Firstly the yarn has changed from $4 to $5 to $3 now. That easy money yarn for buying under $2 and selling at $4 to $5 simply didn’t pass the chart reading test, ie it didn’t even work in hindsight. And as we all know predictions are much harder than reading with hindsight.
Secondly how confident can we be in $3 before another downswing? Well it’s made $3 twice in the past 5 years, but the last time was only briefly a little over $3. I suspect only the most disciplined and nimble got out on that peak. The past decade looks to me more like declining highs.
I hold some WSA, and I am very hopeful for a better future, but it is a risk, and for it to be worth that risk for me I will need an exit at much higher than $3. With the risk of declining highs (if the nickel price doesn’t improve, exploration isn’t successful and/or Cosmos is poorly executed) I need much higher upside.
WSA has good ground but near depleted mines adds risk, and should make us cautious of forecasting the future from the past (even if we are capable of reading the actual past).
Suggest anyone looking for a no-brainer look elsewhere.
EL
WSA Price at posting:
$2.10 Sentiment: Buy Disclosure: Held
