I could go ahead and argue a bullish case for Copper, but Business Week does a good job. Read it first.
Some highlights from the article:
- Copper is up 80% YTD, highest in 25 years. It’s basically rising faster than gold.
- Supply <>
- One penny (made of copper and zinc) is now worth two pennies! LOL!!
- South America controls most of copper, but politics are heating up.
- China, India, and 3rd world countries need copper (old news, no?)
So how can we play copper? I came up with only a few companies, because, uh, there are only a few companies. Click [here] for stock quotes of all stocks.
[King of Copper]
Of course, there is Southern Copper (PCU), which has the highest market cap; when people think copper, this stock pops up. This stock has already tripled in about a year. Nice thing about this company is that you can play options. There are 3 break outs in this chart. Can you spot them?
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[The Fastest Cop in Town]
Rearrane PCU, and you get CUP, which is Peru Copper’s ticker. Remember, Peru is the kingdom of Copper. There is political instability there, which makes this stock so so volatile. I can’t exactly find any pattern in CUP, just that it’s a raging bull right now. There has been a lot of insider trading going on lately. If you’re not to comfortable with the volatility, stay away. But for now, check out their major holders… JP Morgan, Morgan Stanley, and Fidelity.
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[Steady Does It]
Northern Orion (NTO) is a company ran in Canada, but their mines are in Argentina. Most of their income comes from Alumbrera (they have a 12% interest, I think Southern Copper has the rest), and the cool thing about this company is that they have a bigger mine in Argentina named Agua Rica coming up which they have 100% interest. They are well positioned for future growth. Click here for S&P’s coverage. Anyway, the chart is a beauty. No dramatic spikes, just a steady up trend… a “buy on the dips” could have made you rich.
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[Copper Applications]
Encore Wire (WIRE) is set for another encore run. They aren’t directly involved with Copper the base metal, but they manufacture copper electrical building wire and cable in the United States… Residential wire and commercial wire. They have NM-B cable, NF-B cable, THWN-2 cable… huh? Maybe we should ask Roger what in the world these are. Anyway, chart shows WIRE to be very bullish, athough the RSI does show it to be overbought.
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