Wise to become more aggressive in Base Metals – Three Copper Stocks I Like

Posted by Peter Grandich - Agoracom Small Cap Investment

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After avoiding base metals and related equities for a couple of years, I noted in my March 16, 2009 it was time to favor them again with copper as the main attraction. While having some exposure to base metals via a handful of stocks in my model portfolio, I think it would be wise to become more aggressive as we go forward. I do think such additional attention should be on consolidation of recent sharp rallies.

I hope to define several potential plays but for the time being, I favor these three companies if they trade at my suggested buy price:

Freeport McMoRan Copper and Gold (FCX-NYSE $41.70). Simply put, it’s the world’s largest copper company. Hard to imagine a new bull market in copper and FCX not participating. Ideally, I would look to buy at $36 with major support around $30.

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Taseko Mines (TGB-ALNET $1.27) Long time readers know I’m a big believer and supporter of Hunter-Dickinson (and work for several of the companies they manage). TGB is headed by one of the most respected gentleman in the mining business, Mr. Russell Hallbauer. It’s an understatement to say what a great job he has done with TGB since arriving. I believe TGB is a takeover target. Ideally, a great entree point would be between $1.10 – $1.20. But because I like the company so much, I’m going to use $1.20 as an entree point for now.

Taseko

Nevada Copper (NCU-TSX-V $.37 ) – The company is already in my model portfolio. I believe it’s one of the most undervalue copper juniors in the world today. My only two long term concerns for it is the price of copper and it being bought out before reaching its full potential.

I don’t like to use technical analysis for juniors as they mostly move on their fundamentals. It’s already on my list but would use under $.40 for buys at this time.

Nevada

 

On November 3, 2007 at the MoneyTalks Survival Conference, Peter Grandich of the Grandich Letter warned that “an unprecedented economic tsunami will hit American beginning in 2008”.   Peter advised publicly to short the US market two days from the top in October, 2007 and stayed short until the last week of October, 2008. He began to buy stocks in March 7th,  2009.
….go HERE to visit Peter’s Website which is packed with more articles and valuable information.