mim

  1. 1,087 Posts.
    Hello All,

    As some would know here i follow mim closely.
    At the moment i can not see it`s share price being sustained, the rise was down to what MD Gaucci said at his presentation.

    Now it is fine to say how well a company is going to be , but havent we been hearing that for about 5 years now, what is so different this time to have the stock gain 10% ????.

    MIM was and still is in a downtrend which should find a bottom around the 1.10 - 1.12 mark buy my analysis

    The reason i usually invest in a company is because of it profit/business/management.

    Profit: was hit hard buy world metal prices and dont see them improving greatly yet.

    Business: Mining industry has and still is in a slump contrary to some beleifs.

    Management: Has been disarterous over the last 15 years (this company in 70`s was bigger than BHP)

    It is interesting to note that in gaucci`s speach there was no mention of profits, only production figures.
    production figures are important too but the cost to produce against metal income is the most important.

    Who cares if a company produces millions of tonnes of a product if it cant make good profits from it in this current cycle.

    Rumour is here in Mt Isa that currently budget here is 30% behind in profits, also i hear recently that parts of the new decline at george fisher being built have collasped but fortunately no one was injuried as they were on crib at the time.(stress rumour alledged).

    I am not saying that MIM will not grow, i am saying that it is still in a downtrend and would be good value around 1.10.


    (please do your own research before you spend any of your hard earned money)

    Good hunting
    Cheers dave

 
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