Thursday, February 19, 2015

The TSX Metal Miners Get No Respect:

These days the business media is hyper-focused on one topic – energy prices and should we buy more energy stocks? Will crude prices hold at $50? If so how long do we wait for the new advance? Will more energy companies cut their spending – and who is next to cut the dividend? Callers to BNN Market Call ask – what do you think about Cresent Point or Cenovus? The sector has a lot of participants – the TSX Energy Index alone has 55 components. Clearly the energy sector was over-owned and when the energy group collapsed in late 2014 many portfolio managers were bag-holders.

I think the most under-owned and overlooked sector in Canada is the TSX Metals & Mining sector. Many experts have given the sector up for dead, after all who will ever need copper and zinc ever again? Callers to BNN Market Call never ask about Hudbay Minerals or Lundin Mining, The TSX Metals & Mining sector has only 9 components and that number many get smaller do to consolidation in the sector. Long term investors who may be nervous about the current yield chase and those risky dividend / growth models may be wise to look at the under loved and under-owned metal miners, Note our Hudbay weekly chart is bullish with the price above the 10 & 40 week MA, a higher low and rising money flow numbers

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