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Southern Copper (PCU): Mining for high returns

Steven Halpern — Wed, 10 Dec 2008 10:18:00 EST

Filed under: International Markets, Newsletters, Mexico, Commodities, Stocks to Buy

"Weakness in commodities suggests a screaming sign of an overreaction; it's time to take another look at a high-quality, high-yielding commodity stocks such as Southern Copper (NYSE: PCU)," says global investing expert Nick Lanyi.

In his High Yield International, he says, "With mines in Mexico and Peru, Southern Copper ranks #1 in total copper reserves of any publicly traded company, making it almost a pure play on a rebound in the metal's price." Here's his contrarian outlook.

"Southern Copper has enough reserves to continue its current rate of production for the next 80 years without a single expansion or acquisition.

"With copper prices falling, the firm's earnings are taking a hit -- and the dividend has recently been cut. Now that this cut has already been factored into the shares, I think it's a better time to look at the stock than just a few weeks ago.

"Based on 2008 dividends, the stock yields 12.7% at the current price. Even if the dividend comes down more, I look for a yield of 8-9% over the next 12 months.

Continue reading Southern Copper (PCU): Mining for high returns

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Resource expert picks platinum fund

Steven Halpern — Thu, 10 Jul 2008 14:38:00 EST

Filed under: International Markets, Newsletters, Mutual Funds, Commodities, Stocks to Buy

"Platinum is a picture-perfect image of a classic bull market that's getting more exciting by the day," says resource expert Eric Roseman.

In his Commodity Trend Alert the advisor explains, "Prices continue to explode higher amid the largest supply shortfall for any precious metal this decade. As such, I'm urging my readers to buy the new E-Tracs UBS Long Platinum ETN (NYSE: PTM)."

"Find me a commodity -- any commodity -- that's approaching or extending a net supply deficit situation and I'll compel you to buy that commodity ahead of a major rally; that's what's happening now to platinum. Indeed, no other precious metal is suffering more from growing supply shortages since last year -- and it's getting worse.

"Platinum production in South Africa, which accounts for about 80% of global output, declined 4.9% to 5.04 million ounces in 2007 as a result of smelter closures and a host of safety issues that interrupted mining operations.

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Resource expert picks platinum fund originally appeared on BloggingStocks on Thu, 10 Jul 2008 14:38:00 EST. Please see our terms for use of feeds.

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Would CO2 limits curb global GDP growth?

Joseph Lazzaro — Wed, 02 Jan 2008 16:10:00 EST

Filed under: International Markets, Other Issues, India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Mexico, Canada, Japan, Commodities, Oil, Eastern Europe, Agriculture, Israel

Financial Times columnist Martin Wolf, an economist, poses the question, "Will CO2 emissions limits lead to a zero-sum global economy?" - an economy characterized by stagnant (or declining) incomes, and armed conflict among nations?

Wolf argues that increased energy consumption per capita, primarily oil from fossil fuel, has been a key causal factor in creating the plus-sum economic world we live in, which he calls the positive-sum economy. Or in other words, rising energy consumption has helped produce rising productivity / real incomes / wealth, and the expanding global economy that we know today.

In addition, Wolf further argues that rising energy consumption transformed politics -- assisting both the birth of democratic politics at home and more-consensual foreign relations among states -- by increasing the size of the economic pie. Elites in a country, Wolf argues, became more willing to tolerate the enfranchisement of the masses because it was in the elites' economic interest to do so: i.e. that energy consumption created a more-productive (and more-valuable) citizenry with higher incomes.

Internationally, a nation's gains from the increased trade that characterizes the high-energy consumption era far exceed its gains from making war with another nation: the plus-sum global economy that trade produces supports today's norm of trade as opposed to the limited-sum world's norm of conflict and war.

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Would CO2 limits curb global GDP growth? originally appeared on BloggingStocks on Wed, 02 Jan 2008 16:10:00 EST. Please see our terms for use of feeds.

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Growing pains: China's economy reveals costs

Joseph Lazzaro — Tue, 20 Nov 2007 10:53:00 EST

Filed under: International Markets, Other Issues, China, Commodities, Oil, Eastern Europe, Agriculture

So far, China's effort to slow its economy is not working.

China's economy continues to grow at double-digit rates. Commodity and resource utilization remain high, speculative excesses abound, and exports? China's trade surplus keeps soaring, with the United States and Europe incurring rising trade deficits.

The Chinese government announced that over the past 12 months, China's trade deficit with Europe increased an alarming 46% to $135 billion, The New York Times reported. Over the same period, the trade deficit with the United States did not increase as much, in percentage terms, up 18%, but in absolute terms the U.S. still leads the pack with a daunting $162 billion trade deficit.

Surging trade surplus

Further, during the past 12 months, China's overall trade surplus exceeded $250 billion, including a record $27 billion in October 2007.

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Growing pains: China's economy reveals costs originally appeared on BloggingStocks on Tue, 20 Nov 2007 10:53:00 EST. Please see our terms for use of feeds.

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Analyst initiations 6-15-07: CQB, DISH, DTV and RTEC

Kevin Shult — Fri, 15 Jun 2007 10:31:00 EST

Filed under: Before the Bell, Analyst Upgrades and Downgrades, Good news

MOST NOTEWORTHY: Rudolph Technologies, Inc (RTEC), DirecTV Group, Inc (DTV), EchoStar Communications (DISH) and Legacy Reserves LP (LGCY) were today's more noteworthy initiations:

AG Edwards started Rudolph Technologies, Inc (NASDAQ: RTEC) with a Buy rating, believing Rudolph's acquisition of August Technologies created additional market opportunities and recommends investors to build positions at these levels to participate in future growth.

Stifel initiated DirecTV Group, Inc (NYSE: DTV) with a Buy rating and $28 target and EchoStar Communications (NASDAQ: DISH) with a Hold rating and $45 target. The firm prefers DirectTV to EchoStar given DirectTV's faster growing Latin America division, coming HD advantage, and greater likelihood of buybacks and views a merger between DISH & DTV as possible longer-term.

Legacy Reserves (NASDAQ: LGCY) was started with a Buy rating at Oppenheimer, expecting Legacy to grow through acquisitions.

OTHER INITIATIONS:

CIBC initiated FTI Consulting, Inc (NYSE: FCN) and Advisory Board Co (NASDAQ: ABCO) with Sector Outperformer ratings, and a $45 target and $62 target, respectively, and Resources Connection, Inc (NASDAQ: RECN) and Corporate Executive Board Co (NASDAQ: EXBD) with Sector Performer ratings.

Chiquita Brands International, Inc (NYSE: CQB) was initiated with a Buy rating at Morgan Joseph.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst initiations 6-15-07: CQB, DISH, DTV and RTEC originally appeared on BloggingStocks on Fri, 15 Jun 2007 10:31:00 EST. Please see our terms for use of feeds.

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