In an article in the AFR on Wednesday 17th March, Morgan Stanley mention that upgrades are yet to come on base metal stocks, even after a good run in base Metal prices. For Nickel stocks Morgan Stanley prefer MRE & WSA. However they further point out that MRE is a lower cost play and hence more leveraged to any Nickel prices movement as opposed to WSA.
I was suprised at the lackluster performance of MRE today, however i am fairly confident that upgrades will come fast, and my new price target on MRE is roughly 94-95 cents in the short run. This is based on reapeting speed angles of around 15cents. (60c to 75c, then again 70c to 84cents, and now we have a doji at 80cents... will it be 94-95cents??)
Thoughts
Mayo
MRE Price at posting:
80.0¢ Sentiment: LT Buy Disclosure: Held
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