Monday, January 14, 2008

Metorex plunge may hurt deals

(Fin24) - The share price of Metorex is plunging inexplicably and has fallen 38% from its 12-month high at a time of bullish conditions for two of its main products - copper and gold.


The fall is particularly embarrassing in terms of Metorex's bid to minority shareholders in Copper Resources Corporation (CRC) which has just been extended for the second time to January 18.


CRC owns three copper projects in the Democratic Republic of Congo (DRC) with resources and reserves totalling up to 2.4 million tonnes of contained copper metal.


Metorex bought 38.7% of CRC in July last year plus a 5% stake in its 75% held subsidiary MMK from the Forrest group for R600m. The Metorex share price stood around 2 400c at the time and it subsequently rose to an all-time high of 2 950c.


The CRC share price at the time sat around 87p and, when Metorex pitched its equity offer to the CRC minorities, it also included an alternative cash offer of 125p per CRC share.


But Metorex shares hit 1 725c today before recovering to around 1 830c while CRC shares have risen to around 160p.


Read more at Fin24

2 comments:

Unknown said...

Hi Corne

I stumbled upon your blog when doing research on metorex. I have been out of the market for a while, but my "fantasy" remain to one day be trading all day long from home without needing to go to the office!

I am not in the market at the moment.....what are you investing in and why?

cheers
Pieter

Corne' said...

Hi Pieter,

Firstly I need to apologies for coming back to you only now but I have had endless problems with my ISP. Secondly because my blog has not been updated in a while.
I share your "fantasy" regarding trading as a full time profession.
You are actually in a very good condition not being in the market at the moment. I am only currently in SATRIX40 as a long term (20 years plus) investment. I do however see some value in the financials. Depending on where the interest rates are heading. If inflation (read oil) moves down, the banking stocks should benefit but I think there is still much pain to come so I am planning to hold back until I have a more clear picture regarding the economy.
On the trading for a living side, my personal opinion is that day trading is not very possible on the JSE trading stocks. The costs (spreads and trading) are to high and the likely hood of catching a good move are very slim, thus getting in and out multiple times in a day is almost impossible. I am currently trading ALSI futures but its very high risky.

Regards
Corne'