BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[ArcelorMittal Is a Crucial Customer for Cliffs]]>http://www.bloggingstocks.com/2011/03/29/arcelormittal-is-a-crucial-customer-for-cliffs/http://www.bloggingstocks.com/2011/03/29/arcelormittal-is-a-crucial-customer-for-cliffs/http://www.bloggingstocks.com/2011/03/29/arcelormittal-is-a-crucial-customer-for-cliffs/#commentsFiled under: , ,

Cliffs Natural Resources (CLF) is a leading mining and natural resources company in the U.S., and is also the largest producer of iron ore pellets in North America. It competes with other international mining and natural resources companies like Vale, BHP Billiton (BHP) and Rio Tinto (RTP).

Cliffs' North American Iron Ore division accounts for more than two-thirds of the company's total revenue, and around 60% of Cliffs' stock value, by our estimates. Long-term contracts with customers like ArcelorMittal (MT), Algoma and Severstal ensure substantial sales of the firm's mineral produce.

Continue reading ArcelorMittal Is a Crucial Customer for Cliffs

ArcelorMittal Is a Crucial Customer for Cliffs originally appeared on BloggingStocks on Tue, 29 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArecelorMittalCLFCliffs Natural Resourcesinthenewsiron oreminingMtnatural resourcesTue, 29 Mar 2011 18:00:00 EST<![CDATA[Uranium Stocks Hammered in the Wake of Tragedy in Japan]]>http://www.bloggingstocks.com/2011/03/15/uranium-stocks-hammered/http://www.bloggingstocks.com/2011/03/15/uranium-stocks-hammered/http://www.bloggingstocks.com/2011/03/15/uranium-stocks-hammered/#commentsFiled under: , , , , ,

nuclear plant explosion in JapanEvery major crisis has its winners and losers. With the Japanese crisis, most prominent may be the uranium stocks. As you might guess they are getting hammered. The presumption is that governments will be reluctant to approve nuclear projects in the wake of Japan's nuclear meltdown.

Here are just a few companies and recent stock prices:

  • Denison Mines (DNN): $2.55, down 74 cents. Denison is a worldwide mining and exploration company. It has two uranium waste recycling plants in the U.S.

Continue reading Uranium Stocks Hammered in the Wake of Tragedy in Japan

Uranium Stocks Hammered in the Wake of Tragedy in Japan originally appeared on BloggingStocks on Tue, 15 Mar 2011 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditiesDNNinthenewsminingnuclear power plantsradiationuranium stocks lowerURREURZUSUTue, 15 Mar 2011 11:30:00 EST<![CDATA[Should Freeport Pursue Lundin Mining?]]>http://www.bloggingstocks.com/2011/03/10/should-freeport-pursue-lundin-mining/http://www.bloggingstocks.com/2011/03/10/should-freeport-pursue-lundin-mining/http://www.bloggingstocks.com/2011/03/10/should-freeport-pursue-lundin-mining/#commentsFiled under: , , , ,

Freeport McMoran Copper (FCX) is a miner of copper, gold and molybdenum. It has operations in North and South America, Indonesia and Africa, and competes with other miners such as the Southern Copper (SCCO), Codelco and Newmont Mining (NEM).

Continue reading Should Freeport Pursue Lundin Mining?

Should Freeport Pursue Lundin Mining? originally appeared on BloggingStocks on Thu, 10 Mar 2011 12:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Codelcocoppercopper stocksfeaturedFreeport McMoran Copper and GoldgoldGoldMiningInmet MiningLundin MiningminesminingmolybdenumNewmont MiningNewmontMiningSouthern CopperzincThu, 10 Mar 2011 12:40:00 EST<![CDATA[Jacobs Engineering Group Rises on New Acquisition]]>http://www.bloggingstocks.com/2010/12/22/jacobs-engineering-group-rises-on-new-acquisition/http://www.bloggingstocks.com/2010/12/22/jacobs-engineering-group-rises-on-new-acquisition/http://www.bloggingstocks.com/2010/12/22/jacobs-engineering-group-rises-on-new-acquisition/#commentsFiled under: , , , ,

Jacobs Engineering (JEC) logoJacobs Engineering Group (JEC - option chain) shares are rising today after the company announced it has agreed to acquire the Process and Construction operations of Aker Solutions ASA for $675 million in cash. The deal will significantly expand JEC's presence in the mining and metals market, and is expected to close in the second quarter of fiscal-2011. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JEC.

