I am taking a look at metals and canceling my attempts at buying IBG Group.
I have cancelled my order for IBG.TO... I refuse to chase this one and the trading volumes (hence liquidity) is too low for my liking.
I have avoided looking at metals for about a year now. I heard recently about the resurgence of copper on business news so I decided to give it a look and see what is going on.
Copper is a major metal used in manufacturing (copper wire). A revival in copper generally means that global manufacturing is reviving. Zinc is another metal that has a wide use in manufacturing,
Here is a chart for both metals
Well Copper has certainly had a nice resurgence in the last 6 months... Zinc has plateaued a bit now but it has risen in the last year as well.
One company that I have made money on in the past is Hudbay Minerals Inc [TSX:HBM] [NYSE:HBM]
here is a description of the company
Hudbay Minerals Inc is an integrated mining company. It is engaged in producing copper concentrate and zinc metal, along with base and precious metals. This company is has a head office in Toronto but its mining and smelting operations for Canada are located in Flin Flon, Manitoba where they have been for over 80 years. But also they have projects in Peru and Arizona.
Here is its website Hudbay Minerals website
So how is this company from a debt/revenue point of view?
Balance Sheet
Hudbay Quarterly Balance sheet
from the above link I find this information
CAD in Thousands... 2017-09.......... 2017-06............. 2017-03.......... 2016-12.......... 2016-09
Current Debt ................... --- ................. 21,381................. 21,966............ 22,169............. 21,648
Long Term Debt .........1,213,802 ......1,407,997 ............1,533,938 ......1,634,352 ........1,584,431
Well over a $Billion is nothing to sneeze at... but I do like the decline in debt both current and long terms and the zero debt for the last quarter.
Let's see if the revenue can handle the debt
Income Statement
Hudbay Quarterly Income Statement
CAD in Thousands... 2017-09.......... 2017-06............. 2017-03.......... 2016-12.......... 2016-09
Total Revenue................459,419...........421,255...............337,218...........425,710...........408,828
Net Revenue .................. 50,788............ 33,174 ..................(3,070) .........(63,554) ........... 44,071
Well, I like the rising income over the last 3 quarters... the net revenue rising is a good sign as well. This net income which is calculated after servicing the debt shows this debt o be no problem
Technical Analysis
Here are the first two charts
You can see that we are approaching a broad band of resistance.... We are rising from a very bullish Quadruple Top Breakout. We may stumble going through this but I don't see much of a problem.
The Trigger chart is in a full on Bull breakout. It is tracking the upper Bollie and all indicators scream bullish
Here are the last two charts
If you cannot see that these two charts are hugely bullish...well you have not followed my TA for very long.
Look at that ADX DI+/- diverging so strong.... Look at how high the ichimoku is above the clouds.
Conclusion
I think this will be a good acquisition. I will place this order immediately
Limit Bid of $11.13 for 1500 shares of Hudbay [TSX:HBM] effective 1:30AM MST Dec28/17
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Disclaimer:
I am not a registered broker. I am retired and use Technical Analysis as the main tool in my investment decisions. Accept or reject my comments as you will, but do your own Due Diligence (DD) before making any decisions based on the information I provide.
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