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Update Fortescue Metals (FSUMY)

Some movement this week in simplifying the complicated balance sheet of Fortescue Metals Group (FSUMY), the third largest iron ore mining company in Australia. The company’s stock climbed 7.8% on October 11 after Fortescue announced that it had signed a $2.04 billion...

Copper glitters even more than gold

Copper, that other shiny golden metal, is just as hot as gold right now. And I think the fundamentals for copper are better. After an extraordinary run, Copper pulled back a bit yesterday.  If I see a few days of  profit taking, I’d look to buy copper stocks. Which...

Update Joy Global (JOYG)

Investors who bid up the price of construction machinery and mining equipment stocks in anticipation of Joy Global (JOYG) earnings announcement before the New York stock market opened on September 1 should be very happy with the company’s earnings report. (For more on...

Buy Newmont Mining (NEM)

At some point in every gold rally, the market flips a switch and gold mining stocks start to outperform gold itself. I think we’re at that inflection point now. Analysts on Wall Street are calling for gold to hit $1500 an ounce by December 2011. That would be roughly...

Platinum gets center stage in South Africa's politics

Turmoil in South Africa’s mining industry. The most immediate and obvious impact will be on global supply of the platinum group of metals. But since the big mining companies involved produce copper, gold, and other metals in their mining of platinum and palladium, the...

A smaller but better fertilizer deal?

It doesn’t have the splash of BHP Billiton’s (BHP) $40 billion bid for Potash of Saskatchewan (POT), but Agrium (AGU)’s attempt to snatch AWB, Australia’s largest wheat exporter away from GrainCorp (GRCLF) is actually a more important deal for the acquirer. It looks...

Sell McDonald's (MCD)

McDonald’s (MCD) has put together an extraordinary 2010—so far. But I’m not as excited about the second half of the year, especially not at current share prices. On Monday August 9 McDonald’s announced that global comparable store sales climbed 7% in July from July...

Peabody's the name if Asian coal is the game

(I am on vacation until August 24. During that time Jubak Picks will operate on a reduced schedule of one or two posts a day.) If China is the story in coal—and I think it is since China is now the No. 1 energy consumer and uses about three times as much coal as the...

Update Thompson Creek Metals (TC)

Thompson Creek Metals (TC), a Canadian molybdenum producer, has been saying it would do an acquisition if it found a deal the company liked. Well, I guess Thompson Creek found that deal. On July 15 the company announced that it will acquire Terrane Metals (TRX.V in...

For commodites stocks, it's wait until next year

No secret that commodity prices have plunged on fears that global economic growth is fading. Or in the case of China slowing from near 12% annually to something like 8% or 9%. And no secret that the prices of commodity stocks have plunged as well. Shares of copper,...

Sell Impala Platinum (IMPUY.PK)

I’m going to use the current bounce, World-Cup-rally, summer rally, whatever to sell my position in Impala Platinum (IMPUY.PK). The South African stock looks like it’s in a steady downtrend despite its 13.8% gain off the June 4 low. Platinum was bid up heavily by...

Update Thompson Creek Metals (TC)

They don’t call these stocks cyclical for no reason. Shares of Thompson Creek Metals (TC), the world’s largest publicly-traded, pure-play molybdenum producer, are down almost 40% from their April 5 high on fears that the world economy, and especially China’s part of...

Sell Yara International (YARIY.PK)

I love fertilizer stocks as a long term play on rising global demand for food and Yara International (YARIY), the world’s largest publicly traded fertilizer company, is one of my favorites in the sector. But that’s the long term picture. In the short term Yara...

Buy Union Pacific (UNP)

As Warren Buffett said when he bought Burlington Northern Santa Fe (BNI), this buy is a bet on the strength of the U.S. economy. Union Pacific (UNP) isn’t an especially well-run railroad historically, but it is run well enough so that the transcontinental road will...

How Vale spent $18 billion and shot itself in the foot

I always wonder what’s up when I see a normally quiet company begin tooting its own horn in ads. It’s almost never a good sign. Today’s (March 16) Financial Times has a full page ad from Vale (VALE) headlined “Vale also transforms minerals into awards.” The text notes...

Update Goldcorp (GG)

After the market close yesterday, March 11, Goldcorp (GG) reported fourth quarter 2009 earnings of 25 cents a share (excluding one-time items). That was in line with the Wall Street consensus. Revenue climbed by 27.8% to $778 million. That was substantially above the...

Oil drilling failure rate surges at the Western majors

It’s not a factor now in the climbing price of oil but the trend certainly doesn’t portend cheaper oil down the road. Or a rosy future for the Western oil giants. In 2009 Chevron’s (CVX) drilling failure rate climbed to 35%. More than one-third of exploratory wells...

Update Goldcorp (GG)

What you want in a gold stock is a company with rising reserves and falling costs. Goldcorp’s (GG) end of 2009 report on reserves shows that it’s still delivering rising reserves. We’ll see how the company is doing on costs when it reports after the market closes on...

Update Vale (VALE)

I think we’ve just seen the end of the fixed long-term contract pricing system for iron ore. That pricing system may not know it’s dead yet. But right now it’s dead system walking. Brazil’s Vale (VALE) has told domestic customers that it will raise iron ore prices by...

Update Potash of Saskatchewan (POT)

Potash of Saskatchewan (POT) has been doing a lot of talking recently at private dinners with Wall Street analysts and Wall Street conference calls. The picture that emerges is of a company a lot more confident that it can see the turn in the fertilizer market. In a...