The Australian published an article today on tin exploration and development company Stellar Resources’ (ASX: SRZ) promising future as the demand for tin grows.
Resources Editor Barry Fitzgerald states that at a time when interest in metals in general has dropped, interest in tin has been building. The article predicts an increase in price performance, “given the building supply pressures surrounding the metal at a time when stocks are low.”
The article reports that Macquarie’s commodities desk believes the time for investing in tin is now, as factors behind weak stocks are abating and the “current price weakness is a good opportunity to go long”.
The article also refers to PhillipCapital’s positive report on Stellar Resources by Pieter Bruinstoop and states that, “On a comparative basis, Stellar was rated as the cheapest tin equity exposure. Given that at yesterday’s share price of 4.6c Stellar had an enterprise value of $7.6 million, it is easy to see where Bruinstroop was coming from.”
The Australian recommends that “now is the time to stuff some tin stocks in the bottom drawer,” as the tin deposits held by Stellar provide great leverage for what most believe are better days for tin, since stock is expecting a medium to long-term bounce that will make the investment worthwhile.
For the full article please click here.