. Spec stocks is out of my area of interest.
     
  4. MJK

    MJK Well-Known Member

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    I like PDN. I was buying up in the correction and my average cost basis is $8.30. If I'd held off buying on the way down I could have bought the whole parcel at $7.50. Closed up today at $10.20. So I've picked a winner. PDN owns sites and should actually start production later in the year. I'm hoping it becomes another ZFX and gets up to $15 -16.00. It hasn't reached its high of $10.75 pre correction yet so there should be some more upside.

    Opinion only but my money is where my mouth is. Essentially its still a spec stock.

    MJK:D
     
  5. unthreaded

    unthreaded Active Member

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    DO you pick a good stock or pick a good sector? How much do you value your expertise in this? Are you investing or speculating? To MJK, why do you like PDN, do you have a reason why it may become another ZFX?

    Essentially, are you investing or gambling!
     
  6. bundy1964

    bundy1964 Well-Known Member

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    Good stock is more important than good sector. My picks are the differance between surviving in the market and going broke, I value my skills highly but I am also aware that others can and have done it better than me and I value their advice too. I like to think I am a investor who also trades, I only trade stocks that I would be happy to hold WES and FGL have gone from bad trades to reasonable investments. PDN on a TA has a great chart, if you run FA things may not look so great as it hasn't shown a profit yet but it is now I belive they are shipping product.

    IMHO anything over a secure term investment is a gamble, you just need to get the odds in your favour and pick more winners than losers and know when to walk away from losers and when to pick your winnings from the table and move on.
     
  7. Demoman

    Demoman Member

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    For my money if you are chasing the dollar Uranium stocks can bring then BMN are a better bet. Bannerman resources ( BMN ) hold ground in Namibia adjacent to PDN and RIO and are still in the process of drilling their resource but if you do some research you will find that BMN are tipped to have a bigger deposit than PDN. Also there share price is currently around $3.35 with less shares on offer.......so more potential upside. This stock is tightly held and trades with smaller volumes. I'm a big fan of BMN.

    Capt'n,

    For Nickel, my picks are Allegience Mining ( AGM ) and Sally Malay Mining (SMM ). SMM currently trading @ $4.55 with plenty more upside due to their huge deposit. AGM are due to start mining in Tassie by the end of this year and as soon as production starts expect a big jump in share price.......currently trading in the .70's.

    Zinc has come off quite a bit this year and Zincers have suffered accordingly, however Zinc spot price jumped 7% on Wed so could be the start of a reversal. My picks for Zinc are Bass Metals (BSM) and Jabiru Mining (JML)........both due to start mining this year. I think ZFX has run too hard and is starting to look weak but if it's dividends you're after then a great stock. KZL up 10% in last 2 trading days and have just announced they are drilling Nickel deposits this year. This stock is heading up again now.

    I hold BHP as they're exposed to everything. However there Uranium is hedged and some years before they can sell at current prices. Copper is up and BHP price has followed recently. If BHP can crack $32 ( previous high )then I think it will run. Sometimes it is frustrating to hold such a slow stock.

    Anyway, my outlook for resource stocks is positive. Of course there are some that will never amount to anything, but if you research your picks thoroughly then plenty of potential still in my opinion.

    Jared
     
  8. Capt'n

    Capt'n Member

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    What I ended up doing

    All

    I ended up buying some BHP at around 30.51.

    Was looking at something long term

    They get a lot of press about their olympic damn operations

    My wife had asked me to buy it

    I'm very bullish about the sector and cant see China's demand slowing for the next 5 years.

    thanks for your feedback.
     
  9. MJK

    MJK Well-Known Member

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    Unthreaded,

    I like PDN because they hit 10.80 today. Still holding though. I like to speculate with a small portion of my available capital but Paladin is a significant company albeit a young one. I wouldn't class it as super risky.:D
    My expertise is minimal. I work on a hunch and don't speculate with money I cant afford to lose.

    Where do you think the Uranium market is heading. I know where I think its going.:rolleyes:

    MJK
     
  10. MJK

    MJK Well-Known Member

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    Thanks for your tips Jared. Will keep an eye open.

    MJK:D
     
  11. perky

    perky Well-Known Member

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    I am surprised PDN didnt jump more today.
    The price of Uranium just jumped from $95 to $113 in the last week, a spectacular gain. Not to mention their good news today about the mining licence.
    SMY I agree is a great stock.
    As far as Zincers go, PEM is looking good again. I am looking to buy more if it consolidates above $4.
     
  12. bundy1964

    bundy1964 Well-Known Member

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    5%+ is not a bad days effort though. I will be happy if I keep my 0.85% gain for today.
     
  13. unthreaded

    unthreaded Active Member

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    If I was tempted I would be very long on uranium - who wouldnt? I'm particularly tempted after the US supreme court on CO2. The immediate reaction seems to be go for green, I agree that most things wearing green hats will benefit, but I also look at "the equation of now", to me this says uranium oxide is going to become very coveted over the immediate 5-10yr frame - no matter how green the US congress becomes or not!

    BTW, I also believe Fission is a green solution - its a real pity the greenies didnt see this in the 70s when the nuclear lobby were talking about the dangers of Coal!!
     
  14. Demoman

    Demoman Member

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    No worries, thought I'd better contribute something here as this is where my current focus is.

    Jared
     
  15. Redwing

    Redwing Well-Known Member

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    FMG has been impressive over time (still not sure why though as they're at around $23 and are still a long way from getting it out of the gound?)

    First looked at it around $7 then later around $11
     
  16. Insight

    Insight Brisbane Buyers Agent

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    I will point out that in response to the initial query there have been tips handed out, rather than questioning the wisdom of asking for such things in the first place. (In an online forum with no qualifying info)

    I see a lot of froth in the market at the moment, and have some good stories from my non trading friends who are in the smaller resource plays, the kind of investors who don't buy the $70 shares as they are 'too expensive'.

    Be aware of your stock market history is my tip.

    Though I would also point out that froth can become rampant euphoria, which is something we may not have reached yet. Certainly we still a long way off the 1980's market as of yet.
     
  17. HulbertJ

    HulbertJ Member

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    Insight,

    Well said,

    I know an inexperienced investor and couldn't bring himself to purchase PPT (Perpetual) shares despite liking the fundumentals and growth outlook just because they were a $75 share! I tried to explain to him that it is all about % changes in price buit he just didn't get it. Its no wonder some listed companies still like to do share splits for no particular reason except to get a lower share price! Follow the Berkshire Hathaway method I say. (the only list company in the world where the share price is higher than the CEO's annual salary!)


    Jase
     
  18. MJK

    MJK Well-Known Member

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    Now heres something new I don't understand!:eek:

    Is the trading halt, Summit take over, etc... going to be good for the PDN share price?

    Seems to me that PDN's halt is ill timed given strong overall market gains. When the Summit deal is closed (asumption made) will PDN fly ou of the blocks?

    MJK