Hudbay Minerals (HBM.TO)

(A Top Pick Nov 4/15. Up 37.62%.) When the stock was hitting $3, he felt it was a good play. You want to buy mining stocks when nobody wants them. If you get it right, the returns are spectacular.

Overall, a really good company and well-managed. Feels it will do reasonably well going forward.

(A Top Pick Oct 14/15. Down 16.68%.) This has just not reacted like some of its peers to some of the improvements in prices. It is more exposed to copper which has not moved as much. It commissioned Constancia in 2015, a major, major mine. They’ve reached the point where their big CapX is behind them and free cash flow is beginning to build. He expects a very good upside in the stock.

Has about 25% exposure on zinc from an earnings point of view. It is kind of going through a rejig. Its president has gone over to GoldCorp (G-T), and there was some cleaning house in terms of revising guidance, outlook and growth. There is no question about the new president’s capability, but the stock has kind of lost its way. He likes the zinc component, but prefers something with more zinc exposure. He would look for 15%-20% upside in the next 1-2 years.

(Top Pick Nov 4/15, Down 22.70%) Copper has lagged. Over a thirty year cycle they will hit a couple of good copper cycles.

Feels this is a good Buy if you have a 3-year timeframe. The base metals market is going to take a long time to recover, and as a consequence there is very low demand for anything worldwide. He would recommend you look at the companies “7 investment grade debt” (?). You can buy that bond at a substantial discount to par and get a pretty good yield.

(Market Call Minute.) Commodities are in a secular decline so there is no need to be there.

This is a good, long term hold. The company has been well-run. Expects we will get an acceleration in global growth as we go into the 1^st half of next year, which will generally be good for commodities.

(Market Call Minute) It is becoming a copper company. Copper prices are still lackluster.

Like a lot of mining stocks, this looks like it is starting to build a productive base. Had a bit of a downtrend in 2015, and it seems to be breaking that. There is a little bit of a neck line at around $8, and he would like to see it break that. At this point, it is on a positive trend, and he would look for a break at around $7-$8. If it happened, it could easily get back into the $12 range.

(A Top Pick Sept 1/15. Up 8.86%.) Have just finished building out Constancia and it is being commissioned. That is going to start producing great cash flow. They have a number of projects that could come on stream in the next number of years. Management has been particularly aggressive in taking costs out and taking some write-downs where they can, so feels it is really being set up well for the next 5-10 years.

A lot of the problems that have been there recently have been short term ones. Going forward, he thinks they are going to throw off some solid free cash flow. Have been able to expand their credit facilities lately, so they could be very opportunistic going forward.

(Market Call Minute) It seems to have bounced and he would take the opportunity to get your money out.

Base metals stocks have done well. Typically, you see a large correlation of base metals stocks, whether copper, lead, nickel or zinc, all running together, and this company is running along with them. It looks like the US$ is starting to pick up strength, which could be the end in the near term of the commodities play. It is not likely that China will be coming back building lots of stuff. He would go elsewhere.

Seasonally it does well from the third week in January until the second week in July. You have a short period of time to hold this stock. You may want to take money off the tale in a couple of weeks. Watch short term momentum indicators.