Benefits from rising inflation. Best of breed miner. Exposure to potash and China coming back online. Inexpensive at these levels. Technical resistance around $48. Yield is 11.93%. (Analysts’ price target is $65.18)
Focused on large deposits. Best company in sector. Global brand. Predictable moves in market. Will benefit from China stimulus. If US dollar falls, commodities will rise (good for business). Excellent commodity mix. Would recommend buying on weakness/selling on strength.
It has been oscillating up and down with big swings. The sector is interesting and is good to look at if rates go higher. A deflationary theme will cause it to reprice.
There is lots of trading going on around $50 to $60 and it is a lot less volatile. It is beginning to break out but wait to buy. Use the 50 day moving average.
Likes the materials space, an early-cycle winner. Stock's been sideways, moving between $50-70. FCX screens better. Though the FCX chart appears similar, some of the metrics look better.
BHP vs. RIO Both really well run and focused. Trimming portfolios and becoming more efficient. Leans toward BHP, but RIO is good as well. Cautious on the space right now, potential for a recession, and we don't know how deep. Both would get hit in a recession. Steer clear right now, look for something more defensive.
Yield about 12%, super attractive. Company sees demand falling, as developed markets go through weakness. Dividend will get cut. Don't buy for the dividend. China is a stabilizing force. Not expensive right now. Long term, outlook is super-positive, a winner. Nibble on weakness for a 3-year hold.
(A Top Pick Sep 16/21, Up 18%) China's not really fully back online, plus issues around Europe. Will probably go higher. Low balance sheet. Potash in Saskatchewan will add growth. Commodity companies benefit from inflation. Extra cash could be used for acquisitions in existing segments.
Diversified miner. Avoid any deep cyclical. Fed tightening is positive for the USD, which doesn't bode well for commodity producers. Look at it if shares sell off and your time horizon is 5+ years. For a 6-12 month timeline, this one doesn't work.
High dividend yield. Iron ore prices were over $200/tonne, but now they're $100, still extremely high. Steel looks particularly weak. Even in a recession, we won't go back to $50, but the yield should normalize closer to 7%. Wait and see, start to dabble in Q4.