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Hello, Share Smackers. It won't have escaped your notice that one of the main reasons the Footsie stays high is the rise of mining shares. On most recent days, the big such companies are on the big index's leaderboard. But, as always, some miners do better than others.
This morning my jaded eye, lifting itself above the froth of my early morning cup of Costa coffee, caught sight of news that Weir Group (WEIR) are in talks to take over Finish company Metso. The name sounds a bit like one of those invading cut price; foreign owned retailers that are giving the large established UK supermarkets a jolt. The question is will this deal help give Weir’s stock a material uplift?
As I like to say on such occasions, next to the sweet aroma of Cuban cigar tobacco hanging over Lord’s cricket ground on a fine summer’s afternoon, the most enjoyable smell is the pungent scent of scorched bears. We inhaled such perfume this week as the results from Weir Group (until recently one of the five most shorted stock in the market at over 10% of the equity) confounded professional pessimists by pushing the shares up to an all time high of 2546p.
Neither Matt Earl – aka the Dark Destroyer – or his fellow bear raider Lucian Miers reckon that pumps group Weir (WEIR) is a bad company or going bust but both have opened up short positions at c£22 ahead of results on 26th February. They argue that the shares could easily fall by £5 or more.
The Q3 data from pump company Weir (WEIR) provided some comfort for those of us looking for a recovery in orders amidst the continuing apprehension about low demand from oil & gas, mineral mining and power generation and other industries.
Weir Group (WEIR) shares are looking attractive at 2364p on technical grounds but with little support by way of book to price values. However, this share still has a faithfully bullish following with the majority of brokers still making the shares a strong buy.
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