TC - Thompson Creek Metals

[Henrique Costa]

Profile: Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in Canada and the United States. The company owns the Thompson Creek Mine in Idaho; a 75% interest in the Endako Mine, mill, and roasting facility in northern British Columbia; and a metallurgical roasting facility in Langeloth, Pennsylvania. It also holds interest in the Davidson molybdenum property located in British Columbia; and the Mount Emmons molybdenum property situated in Colorado.
Mkt Cap: 1.3B
Website: http://www.thompsoncreekmetals.com/

Trading Thesis:

Mid term position play, based on TA and FA.

- Testing the mid term support, having a positive trend for mid term. We are betting on a positive reaction and further move to the higher range (14/15), we don't believe it could go below 10 for now.

- Fundamentals are good, expecting 2009 as a slow year, but already discounted at current prices. FY10 estimates is 1.107 EPS, that means the stock is trading at just 9.9 X P/E FY10, much below it's peers. TC has a solid cash situation, with 854M Shareholders' Equity against just 260M in Liabilities.
JP Morgan has a 12 month PT of 23 for TC, and very good prospects.

Trading Plan:
Buy 5% @ the open, stop @ 10 and limit sell @ 14.50 (also include in speculative portfolio)

regards,