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dkny2

dkny2
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  • Rio Tinto (RIO) is downgraded to Conviction Sell at Goldman, which notes the company's overwhelming dependence on iron ore prices. "We see minimal free cash flow and significant earnings declines if the company goes ahead with the Pilbara 360 project in a declining iron ore price environment." Shares -3.2% premarket. BHP -1.8%. Earlier: Goldman cuts its iron ore price forecast. [View news story]
    Goldmans assumptions on Iron Ore prices are Uber bearish. They also dont jibe with their Steel assumptions, at 80 Chinese Iron Ore producers are mothballed as they are cash flow negative from 95. To have tat as your sustainable forecast level is nonsensical as we have seen in past it is self correcting (unless one assumes a hard landing in China)). By the way the previous post is midirecting in suggesting last quiarter writedown is "sinking this ship" with II's. The Aluminum side has been an utter disaster and the purchase hugely destructive. That mgmt is gone! The writedown while huge and reflective of a horrible deal has been known for years ... and discounted in the book value of RIO on the buy side for years.. it was a book entry las t quarter and already discounted by institutions. Goldman is very late in downgrading and very bearish in its assumptions to the point of conflicting with its own Steel Est's. Stock is MUCH closer to bottom than any TOP ... bad call GS.
    Mar 19, 2013. 09:42 AM | 1 Like Like |Link to Comment
  • Nokia (NOK) rolls out the Asha 308 and 309, two $99 (unsubsidized) additions to a feature phone line that has remained popular even as the company's smartphone sales nosedives. Sporting 3" touchscreens but lacking 3G connections, Nokia needs its Asha phones to help slow down Android's advance into the low-end, particularly in emerging markets where Nokia still maintains considerable share. [View news story]
    he obviously refers to Symbian phones which are indeed nosediving th elast 18 months. But the Lumia 920 nears
    Sep 25, 2012. 09:40 AM | Likes Like |Link to Comment
  • Bookmark this chart of iron ore prices, as it's becoming one of the more widely-followed global indicators. They've fallen another 1.9% today to just $100/ton, well below the line-in-the-sand price of $120 - the level at which Chinese producers would supposedly stop producing. [View news story]
    so we are upon the levels whereby Chinese Iron Ore producers (20% Iron Ore content vs. Aussie 55+% content) will be shuttingh capacity. Furthermore, shipping rates are now exteremely low. Taken together, this seems a siren call for long term value investors to BUY the like of RIO and ignore the panic commentary on Iron Ore breaking $100. Of course, hard landing China / Bearsih Macro Economic prognosticators need not apply.
    Aug 24, 2012. 03:07 PM | Likes Like |Link to Comment
  • Miners everywhere are feeling the pinch from falling prices, but operators in Australia face the extra challenge of soaring labor costs plus carbon and mining taxes that soon take effect. "There's been such demand for gear over the last few years and mining guys get paid $140,000 to drive a dump truck. It's a joke... It's all going to come home to roost now." Y/Y: RIO -35%, BHP -32%.  [View news story]
    yes .. thats what they said about US growth in the 50's (transient?) growth rates slowing but from an ever larger base .. resources depleting ...
    Jun 8, 2012. 10:39 AM | 1 Like Like |Link to Comment
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