JEC opened this morning at $44.36. So far today the stock has hit a low of $44.28 and a high of $47.97. As of 12:10, JEC is trading at $45.90 up $1.75 (3.9%). The chart for JEC looks bullish and S&P gives JEC a positive 5 STARS (out of 5) strong buy ranking.

Continue reading Jacobs Engineering Group Rises on New Acquisition

Jacobs Engineering Group Rises on New Acquisition originally appeared on BloggingStocks on Wed, 22 Dec 2010 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>acquisitiondealsinthenewsInvestors ObserverJacobs Engineering GroupJECminingoptionsWed, 22 Dec 2010 13:30:00 EST<![CDATA[Rio Tinto Boosts Iron Ore Output, Ups Spending]]>http://www.bloggingstocks.com/2010/11/26/rio-tinto-boosts-iron-ore-output-ups-spending/http://www.bloggingstocks.com/2010/11/26/rio-tinto-boosts-iron-ore-output-ups-spending/http://www.bloggingstocks.com/2010/11/26/rio-tinto-boosts-iron-ore-output-ups-spending/#commentsFiled under: ,

Australian mining firm Rio Tinto (RIO) revealed plans to triple its capital expenditure to around $11 billion. The company also plans to up its iron ore production by more than 50% during the next five years.

The boost in production stems from new drilling and a reevaluation of deposits in Western Australia where the company found an extra two billion tons of iron ore reserves. The expansion of the iron ore division should help RIO take advantage of the "growing demand for raw materials to make steel" in China.

Continue reading Rio Tinto Boosts Iron Ore Output, Ups Spending

Rio Tinto Boosts Iron Ore Output, Ups Spending originally appeared on BloggingStocks on Fri, 26 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bhpcoalfeaturedinthenewsiron oreminingrioRio Tintotechnical analysisFri, 26 Nov 2010 11:00:00 EST<![CDATA[Taseko Mines Limited Offers Attractive Risk/Reward]]>http://www.bloggingstocks.com/2010/11/05/taseko-mines-limited-offers-attractive-risk-reward/http://www.bloggingstocks.com/2010/11/05/taseko-mines-limited-offers-attractive-risk-reward/http://www.bloggingstocks.com/2010/11/05/taseko-mines-limited-offers-attractive-risk-reward/#commentsShares of Taseko Mines Ltd. (TGB) plunged this week on news that the Canadian federal government in Ottawa has announced that it has decided not to approve the company's Prosperity mining project due to environmental concerns. This project had been previously approved by the provincial government of British Columbia.

The call options on TGB were also very active this week, suggesting that traders believe the sell-off was overdone. Around 16,745 calls were traded, which is more than 3X the average daily volume. Essentially, after the initial reaction to the Prosperity news, the trading activity in Taseko was bullish, and for good reason.

Continue reading Taseko Mines Limited Offers Attractive Risk/Reward

Taseko Mines Limited Offers Attractive Risk/Reward originally appeared on BloggingStocks on Fri, 05 Nov 2010 17:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>british columbiafeaturedinthenewsminingTaseko MinestgbFri, 05 Nov 2010 17:10:00 EST<![CDATA[Consol Energy to Close Mine]]>http://www.bloggingstocks.com/2010/10/01/consol-energy-to-close-mine/http://www.bloggingstocks.com/2010/10/01/consol-energy-to-close-mine/http://www.bloggingstocks.com/2010/10/01/consol-energy-to-close-mine/#commentsFiled under: ,

Consol Energy (CNX) logoFriday morning, Consol Energy (CNX) announced that it will close its Mine 84 near Washington, Penn. The closure will cost roughly 60 employees their jobs.

