Jason Mann Capstone Copper Corp CS-T PAST TOP PICK Jan 13, 2023

Operate in South America and Mexico. This will be re-rated as its latest project goes into production. He expects 20-30% upside even without copper prices rising. Excellent exposure to copper.

Is very bullish copper. He likes Capstone because it operates in a safer country than others in Latin America, Chile.

We can't do much about the cyclicality of the metals sector. It will always be cyclical, and nothing should be considered a 'buy and forget' stock. Much will depend on economic growth, particularly in China. It is interesting right now in that China is weak but copper is strong. It is possible investors are seeing China as 'bottoming' and there are also supply concerns (i.e. the recent closure of a large mine in Panama). The sector is cyclical, and thus valuations are usually low. CS is more expensive at 16X earnings, because it is growing fast. From a loss last year it is expected to earn 28c a share this year and then a near-double to 54c next year. Debt is fairly high but cash flow is also growing nicely. We would be comfortable owning it in a size reflective of its risk. We might not add to a current position as the price rise naturally brings position size up. 
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The company is not too big, not too small, in a sweet spot. The copper price has pulled back a little, but has seen a great run-up. Supply has declined while demand is rising from places like EVs. The copper fundamentals look great.

Long-term, the story hasn't changed: there will still be supply constraints that won't meet growing demand from EVs and the electricity grid. This, like mid-sized copper miners--are possible takeover targets.

Fundamentally 6/10, value of 1/10. Hit her target, but analysts still see about 40% upside. Doesn't own, likes copper space, but she'd use an ETF. Seeing a pop in materials, especially today. Volatile. If you own, ride it a bit longer and then take profits.

We recently added more CS to our model portfolio and consider it a buy. We are not fond of targets, especially short term, but $13 to $14 we think is possible. 
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If you want a name with a bit more torque. Great properties in South America.

Insider selling is never a 'great' sign but there can be lots of reasons for it. Insiders still own more than $200M in stock. We can also live with a bit of insider selling on a stock that has risen 41% in the past year. The future will likely still be dictated more by copper prices than any trading activity. EPS is expected to more than triple in 2025. If CS can achieve this growth, the stock should do well. 
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Emerging play in South America. Not the quality asset of a FCX, but it is safer. He's not a mining expert, but thinks there's some money to be made here.