For those of you who are interested in SCCO as an investment (not a trade), me thinks now would be a good time to start dipping into SCCO.
This from one who has had a significant position in SCCO for many years. My current plan is to pick-up another lot at $29 and then sit-back and see what happens.
Yeah, I know, SCCO has been a disappointment this year (It's my worst performer YTD) but very few people ever made any real money by following the lemmings after they already drove the price of a stock up.
To me, it's all about the risk reward ratio ...... but it takes guts when things look bleak.
Ask yourself these questions: Is SCCO a broken company? Does SCCO have good management? Can I understand what SCCO management is doing? Is SCCO involved in a business that has good long-term prospects and produces a product that has REAL VALUE in a world economy (unlike APPL)? Are there any new products on the horizon that will displace SCCO's products? How does SCCO stack-up against other copper producers vis a vis cost, political risks, labor issues, etc?
Only time will tell if I'm correct ...... but, to me, it's worth a shot. I don't expect that SCCO will make any significant move to the upside before at least the 4th. quarter, but I feel that the downside risk is also minimal.