Market's view on Anglo Asian
Published on April 2024
- A stock watcher highlighted the importance of the Production Sharing Agreement (PSA) for both the company and the local and national economy, mentioning that it encourages employment from the local population and only rewards the state with a share of profitable production. This arrangement attracts foreign investment, which is crucial for economic growth. The inability of government ministry management to make independent decisions was criticized, noting their lack of capability to run a private enterprise profitably.
- Concerns were expressed about the risk of expropriation of mining companies, suggesting that such actions would lead to adverse outcomes for the nation, government, and economy. The government and president are seen as unlikely to take such actions that would lead to economic isolation and weaken the nation.
- Fears were voiced about the potential for the national leader wanting to reclaim ownership of mines, posing a significant risk to investments.
- A stock watcher shared their personal strategy and philosophy regarding stock investments, advising against getting emotionally involved and stressed, as it impacts decision making.
- Praise was given to the company for being perceived as honest and capable, though there are challenges that the company needs to meet in order to satisfy current demands.
- Discussion focused on investment strategies, distinguishing between trading and investing, and the importance of playing one’s cards right in response to market and company news.
- Personal investment experiences were shared, including strategies like holding on to investments for dividends and potential buyout scenarios.
- A detailed personal perspective was offered about being heavily invested in the company, viewing oneself as a business owner, and relying on the company management’s capabilities.
- Advice was discussed about managing large investments in the stock market, emphasizing the importance of not making hasty decisions based on emotions.
- The importance of strategic patience was underscored, with a focus on waiting for crucial government approvals that could significantly impact the company’s operations and stock value.