The LONMIN share price thread

Thor187 said:
The only reason I am confident with this gamble:

Market Cap only approx £330M with nice injection of cash from rights issue.
Assets attributable to Shareholders approx £1000M and that's after massive write downs.
22 months worth of ore reserves (already mined).
Debt reduced and renegotiated to be paid well into the future.
Operating costs reduced and leaner more efficient organisation.
Capital expenditure reigned in.
Should lead to good profits going forward.
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What is your expected time frame for this gamble?
 
Hamster said:
What an arb time :p I say leave it for a couple of years or until you hear that they are liquidating or something.
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That is my actual plan, but lonmin by it's very nature doesn't belong in my long term portfolio so I want to get out as soon as possible whilst making a good buck.


I think this applies to Lonmin so god damn much:

Stock prices can also be driven by what is known as herd instinct, which is the tendency for people to mimic the action of a larger group. For example, as more and more people buy a stock, pushing the price higher and higher, other people will jump on board, assuming that all the other investors must be right (or that they know something not everyone else knows). There may be no fundamental or technical support for the price increase, yet investors continue to buy because others are doing so and they are afraid of missing out. This is one of many phenomena studied under the umbrella of behavioral finance.
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