Don't know what to think of NOR. Given the fact that it
has increased its bid for RIO, and will be accumulating
a large amount of debt with a likely downgrade from the
financial institutions, I expected it to fall back.
I, too, expected FL to move up and was watching Teck.
There is an erratic quality that makes it harder to
predict than usual. Maybe if copper is going to go to
one dollar a pound, the purchase price is justified.
But look at N's price after they bought out Diamond Fields.
I couldn't resist NF at Fridays price and doubled my
holding. The dividend is terrific, the profit is good,
the possibilityof a buyout exists, yet the price languishes.
Everyone wants to bet to win rather than win, place and
show. And given the moves in internet stocks, who can
blame them? Still, the day of reckoning has begun.
Evaluating companies on the basis of how much they spend
each month rather than how much they make is not a long
term strategy.
If NOR drops back, I'll add more. Sold A at 16.60, then
bought back in on the drop. Worries that a major shareholder
may unload is driving the price down, I think. Again
good dividend, good profits, well run company, amazingly
low price. If it drops again on Monday, I'm adding more.
Unless we're heading for a major recession, these are
bargain basement prices. |
