re: where are the nickelheads? "I feel that when there is nervousness and doubt that this is exactly the time to buy. When the trade seems the hardest.
Lets see why people bought up nickel stocks (the SMY,MCR, IGO's) during 2003. Are these conditions still valid? Lets also remember that since 2003 these companies have consolidated their operations, increased reserves, increased production, increased exploration, repaid debt, strengthened their balance sheets, began paying dividends (SMY not yet I believe).
So the main reasons for the bull market then were: China factor, falling nickel inventories, rising prices, increased world demand and supply constraints. Were these issues one-off events that came together at one point in time very conveniently and will not repeat themselves again? Possibly, but I believe that many of these issues are still present.
Falling nickel inventories is the big one. Demand is still high and as nickel stocks fall it is just putting more and more strain on the nickel price. It has to move to the upside. If we are to believe the management of BHP, the Chinese factor is still strong."
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Excellent points!!
I man that has done his own research & offers a intelligent opinion.
It's why some of us do well in life.
Cheers.
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