Newmont Mining is rumored to be making a bid for a copper mine in Peru. But, says one portfolio manager, that's not going to help the stock.
Just Tuesday, the worst performing stock in the S&P 500 hit its 2013 lows. However, Newmont Mining is up Wednesday on rumors that it may be part of a bid for the Las Bambas copper mine in Peru.
While copper is down 11% for the year, it soundly beats Newmont's mainstay, gold. The yellow metal is down 26% since January.
"While I do like copper at these levels, I don't think that's a reason to go long and strong in Newmont," says Jason Rotman, managing partner of Lido Isle Advisors. "There are so many ridiculously important headwinds against gold and, therefore, against Newmont right now."
One of those headwinds, according to Rotman, is the potential taper of the Federal Reserve Bank's $85 billion monthly bond-buying stimulus program known as "quantitative easing" ("QE"). Besides addingRead More »from How gold and the Fed are beating up this stock: Portfolio manager