Just listened to the national ABC broadcast on last week's government released energy plan for the next 3 years, and what-do-you-know, it's all about gas, and then renewables. For the immediate future, all the old coal plants will be replaced by gas, rather than spend money on renovating the coal plants.
SXY has set itself up to be in the sweet-spot over the coming 3 years, which only means to me a share price north of 40 cents should be easily achievable within the year, patience is needed.
IMHO this is a train that has only just begun to leave the station, a long way to go yet, and good investing here (for the patient investor). My average is 15 cents, which I'm happy to hold for now, for the intermediate future.
For longer term investors, who have a little excess cash, it's seems like good buying at these levels, and then off-load a portion when it breaks into the early 30s, thus reducing your average down to the 15c to 16c levels and holding these for the next year after that. Target of 45 cents here for me, within 18 months. A nice steady and sometimes slow climb, but that's the way this stock is.
Increasing profits, out-performance wells, strong government incentive and backing in the industry - it's all good from here. However, the All-Ords has staged a spectacular rally over the past few weeks, surely we will be in for some consolidation of the index at some stage, and possibly a dip with some tax loss selling in June, but the longer trend seems to be onward and upward, and especially with QE infinity.
Gw
SXY Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
