Continue reading Reiterating favorable stocks: Freeport, Potash, Ford

Reiterating favorable stocks: Freeport, Potash, Ford originally appeared on BloggingStocks on Wed, 16 Sep 2009 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Freeport: Back up the truck for a superior copper play

Freeport: Back up the truck for a superior copper play originally appeared on BloggingStocks on Tue, 21 Jul 2009 17:40:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• UBS upgraded Target (NYSE: TGT) to Buy from Neutral and raised its price target to $52 from $45 citing reduced inventories, some credit stability, and an improved back-to-school period.
• Credit Suisse said concerns regarding Safeway's (NYSE: SWY) price position are overblown and that earnings risk is limited. The firm upgraded shares to Outperform from Neutral and raised the target price to $25 from $22.
• Oppenheimer upgraded Canadian Solar (NASDAQ: CSIQ) to Outperform from Perform as it believes the story is underappreciated following the recent sector rally. The firm has a $14 price target on the stock.
• CME Group (NASDAQ: CME) was upgraded to buy from Neutral at Goldman.
• Freeport McMoRan (NYSE: FCX) was upgraded to Overweight from Neutral at JP Morgan.
• Gilead Sciences (NASDAQ: GILD) was upgraded to Buy from Neutral at FTN Equity.

Continue reading Analyst upgrades, downgrades and initiations: TGT, SWY, CSIQ, HOTT, MPEL, RIO, CPB, CVD and HGG

Analyst upgrades, downgrades and initiations: TGT, SWY, CSIQ, HOTT, MPEL, RIO, CPB, CVD and HGG originally appeared on BloggingStocks on Thu, 21 May 2009 11:10:00 EST. Please see our terms for use of feeds.

Southern Peru Copper (NYSE: PCU) closed at $18.12 Monday. Copper is recently up 5.31% to 153.65 according to Bloomberg. PCU February option implied volatility of 83 is above its 26-week average of 78, according to Track Data, suggesting larger price movement.

Teck Cominco (NYSE: TCK), a diversified mining company, closed at $6.82 Monday. TCK January 7.5 straddle is priced at $1.60, December 7.5 straddle is priced at $2.60. TCK February option implied volatility of 121 is above its 26-week average of 110 according to Track Data, suggesting larger share price movement.

Freeport McMoRan (NYSE: FCX) closed at $28.22 Monday. FCX, the world's second-largest copper producer, is expected to report Q4 EPS in mid January. February call option implied volatility is at 87, puts are at 84; near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Options Update: Copper producers' volatility elevated; Copper up 5% originally appeared on BloggingStocks on Tue, 06 Jan 2009 08:30:00 EST. Please see our terms for use of feeds.

This post was written by Minyanville contributor Vitaliy Katsenelson.

"You should buy Freeport McMoRan (NYSE: FCX), Caterpillar (NYSE: CAT), PACCAR (NASDAQ: PCAR)." That is what I hear from friends of mine, who are in the biz, all the time. They tell me how cheap these stocks are -- three, six, eight times earnings. "You are a value guy! How come you are not loading up on them?" they ask.

Let me tell you when I'll buy "stuff" stocks (if I ever do, because I've never really cared for the cyclicality of that business). It's when everyone stops telling me how cheap they are and that they are "buys."

These stocks are very similar to housing stocks two years ago: housing stocks were down 50% and looked cheap. Value managers bought just to see their stocks get cut in half again and again.

One needs to subnormalize earnings in this environment for all stocks, but stuff stocks need to see their earnings to be "sub-sub-sub-sub normalized." I've said it before, but it is worth repeating: the global economy just started its journey into a recession, and demand for stuff will drop off the cliff most likely to a lot greater degree than anyone imagines.

Continue reading 'Stuff' stocks look cheap?: Caterpillar, Freeport McMoRan, PACCAR

'Stuff' stocks look cheap?: Caterpillar, Freeport McMoRan, PACCAR originally appeared on BloggingStocks on Tue, 25 Nov 2008 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: takeovers will resume as long as banks are serious about lending

Cramer on BloggingStocks: takeovers will resume as long as banks are serious about lending originally appeared on BloggingStocks on Wed, 15 Oct 2008 09:15:00 EST. Please see our terms for use of feeds.

"Recent weakness in commodities is just a pause to breathe , not the beginning of the end," says Yiannis Mostrous in Vital Resource Investor. His favorite copper play? Freeport-McMoRan Copper & Gold (NYSE: FCX).

"Most investors aren't able to grasp this commodities cycle's massive potential. The main reason is that few investors are willing to accept the big transformation that's taking place in several emerging market economies, led by China and India.

"We've been advocating this change for quite some time. And after several years of doing so, investors are more receptive. However, they're not totally convinced yet.

"This is the main reason this bull market in emerging markets and commodities has another strong leg up before it reaches all-time highs. But we're far from that point. Meanwhile, copper remains one of our favorite metals.

"Our long-standing recommendation to take advantage of copper's strength is Freeport-McMoRan Copper & Gold. Copper suffered from supply challenges along with investors' underestimation of its potential early in the year.

