looking very strong

  1. 716 Posts.
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    IMO, PHY is at the start of a significant up-turn which could see the stock trading at around $3.80 in the next 3-6 months. The SP rise will be fueled by Fed election environment politics, new institutional backing, increased liquidity, excellent management, a strong capital position, and a solid profit outlook (even with a strong $A). The Libs are likely to announce in the next two months that they will leave MRET at 2% (this is what the market is expecting). If Labour win the next election, MRET will be lifted to 5% (stated policy under a Labour government). In my judgement, a 5% MRET (which could triple Australian revenue over the next 3 years) should see PHY trading at around $5 in 12-18 months. Any weakening of the $A over the next 12 months will be an added bonus (those in know expect Greenspan to raise US interest rates immediately following the US presidental election). IMO, PHY is an excellent long term play.
 
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