I put a buy order on REX this morning, at $1.055 per share. My paper loss on the ASX is mounting and no island is on sight whatsoever. However I can't leave the money stay in our non- interest based account either, inflation is terrifying.
Why, REX?
Well, as I wrote few days/weeks ago, REX does have a lot of good qualities. It share price has been slammed to the low side for a while now, and I think it's enough bad news already. The fact that REX's share price hold, despite an ever increasing fuel price and other things, is a bit reassuring.
Oil price can't go up forefer (or can it?), so I guess it's my way of hedging my portfolio against the oil stock. I hold ARQ and BPT.
OXR/ZFX – Say Hello to OZ MINERALS
From Macquarie Trading Pick of the Day:
17 June 2008
OXR/ZFX – Say Hello to OZ MINERALS
Zinifex (ZFX) shareholders have now voted in favour of the proposed scheme of arrangement to merge with Oxiana (OXR) to create Australia’s fifth largest mining company. Renamed OZ Minerals (OZM) and with a market cap of circa A$8.4bn, the scheme was approved with by an astounding 97% of ZFX shareholders.
Macquarie Research Equities (MRE) provide some very interesting analysis on the deal and deliberate their guidance on the new global diversified miner…
The Deal Drivers
MRE believe the real catalyst for the merger is the ability to leverage ZFX’s balance sheet into OXR’s growth pipeline. In addition to this, the deal will further facilitate an aggressive acquisition strategy. OZM will essentially become the second largest global zinc producer and following the commission of Prominent Hill will be close to the top fifteen global copper producers
Global “Targetting” or Global Target
MRE believe that OZM will be aggressive in their growth strategy underpinned by brownfield expansions – i.e the development at Prominent Hill and Greenfield projects incl. Dugald River and acquisitions. However MRE also indicate that the merger will likely position the firm as a target for even bigger suitors, namely Teck Cominco and Xstrata.
Recommendation
MRE state that OZM is well placed to enter the ranks of the global diversified base metal miners. And in line with a strong balance sheet, there is also the expectation of an aggressive organic and acquisition growth strategy.
The complexity of market activity over the last 12 months has certainly caused considerable investment uncertainty. With many investors feeling the pinch in their margin lending accounts, perhaps a protected lending strategy in the mining sector would provide some comfort for investors still looking for Australian equity exposure.
17 June 2008
OXR/ZFX – Say Hello to OZ MINERALS
Zinifex (ZFX) shareholders have now voted in favour of the proposed scheme of arrangement to merge with Oxiana (OXR) to create Australia’s fifth largest mining company. Renamed OZ Minerals (OZM) and with a market cap of circa A$8.4bn, the scheme was approved with by an astounding 97% of ZFX shareholders.
Macquarie Research Equities (MRE) provide some very interesting analysis on the deal and deliberate their guidance on the new global diversified miner…
The Deal Drivers
MRE believe the real catalyst for the merger is the ability to leverage ZFX’s balance sheet into OXR’s growth pipeline. In addition to this, the deal will further facilitate an aggressive acquisition strategy. OZM will essentially become the second largest global zinc producer and following the commission of Prominent Hill will be close to the top fifteen global copper producers
Global “Targetting” or Global Target
MRE believe that OZM will be aggressive in their growth strategy underpinned by brownfield expansions – i.e the development at Prominent Hill and Greenfield projects incl. Dugald River and acquisitions. However MRE also indicate that the merger will likely position the firm as a target for even bigger suitors, namely Teck Cominco and Xstrata.
Recommendation
MRE state that OZM is well placed to enter the ranks of the global diversified base metal miners. And in line with a strong balance sheet, there is also the expectation of an aggressive organic and acquisition growth strategy.
The complexity of market activity over the last 12 months has certainly caused considerable investment uncertainty. With many investors feeling the pinch in their margin lending accounts, perhaps a protected lending strategy in the mining sector would provide some comfort for investors still looking for Australian equity exposure.
Oxiana
It's just my opinion. I think OXR is oversold and severely undervalued.
Clear Buy at around $ 2.75 - 2.85.
A concern on Zinc price on the upcoming merger with Zinifex.
Clear Buy at around $ 2.75 - 2.85.
A concern on Zinc price on the upcoming merger with Zinifex.
Cross Trade
What does it mean?
A practice where buy and sell orders for the same stock are offset without recording the trade on the exchange, which is outlawed on most major stock exchanges. This also occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager.
Typically, this is yet another way for a broker to rip you off. When the trade doesn't get recorded through the exchange, there is a good chance that one client didn't get the best price. However, cross trades are permitted in very selective situations such as when both the buyer and the seller are clients of the same asset manager. The portfolio manager can effectively “swap out” a bond or other fixed income product from one client to another and eliminate the spreads on both the bid and ask side of the trade.
The broker and manager must prove a fair market price for the transaction and record the trade as a cross for proper regulatory classification. The key point is that the asset manager must be able to prove to the SEC that the trade was beneficial to both parties before executing a cross trade.
(source: investopedia)
A practice where buy and sell orders for the same stock are offset without recording the trade on the exchange, which is outlawed on most major stock exchanges. This also occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager.
Typically, this is yet another way for a broker to rip you off. When the trade doesn't get recorded through the exchange, there is a good chance that one client didn't get the best price. However, cross trades are permitted in very selective situations such as when both the buyer and the seller are clients of the same asset manager. The portfolio manager can effectively “swap out” a bond or other fixed income product from one client to another and eliminate the spreads on both the bid and ask side of the trade.
The broker and manager must prove a fair market price for the transaction and record the trade as a cross for proper regulatory classification. The key point is that the asset manager must be able to prove to the SEC that the trade was beneficial to both parties before executing a cross trade.
(source: investopedia)
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