NIC surged over 9% on Thursday, following Putin’s comments on nickel. Russia’s MMC Norilsk Nickel PJSC is the world’s biggest producer of refined nickel, and it’s not subject to US or UK sanctions. The West has chosen what to sanction from Russia in a somewhat bigoted fashion; depending on how much is required, it looks like Putin is about to flip things around. We’ve avoided NIC over the years, which has been a good move, but we like it ~80c as a trade as opposed to quality investment, although a dividend of ~6% does help.
NB Although we like the risk/reward towards NIC, it’s unlikely to find itself in MM’s portfolios this side of Christmas.
- We are targeting the $1.15-1.20 area for NIC into 2025, levels it tested a few times in recent years – a trading idea!
MM is bullish towards NIC in the short-term
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