Saturday, 10 August 2013

Oxus Gold ( mused and abused )

Dear Reader ,
     What an intriguing story unfolding before our eyes we have .As is the norm with legal cases , the law moves surreptitiously ;
  Firstly the case against ;
     1 Lack of actual cash
     2 Small Chairman Involvement ( only 2% , and not under 6 foot ).
     3 Share price movement ( From 3p to half that )
     4 Mystery investor ,whom only buys 7 % ( Weird ,at least ).
 And the case for
     1 Been there done it .( well, an almost win , last time )
     2 Legal team ( On a hat-trick )
     3 Calunius Capital ( Men without hats )
          Just for the record ,the last case Uzbekistan "nationalised" was Metal Tech Ltd . It was quite obviously settled , at a price . Iscar were the lucky firm who bought them ; since taken over by Berkshire Hath ;

             Berkshire is buying the remaining 20% stake in IMC International Metalworking Cos., called Iscar, from the Wertheimer family, the founders of the company. They had sold the first 80% to Berkshire for $4 billion in 2006, meaning the company doubled in value since the initial transaction.
Iscar, based in Tefen, Israel, was Mr. Buffett's first overseas acquisition for his Omaha, Neb., conglomerate, which makes candy, sells jewelry, operates power plants and runs a railroad.
Iscar, a maker of metal-cutting tools, has flourished under Berkshire, opening new plants, expanding its product offerings and acquiring rivals, including Tungaloy, a Japanese cutting-tool manufacturer. Iscar employs about 12,000 people, up from about 6,500 at the time of the first deal. "As you can surmise from the price we're paying for the remaining interest, IMC has enjoyed very significant growth over the last seven years," Mr. Buffett said Wednesday in a written statement announcing the deal.
Mr. Buffett has frequently praised Iscar's managers in public for how they have run the company. In his annual letter to shareholders in February 2012, he called them "brilliant strategists and operators" who run Iscar in a manner that "continues to amaze us."
Berkshire Hathaway's initial acquisition of Iscar was the largest foreign investment to date in an Israeli company. In Israel, it was hailed at the time as a seminal transaction symbolizing a vote of confidence in the country's economy and its geopolitical stability by a celebrated investor known for conservatism. After an initial announcement of the deal, the transaction was completed during a month-long summer war with the Lebanese Hezbollah military, whose rocket attacks shut down northern Israel, where Iscar is based.
     Conclusion , patience pays and keep adding as the ship sinks. For what goes down will average back up to estimated 11.2p , give or take a few bob .
    Remember I was always more confident of Oxus over Metal Tech . That reasoning , I feel remains sound .
    Personally , I am continually adding to my ISA fund , OXS shares from this point on .
    August 10th 2013 , price 1.5p . It`s a good time to invest , remember , there is a possibility of a negative outcome .Thus I shall keep it to just under 35% of my portfolio .

   Good luck and may your Prophet go with you .


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