RE:RE:The $5.00 nickel?
popeye5 wrote: I bailed on Sherritt over a month ago after 5 years of being long. With the sale of the coal division, S has become a greater metals play.
Unfortunately, the long predicted nickel boom has failed to materialize primarily because China's bubble has burst and unlimited construction and infrastructure projects have come to an end.
The Cuban connection has also become frayed with oil in the dumps probably for a long time. Thawing US-Cuba relations only have an upside if Helms-Burton is repealed and even then US investors barred from owning S will only ante up if nickel and oil are more viable.
Not a pretty picture!
The key is to continue to watch the spot nickel prices and LME nickel inventories.
. Until nickel stocks come down by 50% to say 250,000 tons there will be no meaningful price increase. Hopefully S will still be in business by then. GLTA
Thank's for your insight popeye. Could you elaborate on why Helms-Burton would have to be repealed for US investors to get into S? Also why do you pick the level of 250,000 tons inventory as the inflection point for Ni price?