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We cover ENRC extensively in the latest edition of our magazne on page 25 (Link – in which we suggested the shares worthy of consideration for purchase as part of a mining portfolio at the 330p level.

Below is the chart of the stock over the last 6 months and it looks to us like a double bottom could be in place now. The shares have been dragged down incrementally more than the mining sector as a whole over the last coupe of weeks as a consequence of the fall out from the Bumi debacle – ENRC being deemed to be another company with “corporate governance” issues. With the Glenstrata deal now all but consummated we think that there will be some renewed re-positioning within the sector and there is a very real possibility of Glenstrata picking up Kazakhmys’ stake, particularly as a consequence of the FSA’s new tightening on foreign listing/liquidity issues.

ENRC Daily YTD chart

We were stopped out for a profit on our Trading Buy position last week at 330p and in line with the compelling valuations and technical backdrop we re-open a swing long trade today at 316p.

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