Well I have been proven wrong on timing my entry into this stock. Why? I was too focused on business interests and commodity prices. Having said that - the stock just makes more compelling sense as a BUY - though the chart suggests it can go a little lower. So why a buy? Well you will find they are selling because they are falling. They are being oversold because foreigners are selling the stock to reduce forex exposure to the AUD - which is likely to fall back to USD0.80 from USD0.87 now. So MRX gets oversold, buteventually they become over-bought again because export revenues will be phenomenable as AUD weakens, they commission the 2nd plant - for a 60% lift in output.
Yes, I am aware that USD-denominated commodity prices are likely to come off, but consider that there are already significant supply constraints for all metal commodities.
Join my Google Finance discussion forum on MRX!- Andrew Sheldon http://www.sheldonthinks.com/
No comments:
Post a Comment