The employees who lose their jobs will have the choice of taking a position with another Consol operation. The company will conduct the layoffs for 14 days, starting at 12:01 AM on December 1 -- talk about your happy holiday season. The good news is that these workers will be able to look for alternative work before the layoffs take place.

Continue reading Consol Energy to Close Mine

Consol Energy to Close Mine originally appeared on BloggingStocks on Fri, 01 Oct 2010 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CNXConsol Energyinthenewsjob losseslayoffsminingtechnical analysisFri, 01 Oct 2010 12:00:00 EST<![CDATA[Options Update: Newmont Mining Up on Record Gold Prices]]>http://www.bloggingstocks.com/2010/09/14/options-update-newmont-mining-up-on-record-gold-prices/http://www.bloggingstocks.com/2010/09/14/options-update-newmont-mining-up-on-record-gold-prices/http://www.bloggingstocks.com/2010/09/14/options-update-newmont-mining-up-on-record-gold-prices/#commentsFiled under: , ,

Newmont Mining (NEM) closed up $2.96 to $63.39. Gold is recently up 2.00% to $1,272 according to Bloomberg. NEM option volume of 26K contracts compares to put volume of 14K contracts. October put option implied volatility is at 33, December is at 34. This versus its 26-week average of 35, according to Track Data, suggesting non-directional price movement.

JCPenney Co. Inc. (JCP) closed up $1.66 to $23.99. JCP Chief Executive Mike Ullman told attendees at a Goldman Sachs conference that the retailer expects se see better same-store sales in Q4 than it did a year ago. JCP call option volume of 33K contracts compares to put volume of 5K contracts with short term speculation volume in September 23 and October 24 calls. October put option implied volatility is at 44, November and January is at 46. This is above its 26-week average of 42, according to Track Data, suggesting larger price movement.

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

Options Update: Newmont Mining Up on Record Gold Prices originally appeared on BloggingStocks on Tue, 14 Sep 2010 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>goldinthenewsJCPminingoptionsretailTue, 14 Sep 2010 17:30:00 EST<![CDATA[Rio Tinto Clamps Down in Australia]]>http://www.bloggingstocks.com/2010/05/06/rio-tinto-clamps-down-in-australia/http://www.bloggingstocks.com/2010/05/06/rio-tinto-clamps-down-in-australia/http://www.bloggingstocks.com/2010/05/06/rio-tinto-clamps-down-in-australia/#commentsFiled under: , , , ,

A mining tax proposal in Australia, dubbed the Resource Super Profit Tax (RSPT), has caused the mining company Rio Tinto (RTP) to put some projects on hold. According to a report from Bloomberg, "Rio has plans to suspend an A$11 billion ($10 billion) expansion of its iron ore operations in Western Australia."

What does this mean to the company's investors? Really, not much. This move represents no fundamental change to Rio Tinto. It's merely a change in schedule. The item of concern here is the proposed tax itself. Bloomberg states: "The tax may reduce Rio's earnings by 21 percent and earnings at Melbourne-based BHP by 17 percent in 2013, according to UBS AG estimates."

Continue reading Rio Tinto Clamps Down in Australia

Rio Tinto Clamps Down in Australia originally appeared on BloggingStocks on Thu, 06 May 2010 12:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>australiacommodity metalscommodity pricesCommodity Trend Alertinthenewsiron oreminingmining sectormining stocksResource Super Profit TaxThu, 06 May 2010 12:00:00 EST<![CDATA[25 Miners Killed in Massey Energy Mine Blast]]>http://www.bloggingstocks.com/2010/04/06/25-miners-dead-in-massey-energy-mine-blast/http://www.bloggingstocks.com/2010/04/06/25-miners-dead-in-massey-energy-mine-blast/http://www.bloggingstocks.com/2010/04/06/25-miners-dead-in-massey-energy-mine-blast/#commentsFiled under:

The horrible news began to leak out late Monday and through the night: A mine explosion in West Virginia killed 25 miners, with four still missing. The mine is the property of Massey Energy (MEE) and is located roughly 30 miles south of Charleston, West Virginia.

