Reminder to weak hands & sidelines! Alderon moving
I hope by now everyone has celebrated the success released on Friday and hopefully everyone had time to digest what happened Friday afternoon. I also hope i made people some money with my forecasting and thanks for the kind words from some of you.
Going forward : I want to start off with urging shareholders to please go back and read this article released by the Globe & Mail on September 10 ,2012 ( please read first before reading the rest of this post):
https://m.theglobeandmail.com/globe-investor/investment-ideas/alderon-pegged-as-possible-takeover-target/article2397582/?service=mobile
Some of you might think that i posted this post for one reason and that was to make you believe that Alderon will be taken over and although that's not really the reason i picked this article i will elaborate on that possibility a little. First I want to say that the share price at the time of article was $1.80.
Here are the main points from article:
*Management*
-The Montreal-based junior has attracted the key players behind Consolidated Thompson, the biggest acquisition to date in the sector.
Now, with three of the players who were instrumental in setting up Consolidated, including its former CEO, mining promoter Stan Bharti, on the board of Alderon, some market players are speculating it may be next. Mr. Bharti serves as vice-chairman of Alderon
***What i really want to point out to people is that the first rule of investing in anything and especially juniors is always invest on the management first. These guys have already done it , made strong connections, and know the business process inside out. So IMO management which is the most important factor is 100% not the risk here.
*Partnership,Financing, Execution*
On a cautionary note, Alderon is still a couple of years away from being able to ship any ore from its deposit on the western edge of Labrador.
As well, it has yet to sign a partnership agreement with a major steel company. The usual procedure is for a steel maker to put up some of the cash to develop a mine in exchange for bargain pricing on the ore that is produced. With development costs currently estimated at about $1-billion, Alderon needs a deep-pocketed partner.
The company has pledged to announce a deal with a major steel producer this year. “I have full confidence that we will be able to meet the market’s expectations, which we ourselves have set,” says Mark Morabito, executive chairman.
Once Alderon gets a partnership deal “either we’ll end up being a producer or we’ll end up making ourselves, through that process, an attractive target for a bigger company,” he said in an interview.
Alderon’s best hopes for a partner may lie in China, where steel producers are tired of depending on the industry’s three dominant producers – Rio Tinto, BHP and Vale – for most of their iron ore
***So obviously now you all know we have that deep pocketed steel company the article talks about and it just so happens that they are the biggest Chinese company in China. Could this get any better? Honestly the share price is $1.80 at the time this article is written , we don't have the biggest steel company throwing money at us and we close Friday @$1.67. The stock is getting a re-rating 100%
***The last few things I want to say is that some people are scared of where the rest of money will come from to build a mine. This is the least of my concern. We got Hebei, we got Liberty which clearly says in article that they don't usually invest in juniors (An arm of U.S. insurer Liberty Mutual Group is the second largest holder, with a 15 per cent interest acquired in January at $2.67 a share. Mainstream financial companies usually don't own junior mining companies., we got Altius - what more do we need people? Notice also that both Hebei and Liberty are in at $2.67 and why are they so calm. This leads me to the final call !
It should be obvious to you all by now that Alderon doesn't really care about the share price. Delayed FS, extension on Hebei deal , they can care less and here is why. If the stock goes up then great. More money in the bank and stronger company . If share price goes down from here they are taken out 100% and that take out price has already been set by all 14 analyst that have a buy rating at anywhere between $5-$6 dollars. My point is that Alderon is a company that just reached that point that most successful companies reach in there growth story and this companies future changed forever Friday, March 15 .2013. I am not saying there isn't more work to be done but this stock just accomplished the milestone that will always be the catalyst that made the stock break out to the upside!
Good luck once again , set your stop losses traders , and hold tight investors , we have a winner !
P.S. Notice that PG still hasn't made a comment on his blog.
P.S.S. He will later today because what better way to start the week with a nice write up on ADV Monday morning.
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32339834&l=0&r=0&s=ADV&t=LIST#ElLiZ2wtmcueB6Qd.99