Hi Chuk,
Perhaps on SLR and other stocks that pay no dividends you may be right. My gut feel is that the selling will continue though - but as others have said no one knows for sure. Lets face it that even if the SP stays the same, the Aus POG stays the same but the currency falls they are losing money by staying invested. Currently the price is falling and so is the aussie (although it has rallied a bit off its lows) so they are losing twice as fast!!!
I completely disagree with stocks that pay a dividend. What we are seeing at the moment is selling on US POG weakness with the AUD POG holding up pretty well. That says to me (and espcially if 1180 doesnt hold) that the selling will continue as your dividend is being reduced when converted to foreign currency (unless they reinvest in aus and are bullish aus long term).
Im still a holder, although not as much as a few months ago and will continue to monitor before making a further investment in SLR.
SLR Price at posting:
36.5¢ Sentiment: Hold Disclosure: Held
