Pan Australian (PNA.ASX) close to buy

PNA is close to an entry point. This company controls a recently opened copper-gold mine in Laos. The project is a large mine. Copper prices have been hit hard by recent economic weakness, and the collapse of the metal price complex. I do believe we are close to a point of support. Stocks like PNA will offer good trading off their lows, though I would only be looking at gold stocks to offer sustained upside. They have been suffering too because of broader asset deflation, but they will come good. We saw in the 1970s that gold prices fell 50% before they put in a glorious rise. Gold prices are performing fine. I think we have to wait for asset deflation to finish before we see increases. So PNA looks like a good buy at 36c, though it might fall as low as 30c in any days trading. I think we will be looking at another bad day on Wall Street on Weds night, followed by a recovery Thurs.

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Andrew Sheldon www.sheldonthinks.com