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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mining sell-off provides opportunities

November 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

While the FTSE-100 has fallen 12% from this year's peak many of its mining constituents are off much more, even though in several cases they've never been in a ruder state of health. Quite clearly the elephant in the room is the European debt crisis although the more relevant issue for these firms is the state of the Chinese economy. That's because the natural resources sucked in to fuel its amazing growth have meant that it now accounts for 40-50% of global demand for copper and almost 60% of global iron ore imports. Bearing this in mind, the recent move by a Chinese sovereign wealth fund to significantly increase its holding in four Chinese banks, after price falls of 30%, is basically a signal that its Government will put the f ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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