First Quantum Minerals (FM.TO)

Base metals levered name. All these names have moved up quite aggressively. Shortly you will get an update on a project they bought from Inmet. He is weary of their ability to execute on this.

(Market Call Minute.) Airlines are having a bit of a boost here. It’s a financial shell game right now so be careful.

It is starting to break out after major base building. Any move about $20.50 will be a good breakout point. No resistance until $25.

Particularly likes it. Add in the low teens. Is neutral at this price. The risk is this Panama asset.

(Top Pick Oct 9/12, Down 8.73%) Discount is sufficient for him to step into this name here.

This one has higher highs and higher lows. We are in the seasonal strength for base metal stocks, which starts Nov 19. A one month chart shows what looks to be a Bear flag. However, anywhere along here if you have higher highs and higher lows continuing, you want to take advantage of the weakness.

(A Top Pick Oct 18/12. Down 16.95%.)

(Market call minute.) Great company. Very good management team. Operates extremely well in building mines, but has had a great run and he is quite concerned about their ability to build out their Cobre Panama project at a cost that makes sense.

Likes the space. There are still a lot of negative vibes about the sector. Bullish thing is that there is not a lot of inventory out there and there are only a handful that you can buy that are liquid and producing. Made a new high in 2011 followed by an A, B, C correction. The C “down” did not make a new low, which is very bullish. Thinks the floor is around $15 and we are now in a period of making a new bull market in this.

(A Top Pick Oct 9/12. Down 15.26%.)

He is interested in stocks that are base building where there is a transition with weak money going out and moving into strong hands. We are also in the right stages that as the bull market matures, cyclicals should get going. Chart shows a lot of support at around $16 with a descending triangle and he is looking for a breakout. This is a favourable sector and there aren’t a lot of choices.

Have done an absolutely spectacular job of building out a silver company, close to 10 million oz of production and expecting to increase it still. Keep costs down and manage them. Once silver price starts running this stock will be much higher than where it is.

Get new mines going at or below cost and execute well on business strategy. There is huge development risk and there is more likely to be bad news than good short term.

A long term buy, but wait a bit. Will be acquired down the road. A great name longer term. There is no rush to buy but pick it up for $17.

He has this rated as a neutral with a $21 target. Integration of the Inmet mining acquisition can ratchet up quite a few challenges. In the environment we are in, he would rather avoid this one now.