Back at August 14 2009 we had. The $A nickel price at $11.03*...

Back at August 14 2009 we had.

The $A nickel price at $11.03* (high for the year)

The $A to $US was .8419

The XJO was 4465

MCR hit a high close of $2.89 - repeat $2.89


Now as of April 1 2010

The $A nickel price is $12.34 (high for 2009 and 2010)

The $A to $US is .9172

The XJO is 4926

MCR closes at $2.05 - no need to repeat this.


So here we have today a higher Ni price, higher ASX 500 index,
and a tougher exchange rate that does not hold the $A Ni price back.

So why is the MCR share price 29% lower than August 2009?

That is of course a question for discussion and speculation but to add to that discussion lets take a look at the graphs below an see how MCR's peers have performed from their August 2009 highs.



Click on image

The peers that I like to focus on are MRE PAN and WSA and they are also trading today below their 2009 highs but... only at about half the level of MCR. That is the MCR share price has not recovered by the same level as its peers.
I wonder if this is not a great opportunity for an arbitrage play and on a very solid and well run company paying a fully franked dividend.

I have to believe that MCR will at least join its peers soon and to do this we will
need a share price of $2.40.

IMO just waiting to run.

Cheers Coopes


* I take the Ni price and exchange rate from kitco during the morning of our trading day.