Then, three years ago, and now charts;

valevale june 22 2015

We had targeted $8 to $7, with the proviso that it could go lower. The actual low was at $5.45. The count as shown, correct or not, actually developed accordingly. Therefore we would now be buyers of this stock.

tck.b jan 4 2011TCK.B july 22 2015

Then in this case was Jan. 4 2011 so more than 4 years ago. Now is today July 22, 2015. At the time we tried to keep open mind with regard to the actual count. We favoured the idea that there was a big, and irregular B wave but we also toyed with the possibility that it was a 5th wave. Today the B wave idea  looks far and away to be the better fit. That implies that the C wave down should subdivide into 5 separate waves as shown in the top part of the old chart. We have to struggle to find such a 5-wave subdivision and show only one possibility using an elongated 5th wave wedge. That would target about $10. Also C waves usually make their low below the preceding A wave which would call for a price below $5. In short , unlike with Vale, there is no reason to rush in here.

     One of the problems with this company is that it is run with the mindset of M&A , Mergers and Acquisitions department of a bank with all the financial engineering that goes with it. The real world of mining simple does not play by those rules. Nor does China.

Before you buy anything, have a look at BTU and better yet WLT, Walter Energy a “pure-play” coal minor that went from $140 to 26 cents, see below;

wlt jul 22 2015