PCU

[David Randolph]

PCU continues to approach its all time high of $58.38. But the real move will come when $copper makes its climb from the current $317 to $400 plus. I see strong demand for $copper worldwide and not much capacity entering the system. We're even getting concentration in the industry, with Phelps Dodge being bought for $26 B.

As I wrote this I immediately thought about TGB, opened the chart, and oh my, what a bullish breakout ! I need to look closer at TGB, because $copper is in play right now and for months to come.

PCU is one of the most attractive stocks in the market now, with a 10% dividend yield and trading at just 8 times earnings. Nobody would say its main merchandise is in an intense bull market, about to make another leg up. I know PCU closed at $55.85, but I already see $100

[David Randolph]

Quiet day on PCU, nothing changed. Just leaving the updated chart.

[thai626]

Just like the Jeffersons................MOVIN ON UP!!!   

Slowly but surely.....just like David said.  Can't wait till we see a new all time high which may come next week. 

Why do I feel so lonely??? ............. Anybody in here? haha

Thai

[David Randolph]

Yes thai626, slowly but surely

Found a funny thing today on PCU (well, funny for me, totally boring for most people), my chart shows the stock still about $2 away from the all time high of $58.38 (see on the bottom of the message), but www.stockcharts.com shows the stock is just at all time highs, take a look:



Do you know why?

Well, because StockCharts has the price corrected by the dividends ! The quarterly dividend distributed to shareholders on record at November 16th, 2006, was $1.375 a share, that is, $5.5 a year or a 9.75% dividend yield.

Just imagine a quarterly dividend that messes up with the charts

Moreover, PCU released this at 3:10, PM, ET:

UPDATE 2-So. Copper raises reserves estimates on two mines

I think this may help push PCU to a new all time high (by my chart) in a short period of time.

[422fwhp]

Why do I feel so lonely??? ............. Anybody in here? haha

Thai

Just quiet like PCU...but here.

[mexirafa]

Hello,

PCU was featured in the Smartmoney Magazine for December '06. Some of you might have already read it but I'll share it for those who haven't

============================
"Southern Copper" PCU,$51
YIELD 9.0%

If a young Dustin Hoffman character needed a career advice in a single word today, it might just be "copper". The metal has quintupled in price over the past five years. And while price may very well come down a bit, it's unlikely the bottom will drop out of the copper market. It's a crucial componet in our cars, cell phones, plumbing and buildings, so economic expansion around the globe is fueling demand. Even criminals are getting in the act - thefts of air conditioning systems and wiring from construction sitesare on the rise. Southern Copper is one of the largest copper producers, with mines both in Peru, where it is headquartered, and Mexico.

While a 400 percent price hike would normally be a red flag, many strategists argue that the bull market for copper isn't over yet.

The worldwide inventory for the commodity is just a 3-day suppply, so an unexpected blip at just one mine can have a great impact. Moreover, a replacement isn't likely to surface soon.

"Copper is the horse that carries everything from power to communications, and it appears it's going to be around for a while," says John Hammerschmidt, manager of the Quaker Mid Cap Value Fund. "This is a stock my mom should own". And mom would like the 9% yield.

There is wide speculation that Southern Copper could combine with Phelps Dodge, the largest copper producer in the U.S. Analystssay such a combination would benefit shareholders over the long term.

====================================
Rafael


curruent holdings,
ASPV
PMU
PCU

[David Randolph]

Thanks for the article mexirafa

PCU expects $copper's average price in 2007 to be $3.00/lb: DJ Southern Copper Sees Copper At Average $3.00/lb In 2007

In the article there's an agreement for an extra-tax on Peru's mining companies, but nothing too serious. These political constraints are possibly one of the reasons why PCU is so undervalued. But  the risk isn't that high, as I figure it.

It's good to know PCU expects $copper to trade 3% to 10% lower in 2007, and still analysts estimate $7.88 EPS for 2007. To have a cheap earnings multiple of 10 the stock would need to trade at $78.80. If we consider an average market multiple of 16, it would then trade at $126.

There's nothing else to do but to continue holding PCU.

[David Randolph]

Check the article on Yahoo's Finance homepage: 10 Top-Rated Dividend-Paying Stocks

Which stock is the #1 on their top 10 list, with an IBD rating of 98 (the maximum is 100)?

You guessed right, our dear PCU !

[David Randolph]

Check the article on Yahoo's Finance homepage: 10 Top-Rated Dividend-Paying Stocks

Which stock is the #1 on their top 10 list, with an IBD rating of 98 (the maximum is 100)?

You guessed right, our dear PCU !

Yes, the publicity yesterday gave us a gain of 3.26% on PCU, with volume above average of more than 2 million shares. She's moving, she's moving ... to a new all time high above $58.38.

Even near a new all time high, PCU still shows a 9% dividend yield and a 9 times earnings multiple. This is very attractive.

[David Randolph]

Up 3.26% yesterday, down 1.42% today. Two steps forward, one step behind is the way PCU seems to be moving, and that's fine by me.

$copper rose 0.53% today to $315. I'll continue holding PCU.

[thai626]

David and others,

I just sold my shares of PCU.  I'm looking to buy another stock very soon...........i.e.  one of the T3ML plays.  I just wanted to wish you guys the best of luck.

I'll be back in PCU in the near future.   

[David Randolph]

David and others,

I just sold my shares of PCU.  I'm looking to buy another stock very soon...........i.e.  one of the T3ML plays.  I just wanted to wish you guys the best of luck.

I'll be back in PCU in the near future.   

Thanks for the information thai626, and good luck on those momentum plays (although I still don't understand how you can use three moving averages, which are slow in nature, to identify momentum, I need to study more of Terliso's thread).

Coming back to PCU, nothing changed, I'll continue holding it.

[David Randolph]

Slowly, but surely, PCU continues to push higher and is near a new all time high. Making 13.5% on this one, not willing to let it go, since this is probably the most attractive stock outthere in terms of dividend yield and earnings multiple.

Could be $100 and would still look cheap.

[David Randolph]

It would be nice to see PCU really breaking out to new all time highs above $58.38, but we need patience here, remember this is a $17 B market cap company.

I'll keep on holding PCU.

[David Randolph]

Even with $copper trading around $3 (300 on www.stockcharts.com), PCU is still near the $58.38 all time high. Slowly, but surely, this 9% dividend yield, 8 times earnings stock will continue to push higher.

I won't let go of it, this is my number 1 copper play.