ASX Week 11 Winner: Bougainville Copper [BOC] Closed 29c Higher This Week

Submitted by Marco on 19 March, 2006 - 20:22

Bougainville Copper (BOC) Stock Price Chart

Bougainville Copper [BOC], an ASX listed company, closed 29c higher this week. This stock is in the resources sector, and as we all know, these stocks are very volatile when it comes to news or announcements or any new prospects of future profits. Just to think if you were to pick the bottom and the exact top of this stock during the week, it would have netted you a 72% return. (Assuming you picked the bottom, by buying at the start of the week, held it for two days and sold it at its peak on Wednesday 15th March 2006. It also assumes that there was enough liquidity for you to offload the stock at the peak price.) 72$ without any leveraging. How perfect. Sometimes you just have to be in the know...

The stock actually started moving up the day before - on Tuesday. On Wednesday, the news broke out, or filtered through to the majority about how the Papua New Guinean Mining Minister Sam Akoitai has travelled to the UK for talks with international resources group Rio Tinto. Rio Tinto is the majority owner of BOC (Bougainville Copper). The Panguna mine until attacks by secessionist rebels caused it to be shut down in 1989. So on 14th March, investors speculated that this mine may soon be recommissioned, sending the stock up higher by $A0.16 on Tuesday's close. Panguna produced some 180,000 tonnes of copper and 400,000 ounces of gold per year

By the way, I'm not invested in BOC. Just noticed the jump that's all.