Mining shares have made fortunes for many in the Philippines. They're a tricky bunch, though.
Back in 2008, the "Bearbull" Ron Nathan noted that this is likely the going to be the sunrise industry.
Well, unfortunately, the U.S. economy had something else in mind. The world's largest consumer market slowed. Manufacturing in China followed suit and minerals were less in demand.
Between now and then, there were also a host of local problems that got in the way of mining's glory days.
Since then, though, I have not forgotten what the insightful Ron Nathan pointed out. Our vast natural resources have hardly been tapped. I think its still only a matter of time.
At the moment, mining stocks are trending down. We may be seeing some good opportunities to buy in.
PX is nearing its 52 week low of Php18.26/sh.
I have always liked this company because it requires the least speculation. By that I mean they actually export minerals as opposed to other listed mining firms that aren't even operational.
I'll be keeping an eye on PX. I'll start purchasing it when it goes below Php15.00/sh.
where are the bulls?
The market may be bad, but I slept like a baby last night. I woke up every hour and cried. The PSEi went up on May 7, 2008 by 11.73 points. Value turnover was at a respectable level of Php4B. Looks good, but not good enough, I think. The fresh wind of hope from the U.S. economy didn't make it here until today as shown by the Philippine Stock Exchange Index. The rice shortage or at least the perception of a shortage along with inflation going through the roof are factors that weigh down on local investor sentiment. Corporate earnings are largely within expectation but maybe market is already priced into better corporate performance since it had little effect on our stock prices.
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