Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: Southern Copper (PCU)
Current price:
Headline: (100 character max)
Analysis:
Cancel
83%
agree
6 votes

  Strong demand from the Asian Countries

President and CEO of Southern Copper (PCU), Oscar Gonzalez Rocha, talks about the state of play in the company and the copper sector. "There is still strong demand from Asian countries. We do not believe they are going to slow construction and technological advance, this different to the USA which is semi-paralyzed.......At the same time we have mines which are suffering from reduced mineral grades or are on strike such as at Cananea, and this copper that is not reaching the market makes supply slightly lower than demand. This will maintain prices."

(100 character max) Cancel
66%
agree
3 votes

  Earnings have grown with strike relief

Southern Copper (PCU) is moving up a bit on the strike relief news (the Peru strike is not over by a long way, but the big mines are working for sure). I snagged a few at $101 and will sell them quickly as a splash'n'dash profit. Small scale trade.

(100 character max) Cancel
100%
agree
1 votes

  Earnings have grown consistently

Earnings for this company have surpassed Previous Year Actual numbers for the last 6 consecutive quarters. PCU is still a great stock to have in the portfolio.

Image: PCU_dividend.jpg

If you understand the cash cow relationship between PCU and its parent company Grupo Mexico [GMEXICOB.MX], you understand why the dividend policy is so generous. In the chart period (2003 to date), PCU has paid out U$19.64 in dividends. And if you'd bought the stock in January 2003, you would have paid U$15 for the stock.....that's what's called a good deal. Since then the stock has been a star performer, and here's the long term stock performance.

Image: Pcu_resize.jpg

All very impressive. So while copper (and other metals prices) remain high, so will the dividends. And so will the stock price. And this is demonstrated by the U$1.70 dividend that PCU will pay in June 2008 (that's the pink bar on the dividend chart), all through a period of industrial unrest. There's plenty of upside available once the stupidity at Cananea ends. PCU is an example of the best kind of investment advice; simple, logical and with a great track record. You buy a good stock and you hold it. Boring, but it works.

(100 character max) Cancel
100%
agree
1 votes

  Power-house of buying in the last 2 years

Looking at the long term trend for this stock displays a power-house of buying in the last 2 years.

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki