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Top 20 advisors: Vivian Lewis bets on Baja

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Vivian Lewis, editor of Global Investing, chose DryShips (NASDAQ: DRYS) as her favorite stock for 2007, which rose 126% as of 6/1/07. Here is her original recommendation on DRYS and her current opinion on the stock.

Now, she explains, "For a new pick for the second half of 2007, how about a copper company from Canada reviving an old mine in Baja California, Mexico?" Baja Mining (TSE: BAJ) is her current strong favorite.

"Baja Mining got a definitive feasibility study of its Boleo Project in Mexico, and it is lovely. Based on a presumed copper price of US$1.50/(metric) tonne, and cobalt at $15/pound and zinc sulphate at $1,200/tonne, the average cost of produced copper, net of byproducts, would be minus 7 cents/lb.

"Proven and probable reserves are sufficient for a 25-year mine life, with 275 million tonnes of measured and indicated resources grading 1.77% copper equivalent, and a further 250 million of inferred resourced grading 1.29% copper equivalent.

"These huge reserves mean that the project will have an after-tax indicated rate of return of 24.7%, or 46% at current market prices for the metals. The net project value at an 8% discount rate is $700 million, or $2.3 billion at current market prices.

Continue reading Top 20 advisors: Vivian Lewis bets on Baja

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S&P 500-2.851,103.39

Last updated: November 24, 2009: 12:14 PM

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