minings perfect storm

Last year, on the 16th of November, Brendon Lau (don't think he's a relative of our director) wrote an article for AFR titled 'Ten mining stocks that look set to rebound'. Poor old Brendon's team is on a shocking batting average, 10/0. That's right, not one of the ten stocks he nominated to have a SP increase did so, Rex is closest, on par atm. Those stocks included, Sundance (SDL), Pluton, Kalnorth (KGM), Saracen (SAR), Perseus (PRU), Silver Lake (SLR), Troy (TRY), Tiger (TGS), Rex (REX) and Mirabela (MBN). Check it out for yourself if you dont believe me:
http://www.afr.com/p/personal_finance/smart_money/ten_mining_stocks_that_look_set_t7KYFhxv6m09IS9VELwR7M

Now while I am prepared to concede that Brendon may be an incredibly bad selector of stocks, statistically it is nearly as difficult to get none right as it is to get all right (try it in Keno). So I'm thinking that for ALL 10 potential rebounders to have not rebounded yet indicates that we have had a perfect storm of events that have knocked around our small tier miners. I also believe that the events that have pulled mining back over the last 2-3 years are about to unwind and catapult the SP of those same miners.

Have a look at the chart thrown up at the Diggers conference by out esteemed ex-shareholder Cliffs. I don't understand why they exited but one of their 'big-picture' charts shows Chinese steel production increasing but mainland Port stockpiles decreasing. That does not make any sense to me and I think very soon that the price will go up as they use up existing stockpiles, unless of course they start flying the stuff in! There are other things happening in this industry that gives me the confidence to invest in an ore miner like PLV (such as FMG's latest JV), but that's enough from me for one day.

Now something for the TA's. Look at the PLV chart since listing, from a distance and with one eye shut and the other squinting. There are two bumps, one at the end of 2007, one of the end of 2010 and after this year there will be another one at the end of 2013 (with a bit of a pot-hole in front of it = right now). Well, I thought it was funny, but jokes aside, the beginning of September is going to be an exciting time for PLV holders. As the advertisement for Crusty Demons says, "You pay for the whole seat, but you'll only need the edge'.