Mark Jackson, CFAFalconbridge LtdFAL.TOTOP PICKFeb 01, 2005
Looks cheap. Fundamentals on the nickel side are such that there should be continued strength in the price. Not expecting prices to go up, but the supply situation is such that there shouldn't be too much downward pressure this year. Very strong balance sheet generating a good cash flow. Growing production and lowering costs on production.
(A Top Pick Aug 25/05. Up 124%.) Had chosen it on the expectation the nickel market would tighten up, which it did. Now looking for junior companies with producing assets.
(A Top Pick Oct 19/05. Up 84%.) Was incredibly cheap and thought he could make a good grinding rate of return. He also hoped that the nickel market might get tight. Was taken out.
The chance of them not getting taken over is almost zero. If you own, you might consider taking some profit now and holding on to some and see what might come out of the woodwork.
Given that the market thinks there are 2/3 bidders out there, if you own you may be playing around with the last couple of dollars. Consider selling half a position.