Rescuers will attempt to bore holes to allow gas to be ventilated from the mine, which would allow rescue efforts to continue. Unfortunately, it will take roughly 12 hours before the drilling is complete and safety can be established in the mine -- which means that a search for the four missing miners won't start until around 6 p.m. Tuesday. There is a chance that the four miners made it to one of three airtight chambers that are stocked with enough food, air, and water for miners to survive for four days.

Continue reading 25 Miners Killed in Massey Energy Mine Blast

25 Miners Killed in Massey Energy Mine Blast originally appeared on BloggingStocks on Tue, 06 Apr 2010 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredinthenewsMassey EnergyMEEminemine safetyminingTue, 06 Apr 2010 08:40:00 EST<![CDATA[Rio Tinto Scores an Upgrade from Citigroup]]>http://www.bloggingstocks.com/2010/02/02/rio-tinto-scores-an-upgrade-from-citigroup/http://www.bloggingstocks.com/2010/02/02/rio-tinto-scores-an-upgrade-from-citigroup/http://www.bloggingstocks.com/2010/02/02/rio-tinto-scores-an-upgrade-from-citigroup/#commentsFiled under: ,

Early Tuesday morning, Rio Tinto (RTP) was upgraded to buy from hold at Citigroup. The brokerage attributed the upgrade of the Spanish miner to attractive valuations and upgrades to RTP's iron ore prices.

Citigroup believes that the recent share price correction has shifted the mining preference back to RTP. The ratings house also likes RTP's strong cash generation in iron ore and copper, its balance sheet deleveraging potential, and its growth options.

Continue reading Rio Tinto Scores an Upgrade from Citigroup

Rio Tinto Scores an Upgrade from Citigroup originally appeared on BloggingStocks on Tue, 02 Feb 2010 09:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>copperinthenewsminersminingRio TintoRioTintoRTPtechnical analysisTue, 02 Feb 2010 09:00:00 EST<![CDATA[Healthcare, tech and energy to outperform in next 12 months]]>http://www.bloggingstocks.com/2009/11/02/healthcare-tech-and-energy-to-outperform-in-next-12-months/http://www.bloggingstocks.com/2009/11/02/healthcare-tech-and-energy-to-outperform-in-next-12-months/http://www.bloggingstocks.com/2009/11/02/healthcare-tech-and-energy-to-outperform-in-next-12-months/#commentsFiled under: ,

For the first half of 2010, almost two thirds of money managers are bullish, according to Barron's. In fact, 54% are bullish, and 5% are "very bullish." Responses suggest that the Dow Jones Industrial Average is expected to gain another 5% by the end of the year.

According to Barron's, "Today's bullish investors see the major stock indexes making steady progress through next June, amid signs the U.S. economy is on the mend after a searing recession."

Continue reading Healthcare, tech and energy to outperform in next 12 months

Healthcare, tech and energy to outperform in next 12 months originally appeared on BloggingStocks on Mon, 02 Nov 2009 09:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>barronsclean technologyCleanTechnologyconsumer spendingConsumerSpendingdow jones industrial averageDowJonesIndustrialAverageenergyfinancialshealthcareinthenewsit spendingItSpendingmetalsmicrosoftminingmoney managersMoneyManagersmsfttechnologyMon, 02 Nov 2009 09:40:00 EST<![CDATA[Don't believe the headline hype on Alcoa]]>http://www.bloggingstocks.com/2009/07/09/dont-believe-the-headline-hype-on-alcoa/http://www.bloggingstocks.com/2009/07/09/dont-believe-the-headline-hype-on-alcoa/http://www.bloggingstocks.com/2009/07/09/dont-believe-the-headline-hype-on-alcoa/#commentsFiled under: ,

Aluminum producer Alcoa Inc. (NYSE: AA), the first Dow Jones Industrial Component to report earnings, beat estimates when they announced after the bell -- or so the story goes. It continues that this touched off buying interest across the market that had been sorely lacking in prior sessions. There's only one problem: Alcoa's results weren't very good, and they didn't boost the market.

