Hi All, Is this one of the most oversold shares on the ASX at...

Hi All,

Is this one of the most oversold shares on the ASX at the moment? I for one got this wrong a few months ago. It's good to admit mistakes! It bewilders me how the SP is where it is today. I for one thought it would be well over $1 by now. However markets are not always efficient and I for one will be topping up more today to exploit what I see is a very, very inefficient market for the share.

TA- Today RSI and Slow stochastic in oversold territory, especially the slow stochastic = very oversold. When these two indicators combine, it often if not usually means a reversal of some sort. Nickel price is forming a flag at the moment where a big move is going to happen soon, one way or the other.

Fundamentals- Nothing in the nickel story or the MCR story has changed recently, yet the share price has fallen 40% off its rolling high and 22% since announcing a return to profit. Yes that right, fallen 22% since announcing a return to profit a few weeks ago. Yesterday the SP fell by double the dividend amount.

What has driven MCR to the oversold? Maybe the BOTs, maybe its the concern of rising warehouse nickel levels? fear that Indonesia will ease the ban? Concern that mine life is not long enough? Yet none of these really stand-up on the odds of things at this point, especially given the current drilling program (we have discussed all of these reasons in other threads). The other reason is that perhaps punters just don't favour high p/e ratio stocks. Yet MCR we must remember did not even have a p/e last year.

MCRer's do you see things differently? Other ideas are welcomed. I see this as one of the best managed shares on the ASX and a time to exploit the oversold.