Wednesday, July 15, 2009

what abt the book value of a company? i've bought 2 more commodity stocks 2day

i couldn't resist the temptation and bought (still cheap enough ) two more commodity stocks before these crazy price jumps today:
  • cbh resources - base metals, gold in australia
  • cardero resources - iron ore, copper, precious metals in peru, usa, argentina
folks, cardero's market capitalization is approx $56m. they've sold one of their iron ore properties in peru to a chinese investor for $100m and will receive the remaining $88m soon. what about working capital, book value, etc? they will not throw all that money out of window or gamble in casinos like dave & shoot recently ( lol), will they?

it sounds like a sound investment 2 me. i think benjamin graham & warren buffett would be very proud of me .

to see all comments, pls visit the informedtrades website here.

addendum, december 19, 2009: just wanna borrow CAD 87.341 million, who's gonna help me?

folks, stock markets are sooo crazy, you know? there are days i don't believe my eyes! do u know what do i do then?

well, i watch the unexpected stock price quote, look 4 possible company news, read the company message twice, look at the quote again, read the message again, sometime even try to put some funny numbers into my calculator (and always throw the calculator away as it neither gives me a result nor an answer as i'm prolly too stupid to use it anyway), then take a walk, drink next cup of coffee, watch the new quote after returning back ... btw, you can call yourself 'happy' because you don't need 2 hear how ugly do i swear abt the sooo stupid homo sapiens financialis on days like that

i know, dear readers of my blog, you still remeber these strange cardero resources guys with all their strange iron ore, gold, copper projects in peru/usa/argentina, don't you?

well, the current quote was abt +25% today. me, happy, thought: hell, they've found the next eldorado or got a bulk of money from FED for ZERO interest rate or BOTH! forget it, nothing like that happened! what was the market mover 2day then? yep, the chinese partners have paid the remaining USD 88 million (USD is correct!) on their major peruvian iron ore property. hmmm, of course they did, why shouldn't they? well, the stock closed trading @ its day low, which was +14.62%, anyway.

we've spoken abt all these book value / cash reserves / etc. things above. hmmmm, what's your guess concerning the current market capitalization of cardero? ... you are right, it is only CAD 87.341 million. again, CAD is correct! also i don't see the current cad/usd ratio i can tell you the buck is even stronger than the loonie at the moment! (i have both currencies as usd/eur + cad/eur pairs in my watch list, because i do sometimes compare (~not compute! still the same calculator issue) the prices of my u.s. + canadian stocks in germany and america, you know?)

UNBELIEVABLE! the've just got USD 88 million + still have plenty of cash from the 1st rate payment of USD 12m + mineral deposits in peru/usa/argentina + investments in other companies like the 2 which i've posted above + petty cash + whatever else they own/posses !!! do you call markets RATIONAL?

well, lets borrow the antic CAD 87.341 million + buy the whole company + enjoy the UNBELIEVABLE!-assets!!!

hell, hell, hell! this investing stuff is sooooooo easy :-)

thx, mr. market, thx!

ps: does someone have the telephone number of the money-printing-wonder bernanke? of course, just in case there will be not enough money to borrow inside the blogger community :-)
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