I own SUF and agree on its LT future, but ST the price of platinum group metals (PGMs) is going to be a significant stock price driver. I bet there will be a pullback in the stock price before a rise to the 7.5 or higher region. Here's a LT chart:
stockcharts.com[h,a]mbclyiay[pc25!c50!c200!i!f][vc60][iub14!uk14!lc5!la12,26,9!lp14,3,3!lf!ll14][J3857636,Y]
SUF now has better management and a better plan for making money (PGM production; no longer dependent upon diamonds), including price floors for downside protection against PGM price drop. It suffers from the South African discount and its history of disappointing investors after high early promise. If auto production tanks and PGMs with it, and SUF price revisits $3, I would add, and load up around $2.
I think such prices would be seen only given (1) worse economic times, which I expect; and (2) PGMs gaining no significant hedge value as money, unlike gold, but instead fluctuating as industrial metals such as copper or perhaps silver. |
