BloggingStocks

OPEC wants an oil price 'solution' from producer, consumer meeting

Joseph Lazzaro — Wed, 11 Jun 2008 17:55:00 EST

Filed under: International Markets, Other Issues, Commodities, Oil

OPEC said Wednesday it wants a "solution" to end record-high oil prices, including an examination of the role speculators and governments of consuming and producing nations, when it meets later this month in Saudi Arabia, Bloomberg News reported.

Saudi Arabia, the world's top oil exporter and holder of the largest proved oil reserves, said it wants heads of state from consumer/producer nations to attend the June 22 meeting in Jeddah, Reuters reported, although it was unclear if any heads of state outside the cartel will attend the meeting.

A International Energy Agency official said the IEA's Executive Director Nobuo Tanaka would attend the meeting.

After a week-long pullpack with many traders calling a correction in a bull market, oil's seemingly inexorable drive to a price few individuals or companies can afford continued Wednesday. Oil closed up $5.11 to $136.42 per barrel after the U.S. Energy Information Administration announced a below-consensus 4.6-million-barrel decline in weekly oil inventories.

Although OPEC's previous meeting in Rome led to no new insights regarding oil, OPEC General Secretary Abdalla el-Badri told Bloomberg News this meeting will be different: "This one is different. This one is specifically to tackle the high oil prices, why they are high, who is to blame," el-Badri said. "Is this a real shortage in the market, or speculation, or the dollar? What is wrong?"

Continue reading OPEC wants an oil price 'solution' from producer, consumer meeting

OPEC wants an oil price 'solution' from producer, consumer meeting originally appeared on BloggingStocks on Wed, 11 Jun 2008 17:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Southern Peru (PCU) mines locally, but sells globally

Joseph Lazzaro — Mon, 05 Nov 2007 16:15:00 EST

Filed under: International Markets, India, China, Brazil, Mexico, Commodities, Stocks to Buy

During a period of persistent demand for minerals/commodities, considering a mining company or two makes a great deal of sense, and among these Southern Peru Copper (NYSE: PCU) is worth an evaluation.

Southern Peru is one of the largest copper mining companies in the world, and also is a large producer of molybdenum, silver and zinc. With operations in Mexico, Peru and Chile, PCU has seen steady demand for its mined products from burgeoning Asia, as well as from buyers in Europe and the Americas.

Further, although period labor strikes have lowered production in the past, PCU has been able to keep production at acceptable levels, and that fact, combined strong demand for copper, along with the company's 44.9 million proven copper reserves, make PCU an inviting play.

The risks? As one might realize, PCU sells a great deal of copper to China, and if China substantially lowers its copper purchases as it started to do so this summer, copper prices would begin to soften, hurting PCU's results. The Reuters F2007/F2008 EPS consensus estimates for PCU are $9.15/$10.24.

The First Call mean rating for PCU is: Hold. (8 firms.) Mean 2007 target: $109.50. (high: $135, low: $59.80.)

Stock Analysis: Southern Peru Copper is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from PCU's shares. Sell / Stop Loss: $95.

Southern Peru (PCU) mines locally, but sells globally originally appeared on BloggingStocks on Mon, 05 Nov 2007 16:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

South America's largest ethanol player, Cosan, to list on NYSE

Zac Bissonnette — Tue, 26 Jun 2007 01:05:00 EST

Filed under: Brazil, Commodities, Agriculture, Initial Public Offerings

At last, U.S. investors who want a piece of the ethanol game may have a pure play that's solidly profitable. South America's largest ethanol company, Cosan, filed Monday to raise $2 billion through the United States financial markets. According to Dow Jones, Cosan will use about $650 million in IPO proceeds for a new ethanol plant. $500 million to expand existing sugar and ethanol plants, and $325 million to build plants to generate electricity from left over sugar cane.

Cosan reported net income of $346.5 million in fiscal year 2007, and its size and strength have led to speculation that Archer Daniels Midland (NYSE: ADM) may make a run at buying the company. The plans for an IPO make that seem less likely however.

Cosan may have missed the speculative ethanol bull market of last year that sent companies like Pacific Ethanol (NASDAQ: PEIX) into the stratosphere, but the fact that Cosan actually makes money -- and lots of it -- gives it the making of a potentially very successful IPO.

Cosan's sugar-based ethanol is probably more efficient than the corn-based ethanol that is being produced in the United States, but huge government tariffs and farm subsidies will put the company at a disadvantage in the United States for now. But if gas prices continue to soar and pressue mounts in Washington to remove the tarrifs, Cosan would probably become a major player in the ethanol market here. If that happens, investors who scoop up Cosan at the IPO will be richly rewarded.

South America's largest ethanol player, Cosan, to list on NYSE originally appeared on BloggingStocks on Tue, 26 Jun 2007 01:05:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments