Well I'm sure people will think I'm crazy, but MCR has had a good run, and it's time to short. It's not going to reach $4.00 anytime soon like some people are hoping for. That's just a fantasy.
Stocks cannot go up that fast without sellers coming into the market, and the depth looks exactly like that. Sellers are starting to appear.
The P/E of MCR is reasonably priced (I would say fully priced), including the fact that Nickel may reach $25 soon.
They are reliant on BHP for their milling / offtake and as a result only get approx 65% of equivalent revenue/price of Nickel. Hence with a cash cost exceeding AUD$6 for production, one small jitter in the price of Nickel will send this stock sub $3.00
Be realistic people, a 10% jump in the price of Nickel in no way means a 10% jump in Mincor’s profits. Read the reports thoroughly and you will work this out for yourselves.
And finally the drilling results are no where near as good as the results from December. The Ni grade is going to be lower.
Yet the stock sailed up 10% today for nothing.
Time to short and pick them up under $2.90 within the next 4 weeks.
I'm out.
------- Do you own research!
MCR Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
