HOLD
Copper is a China recovery story, but it's still in lockdown. Demand for copper, iron ore, and energy is below optimal global levels. If you're of the view that China will exit Covid in the next 12 months, owning copper here would make some sense, even if you're underwater. China's announced a big infrastructure plan.
integrated mines
WATCH
Does the company have positive operating leverage for growth and profitability? If it can show that, it could be the next multi-year winner at a great entry level. Right now, the market's saying "show me". For him right now, he would not buy. He's watching and waiting.
0
COMMENT
Overlooked sectors. Telcos, but in a rising interest rate environment it will be a good yield proxy. Generally, defensive consumer names. Pharma and biotech of size.
Unknown
TOP PICK
Benefits from rising inflation. Best of breed miner. Exposure to potash and China coming back online. Inexpensive at these levels. Technical resistance around $48. Yield is 11.93%. (Analysts’ price target is $65.18)
other mines
TOP PICK
Can pass through inflation costs. Rising dividend. Headquartered in a safe haven. Acquisitions have worked out. (Target price is in CHF.) Yield is 2.45%. (Analysts’ price target is $127.40)
food processing
TOP PICK
Attractive dividend, 35% free cashflow. Activist investor is making positive changes such as new CEO, board seats, and selling down retail. Oil has run, but the Ukraine conflict is not over. Having some exposure to commodities, and oil in particular, in an inflationary environment makes some sense. Yield is 4.66%. (Analysts’ price target is $58.07)
integrated oils
COMMENT
Alphabet was reported to be pausing hiring for two weeks. The market reaction was far milder today, but it's still silly. After all, the Fed is tightening, so what CEO in their right mind will hire more?
Unknown