nickel breaks us $12.50 per lb, page-4

I took the opportunity to top up yesterday at $6.43.

Their half yearly report & dividend announcement should be out next week and this stock does seem to move on positive production/profit reports. I think the increase in dividend could cause a significant move. They do have a policy of paying 50% of profits as dividends so they are definitely an investor friendly company.

Southern Cross Securities has a short term target of $7.25 and this is one of their favoured stocks. They have been on the money with their stock selections over the last 12 months. They renewed their BUY on WSA on 13th January.

Their valuation is based on a 2011 Ni price of US$10.58/lb (vs currently US$12.59/lb as I write this). They did say that at current spot prices (which was about US$11.50/lb back in mid January) that their valuation increased to $8.13. I notice they recently hedged 25% of their production from March 2011 (for 12 months) at up to $11.90/lb.

I feel comfortable holding this stock - the company is doing all the right things, commodity prices should be stronger this year as the US economy improves adding to the demand from China. Hopefully the increased dividend announcement next week will give the share price a push upwards.