Buy Thompson Creek Metals Co Inc (TC)
06/26/2007 4:01 pm EST
Time to sell Thompson Creek Metals (TC)? I don’t think so. I think this stock has more room to run in 2009 and it’s worth holding the shares through any correction. Earnings and earnings expectations are up for Thompson Creek because, first, the price of the molybdenum it produces from its Canadian mines has climbed off the floor. As of June 1 the spot price had moved up to $10 a pound. That’s still down 70% for the last 12 months but up 28% for April and May, according to Deutsche Bank. And because, second, costs are running well below projections. In the first quarter of 2009, cash costs fell to just $5.93 a pound. That was way below the $7.25 to $8.25 a pound the company had earlier told investors to expect for 2009. It doesn’t look like falling costs are a one-time phenomenon either. The company has lowered its cost projections for all of 2009 to $6.25 to $7.25 a pound. As of July 2, I’m raising my target price for Thompson Creek Metals to $12 a share by May 2010. (Full disclosure: I own shares of Thompson Creek Metals in my personal portfolio.)
Related Articles on STOCKS
As Shares Advance 23% Annually, Why Copart Should Be on Your Radar
06/22/2018 4:50 pm EST
Most investors don’t know it, but wholesaling used cars is a red-hot business. This is why Cop...
Internet Sales Tax Ruling Break Online Shopping? Save Brick Retailers?
06/22/2018 4:38 pm EST
That doesn’t mean Best Buy (BBY), Target (TGT), Macy’s (M), Home Depot (HD) or others ar...
Trading Lesson: Dave Landry’s Trading Ground Rules
06/22/2018 2:46 pm EST
For those new to trading, new to me, or my methodology, I think the following ground rules will help...
Delphi Technologies and Driverless Cars
06/22/2018 5:00 am EST
When it comes to new technology, nothing’s quite as cutting edge as driverless cars, or autono...