Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
Thank you for your comments.
I did not try to include all the good stocks in the article...just something for every level. My criteria for metal stock selection starts with a company producing some cash flow (the more the merrier) and has some aspect that can give it an appreciation pop. In the case of Orveda, the pop could come from a variety of events: turning a first-time profit, better results in Bolivia, buy-out potential, for instance. It is a bit of a contrarian pick as it has been a disappointment and I usually do not try to "catch a falling knife," but it seems that the value metrics give it a good safety net at the current depressed level.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
I actually include the links so I don't have to rewrite my position on gold, all the details of Revett investment rationale and explain the factors that keep gold stocks down. If they generate page views that is nice, but the income from these articles equals about 1/2 hour of pay from my day job...I do not write them for the money.
I like gold long-term, but short-term I think that gold needs to consolidate some.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
vamo
You are correct...buying the commodity futures or ETF is another way to play copper. Company specific risk can also add company specific profits...that is the point of identifying undervalued or technically poised stocks rather than a basket of them.
2 $4 Stocks That May Up Their 10% Payouts [View article]
The portfolio included about 70% Metals and Mining investments.
That possibly was the worst segment to be involved in, It seems that they would have considered some diversification after the 3rd quarter losses. The worst part is that segment did not perform in Q1 2012 either. I suspect that they stuck with their guns, and we may see more portfolio losses in the next report.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
russellb73
We cannot buy them all. I decided to include only one large copper producer and from nearly every valuation method (PE, Book, Dividend, Sales, etc.) FCX compares better than SCCO. I am concerned that SCCO had a price supported by its big dividend, and when that was cut it is searching for its valuation level. For instance, it sells for 5 times its book value. Finally, I decided that the technical situation, as mentioned in the article, for FCX may make it more likely to move up faster.
Good luck and certainly if copper prices move up it is logical that SCCO will also.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
Dear Rec
I have no crystal ball. I can say that in researching the article I founfd many predictions of under-supply and no predictions of over-supply. I used the Barclay prediction as it was more conservative than most, and I don't think they are necessarily as biased towards metals as some others. One thing that I was not able to completely verify is general claims that the profit margin on copper mining is less than gold and silver, so many miners are preferring to cut back on the copper production areas and invest more in the precious metals. Although I could not exactly verify that common sense argument for reduced supply, I am inclined to believe that. Of course, some have no choice as the process to get the gold or silver produces the copper as a byproduct. It is very possible that in 2013 the supply-demand equation will correct itself, especially if your assessment of the EU situation plays out.
2 $4 Stocks That May Up Their 10% Payouts [View article]
LPeter,
Frankly I am stunned with the loss on their portfolio. As mentioned in the article, the S & P 500 was up about 14% in Q4, and I considered a 10% gain would be reasonable, even thought that was underperforming the market.
I am trying to contact the IR people to understand how they could possibly lose money in that market environment.
High Heels And The Price Of Tea In China: A Caution For U.S. Consumers [View article]
I was in my early 30's back then and everything was a learning experience. As it happened, I made a bullish call on the market in my newsletter in August 1982 when the Dow was in the 800's and everything has gone up since. I think we did OK on Caressa, but I do not remember the details.
The "tipsheet" business was different back then because I had to pick the stock, write the newsletter, "paste it up," send it to printer for typeset and printing, fold, envelop and mail so the subscriber would get it on the 15th of each month. I had to pick the stocks a week ahead of that and do my best to make sure that they were good investments for at least a month. There were no internet alerts to let us take advantage of every blip in the chart. I was born too soon, I guess. Today it looks a bit easier.
An Old School Look At The Zero Interest Rate, And Its Influence On Stock Investing [View article]
Wayneseek
Thanks for he comment. I do own alot of stocks, but most of the dividend payers are growth stocks first and dividends second.. You might look at GGN, it is a closed-end fund that invest about half in gold mining stocks and half in energy stocks. It pays about a 10% dividend because it sells options in its stocks, which is a really good strategy to create income. You might want to read my article on gold stocks...they have really missed the bull run, so they may have some appreciation potentiaal also. There is also a fund BME that does the same with healthcare stocks, but I am not too crazy about their stock selection.
An Old School Look At The Zero Interest Rate, And Its Influence On Stock Investing [View article]
debrasev
Thanks for the comments. Money managers receive a % fee based on the amount they "manage" in a portfolio. If they just leave things in cash, clients may think they are not earning their keep. If they have no ideas, they can dump money into treasury bonds and call it an investment. Intent is to park the money and if the interest rates never change it is fairly risk-less short-term.
