A hole too big
July 17th 2006 17:00
So it was Steve Vizard last year and this year goes to Cudeco? formerly known as Australian Mining Investment (AMI). Another spectacular blip for the market indeed.
AMI's shares thundered to a top of $10 on 5th July but just yesterday its share price is at $3.55. Really a big heartache if one had bought AMI shares on the grounds of its overestimaed copper discovery in outback Rocklands, Queensland. An imagined hole too big for itself. Already class-suit actions are forming against the company for claims as much as $30 million for releasing misleading information causing investors and shareholders to form illusionary unachievable confidence and expectations.
Not too long ago, an analyst put up a buy call for AMI, for "apparent" discovery of huge stash of "cash" (copper) in Rocklands, on Melbourne's broadsheet daily, The Age. Wondering whether his head is buried in the same hole. But then again, he is human and is not perfect and perhaps he could be on of the class-suit plaintiffs againts AMI.
Perhaps, ASIC should impose a regulation for independent inspection and verification of potential mine sites to add more weight to the exploratary estimation. Whatever it is, it remains to be seen whether AMI would go down in history of corporate mishaps. Let the unfolding begin and witness history in making.
On another note, the soaring oil prices are expected to trickle down to essentials like food and airfares. The effect looks likely to solidify that may cause the RBA reluctant to lift rates in August, however only 2 out of 26 economists surveyed believe the rates to be maintained.
More tightening mates and pray for peace in the Mid East. No more soaring oil prices please.
AMI's shares thundered to a top of $10 on 5th July but just yesterday its share price is at $3.55. Really a big heartache if one had bought AMI shares on the grounds of its overestimaed copper discovery in outback Rocklands, Queensland. An imagined hole too big for itself. Already class-suit actions are forming against the company for claims as much as $30 million for releasing misleading information causing investors and shareholders to form illusionary unachievable confidence and expectations.
Not too long ago, an analyst put up a buy call for AMI, for "apparent" discovery of huge stash of "cash" (copper) in Rocklands, on Melbourne's broadsheet daily, The Age. Wondering whether his head is buried in the same hole. But then again, he is human and is not perfect and perhaps he could be on of the class-suit plaintiffs againts AMI.
Perhaps, ASIC should impose a regulation for independent inspection and verification of potential mine sites to add more weight to the exploratary estimation. Whatever it is, it remains to be seen whether AMI would go down in history of corporate mishaps. Let the unfolding begin and witness history in making.
On another note, the soaring oil prices are expected to trickle down to essentials like food and airfares. The effect looks likely to solidify that may cause the RBA reluctant to lift rates in August, however only 2 out of 26 economists surveyed believe the rates to be maintained.
More tightening mates and pray for peace in the Mid East. No more soaring oil prices please.
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