GREY:MWSWF - Post by User
Comment by
CQCmasteron Jan 18, 2015 3:33pm
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RE:RE:Low Supply Increases Demand and Strengthens Prices. All Good
RE:RE:Low Supply Increases Demand and Strengthens Prices. All Good
Last year, the long term trend of this stock was downwards. Why? Because the company simply didn't perform as good based on its fundamentals. MWE hit its bottom, can't go any lower from mathematical perspective. This year, the long term trend will be upwards. Why? Because the company is going to perform good based on factual news and good fundamentals. Will this stock go upwards for sure? Yes it will, based on the amount of interest from market makers and retail investors; when a company goes from bad to good, a reversal occurs in a long term trend. Do market makers make money from downtrends? Yes they do. However, they make way more money from uptrends and accumulations go for a longer periods of time. Should we treat MWE as a bad venture/OTCBB/pinksheet penny stock? Not at all. This company is not garbage. It is on TSX, and it will stay there for a reason. Copper price? Demand is always there. US dollar up = copper price down. Crude oil down = lower energy bill in production cost of copper. Low Iron ore prices = lower prices of equipment needed for grinding out that copper. Marginal cost of production is already falling and that's great news for the mining companies.