Hudbay Minerals (HBM.TO)

He likes this company. If looking for exposure to copper and zinc, 2 of the better metals out there, this is the play. Good assets in Canada and south America. It had a great year last year, but he still sees about a 20% upside. Production is going to continue to grow. There was a management change last year, but it seems that the new group is doing a good job.

He likes the materials stocks, but prefers TECK.B-T or FM-T. It is spot on his EBV. $15.99 is his model price at 55% over the trading price. Any positive news and these stocks should explode upward.

Believes this could still have some room to run. They have reached a point where a lot of their major CapX is behind them with a lot of mines now coming on stream. They had lagged the others for quite a while, and have just recently started to catch up. Prospects could be quite positive going forward.

He likes the space but plays it through FM-T and TECK.B-T. HBM-T is coming out of the blue as it went above EBV -3, so you should buy it. The model price is $12.78, a 50% upside. You should have material stocks in your portfolio. They are acting well.

This has copper, but also has a lot of zinc. Zinc is the preferred metal, and is typically used for galvanizing steel. As steel demand picks up, demand for zinc picks up as well. This company is located in safe jurisdictions.

This is surprisingly hanging in for a lot of the minerals/golds, things that have come off. He likes this. It still has a little room before it gets to where it has any kind of thing. He thinks it can move higher. He would be a momentum guy on this.

This has had a great run this year. He got out of the name recently. He is not as bullish on copper going forward. Thinks growth in China is going down. Within the metals group, this one sticks out as one of the better ones, but wouldn’t be looking to buy this until it gets into the $6 range.

(A Top Pick Nov 4/15. Up 37.62%.) When the stock was hitting $3, he felt it was a good play. You want to buy mining stocks when nobody wants them. If you get it right, the returns are spectacular.

Overall, a really good company and well-managed. Feels it will do reasonably well going forward.

(A Top Pick Oct 14/15. Down 16.68%.) This has just not reacted like some of its peers to some of the improvements in prices. It is more exposed to copper which has not moved as much. It commissioned Constancia in 2015, a major, major mine. They’ve reached the point where their big CapX is behind them and free cash flow is beginning to build. He expects a very good upside in the stock.

Has about 25% exposure on zinc from an earnings point of view. It is kind of going through a rejig. Its president has gone over to GoldCorp (G-T), and there was some cleaning house in terms of revising guidance, outlook and growth. There is no question about the new president’s capability, but the stock has kind of lost its way. He likes the zinc component, but prefers something with more zinc exposure. He would look for 15%-20% upside in the next 1-2 years.

(Top Pick Nov 4/15, Down 22.70%) Copper has lagged. Over a thirty year cycle they will hit a couple of good copper cycles.

Feels this is a good Buy if you have a 3-year timeframe. The base metals market is going to take a long time to recover, and as a consequence there is very low demand for anything worldwide. He would recommend you look at the companies “7 investment grade debt” (?). You can buy that bond at a substantial discount to par and get a pretty good yield.

(Market Call Minute.) Commodities are in a secular decline so there is no need to be there.

This is a good, long term hold. The company has been well-run. Expects we will get an acceleration in global growth as we go into the 1^st half of next year, which will generally be good for commodities.