Alcoa opened trading today up more than 5.5% from its close yesterday, before it reported earnings. Going into the final minutes of trading, the stock was down more than 2% -- a tough reversal for those buying on the pop. The company reported a headline EPS of -$0.32, or -$0.26 excluding restructuring charges. This compared to analysts' consensus of -$0.38 on $3.9 billion in revenue.

Continue reading Don't believe the headline hype on Alcoa

Don't believe the headline hype on Alcoa originally appeared on BloggingStocks on Thu, 09 Jul 2009 18:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>aaearnings reportsEarningsReportsmetalsminingThu, 09 Jul 2009 18:20:00 EST<![CDATA[Newmont Mining: Two minerals for the expansion -- gold and copper]]>http://www.bloggingstocks.com/2009/06/03/newmont-mining-two-minerals-for-the-expansion-gold-and-copper/http://www.bloggingstocks.com/2009/06/03/newmont-mining-two-minerals-for-the-expansion-gold-and-copper/http://www.bloggingstocks.com/2009/06/03/newmont-mining-two-minerals-for-the-expansion-gold-and-copper/#commentsFiled under: ,

Newmont Mining (NYSE: NEM) is one of plays that was perhaps bid-up prematurely by Wall Street, and as a result the party has already begun. Nevertheless, the view from view argues that the mining company's upside and the stock's recent pull-back warrant adding shares at this stage. Here's why:

In general, analysts expect a 5-7% sales gain in FY2009, aided by higher average prices for gold, which should offset lower prices for copper.

Continue reading Newmont Mining: Two minerals for the expansion -- gold and copper

Newmont Mining: Two minerals for the expansion -- gold and copper originally appeared on BloggingStocks on Wed, 03 Jun 2009 17:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>miningNEMNewmont MiningWed, 03 Jun 2009 17:50:00 EST<![CDATA[Freeport's copper operation is set to shine again]]>http://www.bloggingstocks.com/2009/03/23/freeports-copper-operation-is-set-to-shine-again/http://www.bloggingstocks.com/2009/03/23/freeports-copper-operation-is-set-to-shine-again/http://www.bloggingstocks.com/2009/03/23/freeports-copper-operation-is-set-to-shine-again/#commentsFiled under: , ,

The U.S. stock market remains one characterized by considerable risk: It has shown some internal strength recently, but all its takes is one sub-expectations earnings report -- or one public policy error in Washington -- and the bears will be out in force again. Hence, discretion is the order of the day, with a premium placed on companies with demonstrated business models. With this in mind, Freeport-McMoRan is worth a review.

Freeport (NYSE: FCX) is a preferred miner due to its copper and molybdenum operations. Yes, the gold operation is sexy, but the copper operation is the backbone here, with the company boasting about 100 billion pounds of proven and probable copper reserves.

Continue reading Freeport's copper operation is set to shine again

Freeport's copper operation is set to shine again originally appeared on BloggingStocks on Mon, 23 Mar 2009 07:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>copperemerging marketsfeaturedFreeportFreeport McMorangoldminingmining stocksmolybdenumMon, 23 Mar 2009 07:00:00 EST<![CDATA[Alcoa: An ongoing aluminum apocalypse?]]>http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/http://www.bloggingstocks.com/2009/02/13/alcoa-an-ongoing-aluminum-apocalypse/#commentsFiled under: , , ,

Aluminum giant Alcoa (NYSE:AA) announced on Feb. 12 that it was selling its holdings of iron ore company Rio Tinto (NYSE:RTP)to Chinalco for about $1 billion, nearly $700 million more than the current value of the holdings. And speculation has begun to surface that Chinalco will make a play for Alcoa, one of the world's largest producers of aluminum.


