The LONMIN share price thread

Made my decision last night after a bit of thinking.
I will keep all my Lonmin shares for the forseeable future or at least till mid/end 2016.

I want to see how this thing plays out since I used money that I do not need to buy milk with. So no jumping ship for me.

Reasons for staying in :
1.) Platinum will rise. The same thing happened to Oil in the 90's.(do some research if you do not believe me)
2.) Lonmin has a plan to turn the business around. Part of this plan is letting 6000 people in SA go. Why jump ship before I see if they actually gets it done or not?
3.) Thor made a mention of a movie "Too big to fall". Since our state pension fund decided to up their stake in Lonmin, they need to be kept alive. If Nene did not kill the ANC then the loss of state pension funds could widen the wound a bit.
4.) According to what I have read before. The rights issue will at least extend the life of Lonmin to 3 years. (Yes I know, thats only if the rights issue is not a fail)
5.) I have heard a lot of talk of people who are certain that Lonmin will close operations by the end of this month. Any inside news? If not, you probably are not right. (if you are, well done for guessing). Same with the share price tanking or going up. At this moment, everyone is only guessing and I am not going to pull out because someone guessed and made it sound certain.


If my reasons for not staying in goes bust, well like I said. Its not my milk money.
 
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I will also buy a bit again via EE
I see it already 20c again maybe buy again when it 19c :)
 
thehuman said:
I will also buy a bit again via EE
I see it already 20c again maybe buy again when it 19c :)
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I will definitely not buy more.
Just tried to say why I am not going to jump ship yet. I would actually not recommend anyone investing in Lonmin at the moment as this is just a gamble and the risk is massive. But the reward could be as well.
 
1. Platinum is down 30% YTD
2. Whatever their plan are if Platinum goes down further it won't matter (They might have to do a rights issue again)
3. No company even with PIC investment is ever 'Too Big Too Fail' (See No. 2)
4. How do you trust a company that got themselves into this mess in the first place

5. If you heard of Lonmin closing by the end of this month why not wait till then to see if they still around to buy shares?

The only Savior for resources is if the USA goes into recession
 
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terencej said:
If my reasons for not staying in goes bust, well like I said. Its not my milk money.
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The consolidation makes this kind of pointless imo unless you have a LOT of shares,

Lets say you have 10 000 shares, this is consolidated at 16c into R16, with a new amount of 100 shares, (R1600),

From here lonmin makes a mystical recovery and the share price becomes R50, you have made R3400,

The gains just aren't that great
 
I will relook after consolidation, around March and maybe pump a few R100 into Lonmin then.
 
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What I don't understand is in the last 5 days of trading 140 million of these shares were traded. Today its already up to 11 Million. Doesn't this show a big demand for the shares, & why aren't the share price increasing?
 
marco79 said:
What I don't understand is in the last 5 days of trading 140 million of these shares were traded. Today its already up to 11 Million. Doesn't this show a big demand for the shares, & why aren't the share price increasing?
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Or it means that a lot of people are getting rid of it. High volume does not necessarily mean high demand, could be due to supply.
 
Must admit I'm rather surprised that 71% of shares got taken up, should be interesting to see what happens come next year after their Annual meeting in January.
 
Purply said:
Must admit I'm rather surprised that 71% of shares got taken up, should be interesting to see what happens come next year after their Annual meeting in January.
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And if the banks cannot sell the rest then they will keep it so all in all the rights offer will complete.
 
DrewChan said:
The consolidation makes this kind of pointless imo unless you have a LOT of shares,

Lets say you have 10 000 shares, this is consolidated at 16c into R16, with a new amount of 100 shares, (R1600),

From here lonmin makes a mystical recovery and the share price becomes R50, you have made R3400,

The gains just aren't that great
Click to expand...

Lolwat?
 
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