this is closely watched..., page-2

from the eureka report.
they see a rerating for the entire sector. this is awesome for us all. UCL will benefit from this too.

cheers

Notwithstanding the prospect of tremendous volatility over the next few months as the markets test out and obsess over Bernanke, we reckon this is a reasonable bet. The Fed won't go too far -— it will raise rates one more time, at most, and then stop. The profligate, debt-laden consumer of America won't exactly be bailed out again, but they will get a soft landing in the housing market as a result of the end of rising interest rates and the US stockmarket will rise steadily, if not boom.

What's the relevance of all this to Australian Mining Investments? Well, if commodity prices stabilise from here and resume their climb and the Rocklands deposit is confirmed as substantial, even if it's not quite the world's greatest copper deposit, then there is a good chance that the entire sector will be re-rated quickly.

The institutions simply cannot afford to miss out on another leg of the long resources boom, and they will join the punters who have making huge money up to now.

What's more, once fund managers and analysts come to believe in the sustainability of commodity prices, then the risk that is currently priced into resources stocks will be removed and the best of them will be rated on industrial company price/earnings multiples. Stocks such as BHP Billiton, Rio Tinto, Zinifex and Oxiana will rise significantly.

I think that unless Australian Mining Investments' Rocklands discovery is quickly exposed as a fraud or a mistake, as the sceptics expect, then not only will AMI go to more than $20, it will have a profound effect on the entire mining sector.

It is truly one to watch.