Continue reading Alcoa: An ongoing aluminum apocalypse?

Alcoa: An ongoing aluminum apocalypse? originally appeared on BloggingStocks on Fri, 13 Feb 2009 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AlcoaaluminiumbuyoutsChinaChinalcointhenewsmetalsminingFri, 13 Feb 2009 15:20:00 EST<![CDATA[Banro (BAA): A golden stock]]>http://www.bloggingstocks.com/2009/01/27/banro-baa-a-golden-stock/http://www.bloggingstocks.com/2009/01/27/banro-baa-a-golden-stock/http://www.bloggingstocks.com/2009/01/27/banro-baa-a-golden-stock/#commentsFiled under: ,

This post was written by Minyanville contributor Lance Lewis.

Banro (NYSE: BAA) jumped 13% yesterday after the company announced that it had finally completed its bankable feasibility study on its Twangiza project and proved up nearly 4 mln ounces of its 10 mln ounce resource. Thus, we can now calculate an NAV for BAA.

BAA has no debt. So, assuming $1,000 gold, 3.67 mln ounces of Proven & Probable reserves, an average cash cost of $429 per ounce over the life of the mine (which is based on the feasibility study), and the estimated $410 mln required for cap ex, we get an NAV of almost $15 a share (which gives zero value to the company's current cash balance of around $20 mln and its remaining 5.6 mln ounce resource at Twangiza, not to mention the resource estimates at its other properties).

Continue reading Banro (BAA): A golden stock

Banro (BAA): A golden stock originally appeared on BloggingStocks on Tue, 27 Jan 2009 13:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>baabanrocommoditiesgoldlance lewisLanceLewismetalsminingminyanvillenemnewmontnewmont miningNewmontMiningtodd harrisonToddHarrisonTue, 27 Jan 2009 13:15:00 EST<![CDATA[Alpha Natural Resources slashes full-year outlook on weak coal demand]]>http://www.bloggingstocks.com/2008/12/03/alpha-natural-resources-slashes-full-year-outlook-on-weak-coal-d/http://www.bloggingstocks.com/2008/12/03/alpha-natural-resources-slashes-full-year-outlook-on-weak-coal-d/http://www.bloggingstocks.com/2008/12/03/alpha-natural-resources-slashes-full-year-outlook-on-weak-coal-d/#commentsFiled under: , ,

Coal-mining concern Alpha Natural Resources (NYSE: ANR) is trading sharply lower today after cutting its full-year earnings and production forecasts. Due to lower coal demand from steelmakers, ANR now expects net income of $175 million to $185 million for fiscal 2008. Previously, the commodity firm predicted full-year earnings of $230 million to $270 million.

As a result of waning demand, shipments of metallurgical coal will be reduced by about 500,000 tons in the fourth quarter. Going forward, ANR stated, "the outlook for metallurgical coal sales shipments and pricing will remain uncertain until such time as the financial markets begin improving and economic activity shows tangible signs of recovery."

Additionally, Alpha said it will close its mining operations at West Virginia's Whitetail Kittanning mining complex. The company is citing "adverse geologic conditions and regulatory requirements" for the shutdown, which will occur at the end of December. A total of 329 employees will be affected by the closure.

Continue reading Alpha Natural Resources slashes full-year outlook on weak coal demand

Alpha Natural Resources slashes full-year outlook on weak coal demand originally appeared on BloggingStocks on Wed, 03 Dec 2008 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alpha natural resourcesAlphaNaturalResourcesanrcoalearnings guidanceEarningsGuidanceinthenewsminingWed, 03 Dec 2008 12:15:00 EST<![CDATA[Freeport suspends dividend, cuts production on lower demand, prices]]>http://www.bloggingstocks.com/2008/12/03/freeport-suspends-dividend-cuts-production-on-lower-demand-pri/http://www.bloggingstocks.com/2008/12/03/freeport-suspends-dividend-cuts-production-on-lower-demand-pri/http://www.bloggingstocks.com/2008/12/03/freeport-suspends-dividend-cuts-production-on-lower-demand-pri/#commentsFiled under: , ,

Just call it another data point confirming the breadth and depth of the global economic slowdown. Freeport-McMoRan Wednesday suspended its dividend and cut production by 5% in 2009 and 11% in 2010, due to a sharp decline in prices, the company announced (pdf).

