WSA - Western Areas

[GreatPig]

Attempting a bit of Fib on this one. Don't know if this is how you use Fib, but I've noticed at times with other stocks that the final high sometimes matches with mid retracements points as here.

If this one does the same, the target price is around $3.90.

Cheers,
GP

 

[GreatPig]

Currently $3.70, up over 9% today.

I didn't know it was going to try and get there in just one day

GP

[I hold]

 

[Brasidas]

WAS gets a mention in this week's Minesite weekly roundup which is here

That Was The Week That Was … In Australia

By Our Man In Oz

Minews. Good morning Australia, another week, another record?

Oz. It certainly was for some stocks, especially those selling zinc and nickel to the steel industry. You probably saw the same reports we did down this way, that the world has almost run out of zinc, and the nickel price is showing no sign of retreating from its astonishingly high levels. The end result, naturally, is that zinc stocks such as Zinifex (ZFX), Perilya (PEM), CBH (CBH), Kagara (KZL) and Terramin (TZN) have moved into the stratosphere, joining the nickel brigade who where already up there.

Minews. A few price examples please?

Oz. Zinifex hit a 12-month high of A$15.05 during Friday trade, before settling back to close the week at A$14.65, a gain of A$1.14 (8.4 per cent), Perilya was up A70 cents (20.8 per cent) to A$4.05, down a fraction on its 12-month high of A$4.10 reached on Thursday and Friday. Kagara also set a 12-month high on Friday of A$7.34, before easing back to A$7.21, still up A82 cents (12.8 per cent). CBH, which received a severe setback at this time last year with a stope collapse in its Endeavour mine, was up A5.5 cents (8.8 per cent) to A67.5 cents, also a modest retreat from its high of A73.5 cents set on Thursday. Terramin, which is developing a small zinc mine close to Adelaide in South Australia, was up A14 cents (8.9 per cent) to A$1.70, down from a Thursday high of A$1.75.

Minews. And the nickel sector was strong again?

Oz. Yes, but not to the same extent as the zincs. Jubilee (JBM), which held its annual meeting during the week and said takeovers were off its agenda, was up a modest A20 cents (1.6 per cent) to A$12.60, down on its cracking start to the week when the stock hit a 12-month high of A$12.98. Western Areas (WSA) put on A25 cents (7.4 per cent) to close the week at A$3.64, also down from its 12-month high of A$3.79 set on Tuesday, and Minara (MRE) was up A11 cents (2.2 per cent) to A$5.20, which was some distance behind its 12-month high of A$5.55 set last week. .. more ..


http://www.minesite.com/storyFull5.php?storySeq=3894

 

[springhill]

I noticed today 2 directors increased their holdings by minor amounts, but the money man behind Western Areas, Terry Streeter, decreased his holding by 300,000 shares. Any thoughts on that? Disclosure i hold WSA

 

[springhill]

Excellent breakout by WSA over last 2 days wit volume support
Further backed up if it can break and hold the LOR

 

[motorway]

Hello Spring

This graduated to my watch list several weeks ago..

First on the changes in comparative relative strength
and second on other signs of accumulation

some chart views of the moment ..
The P&F suggests esp that the downtrend is finished
And with the bar chart that there is active accumulation..


My views of this moment

motorway

 

[springhill]

Hello Spring

This graduated to my watch list several weeks ago..

First on the changes in comparative relative strength
and second on other signs of accumulation

some chart views of the moment ..
The P&F suggests esp that the downtrend is finished
And with the bar chart that there is active accumulation..


My views of this moment

motorway

Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown

 

[stix1771]

Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown

Recent news on major upside drilling, especially Spotted Quoll deposit, which company says can rival Flagship Flying Fox deposit....... excellent grades, this company keeps delivering.

A third mine for WSA would certainly place it on the track to be the next JBM. We wait..... (not for too long )

 

[stix1771]

Profit takers in action, can't blame them.

Indicated that update resources for SQ will be out next week "Mid April". Excellent results and grades released so far, resource statements should (hopefully) reflect that and we will see if the company's assertion that SQ will rival FF is correct.... I think it will be, anyone else?

 

[lucifuge]

Thanks motorway, very helpful and ur graphs are alot better and more informative and interesting than mine. Sitting at $5.10 so LOR has broken. I really like this one, tipped to be successor to jubilee crown

I think you may be right, it has been soaring through April 2008. In the last month its grown 75%!!! Have you guys sen the charts on this one lately?? What's going on?

 

[springhill]

I think you may be right, it has been soaring through April 2008. In the last month its grown 75%!!! Have you guys sen the charts on this one lately?? What's going on?

