Hudbay Minerals Inc.

HBM-T

(A Top Pick May 30/18, Down 19%) It has been up and down over the last year. It is still one of his favourite stocks within the metals and minerals. They did a great deal to clean up operations in Manitoba. There is potential for increases in cash flows down the road. He'd stick with it.

Forecasting commodities prices is very difficult. Copper in particular which is one if the main metals that this company produces has been low. If we get a soft landing then copper demand should pick up. China has been a bigger consumer and that demand is going to be there even at a lower growing pace. They are involved in many projects that will increase production in the future. The stock has been choppy as they had a sort of a Board coup with an activist investor being involved. Longer term the stock price will follow the fundamentals.

(A Top Pick Apr 26/18, Down 25%) It was not long ago it traded $10. In the past four weeks concerns over the economy have dampened the share value. They are doing good work to run the operations. It has great torque to the commodity cycle. He would be a buyer here. Indigenous investigation is causing some worry with mine expansion plans.

He would prefer HBM-T. The trend is not your friend with TV-T. The danger is that it can be left for dead and continue to get cheaper without anyone stepping in. HBM-T follows the trend in copper and is trading at under book value.

The commodity stocks as a sector are pretty reasonable. One of the catalysts you need is for the US$ to roll over and give them some breathing room. There is room for HBM-T to lift up and is one that will lift up if you get this trading thing out of the way.

An unhappy investor is making things challenging in a proxy fight. Production increases will be coming over the next few years. It has been selling at a significant discount to its peers. He thinks management will win the fight. Yield 0.23%. (Analysts’ price target is $11.70)

It trades within a strict range. His target is $9.00. It may see 10% upside from the current price, then it'll go down again. Hold, don't buy.

He recommended this 2 weeks ago to clients. If we start a new 4-year economic cycle, then you want to be long cyclical commodities including this stock. A fantastic chart. $12 target. He sees the current rally going to May/June when you would get cautious and maybe take some profits.

The stock has been rocking, really great. Metals enjoy seasonality now into May. There's still room to return to past highs. Technically, the chart is good. However, if the chart rolls-over, watch out.

A cyclical, a mid-sized metal miner in Alberta as well as Peru and Arizona where they should obtain their permits. Boasts 0.8x book value. Rising copper and zinc prices are tailwinds. (Analysts’ price target is $10.09)

We had a downtrend and a bottom in November just before the market bottom. It started to recover before the market bottom, showing signs of leadership. He expects a sideways consolidation now and then it looks good.

He is bullish on a trade resolution. It ranks in the top 5% of all stocks. 0.7 times book, 7 time PE. They are still able to generate cash flow. It is a bit volatile but has improving price momentum. It has turned the corner. (Analysts’ price target is $9.59)

TV-T vs. HBM-T. TV-T has ties to the zinc market, which has been under severe pressure from tax loss selling. HBM-T would be a better replacement if you want to be here.

It's had troubles returning to peaks, and it's stuck in a channel for long. $6 is the top, so it's got to get above $6. Traders should sell at $6, but if you're patient, then hold. See what it does. There's no reason to sell it otherwise.

Hudbay vs Teck. These are two different companies. Teck being more focused on coal, copper and zinc. Hudbay is more copper and zinc. He would prefer Teck. As these do not provide any yield, he does not stay on top of these ones. He would stay on the sidelines for these given the trade issues globally. The next Presidential election will likely help define the future -- it will be uncertain until then. China will continue to be a big consumer and supply is being curtailed at these low commodity prices. The inventory situation will be improving over time, but it is still too early.