RE:RE:RE:RE:RE:Why do you guys like Sherritt? Nick,
i agree with your reasoning and justification for investing. IMO, S used to be an extremely risky stock to hold, with potential for outsized returns to go along with a high likelihood of failure/bankruptcy. Now, I think that the company is still a risky hold, but with a much more attractive risk/return balance.
If things go right in the commodity markets, we could see $10 Ni and $1.50-2.00 S. however, as some more critical posters have pointed out, if Ni drops to $6.50 or lower, S will have problems. It bears mentioning, though, that many other miners would also have difficulties, which likely puts a floor on Ni prices (price drops to unprofitable levels, companies go on care and maintenance or fail, and overall production drops. Price then rises...).
Personally, I don't see S failing, even with depressed commodity prices. Cuba needs the production and $$$ too much, and their other mine (run by a Cuban company, I think) dramatically underperforms Moa. Stay alive long enough for prices to rise, and potentially to enter new lines of business, and who knows...
JMHO,
mas