Mineral Resources (MIN) is a situation play that’s endured a tough year where if it could go wrong it has, including being exposed to lithium and iron ore, two of the weakest commodities of late. However, the worm is turning for it on many fronts and although its already doubled from its April low we believe the surprises could be on the upside here, helped by a large 13.9% short position. Conversely, WBC is likely to move in tandem with the overall banking sector.
- MIN – We are initially targeting the $31.50 area, or another 5% higher.
- WBC – We can see WBC retracing back towards $32, another 3.5% lower.
WBC is our second choice, ASX “Big Four Bank,” but again, we have no plans to increase our exposure at this stage. While we like MIN, it’s already in our Active Growth Portfolio from higher levels, so hopefully, we aren’t talking our book here!
- We can see MIN outperforming WBC by 8-10% over the coming weeks/months, but MIN may surprise us on the upside.
MM prefers MIN over WBC in the coming weeks/months
Add To Hit List
chart
Mineral Resources (MIN) v Westpac Bank (WBC)
chart
Mineral Resources (MIN) v Westpac Bank (WBC)
