Most long term conservative portfolios have basic material stocks in them and a great one is Southern Peru Copper (SCCO). Basic material stocks have taken a big hit in this recession and long term investors should look at these dips as a great buying opportunity: Right now the stock is 44.03% off its 1 year high but still up for the long run as you can see by this 5 year weekly price graph provided by Barchart:
Barchart technical indicators:
- Barcharts technical indicators are based on price movements from 7 day to 6 months and a technical sell signal can identify a dip which might be a buying opportunity
- All the sell indicators seem to be weakening and the buy signals are getting stronger -- this signals a price reversal if the trend continues
- 48% Barchart technical sell signal - weakening
- Trend Spotter sell signal - also weakening
- The stock is trading below its 20, 50 and 100 day moving averages
- Although the stock is 44.03% below its one year high it has gained 11.74% in just the last 5 trading sessions
- Relative Strength Index is 45.16% and rising
- Barchart computes a technical support level at 26.22
- Recently traded at 26.44 with a 50 day moving average of 29.69
Summary: Southern Peru Copper (SCCO) has been a consistent money maker for years. It's major products are copper and silver and both are needed by the industrial nations. With its generous dividend and recently depressed price investors buying in at this level could see annual total returns in the 20-30% range depending on the prices of silver and copper. SCCO will make money -- how much is dependent on the prices of the underlying commodities.
Jim Van Meerten is a Marketocracy Master
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