20% of the float is short. palladium is short 150 days of production. SWC just beat on earnings. no more huge cash demands for argentina. US dollar to decline and push the metals complex which has been quiet for 2 years. just be patient !!
ya cant buy TSLA, AAPL, PCLN & GOOG forever. the materials stocks, uranium, iron ore, coal, copper, silver, gold, palladium, lumber etc, are going to have a very good move up.
watch CCJ, FCX, SWC, CLF etc.
palladium has a short position equal to 150 days of production ! SWC does NOT have to spend huge sums of money to develop argentina copper. and, $25M of earnings was TWICE expectations for the latest quarter, but it was buried in the 'headline'. and, dont look now, but production was just raised for 2014. once over $11.50-$11.75 area, price breaks out of a MULTI YEAR DOWNTREND CHANNEL. dont be stupid.......BUY
the marketplace already removed the value of the repairment when the stock price fell from $20 to basically $10
the risk with pharmaceutical stocks, is that they dont get approval, and overnite, you take a 50%+loss. so stop #$%$.
i agree. they are however, the purest play in nat gas......i will be interested in what they have to say about future nat gas prices, especially 2014.
great article and good catch. UPLs management has been saying the exact same thing for quite a spell.
when did you see this NG decline article on SA?
who knows when nat gas will move higher? but, if your neighbor tells you that he is selling his car for $15,000 below the value, would you buy it ?
stupid me, i thought that this move diversified the company and lowered risk !!
as the world moves toward "loss of faith in governments", endless QE etc, inflation is coming, no doubt about it. when that moment begins, ASSETS will be the new strategy, and UPL has great assets. nat gas and oil is nothing more than cash flow and profits. doesnt really matter when it comes. it will !!
i have a couple of thoughts. first i was impressed that one of the analysts on the concall discussing the purchase basically called management liars because the rates of return were 'so impressive'. 2nd, i like the fact that these guys just dont produce to run up the revenue numbers. if this were my company, i would do the same thing. buyout? UPL is the perfect candidate. back of my mind, i always thought that china would come knocking. the chinese want assets, not revenue. japanese could buy them also. the #$%$ pay $16 for nat gas.
and....tuesday's decline, a bit unexpected, was the perfect "clean out the sell stops" manuever. next few days will tell.