Continue reading Freeport McMoRan (FCX): Top play in copper

Freeport McMoRan (FCX): Top play in copper originally appeared on BloggingStocks on Fri, 13 Jun 2008 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Earthquake recovery can change China

Cramer on BloggingStocks: Earthquake recovery can change China originally appeared on BloggingStocks on Wed, 14 May 2008 09:30:00 EST. Please see our terms for use of feeds.

"There's no doubt about it: vital resources are in a bull market of gigantic proportions," note Yiannis Mostrous and Roger Conrad.

"The co-editors of Vital Resource Investor caution that "no market moves in a straight line, and in commodities, the action is often extremely violent." However, for long-term investors, they offer some favorites in iron ore, aluminum and copper.

"All commodity bull markets are ultimately gored by demand destruction, alternatives and new supply. But it will almost certainly be years before that happens to this one. And that means plenty of money will be made along the way.

"We're still extremely bullish on iron ore as the market remains in deficit and prices continue to rise. Chinese domestic supply has been falling and, if this continues, imports will make up the difference, thereby helping the miners.

"China consumes 51% of the world's iron supply. Portfolio holding Companhia Vale do Rio Doce (NYSE: RIO), the world's largest iron ore producer, will benefit from the shortage in iron ore supply.

"We favor aluminum in the industrial metals sector. We've been advocating aluminum for some time, and the market's finally going our way. Aluminum prices have been impacted by lack of available power in China and South Africa and higher alumina and bauxite prices.

Continue reading Mining trio: Iron ore, aluminum and copper

Mining trio: Iron ore, aluminum and copper originally appeared on BloggingStocks on Wed, 30 Apr 2008 10:48:00 EST. Please see our terms for use of feeds.

"A once in a lifetime super bull market in commodities is underway," note resource experts Mary Anne and Pamela Aden. Here, the advisors look at some favorite commodity stocks in their The Aden Forecast.

"Commodities are in a mega super rise is because of the dramatic changes in the global economy. The rise that started in commodities in 2001 has continued to expand over the years and we believe the upmove is just warming up and it has years to run.

"There are several reasons for this. The weakening dollar and low interest rates have certainly helped push up the whole sector while investment demand grew as an inflation hedge. But the key reason why the commodities are in a mega super rise is because of the dramatic changes in the global economy.

Continue reading Resource favorites from the Aden sisters

Resource favorites from the Aden sisters originally appeared on BloggingStocks on Mon, 21 Apr 2008 13:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: AstraZeneca, Massey Energy and Freeport McMoRan were today's noteworthy upgrades:

• Dresdner Kleinwort upgraded shares of AstraZeneca (NYSE: AZN) to Buy from Hold following the company's settlement with Ranbaxy on the Nexium patent.
  
• Massey Energy (NYSE: MEE) was raised to Overweight from Neutral at Massey Energy citing the company's leverage to metallurgical coal prices in 2009.
  
• Freeport McMoRan (NYSE: FCX) was upgraded at HSBC to Overweight from Neutral on valuation.

OTHER UPGRADES:

• Arcelor Mittal (NYSE: MT) was upgraded to Buy from Hold at Citigroup.
  
• Merrill upgraded Bernis (NYSE: BMS) to Neutral from Sell.

Analyst upgrades: AstraZeneca, Massey Energy, Freeport McMoRan originally appeared on BloggingStocks on Tue, 15 Apr 2008 12:25:00 EST. Please see our terms for use of feeds.

Freeport McMoRan (NYSE: FCX), a gold and copper mining company, closed at $93.97 Monday.

Gold is recently up 1.23% to $983.80 according to Bloomberg.

FCX overall option implied volatility of 56 is above its 26-week average of 50 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Freeport McMoRan volatility elevated as gold approaches $1000 originally appeared on BloggingStocks on Tue, 11 Mar 2008 10:10:00 EST. Please see our terms for use of feeds.

Freeport-McMoran (FCX) lifted by gold and copper gains originally appeared on BloggingStocks on Thu, 21 Feb 2008 12:46:00 EST. Please see our terms for use of feeds.

According to Roger Conrad and Yiannis Mostrous, "Resource stocks are by nature volatile. The important thing is we're still very much in a long-term bull market. And when the market mood does shift, today's pain will convert very quickly to massive gain."

In Vital Resource Investor they explain, "There is ongoing consolidation in this sector and the recent setback in stock prices make deals more attractive for acquirers." Here, they look at Companhia Vale do Rio Doce (NYSE: RIO), a play on consolidation in the iron ore industry.

"And when the market mood does shift, today's pain will convert very quickly to massive gain. The long-term underpinnings for vital resources are strong as ever: Soaring demand from the world's emerging growth engines, a growing scarcity of easily accessed supplies, rising development costs, resurgent resource nationalism and ongoing sector consolidation.

"It's this last trend that's captured our attention lately. Importantly, when it comes to developing vital resources profitably, size is essential. This year has already witnessed two mega-deals: Freeport Copper & Gold (NYSE: FCX) has bought Phelps Dodge and Rio Tinto (NYSE: RTP) purchased Alcan.

