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WSA - WESTERN AREAS LIMITED


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In reply to: glen99 on Thursday 07/07/05 10:29am

Glen

WSA has recently announced sensational upgrades to its reserves. Grades of very high nickel over large areas - so it is shaping up as a new Jubilee type of nickel company. This is now the early days in its maturation to a medium size and very profitable producing company.

The announcement met wit a quick open at 1.65 and then a sell down over the last few days and it looked like there was a large parcel of shares being sold into the market which was depressing great news and what should have been a good continuation of share price rally.

 

The crossing represents a large parcel that that has changed hands between two brokers in one hit at an agreed price (hence the 1.35 price) This suggests (quite strongly) that the large parcel of shares that has been selling into the market, has now gone and the market is free to run. There are few sellers now as shareholders will not want to sell this company knowing its great potential from here. Buyers are gobbling up what they can as they also know this will $2.00 next week and a takeover is a real possibility at some stage. The big companies need these types of reserves to add to their big holdings to maintain the large supply contracts they have got.

 

I suggest you look at buying this one with your ears pinned back but find some recent research if you can so you know what it is all about.

There is a great report on world nickel at www.inco.com

 

Good luck

Hector http://www.sharescene.com/html/emoticons/biggrin.gif

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In reply to: Hector on Thursday 07/07/05 10:37am

Thanks Hector, your reply has given me much more knowledge in the market. I did buy some WSA shares as my chart showing Directional Movement showed it as a buy. Thid Forum ahas also give me greater knowledge of the stock. Good luck G

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In reply to: Hector on Thursday 07/07/05 10:37am

Hector, as with Glen, I am also newish and appreciate your time in guiding us less experienced folk. You apparent knowledge seperates you from a tipster with a hunch and I therfore have this question.

 

What do you base the $2.00 mark on? why this figure? Do you feel it has potential to go beyond this mark in the very near future?

 

I hope you are correct and look forward to the coming week.

Cheers again, Syrah

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In reply to: syrah on Monday 11/07/05 08:43am

Syrah

$2.00 is no magical figure. It was just one that I used as that represents the extent of the last price high on the run in January this year. Recent reserve upgrades are more exciting news than was delivered earlier this year and so I think there is potential for the stock to increase through the old highs. THis is one of the richest nickel reserves you will ever find. 6 adn 7% nickel is almost unheard of and so it makes this a very important and attractive target for medium sized nickel producers or larger ones too.

I think the price has been held down artificially and still is a bit so it should run hard when that overhang or pressure is exhausted. set your stops at 1.40 and load up - we are headed for $2.00 plus at some stage soon.

 

Hector

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In reply to: Hector on Monday 11/07/05 03:29pm

I dont mean to challenge anyone but on the back of such a great ann it appears the SP has stalled somewhat short of where it may be. Why would this be? No buyers. No volume. No interest. I would suggest at this rate $2.00 would be very magical. Perhaps needs a bit more positive news to spark some interest.

Anyone got comments??

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Fair comment Syrah

my thoughts on WSA are based on the desire for the bigger nickels making overtures for the smaller ones and any new finds such as WSA's very rich one, will raise eyebrows and set wheels in motion at the bigger companies. I am hearing this morning that Inco is very much on the radar screen of Xstrata. Xstrata were not happy in being beaten in the contest for WMC by BHP. BHP has just lost a big laterite deal in Indonesia so they have quite a bit of money earmarked for laterite and sulphide nickel projects too. I am not basing my price targets on production or hard analysis but more on gut feel about the state of play of the participants in this hot resources market.

Regards

 

Hector

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In reply to: Hector on Monday 18/07/05 10:20am

looks like a lovely afternoon in the West.. What a way to finish off the last two weeks.... GO WSA!!

 

Cheers for your info Hector. http://www.sharescene.com/html/emoticons/laughingsmiley.gif

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  • 4 weeks later...

Ok - just what are WSA worth? I don't have the time to wade through it all. Market cap for an as yet non-producer of $259M today at $2.09 seems high compared to producer MCR at $152M. But hey have WSA got more at better grades in the ground?

 

A cursory glance at WSA's Diggers & Dealers presentation indicated an in ground metal content at very good grades worth a bit over two billion A$. And yes T5 is a bonanza - a company maker - as if WSA didn't have enough already.

 

And OK if WSA produce 6Kt Ni metal by mid 2006 - well thats $120M revenue. So what is WSA worth? Is it another JBM? - market cap two billion?

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