Capstone Copper Corp (CS.TO)

A Copper mining company that was crushed. They are a pretty high cost producer. They may go out of business. He has a small short position, but covered a bit today. He does not think the mine is economic.

Likes the people but feels nervous about copper. There will be margin contraction because of the declining prices. The balance sheet is challenging.

Had a position in this, but took most of it off. Has been buying at around $1.18. Good management and feels the copper space is weak overall. This has flat lined here, and if you look out a year or so, you should have some nice gains. They are getting kicked out of the index, so there is going to be a lot of selling going on. When he sees a stock trading sideways for a while and the fundamental stays the same, he usually likes to enter as he knows that most people have gotten out that wanted to get out. If there is a little more stability in copper prices, this stock could easily get back to $1.70. Good risk/reward.

Copper’s move could be sustainable. But CS-T is a little too steady as it goes so not his first choice.

(A Top Pick March 17/04. Down 49.41%.) Sold his holdings last July at around $2.90, and has recently bought back in. Copper is fairly washed out. It is hard not to worry about the situation in China. Stocks have come off enough that they are becoming better value.

This should have a good story, but it really needs a higher copper price to make their cash flows dynamic. It just doesn’t have a big project and there is no real visible growth going forward right now, so it just sits there. He is going to sit on his hands until there is a better opportunity in a more senior company.

Always been a big fan of this one, but last quarter he was disappointed with the grades of all three mines. He is hesitant to recommend it.

One of his favourite copper stories. Currently producing $1.90-$2 a pound copper. Have done very well in terms of their operations. There are very few ways to play copper in Canada now. Management has done a good job. If you want copper exposure, this is a way to really play it. Expects production to grow over the next few years and their costs to come down. A good entry point.

Does not see a problem with it. Copper is a little bit out of favour. It has all depended on China. Doesn’t see why it has underperformed. He likes the company and he would hold on to it here. LUN-T is a very good buy, though.

Have been active in acquisitions. Balance sheet is okay and leverage to copper and other metals is quite high. Sector is horrible right now. They have managed themselves quite well.

(A Top Pick July 18/13. Up 44.83%.) Took a little bit of money out of this because the weight in the portfolio had risen. Copper hasn’t had a great move, but this company did some great acquisitions at the right time. People are recognizing this as a cheap junior.

Not too many ways to play the base metals companies. Likes management. Mid-cap copper producer. A lower cost producer. He likes the story.

Copper. This is a producer that has underperformed recently as a result of people worrying about M&A activity, as well as worries of a core expansion operation in Arizona. Every time they have talked about M&A, and executed on it, they have done a great job of integrating those acquisitions. Trading at a discount to its peers.

The big thing here is that they have the Pinto mine, a US production based copper mine that is just coming on. Like many names in this position, you have a part of the street that likes to buy ahead and the other side that doesn’t give them the benefit of the doubt until it actually comes through. He is prepared to give them the benefit of the doubt because this is not a greenfield project. Likes the growth it can offer along with evaluation. You will need patience.

(Top Pick Jul 18/13, Up 28.57%) He was buying it back today. There is decent growth here and decent leverage to the copper price.