"And we're certain to see many more announced in coming months. The recent dance between BHP Billiton (NYSE: BHP) and its giant rival suggest the need to get bigger is greater than ever. Even if it doesn't succeed, the proposed merger is already increasing rivals' urge to merge.

Continue reading Companhia Vale do Rio Doce (RIO): Strong play on iron ore

Companhia Vale do Rio Doce (RIO): Strong play on iron ore originally appeared on BloggingStocks on Thu, 06 Dec 2007 16:10:00 EST. Please see our terms for use of feeds.

Deal talk had sent Rio's shares up about 7% in Australia early Monday. However, in the U.S., there was little follow through: Rio's shares fell $2.20 to $433.85 in mid-day Monday trading.

Earlier this year Rio rejected an offer from BHP Billiton (NYSE: BBL), saying BHP's offer undervalued the company. Two subsequent requests for talks by BHP were also turned down.

Sector/Deal Analysis

Continue reading Rio Tinto denies China bid chatter

Rio Tinto denies China bid chatter originally appeared on BloggingStocks on Mon, 26 Nov 2007 13:50:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Societe Generale downgraded shares of Ericsson (NASDAQ: ERIC) to Hold from Buy after the company lowered its Q4 guidance. Goldman Sachs downgraded shares to Neutral from Buy on the company's lowered Q4 revenue outlook and the growing probability that the wireless infrastructure market will decline again in 2008.
• Circuit City (NYSE: CC)'s rating was lowered to Neutral from Overweight at JP Morgan, as they believe the company's high cost turnaround will require a strategic partner or acquirer, which may not happen until after 2H08 and this year's holiday season.
• Citigroup downgraded shares of Hot Topic (NASDAQ: HOTT) to Hold from Buy to reflect their pushed out expectations for an earnings recovery.

• Office Depot (NYSE: ODP) was downgraded to Peer Perform from Outperform at Bear Stearns.
• Lehman downgraded Telecom Italia (NASDAQ: TI) to Underweight from Equal Weight.
• Goldman removed Freeport McMoRan (NYSE: FCX) from its Conviction Buy List.

Analyst downgrades: ERIC, CC and HOTT originally appeared on BloggingStocks on Wed, 21 Nov 2007 09:25:00 EST. Please see our terms for use of feeds.

Continue reading Freeport: Global reach, now at a bargain price

Freeport: Global reach, now at a bargain price originally appeared on BloggingStocks on Mon, 19 Nov 2007 18:08:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Take a defensive stance now

Cramer on BloggingStocks: Take a defensive stance now originally appeared on BloggingStocks on Tue, 13 Nov 2007 09:00:00 EST. Please see our terms for use of feeds.

Richard Rhodes, professional trader, money manager and editor of The Rhodes Report was one advisor who accurately forecast the recent decline and moved into short positions going into this past week.

And while he sees the potential for a near-term bounce, this week's action leads the advisor to say, "A major trading high has formed, which will lead to a -10% to -20% correction...perhaps deeper."

He explains, "If there was ever a 'bell' to signal the end of an intermediate or long-term rally; we think the decline from the S&P 500 high of 1565 to yesterday's low at 1465 suffices as such."

The constriction of credit and liquidity, he notes, has led to very poor advance/decline figures. As such, he suggests being a seller during any rallies that result fro the "month-end bullish pattern and short-term oversold condition."

Indeed, even in his Long Only Portfolio - a portfolio that as its name implies only holds long position - he now says, "We are going to a very rare, but very prudent 'no position' stance." As for his Long/Short Portfolio, he says, "We are now aggressively short."

Continue reading Trader sees 10% to 20% decline

Trader sees 10% to 20% decline originally appeared on BloggingStocks on Fri, 27 Jul 2007 11:00:00 EST. Please see our terms for use of feeds.

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) -- volatility Elevated on renewed Kerkorian speculation. HOT, a leading hotel and leisure company, is frequently mentioned as a private equity break up/recapitalization candidate. Chatter is circulating that Kirk Kerkorian's Tracinda has a mid-$90's offer on the table for HOT. HOT is recently up $0.63 to $70.64. HOT has a market cap of $15 billion with long term debt of $1.8 billion. HOT reported quarterly March 2007 total revenue of $1.4 billion. HOT July option implied volatility of 34 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Countrywide Financial Corp. (NYSE: CFC) -- volatility not confirming renewed takeover speculation. CFC, the largest U.S. home mortgage lender, is recently up 26 cents to $38.16. CFC July option implied volatility of 36 is near its 26-week average of 34 according to Track Data, suggesting slightly larger price fluctuations.

Option volume leaders today are: Apple Inc. (NASDAQ: AAPL), Freeport McMoran (NYSE: FCX), Goldman Sachs Group (NYSE: GS) and Valero Energy Corp. (NYSE: VLO).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 6-14-07: Starwood up on renewed Kerkorian speculation originally appeared on BloggingStocks on Thu, 14 Jun 2007 12:30:00 EST. Please see our terms for use of feeds.