To be honest im rather bewildered at the lack of attention WSA gets on this forum. Excellent drill results have emerged from Spotted Quoll in the last few weeks, it has the potential to rival the amount of nickel at the Flying Fox deposit. Not to mention with Jubilee being swallowed, there is much speculation that Western Areas ( amongst others ) is a prime candidate as a takeover target aswell
On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR oh well should have backed my own judgement instead of the so called "experts"

 

[lucifuge]

To be honest im rather bewildered at the lack of attention WSA gets on this forum. Excellent drill results have emerged from Spotted Quoll in the last few weeks, it has the potential to rival the amount of nickel at the Flying Fox deposit. Not to mention with Jubilee being swallowed, there is much speculation that Western Areas ( amongst others ) is a prime candidate as a takeover target aswell
On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR oh well should have backed my own judgement instead of the so called "experts"

Yes, a takeover would be sweet as. But more interestingly, as you point out I was amazed to find such a small thread on this stock.

 

[motorway]

On a side note, when the slump occured and WSA dipped to $3.95 i rang my broker and asked if she thought it would be a good idea to top up on them. Her answer was ummm...ahhhh...ummmm probably not. GRRRRRRRR oh well should have backed my own judgement instead of the so called "experts"

Have a careful look at these two charts
Can you see what "others were doing" regardless of what "others were saying"


motorway

 

[Ghetto23]

From what I have read - with good production at Flying Fox and good drilling results at Spotted Quoll - does this look like a company that has some long-term prospects?

Does anyone have any ideas on WSA?

 

[GREENS]

From what I have read - with good production at Flying Fox and good drilling results at Spotted Quoll - does this look like a company that has some long-term prospects?

Does anyone have any ideas on WSA?

Put it this way, if nickel prices fall to a point where Western Areas Spotted Quoll and Flying Fox mines become unprofitable and operating cash flows turn negative then it is likely that the demand for nickel has completely evaporated. As well, nearly every other nickel mine in the world would also be operating at a hefty loss. So given that, its mines seem to be fundamentally sound as they are considerably high grade and hence low cost. I suppose this can also bring in the chance that if someone out there is interested in high grade nickel sulphide deposits that they may be a takeover target in depressed times such as these. However there aren’t many companies out there with the power to make major purchases at the moment.

Definitely looks to be a great company for when the nickel price turns. But saying that I have not looked closely enough at the companies financials i.e. its debt/cash position. So if you’re interested in this company definitely have a good look to make sure there are no major debt repayments or major capital raising that are (or may be) needed in the short to medium term.

 

[mitch87]

I'm also stunned at the lack of attention WSA has. Their two primary deposits, spotted quoll and flying fox are world class, very high grade and one of the lowest cash operating costs in Australia.Their production will continue to add to profit, it is unlikely that nickel prices will fall to a point where WSA operates at a loss and therefore we should see some dividends soon, hopefully early next year. With a target of 15,000t ni in FY09, 30,000 in FY10, then 35,000 in FY11,12,13 WSA is perfectly placed for solid growth and excellent returns, my own research has them valued at well over $10 so im excited about the future for WSA

 

[surfingman]

I'm also stunned at the lack of attention WSA has. Their two primary deposits, spotted quoll and flying fox are world class, very high grade and one of the lowest cash operating costs in Australia.Their production will continue to add to profit, it is unlikely that nickel prices will fall to a point where WSA operates at a loss and therefore we should see some dividends soon, hopefully early next year. With a target of 15,000t ni in FY09, 30,000 in FY10, then 35,000 in FY11,12,13 WSA is perfectly placed for solid growth and excellent returns, my own research has them valued at well over $10 so im excited about the future for WSA

Some interesting points there Mitch, i am interested in looking at some of your research for the $10 valuation, and if you have it handy the cost of producing.

I will be waiting to Jan or Feb to I get back in the Markets, but hope the best for you on a Very Merry Christmas rally...

 

[Jigalong]

I noticed today 2 directors increased their holdings by minor amounts, but the money man behind Western Areas, Terry Streeter, decreased his holding by 300,000 shares. Any thoughts on that? Disclosure i hold WSA

This may be because two of the founding directors are being sued at present . This could affect WSA big time if they loose the case.

N.M.Mer

 

[Jigalong]

Director Terence Streeter seems easing out of WSA.

Since the start of November he appears to have flogged over 6.5m shares.

Jigalong.

 

[Sean K]

Another one oversold and returned some pretty good tidings for those that saw the panic. Not me.

Broke up nicely from the large triangle and conforming to some S&R since.

$5 ish looks like it might be holding so far and that big green box is no mans land. Like a lot of Ni, Zn, Cu companies, there was just absolute freefall through that zone. Nothing technically holding them back on the way up....

(market is due to fall over however)