Add $.26 in savings to the already lowered guidance for 2013 and we get $1.13 per share earnings or a forward PE of 5.44! The stock price is trading in a price range where a hostile bid is a definite possibility. This company can be bought out for@ $8 a share right now.
The market makes no sense and as they say it can remain 'irrational' longer than you can remain solvent!
New cost reduction program is nothing but PR BS by Letwin to mislead shareholders that he is doing something. It is not worth the paper on the press release and nothing will come from the cost reduction program because IAG is not serious about doing anything differently. Officers and directors have their fat cushy jobs and do not care about shareholders or the stock price. Vote the bums out.
Odds are Letloose is going to produce progress reports on the cost reduction program, he's borrowing a page from the "Kinross way"- and the stock will react positively
Letloose is in the big shareholder's pockets and acted accordingly by disseminating bad news to flush out the weak longs....otherwise, why does he still have a job? and why wasn't this cost reduction program announced earlier?
Gold stocks are a scam -
Perhaps India should do the hostile bid:
"About 80 percent of the current-account deficit, the widest among the biggest emerging economies, is due to gold imports, according to the Reserve Bank of India. Governor Duvvuri Subbarao, who cut the benchmark interest rate by 25 basis points last month to 7.75 percent in the first reduction since April, has cited budget and current-account deficits among those constraining further cuts in borrowing costs." Bloomberg feb 12, 2013.
I wonder whether David Rosenberg is doubling down...back in Dec when the stock was at $12 he said "And central banks, who were selling during the higher interest rate times of the 1980s and 1990s, are now reallocating their FX reserves towards gold, especially in Asia. With the gold mining stocks trading at near record-low valuations relative to the underlying commodity and the group is so out of favour right now, that anyone with a hint of a contrarian instinct may want to consider building some exposure - as we have begun to do."
Sentiment: Strong Buy
Just wanted to park this one here, from Forbes today " South Korea’s central bank added around 20 metric tons of gold to its official reserves in February. That’s around a 25% increase in holdings by South Korea, as the country’s central bank does some value-buying."
Sentiment: Strong Buy
I never hear of companies of India or the government of India buying other companies here but the Chinese may make sense as well. Of course the Chineese can never be counted on for anything so I think another major minor would make sense.
I spoke with the company yesterday and they said they are keeping the dividend as is. I suggested they start a share buy back program. They did confirm that the 32 million they spent on studies is gone when the option expired at the Kalana project.