Kasbah Resources: Up or Down?

John Robertson

PortfolioDirect

With little direction from macroeconomic forces four years after a cyclical peak, many stocks within the resources sector have been responding to events with largely predictable trading patterns. Kasbah Resources is aiming to develop a tin mine in Morocco as it approaches the second anniversary of a price downtrend which has already stripped 75% from its value. The value loss has coincided with some slippage in its development timetable but, at the same time, there has been a resource expansion and a clearer definition of a project which is now ready for funding. For trend followers, the downside investment risks will understandably remain the most conspicuous influence. Debt funding packages were to be reviewed by the company during May as the last step in the choice of a project financier. Some moderate drift toward the upper part of the share price downtrend is consistent with a directional change that could accompany a finance breakthrough. It might still be better to wait but a critical point appears near.


2 topics

John Robertson
John Robertson
PortfolioDirect

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment