Guys…I would like to draw your attention to copper prices in India…they seem to be in an uptrend but that is not yet getting reflected in the prices of copper stocks…
I am posting the quarterly chart of Copper 1 contract on MCX…its now @ 450 and appears to be in an uptrend. In the next few quarters…may be in a year or 18 months…or even two years, this can go upto 650+…Insofar as commodity prices are concerned, its a big jump. Any price rise adds directly to the bottom line of copper producers…Hind Copper / VEDL. Just have a look at the chart.
It is axiomatic in cyclical investing that even a moderate rise in commodity prices cause an exponential rise in prices of commodity producing stocks. Looks like we are in the initial stages of the turnaround in copper cycle. Those who get on early in the cycle, reap the most benefits. Valuepickr guidelines discourage me from posting price targets for Hind Copper…it is sufficient to say that in case the turnaround in copper cycle does happen as I anticipate, those investing in Hind Copper will have a lot of reason to smile.
Discl…Holding Hind Copper