• Australian (ASX) Stock Market Forum

S32 - South32 Limited

Discussion in 'Stocks Q-Z' started by UMike, May 18, 2015.

  1. UMike

    UMike Captain Klutz

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    Opens today

    Forecasts of it's debut price range between A$2.00 and A$3.00 a share.
    The top end would value the company at A$16 billion, making it Australia's biggest new listing in 15 years and the biggest mining listing since commodities giant Glencore Plc in 2011.

    BHP is about $2.00 down so it would appear that S32 would open near the bottom of that forcast range.
     
  2. Miner

    Miner Well-Known Member

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    It is finished at $2.05.
    I am a bit perplexed to the semantics.
    south means it goes down.
    Did BHPB deliberately use it so that investor gets warned of the southwards direction ?
    Just kidding:D
     
  3. SilverRanger

    SilverRanger Well-Known Member

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    I thought it's a new infant formula :D

    According to DB, S32 is a 55% aluminium company (and 15% manganese), maybe AWC can finally have a friend
     
  4. MrBurns

    MrBurns Well-Known Member

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    Love the spin on this stock, broker saying they are quality assets HA that's why BHP got rid of them.
     
  5. skc

    skc Well-Known Member

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    BHP didn't get rid of them. It was spun out. Big difference.
     
  6. MrBurns

    MrBurns Well-Known Member

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    That's not what I heard :rolleyes:
     
  7. skc

    skc Well-Known Member

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    May be you should obtain information from more reliable sources. :rolleyes:

    This would become really funny if it sinks toward 32c.
     
  8. MrBurns

    MrBurns Well-Known Member

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    Like you for instance :D
     
  9. notting

    notting Well-Known Member

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    Which allows the BHP share holders to choose to sell the none core assets themselves and perhaps reinvest in the core - BHP, or retain holdings in both.

    Makes BHP slightly less diversified so it's a considered move. There seems to be a general chorus from people who have observed this kind of move before that the spin outs tend to do quite well over time, better than the core!
    So far that theme is going ok, up 10% today. I took a bite yesterday as they went to the bottom of the most pessimistic range.
     
  10. Wysiwyg

    Wysiwyg Everyone wants money

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    Anyone know why this ASX 200 company made a 7.5% drop today after looking like a share price recovery was happening?
     
  11. UMike

    UMike Captain Klutz

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    Commodity Prices and general market sentiment are going to be the main drivers of the price for the unforseeable future.
     
  12. Miner

    Miner Well-Known Member

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    S32 alongwith commodity price effect also suffers from management and total operation philosophy explaining why BHPB got rid of it as hot potato. The shareholders who got it at $2 unfortunately got ripped off.
     
  13. Klogg

    Klogg Well-Known Member

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    It's probably worthwhile understanding the psychology of spin-offs, in order to set expectations correctly. Have a look at Joel Greenblatt's "You Can Be a Stock Market Genius", great explanation.
     
  14. Wysiwyg

    Wysiwyg Everyone wants money

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    Thanks for thoughts all.

    Wondering if a brief reasoning for spin-off psychology could be revealed considering there are different reasons behind every spin-off? I believe the demerged assets are high quality. In their commodity overview they use the words "low cost" and "largest" frequently. If I am wrong on my current buy in price I will drop it but will rebuy at or near bottom.
     
  15. Wysiwyg

    Wysiwyg Everyone wants money

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    Seppos anti dumping investigation notice today. It seems TEMCO exceeded the 11.93% limit for their product. Some large trades go through with this stock but a below average volume day for an above average price drop.
    Personal interest has dissolved now. This commodities scenario gets worse.
     
  16. Toyota Lexcen

    Toyota Lexcen Well-Known Member

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    Amazing run on the share price,

    Yet companies suffer double digit losses on stable results
     

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