TRADE
Starting to see a bit of a cycle developed. Has already had a nice run and to buy it, you have to believe that the price of nitrogen fertilizer is going to go a lot higher.
DON'T BUY
The price of waste paper has gone way up and there is also currency pressure. Only earned .04¢ a share in the recent quarter. Longer-term it should be OK, but difficult to see them having a big boost in their profitability.
WEAK BUY
Well-managed. Focusing on businesses they know well. Has reached a point where it is no longer a bargain. Price to earnings multiples have moved up but yields have dropped and the easy money has been made. Still some upside.
BUY
A great franchise. Good management. A slow, steady performer. Probably 15% earnings per share growth. P/E multiple is very reasonable.
DON'T BUY
Have an undeveloped potash deposit in Thailand. Will take many years to bring this project to fruition.
DON'T BUY
Very controversial because of their reporting practices. Have great upside potential but with the SCC involved and the murkiness around the company it’s really a black box.
BUY ON WEAKNESS
Share price is quite volatile. Would buy on a down-spike. Good news is that they have additional production coming on stream in the Caribbean in 2004 and in Chile in 2005. Very profitable and solid management.
TOP PICK
Probably the least cyclical mining stock. Management does a great job in concentrating the aluminium business, lowering their costs and taking advantage of their integration. Likes their French acquisition. Look for a big pickup in earnings.
TOP PICK
Had a big jump in earnings per share. In the short term, they are being held back because of their big US exposure through Harris. Feels their earnings are understated. Expect to see more dividend increases.
TOP PICK
Well-managed. Industry is a little tough right now. A well focused, niche player. Have their own newspapers and magazines, which diversifies their business. Valuation is still at a significant discount to its large peers. A lot of upside potential.
DON'T BUY
Looked like it was going to break out of a 200-day moving average but fell back. Did a special warrant financing in October for sales/marketing of Pennsaid. FDA approval has been pending for a long time. Caution.
DON'T BUY
Missed on earnings in the third quarter. As a utility, they are regulated. A mild winter will result in lower power usage. Sees limited upside.
BUY
Regulated, so if markets improve their would-be limited upside. Expects the market to be a little uncertain in the coming months and this would be a reasonable play.
TOP PICK
As a utility, it has reasonable downside protection. Has a gas arm with substantial gas fields, which gives it a diversified earnings base. Also has one of four LNG terminals in the US, which gives it somewhat of a monopoly.
HOLD
Expects it will be able to maintain its 5% dividend. Looking for a new CEO. Got caught up in some of the gas manipulation of market pricing in which they have been assessed with a $300 million penalty. Delay buying for six months.