6 Reasons Thompson Creek Should Continue to Climb

For much of 2008, molybdenum defied the commodity collapse holding up at $32. Copper failed. Nickel dove. Then, in November 2008, molybdenum joined every other commodity in the "Big Commodity Crash" collapsing 75% of its price in literally 2 weeks.

That lag is about to reverse. We've watched copper come roaring back 70% off its lows. Now it's moly's turn. This key ingredient in steel has already started a run. This week moly prices have rising 16%.

Thompson Creek (TC), a pure play molybdenum miner, crashed from a high of $24 to under $3. It has ramped up to $7.59 and should go much higher.

1. Moly prices are going higher.
2. The company is cash rich with no debt.
3. The chart is great. The best in show. Volume is strong supporting that the rise is real. There are lots of buyers. It's above the 200 day moving average and nowhere near its previous glory high of $24.
4. The company is Canadian. The FXC (Canadian currency) is on fire and will go higher. As minerals increase in value, Canadian dollar will continue to firm and bring TC higher in U.S. dollars. Higher oil and gold pulls the Canadian dollar higher; so goes TC.
5. As the U.S. dollar goes lower, moly prices go higher.
6. Look to see TC price (NYSE) eventually rise above TCM (Canadian exchange), as the Canadian dollar strengthens against the U.S. dollar.

Thompson reports Friday. The above six factors are so powerful that the stock should continue its climb regardless of the report.

Comments

[Stephen Ros...:]

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Sorry. Charts did not print.

May 07 12:35 PM