Black Hawk Mining Articles | Investment Banks Moving To Neutral on Mining Stocks

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Black Hawk Mines Bulletin
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Investment Banks Moving To Neutral on Mining
Stocks

• At least for a few investment banks like JP
  Morgan Cazenove and Citigroup, the negative tides
  for mining stocks appear to shifting towards the
  positive as they have changed their views from
  bearish to neutral.
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• LINK SOURCE
• http//promotion.blackhawk-mining.com/2013/06/24/i
  nvestment-banks-moving-to-neutral-on-mining-stocks
  /

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• JP Morgan Cazenove is still taking a guarded
  position towards mining stocks but sees companies
  within the industry aggressively cutting costs
  which is one of the reasons why mining stocks
  rise.
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• Citi analysts stay negative in their short-term
  outlook of the sector except furthermore observe
  some positivity in mining stocks in six months.

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• We believe that the large miners, such as Rio
  Tinto and BHP Billiton, are now reaching yield
  support as they are trading on higher yields than
  the market, Citi said.
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• Eric Lemieux, mining analyst with Laurentian Bank
  Securities in Montreal, remains bullish on mining
  stocks, saying that the commodities super cycle
  has not ended and despite slowdowns in the
  economy, there is still strong metals
  consumption.

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• The hit that commodity prices and miners have
  taken in 2013 may not necessarily be a bad thing,
  he said.
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• With this downturn, in the scope of things, I
  think its positive for the industry because we
  did have a period of micro inflation where costs
  had gone up tremendously in terms of labor and
  engineering firms it just overheated, Lemieux
  said. This retreat and decline in commodity
  prices, although it hurts, theres some positives
  here in terms of cost settling down.

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• JP Morgan mentioned a bottoming out in Chinese
  commodity import volumes and Chinese commodity
  inventories coming off recent highs as a possible
  catalyst for stronger metals demand.
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• While it boils down to consumption and a need for
  commodities for Lemieux.

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• If you look at whats going on in Asia, even
  though theres been a slowdown in China, theyre
  still consuming, they still have to modernize,
  Lemieux said. I have a sense that things will
  eventually bounce back up.

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• I think the end game is that commodities have
  some way to go and I wouldnt be neutral, he
  added.
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• http//blackhawkmines2.livejournal.com/
• http//blackhawkminesbulletin.blogspot.co.uk/