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Prosperity Minerals

October 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PMHL
  • Price:
  • 126p
Less than four months after floating on AIM Prosperity Minerals has unexpectedly announced that profits will fall below expectations for the current year ending 31 March, the shortfall entirely due to its iron ore trading business. Prosperity has managed to come up with four reasons for this, including higher than expected iron ore contract prices, a glut of steel flooding the market in response to Government austerity measures (to slow inflation), a sudden rise in freight costs and unusually bad weather. Prosperity claims that conditions will improve in H2 and unusually its Chairman and CEO, David Wong, has announced his intention to “buy shares in the market to emphasise his confidence in the business.” < ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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