Southern Copper Corp  (PCU) Trade Now »     Rate PCU  -  Discuss PCU  -  Add to Watch List        

Editor's Note: Parts of today's Wealth Daily originally appeared in our sister publication, Gold World, over the weekend. We didn't want you to miss out on this buying opportunity, and are again sharing it with you.

In September 2007 Citigroup analysts Alan Heap and Alex Tonks called for the spikes in coal and iron ore prices "because of demand from China and congestion at ports in Australia and South Africa."

And they were spot on.

So when the same analysts upgraded outlooks for coa

After the bell Wednesday, Southern Copper Corp (PCU) announced a 3 for 1 stock split to happen July 10th to shareholders of record 30th June (i.e. end 2Q08). I'm not a fan of these things, but some traders play the bumps made by hot splitting stocks and swear by the action it gives them. The downside to splitting a stock with a fairly low amount of shares out (it’ll still be under 900m once it’s all over, and the vast majority will still be in owner/institution hands) is that it gets more vulnerable to short selling. Whatever happens, it sure doesn't affect the underlying fundament

Southern Copper Corporation produces copper, molybdenum, zinc, and silver. It engages in mining, milling, and flotation of copper ore to produce copper concentrates and molybdenum concentrates; the smelting of copper concentrates to produce anode and blister copper; and the refining of blister/anode copper to produce copper cathodes. The company also engages in the mining and processing of gold and lead, as well as produces refined copper using SX/EW technology. It operates the Toquepala and Cuajone mines in the Andes Mountains, which is located approximately 984 kilometers southeast of th

On Friday, Southern Copper Corporation (PCU) released its 1Q08 results, and they came in very much in line.<!--more--> Production was lower due to the Cananea strike in Mexico (still rumbling on) but price rises in copper pushed up profits. Rather than repeat the numerical bones, here's the Reuters report that has all of the necessary figures.

The Cananea situation is a good example of the difference in management quality in Mexico and Peru. In Peru, the management/worker relationship isn't amazingly warm and cuddly, but at least one side listens to the other. But Mexican management is st

Long term this is a no-brainer buy.  Short term, the price of copper is going down due to fall in US housing market, and Southern Copper in particular will be having labor issues as their Peruvian miners have voted to strike on OCT 2.  When the strike is resolved, re-assess and probably buy.  Long term this is a winner.

A big dive in the market yesterday. It looks like investors were spooked by a few earnings bumps and of course the housing market scares everyone. The reality is that housing is bad. There will be a lot of people who lose a lot of money on houses but it will be slow. There aren’t going to be millions of foreclosures in the next month, it’s going to take years for this whole thing to settle out. In the mean time the economy is good, employment is good, inflation is low so as a while the market has no big worries. Take the dips because of sub-prime or housing worries as buying opportunities.

While China and India continue to invest in infrastructure copper and other base metals will be in high demand.  With a forward P/E of 12, yeild above 5%, high returns on assets and equity this stock looks extremely cheap with much room to grow as demand increases and supply deminishes as strikes and mining equipment issues emerge.  With earnings near the end of July we can expect wonderful quarter.  The CEO has already announced that earnings will be strong this quarter due to strong copper prices. Since PCU payout is around 75% of earnings, we can expect an increase in the dividend.  I b

china..... building cities and infraestructure, will keep prices of copper at least at 3 us dollars per pound

latinamerica....has been without investment in infraestructure for the last 20 years, now with high commodity prices will be able to do those investments

copper......the supply will be tight because of :

laboral problems, mine production disruptions (mines working at full capacity are riskier)

sector entry barriers..... there shouldn't be a lot of new players (high prices make them think about the greater posibility of prices falling down) so they won't be investing in n

china..... building cities and infraestructure, will keep prices of copper at least at 3 us dollars per pound

latinamerica....has been without investment in infraestructure for the last 20 years, now with high commodity prices will be able to do those investments

copper......the supply will be tight because of :

laboral problems, mine production disruptions (mines working at full capacity are riskier)

sector entry barriers..... there shouldn't be a lot of new players (high prices make them think about the greater posibility of prices falling down) so they won't be investing in n