Thursday's report on UK-Analyst is from TopSpreadBets.com

570 Days ago (2010-07-15 23:45:45)

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Open A Open A Buy Bet In The Aquarius Platinum Rolling Spread

Says TopSpreadBets.com

The Bet: We recommend opening a buy bet in the rolling Aquarius Platinum (AQP) spread at GBP12 a penny when the quote is standing at 310p - 312p. The target is 367p plus initially and the stop loss is 260p for a risk of GBP624 at our suggested wager.

The Fundamental View: We are once again backing a buy bet in mining group Aquarius Platinum in the wake of the latest rebound in metals prices, especially Gold from the $1,200 level. As far as Aquarius itself is concerned many of the fundamental negatives are now behind the company including last year's $250m bond issue.

In addition, in February the company announced that it had returned to profitability at the interim stage, with the reinstatement of the dividend. A 16% jump in Q4 2009 production also boosted the bull argument.

Recently bulls of the stock have been hit by fatalities at the Marikana 4 shaft as the Department of Mineral Resources in South Africa may suspend some operations. However, our view is that this shock is already in the share price near 300p.

Open a buy bet in Aquarius Platinum rolling spread on the reinstatement of the dividend and the improvement in metals prices.



The Technical View: We are recommending a buy bet in the Aquarius Platinum rolling spread on the basis of a major low put in by the shares at 300p at the floor of a rising November 2008 price channel. Especially while there is no break back below this level the expectation is for an acceleration towards the 200 day moving average at 367p. The stop loss is at 260p, well below the support expected to come in at 300p or just below.

Open a buy bet in the Aquarius Platinum rolling spread as the shares finish building a solid looking chart base.

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