Thompson Creek Metals (TCM.TO)

(Market Call Minute.) Great story and cheap valuation but they stopped pre-scripting on the Thompson Creek Mine, which is 75%-80% of their cash flow and will run out of product to mine within the next year.

Stock is in a downtrend. Also, its moving average has turned down in early 2011 and is currently just skirting the price running below. You would need a breakout above $4.50. If you are into bargain-hunting, make sure you have a stop loss of around $2.

(Top Pick Nov 21/11, Down 53.82%) Walked away with positive double digit gains by getting out last February. Moly and copper prices came down significantly. Impairments in taking on Thompson Creek mine and a mine is coming on late. You might find a floor soon. The company is making some positive moves.

Is this a takeout target? They have the Canadian gold mine ready to open in about one year and they could break up the company. Could you see a gold miner making a bid for this and then selling off the moly? Not a bad thought. It’s complicated for some so you’ll see a bunch of people passing because Molybdenum is out of favour so much that it might be difficult to sell the moly. Speculative. Feels that Teck Resources (TCK.B-T) will move first.

His partner is keen on this one to a degree but was keener before he did all his research for an article. At 1^st blush, he was all excited about it but when he went further and further into the numbers, he found that it was quite convoluted. If it got down to $2 or below, it could be interesting.

(Market Call Minute.) Mostly molybdenum, which is used in stainless steel and pipelines.

(Market Call Minute.) This is a molybdenum play. With economic sensitive minerals molybdenum is the weakest one.

Had some CapX overruns on the Mount Milligan project in BC but the biggest overhang on the stock is that molybdenum prices have been very weak. You are really talking about when you see steel prices pick up. It comes back to China, because they produce half the world’s steel. You are looking at least a year before the steel cycle picks up.

Part of their problem is that the price of molybdenum has not done well. There have been cost overruns. On their new mine, they have arranged to sell off the gold making enough money to make sure they had enough money to keep the mine operating. Since then, the stock has begun to look better.