Freeport said it will reduce capital spending by $1.2 billion, a gargantuan 50% reduction from its previous estimate for 2009 capital spending. The company also suspended its $2 annual dividend.

Shares of Freeport (NYSE: FCX) Tuesday closed up 91 cents to $21.82 amid a broader market rally, but are declining $4.02, or over 18%, in premarket trading (8:27 am).

For the cutbacks, Freeport cited a large decrease in key commodity prices stemming from declining demand. Copper prices have declined to an average price of $1.69 per pound in November, compared to a nine-month average of $3.61 per pound as of September. Molybdenum prices have decline to $9 per pound as of December, compared to about $30 per pound in mid-October.

Continue reading Freeport suspends dividend, cuts production on lower demand, prices

Freeport suspends dividend, cuts production on lower demand, prices originally appeared on BloggingStocks on Wed, 03 Dec 2008 08:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiaChinacopperemerging marketsfcxFreeport-McMoRaninthenewsminingmining sectormolybdenumWed, 03 Dec 2008 08:58:00 EST<![CDATA[Chasing Value: Anglo American on sale]]>http://www.bloggingstocks.com/2008/11/07/chasing-value-anglo-american-on-sale/http://www.bloggingstocks.com/2008/11/07/chasing-value-anglo-american-on-sale/http://www.bloggingstocks.com/2008/11/07/chasing-value-anglo-american-on-sale/#commentsFiled under: , , , , ,

On more than one occasion, "my pal Warren" has commented that folks have no fear about buying stocks at the top of the market but give them a chance to buy that same stock on sale at half the price and they have no interest.

Last March I was lamenting a lost opportunity to buy Anglo American ADR (NASDAQ: AAUK) at $26 or $27 before it popped to $34 a share. I wanted it at a price it never dropped to, and I did not get it (Chasing Value: Anglo American -- great pick, but alas...).

Then the market started dropping, and dropping some more until finally things were looking pretty bad and I decided it was time to make my play. I recently bought in at $11.69. and it has bounced up and down since then, closing on Thursday November 6, at $10.37, dropping from $12.13 a day earlier.

Since last spring the bottom has fallen out of the commodities market. If you have pondered the idea of buying into a diversified fund focused on mining and mineral assets, then the following profile may depict a stock for you.
  • The UK-based company owns significant stakes in global producers of platinum (75%, Anglo Platinum) and diamonds (45%, De Beers S.A.). In addition, Anglo American has interests in ferrous and base metals, and industrial minerals; it also is one of the world's largest independent coal miners. Though it used to have a majority stake in AngloGold Ashanti, Anglo American has reduced its share to 17%. The company controls assets around the world.
Just a few metrics that may be of interest: AAUK is paying over a 5% yield, has a forward P/E ratio 3.2, and almost 30% profit margins. As the following 10-year chart indicates, the stock is almost down to where it was way back then.

Chart

Given that the world is printing money unabashedly, and that China and India are not going to stop growing, I think the current prices for coal, gas, diamonds, gold, silver, platinum and all else are destined to go up dramatically after we all take a deep breath. I have no idea what will happen in the short term, but in the long term I believe inflationary pressures will be significant.

Owning a company like Anglo American that is diversified around the world with significant exposure to both precious and semi-precious materials, as well as basic commodities, seems like a good place to invest, if you have the courage to buy it on sale as I believe it is now.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of AAUK.

Chasing Value: Anglo American on sale originally appeared on BloggingStocks on Fri, 07 Nov 2008 12:35:00 EST. Please see our terms for use of feeds.

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