Buy Thompson Creek Metals Co Inc (TC)
Time to sell Thompson Creek Metals (TC)? I don’t think so. I think this stock has more room to run in 2009 and it’s worth holding the shares through any correction. Earnings and earnings expectations are up for Thompson Creek because, first, the price of the molybdenum it produces from its Canadian mines has climbed off the floor. As of June 1 the spot price had moved up to $10 a pound. That’s still down 70% for the last 12 months but up 28% for April and May, according to Deutsche Bank. And because, second, costs are running well below projections. In the first quarter of 2009, cash costs fell to just $5.93 a pound. That was way below the $7.25 to $8.25 a pound the company had earlier told investors to expect for 2009. It doesn’t look like falling costs are a one-time phenomenon either. The company has lowered its cost projections for all of 2009 to $6.25 to $7.25 a pound. As of July 2, I’m raising my target price for Thompson Creek Metals to $12 a share by May 2010. (Full disclosure: I own shares of Thompson Creek Metals in my personal portfolio.)
Related Posts
No related posts.
4 comments
Post a comment
Comments that include profanity, or personal attacks, or antisocial behavior such as "spamming" or "trolling," or other inappropriate comments or material will be removed from the site. We will take steps to block users who violate any of our terms of use. You are fully responsible for the content that you post.
Jim,
What if you got in TC at $6.15 and looking at today’s run above your target of $15? Any comments on TC’s upside potential now?
Dear Jim
Is TC still a buy at $14+?
Regards.
For Jebersole and Robertlau99:
I owned TC around $6.5 and have sold around $12. A nice ROI in my book. Looking at the furture of this company, its still a good value now and I plan to rebuy this week, how soon will depend on what the FED says today. I nice pull back would trigger a larger purchase.
Jim,
TC stock price has taken some big price hits lately, presumably related in part to a financing deal with shares being sold for 14 $Canadian (possibly to finance an acquisition?)
http://seekingalpha.com/article/158647-is-thompson-creek-metals-facing-m-a-activity?source=yahoo
I bought this stock thanks to you at $5.50 and I am wondering what you now think of the company and if it is time to sell?
Thanks.