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October 26, 2006
HudBay Minerals under the microscope, Thur., Oct. 26, 2006, 9:35 AM
One of the leading picks of Desjardins Securities' Peter Gibson is HudBay Minerals, a fully integrated copper-zinc producer headquartered in Canada. The company is clearly on a par with Cara 100 company Teck-Cominco.
The stock is traded as HBM on the Toronto Exchange, and OTC in the U.S. (HBMFF).
If you share my view that copper and zinc prices are going to stay strong, then HudBay stock is a no-brainer. As Peter Gibson points out, "The company is generating an outstanding return on equity of 40 pct and a high rate of ROE growth. There are only 12 companies in the S&P/Toronto Stock Exchange composite index that have an ROE level that is equal to or higher than HudBay, but only one that has this powerful combination of high ROE growth and such a high level of profitability".
The HBM.TO shares closed at C$18.85. I haven't set a price target, but I believe the stock will outperform 95 pct of the stocks in the S&P/TSX composite index in the next 12 months.
Posted by Posted by Bill Cara on October 26, 2006 09:36:28 AM | Category: 15 Materials , Canada
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Toronto-based Aur Resources Inc., Inmet Mining Corp. and HudBay Minerals Inc., have recently been mentioned as posible take over candidates by private equity firms:
http://tinyurl.com/vy4ee
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October 27, 2006 11:07 PM [link]