July 2020


Stock I'm watching this month:-

MIN - Mineral Resources Limited

Sector: Basic Materials
Market Cap: 4.5 Bil
Price/Earnings: 4.34
Price/Book: 2.05
Return On Equity: 60.09%
Return On Assets: 7.67%
Debt/Equity: 55.54%

Reasons to watch: MIN is a mining service company. In addition to that, the company has a portfolio of iron ore and lithium assets. I had been bullish of the lithium sector since 2018, investing in PLS, but the sector failed to take off. MIN is a good way to invest in the lithium space without taking too much risk, since they have other sources of income. Recently, iron ore export in Brazil have declined due to Covid-19, causing the price of iron ore to spike. I took a position on MIN expecting the iron ore price to continue to be robust and at the same time giving me exposure to lithium.

Risk: Once Brazil resumes their export of iron ore to pre Covid levels, the iron ore price is expected to drop.

Sentiment: Buy
Disclosure: Held
Current Price: $0.023
My Strike Price: $19 (Discounted Cash Flow Intrinsic Value: $20.89)


Disclaimer: This does not constitute any financial advice or stock recommendations. As always, Do Your Own Research.

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