Why Nobody Is Talking About Social Security [View article]
Actually, I included the Krugman quote thinking I needed to provide counter-balance to my own capitalist-oriented views.
2 Undervalued 'Shadow' Stocks: Trucks And Surgical Robots [View article]
HCII arranges reinsurance for the possibility of catastrophic events (mostly hurricanes in Florida). Their earnings obviously are net of that cost.
Hope that helps.
Stan
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
The metal in warehouses may or may not be available to meet immediate demand, but I do agree that the true fundamentals will eventually prevail.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
I did not try to include all the good stocks in the article...just something for every level. My criteria for metal stock selection starts with a company producing some cash flow (the more the merrier) and has some aspect that can give it an appreciation pop. In the case of Orveda, the pop could come from a variety of events: turning a first-time profit, better results in Bolivia, buy-out potential, for instance. It is a bit of a contrarian pick as it has been a disappointment and I usually do not try to "catch a falling knife," but it seems that the value metrics give it a good safety net at the current depressed level.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
I like gold long-term, but short-term I think that gold needs to consolidate some.
Thanks for the comment.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
http://seekingalpha.co...
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
You are correct...buying the commodity futures or ETF is another way to play copper. Company specific risk can also add company specific profits...that is the point of identifying undervalued or technically poised stocks rather than a basket of them.
Thanks for your comment.
2 $4 Stocks That May Up Their 10% Payouts [View article]
That possibly was the worst segment to be involved in, It seems that they would have considered some diversification after the 3rd quarter losses. The worst part is that segment did not perform in Q1 2012 either. I suspect that they stuck with their guns, and we may see more portfolio losses in the next report.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
Thanks for reading my article
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
We cannot buy them all. I decided to include only one large copper producer and from nearly every valuation method (PE, Book, Dividend, Sales, etc.) FCX compares better than SCCO. I am concerned that SCCO had a price supported by its big dividend, and when that was cut it is searching for its valuation level. For instance, it sells for 5 times its book value. Finally, I decided that the technical situation, as mentioned in the article, for FCX may make it more likely to move up faster.
Good luck and certainly if copper prices move up it is logical that SCCO will also.
Copper May Outshine Gold In 2012: 4 Stocks To Benefit [View article]
I have no crystal ball. I can say that in researching the article I founfd many predictions of under-supply and no predictions of over-supply. I used the Barclay prediction as it was more conservative than most, and I don't think they are necessarily as biased towards metals as some others. One thing that I was not able to completely verify is general claims that the profit margin on copper mining is less than gold and silver, so many miners are preferring to cut back on the copper production areas and invest more in the precious metals. Although I could not exactly verify that common sense argument for reduced supply, I am inclined to believe that. Of course, some have no choice as the process to get the gold or silver produces the copper as a byproduct. It is very possible that in 2013 the supply-demand equation will correct itself, especially if your assessment of the EU situation plays out.
2 $4 Stocks That May Up Their 10% Payouts [View article]
Frankly I am stunned with the loss on their portfolio. As mentioned in the article, the S & P 500 was up about 14% in Q4, and I considered a 10% gain would be reasonable, even thought that was underperforming the market.
I am trying to contact the IR people to understand how they could possibly lose money in that market environment.
High Heels And The Price Of Tea In China: A Caution For U.S. Consumers [View article]
The "tipsheet" business was different back then because I had to pick the stock, write the newsletter, "paste it up," send it to printer for typeset and printing, fold, envelop and mail so the subscriber would get it on the 15th of each month. I had to pick the stocks a week ahead of that and do my best to make sure that they were good investments for at least a month. There were no internet alerts to let us take advantage of every blip in the chart. I was born too soon, I guess. Today it looks a bit easier.
An Old School Look At The Zero Interest Rate, And Its Influence On Stock Investing [View article]
Thanks for he comment. I do own alot of stocks, but most of the dividend payers are growth stocks first and dividends second.. You might look at GGN, it is a closed-end fund that invest about half in gold mining stocks and half in energy stocks. It pays about a 10% dividend because it sells options in its stocks, which is a really good strategy to create income. You might want to read my article on gold stocks...they have really missed the bull run, so they may have some appreciation potentiaal also. There is also a fund BME that does the same with healthcare stocks, but I am not too crazy about their stock selection.
An Old School Look At The Zero Interest Rate, And Its Influence On Stock Investing [View article]
Thanks for the comments. Money managers receive a % fee based on the amount they "manage" in a portfolio. If they just leave things in cash, clients may think they are not earning their keep. If they have no ideas, they can dump money into treasury bonds and call it an investment. Intent is to park the money and if the interest rates never change it is fairly risk-less short-term.