After a strong performance during the first half of 2018, copper has been weak and is currently trading at close to its lowest levels since mid-2017. Having hit peaks of more than $7,200/t last June it is now around the $6,000/t area, and although an improvement on the $5,800/t level it started the year at, I would hardly call this slight resurgence a proper bounce just yet. But I do think that is going to come as the metal is too important to stay at these levels for long, especially in light of the fact that many analysts are forecasting a supply deficit in the coming years due to the increasing use of the metal – as I’ve mentioned in the past, electric vehicles will be a factor and use far more wiring than the cars that are currently in common use...
Kaz Minerals (KAZ) is a great example of the extent that commodity prices can effect larger miners, and the recovery in copper prices has seen the share price trading at multiples of where it was just 18 months ago.
KAZ Minerals (KAZ) has made a fantastic comeback in recent months, but has now reached a level where I think that the risk versus reward has swung in the other direction, and I’d be more inclined to be selling the shares rather than looking to buy.
While there may be some fans of mining stocks who believe that after over 3 years in the doghouse things cannot get any worse for Kaz Minerals (KAZ), there are some factors out there which may tell us otherwise.
KAZ Minerals (KAZ) has been a great share for trading in recent times, and it is starting to look weak again in my opinion. If I was holding shares bought anywhere near the 170p area that it hit at the start of the year then I’d be looking to cash in, and it is also one that I’d consider shorting from the current share price of around 250p, or ideally a bit higher.
Kazakhmys (KAZ) has enjoyed a meteoric rise in recent weeks, certainly when you consider it is a large FTSE250 company, but it could be time to bank some of those profits.
It wasn’t that long ago that Kazakhmys (KAZ) was flying high on the FTSE100, but its decline since then has been more reminiscent of an AIM company.
As we all try to navigate the daily, weekly and monthly outfall of a bear market many private investors seemingly overlook actual value preferring to speculate wildly on companies with no real asset backing. Instead why not look at a real company: Miner, Kazakhmys (KAZ) is a buy at 271p and is worth 400p a share.
Search ShareProphets |
Recent Comments |