Barry, i have been studying MTX, and im trying to make the decision between it and MRF. MTX seems to come out on top, but im worried abt the sale of non - core assets. What if this ends up like barloworld? with the share price down big time and the company being weaker etc etc. do you think this is a possibility with MTX? im looking at an investment of 5 years. focus being more on capital growth...oh and i tried to contact MTX about which core assets they are selling off but they didnt respond, will ask again tho
Mr. S it is worrying when a company sells "Non-Core" assets but I think MTX just took to much on and wondered away from their core buiness which is Copper throughtout Africa. I think it a good move so that their exec. taem and eng. teams can all focus on the real money. MTX is well hedged and the Cu warehouse stocks are dropping so the demand is going to come through soon, Short term a little flat medium will give you a good return but long term 3yrs your looking at a great return 100+ % it has to recover to at least 1500, they are going to show a good set of results and a lighter debt book.
Mr S the answer from KVW is about as good as you can get.Remember copper is a volatile metal.... Last night on one of my e-mails i receive that the production of copper was completely over estimated earlier this year and that no mines should have shut down.In the estimation that was made before the shut down start up mines production was added to the amount that was been produced.New copper projects take years to start producing so that is where the mistake was made.The existing mines are mostly long in the tooth and are steadily declining.COPPER IS IN SHORT SUPPLY AND LIKELY TO GET SHORTER....THE ONLY DANGER to copper is that end users might short it if the price rises too much....For the longer term one can also look at PAM.Really only my opinion.
barry, thanks for the reply. So in terms of long term capital growth, i take it you would choose MTX over MRF? Any other small caps you might suggest i look into for long term cap growth. I know its only your opinion, but its valued.
market is overbought so a pullback was expected, look at the top 40 chart as an indication of when to buy, its not fullproof but i use it as a quideline, top 40 could pull back to around the 20960 level and if that holds we will then rally on, a close bellow that level you should hold buying until a trend has established, omo.
forgot to mention that i also look at the individual share as well to see where its positioned at the time. I would look at say 10 shares on my radar, when the top 40 is in a favourable position i then look at the individual shares to see which ones will benefit most from an upward move and buy 5 that i think have the best chance of an upward move, and eliminate the other 5. omo
skaaptjop its not perfect but it works out ok, by alocating funds to 5 or more shares i spread the risk, when the next opportunity comes along i would keep the ones that are ridding high and eliminate the losers with new possibilities.
Asylum, I am a great believer in the principle of relative strength, which is what your strategy utilizes. Stocks that rally strongest, are likely to rally strongest again after a downcycle. By spreading out around 5 stocks, you are bound to hit 1 that is going to give you the big 30% move.