MMX holders this was in the the Australian paper yesterdayTime...

MMX holders this was in the the Australian paper yesterday

Time for iron resolve

YOU have to wonder why some stocks get sold off the way they do. One reason is that hedge funds and other players are clearly liquidating, and among the easiest things to move are metal stocks (and physical gold).

If you're looking to cash up quickly, then you drop Murchison Metals rather than RAMS Home Loans. Murchison has fallen from $6.02 last month to $3.07 on Friday. We're scratching our heads at Pure Speculation.

Yes, we can understand why you would have dumped a copper stock on Friday after a nearly 8 per cent fall in the price of the red metal the previous night. But Murchison is producing iron ore, is going to expand, and is in partnership with Mitsubishi and South Korean steelmaker Posco.

And -- here's the cruncher -- iron ore prices are not falling. In fact, there's every chance they will rise further. Macquarie Research's latest resources outlook predicts iron ore prices for 2008 will lift by 25 per cent. Previously they had been calling a 17.5 per cent upward movement when contracts are settled starting November.

good luck