Despite the uncertainty of the forward nickel price, I have recommenced buying.
On any sensible rating the stock has been oversold, but sensible markets don't usually halve a commodity price in the middle of a bull market either!
As a note of side interest, Passmore at Patersons has MRE outperforming JBM in 2008 98 cents to 87 cents. He is the first analyst to suggest this, which obviously puts into question JBMs "premium rating".
Despite the big drop (at almost 40%), the analysts have only reduced their earnings on MRE by some 8% on average.
Also take into account that Lionore had a take out value in MRE equivalent terms of almost $16.
The current SP at $6 must have the boys at Glencore counting their swiss francs once they are free to buy again after the half year announcement - a full takeover may not be too far away!! If not a takeover, the dividend for this half will fully fund the almost certain 3% creep by Glencore.
Regards Eos
MRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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