Yeah right, like the mill is going to pay a premium to the spot price when they can pick up the phone and call 'Chaz's I/O mine' in Brazil and get 26K tons delivered for less. Of course they don't pay the spot price, they pay the spot price adjusted for the what the extra freight would cost them to have it delivered via the St. Lawrence Seaway.
Just peeked at the latest 10K and found this info for you:
'The information regarding amounts and sales prices of shipped iron ore products is used to compute the royalties payable to the Trust by Northshore.'
If spot ore goes to $75 a ton do you really think the mills are going to pay the trust much over that in calculating the royalty ?
The nice thing about the trust is just that, they are a trust so no risk of bankruptcy, but of course the customer can go bankrupt.
LMEX has steel prices up sharply over the past year so there is demand for ore.
I am out of this one anyway, squeaked by with a 4% profit, but keep it on the watch list.
I thought the distribution is based partly on spot IO prices and partly on volume shipped. How can you say world spot prices have no effect ? Maybe you don't know or are trying to sugar coat the economics of this trust.
I noticed a lot of the PRC based corps. with US listings trade at a discount, but Alibaba priced an IPO around a 30 FWD P/E multiple so there has to be some value there. I also read on a MB that big four acctg firms can't audit these types of corps but when doing research on a PRC based pharma co. that E & Y conducted said audit. Your opinion seems sound but not completely accurate unless said firm becomes insolvent or financially liable.
I find it hard to believe that these Chinese based corps can't pay a divided to U.S. (or other foreign shareholders) without govt approval. I'm not knowledgeable about the intricacies of corporate law but I find it hard to believe that the U.S. Congress would let these kinds of securities list on U.S. exchanges. If I don't own a share of the equity and an interest in the profits, what do I own ? Some counterfeit stock certificates maybe.
Either you are a dimwit or you are trying to be a dimwit. I can't fathom why given the fact that you probably make more money and get laid more often than I do.
I understand that virtually all the sales revenue is transacted in Chinese Yuan, but are the bank accounts physically located in the US and denominated in dollars ? Have you considered the possibility that they are being sued and the market is positing that the amount of the settlement will wipe out value of their assets? Under that scenario at least the shareholders will recover something, maybe around 57 pennies a share. What a bath on this one.
I know about the 10 Q information. Sometimes a firm will also include the pertinent info on production volumes in the press release that precedes the 10--Q. I guess you include it if you think it will be good for the stock and leave it out if not. Maybe they left the info out because the latest results are not up to par. I can see the rationale for protecting your competitive advantage or trade secrets for the public or other firms, but some of these guys in management are the last guys you want to buy a used car from. It's been said: 'every seller is a liar and every buyer a thief'.
Looks like the market is pegging this for a BK filing. If I was a betting man I'd say this is a good buy at current prices and BK fears are overdone. The Q3 10-Q is going to be a eureka make or break moment for this firm. Of all the things that can happen to a stock in terms of risk this one takes the case for being a freak accident.
I just read the news release and am wondering why they don't disclose the actual number of barrels of oil and the volume of gas produced along side the BOE equivalent. Am I missing something or is there some benefit to not disclosing this ?
Looks like last support was at $10.66 in May. That doesn't take long. If it falls through that price look out below, but not too far.
The PRC prohibits foreign ownership of assets. I guess they would have to buy out the Chinese partner and what is left they could distribute to the US shareholders under your play. Looks like they have about $1.61 in net cash as of June. Maybe the Chinese partner gets $.96 and the US holders get $.65 under this scenario. Maybe you should wait until the shares get less expensive to buy some. Of course the market could be pegging this for a straight bankruptcy filing at this level also. Radio Shack was pricing at about $.60-.$65 before they raised financing and supposedly avoided or delayed a BK filing. Time will tell.
You can say that again. This is some volatile paper, the beta is showing up as a 3.3. Let them buy big V8 s and suck up as much blended fuel as they can afford. If and when the price goes back up they can help out the used car market by selling their tanks at a discount to people who log low miles. " I love the smell of napalm in the morning. "
It appears they used the proceeds from the additional shares to reduce debt. I'd say that is prudent management. If you want to take a realized loss, go right ahead. I'd prefer to estimate a fair value and stay with the stock through the downstroke, even if it is a wallop like this latest move down. Hopefully lower gasoline prices equate to more product volume, partially offsetting lower ethanol prices. The problem is they are at 94% capacity through the June quarter, so I don't know how much volume they can handle. Looks like they also broker some third party ethanol business, but I am unsure how that factors in.
Didn't the company just pass an exhaustive audit ? Isn't the company still profitable ? What interest do you have in this firm ? You are a tired old windbag. Say something original or at least meaningful.
I don't understand why the share price is at the same level as firms that are close to bankruptcy, the fundamentals are not that bad: good quick ratio, and not too much debt, sales are down quite a bit in the latest quarter compared to last year, but other than that, I can't explain it. The trading halt really penalized the value of this company.
Maybe the auditor jumped ship because they don't want to be held liable in the event the company gets sued due to how they prepare their financial statements.
I don't like your tone. Ethanol prices are down 8% today. Luckily corn prices are down also, albeit only slightly. You are a fool for buying shares on a declining day when volume is above average.