Apr 23 2009
Mining Support Stock on the Rise
Global resources took a tumble during the market decline, and although some metal prices have come back, not all of the stocks relating to mining have jumped back yet.
Enter Bucyrus International (BUCY). This stock has doubled since the falling market last fall, and has almost doubled since its drop down just over $10.00. It is still a cheap stock with a P/E of almost 7.
Insiders are buying like crazy, and the revenues are climbing steadily. If you look at the five year charts, the technical movement looks like a wonderful buying opportunity. And in a press release in February, Bucyrus highlighted a conveyor belt system that helps reduce mining costs, offering a cost cutting tool that should be highly desirable.
Even though the stock is almost up 100%R in the past few months, it is still a great buy. The 52 week high of $79.00 gives it great room to grow. All in all, since mining is not going to slow down soon, diversify by getting into mining equipment. And then consider whether BUCY is the kind of stock you want to add to your portfolio.
That’s a new angle looked upon in this highly volatile stock market. I appreciate the writer for doing that. I therefore invite you to join us for some hot financial topic discussions at:-
http://wealthmanagement.today.com/2009/04/24/when-will-dow-touch-10000-again/
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Thank you, I will!