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Signs of Life in Metals & Mining Sector

September 12, 2013 | About:
Sally Jones

Sally Jones

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After three years of negative returns in a downtrodden sector, the metals and mining industry is showing signs of life as investors assess if and when to buy on a low. Back in April 2013, 118 companies out of 173 in the metals and mining sector were on a 52-week low, according to the GuruFocus 52-week low screener. Today there are 30.

Here’s a look at four of these companies that deal in copper, uranium, aluminum, and minerals; three of these companies are broadly held by billionaire investors.

Southern Copper Corporation (SCCO) – 33.1% Off 52-Week High

The GuruFocus 52-week low screener reveals that Southern Copper Corporation is at a 52-week low of $28.12 (high was $42.03). According to the GuruFocus Value Screen for 52-week lows, SCCO is 33.1% off high. It has a yield of 11.80.

Down 19% over 12 months, Southern Copper Corporation is an integrated producer of copper. The company produces copper, molybdenum, zinc and silver. All of its mining, smelting and refining facilities are located in Peru and Mexico and it conducts exploration activities in those countries and in Argentina, Chile and Ecuador.

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Guru Highlights: As of June 30, 2013, six gurus hold SCCO and there is one insider trading.

Jim Simons and Steven Cohen made news buys of 1,823,256 shares and 18,905 shares, respectively. Both long-time SCCO traders, Simons and Cohen both paid an average price of $32.09 per share and took a loss of 10%.

Alcoa Inc. (AA) – 18% Off 52-Week High

The GuruFocus 52-week low screener reveals that Alcoa Inc. is at a 52-week low of $8.14 (high was $9.93). According to the GuruFocus Value Screen for 52-week lows, AA is 18% off high. It has a yield of 1.50.

Down 16% over 12 months, Alcoa Inc. is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The company globally operates in 31 countries. In addition, it has investments and operating activities in Australia, Brazil, China, Iceland, Guinea, Russia, and the Kingdom of Saudi Arabia.

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Guru Highlights: As of June 30, 2013, eight gurus hold AA and there is active insider trading.

Arnold Schneider made the biggest add, increasing his position by 4,422.23%. He bought 442,223 shares at an average price of $8.33 per share for a loss of 2.4%.

MFC Industrials Ltd. (MIL) – 18% Off 52-Week High

The GuruFocus 52-week low screener reveals that MFC Industrials is at a 52-week low of $8.52 (high was $10.39). According to the GuruFocus Value Screen for 52-week lows, MIL is 18% off high. It has a yield of 2.60.

Down 1% over 12 months, MFC Industrial Ltd. was incorporated in British Columbia in 1951. MFC Industrial is a commodities supply chain company which sources and delivers commodities and materials. The company operates in three reportable segments: commodities and resources; merchant banking, and other.

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Guru Highlights: As of June 30, 2013, four gurus hold MIL and there is one insider trading.

Zeke Ashton and Whitney Tilson made news buys of 77,500 shares and 48,500 shares, respectively. Ashton paid an average price of $8.37 per share and made a gain of 2% on his shares; Tilson paid the same price and made a gain of 1.8% for his new shares.

Uranium Participation Corporation (URPTF) – 17.8% Off 52-Week High

The GuruFocus 52-week low screener reveals that Uranium Participation Corporation is at a 52-week low of $4.75 (high was $5.78). According to the GuruFocus Value Screen for 52-week lows, URPFT is 17.8% off high. It has a yield of 0.00.

Down 13% over 12 months, Uranium Participation Corporation is an investment holding company which invests substantially all of its assets in uranium, either in the form of uranium oxide in concentrates or uranium hexafluoride, with the primary investment objective of achieving appreciation in the value of its uranium holdings. The mission of the corporation is to provide an investment alternative for investors interested in holding uranium.

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Guru Highlights: There are no guru stakeholders or insider trades.

Uranium Participation Corporation has a market cap of $505.4 million and an enterprise value of $502.25 million. The company reported net losses of $20 million for the three months ended May 31, 2013.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.1/5 (7 votes)

Comments

vgm
Vgm - 3 months ago

Insightful new piece on MFC Industrial (MIL) published on Seeking Alpha. CEO Smith has a remarkable record of value creation. The stock seems significantly undervalued.

http://seekingalpha.com/article/1936811-mfc-industrial-a-sum-of-the-parts-story-with-significant-upside-potential?source=yahoo

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