More wind in the sails of the DML opportunity. It is only a matter of time before some investors will be kicking themselves on exiting or foregoing this opportunity, at these levels.
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Summary of GS's outlook on copper prices:
"Cyprus-driven concerns over European banking stability have seen base metals prices, copper notwithstanding, come under pressure over the past two weeks. Nevertheless, we continue to be bullish on the outlook for copper prices over the next 3-6 months, a view we implemented in our March 1 recommendation to buy LME September copper futures (-0.9% to date). We continue to expect Chinese copper demand growth to accelerate to 8% yoy in 2013, from 3% in 2012, and that the copper market will tighten into mid-2013. We believe the latest Chinese HSBC flash PMI data for March, total social financing growth (+79% yoy in Jan-Feb), and recent developments in the Chinese construction and consumer appliance sectors are supportive of this view (for details please see our China macreconomic and metals snapshot – March 2013 [Presentation], published March 22)."
DML Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
