There is a quote which I believe is attributed to Albert Einstein -
"No problem can be solved with the same level of consciousness that created it"
A bit wordy but to me it is about learning from our mistakes, doing research and proceeding with increased knowledge and understanding so that the same mistake isn't made again - something that I am not very good at doing!!!
Several investment groups over recent times have advised investors to avoid mining services companies. So the red flags were flapping - NOT the amber caution ones - yes, the red ones. Along with many others I disregarded that advice, bought in and thought there was a quick buck to be made. Fortunately I did sell out (at a small loss). So often we don't learn from our mistakes.
It will be interesting to see the movement in SP for NRW Holdings (NWH) over the next few weeks. Their half yearly results should be announced around end of Feb. 2014. NWH is heavily involved in the Roy Hill project. Initially the involvement was with earthworks and then they announced in Sept. 2013 a contract with Roy Hill for $660m relating to the construction of 330 kms. of main line heavy haul rail formation to be competed over a 16 month period. Hopefully NWH has costed this project accurately and profitably - their share price has increased a little over the past week or so, but has taken a bit of a breather today (currently down 3.3%)- possibly in sympathy with FGE's TH announcement.
It looks like with FGE, that unless a white knight emerges (and quickly) then it will be a case of "over and out"!
FGE Price at posting:
91.5¢ Sentiment: None Disclosure: Not Held
