So, we have Sun to follow very closely today as we will see some wild trading action... though my other pick for a big mover today will be LNC.
Here are my reasons why... Over the past few months we have seen speciulation that the Chinese company Xinwen was looking to buy its Emerald Coal tenements for a huge $1.5 billion. During this time LNC has been sold down and down as the take over became more and more doubtful..
On Thursday of Last week an article was published in the Australian suggesting that the deal was finally in doubt and more then likely wasnt going through.. On that day the Shareprice opened @ $1.20 before getting sold down to $1.095, and then closed @ $1.12.
This gave me the indication that the news was nearly completely factored into the shareprice and there was only the straglers to exit becuase of this news on the day.
I took a position in Linc Energy (LNC) on Friday @ $1.16. It managed to close nicely at $1.205 which was above the intraday resistance line. I feel there is very little downside to both the shareprice of LNC and also the price of OIL over the coming few months. The negative news of Xinwen Mining group is old news, and new investors should be focusing on what LNC have been working on for years and that is their ramp up in production using their exceptional new technology. This IMHO is an excellent stock to add to your SMSF, and in addition should offer a very good short term trading opportunity in the mean time.
