Cramer's metal armor

Posted Jul 19th 2007 5:40PM by Jon Ogg
Filed under: Analyst Reports, Television, Alcoa Inc (AA), BHP Billiton Ltd ADR (BHP)

On today's STOP TRADING segment on CNBC, Jim Cramer said you need to look at the smaller sub-$5 Billion stocks in the metals sector since it looks like the huge mergers in the group may have happened. Two names he gave were Teck Cominco Ltd. (NYSE:TCK) and Lundin Mining (NYSE:LMC). He still maintains that Alcoa Inc. (NYSE:AA) will not be a public company next year, despite the 3% drop today on word that BHP Billiton (NYSE:BHP) is not going to acquire it.

We'll see if this really ends up being the case if Alcoa ends up being acquired. These huge metals companies may not be quite as easy to acquire as some pundits think, even if a billion dollars isn't worth anything compared to what it once was. Lundin was one of those lesser known and lesser followed metals stocks we reviewed in May as an overlooked metals stock when shares were at $12.70 or so.

Jon Ogg is a partner at 24/7 Wall St.; he does not own securities in the companies he covers.

Tags: aa, alcoa, BHP, LMC, Lundin Mining, LundinMining, TCK, Teck Cominco, TeckCominco