Most investors only watch the Cu price. SO, it's no wonder that these ABY investors were dumb enough today to push the ABY shareprice down to $1.015. Pity they didn't look at the LME stocks and the cancelled warrants as they tell a very different story. Orders to remove copper from stockpiles monitored by the London Metal Exchange dropped for a 13th session to a four-month low. The sharp drop in Cu prices will spur Chinese to rebuild stocks. While the base metals complex remains extremely choppy, some traders said they are expecting near-term low-volume buying activity both from Chinese consumers and speculators across Asia.
The fall in the copper price is an "excellent buying opportunity", said a Singapore-based trader, who was working on the city-state's National Day holiday because of the turbulence in the markets.
Hopefully we've seen the bottom and Cu prices and ABY will move up slowly from here.
ABY Price at posting:
$1.11 Sentiment: Buy Disclosure: Held
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