Investing in Mining Management Teams with Best Track Record of Delivery Key to Navigating the Current Metals and Mining Environment
67 WALL STREET, New York - April 16, 2013 - The Wall Street Transcript has just published its Metals and Mining Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Precious Metals, Global Iron Ore Production, Emerging Market Infrastructure Construction, Midcap and Small-Cap Consolidation Activity
Companies include: Rio Tinto plc (RIO); Randgold Resources Limited (GOLD), Boliden AB (BOL.ST) and many more.
In the following excerpt from the Metals and Mining Report, an expert analyst discusses the outlook for the sector for investors:
TWST: Which two or three stocks from your group would you recommend as best bets for investors right now?
Mr. Clifford: Rio Tinto (RIO) is our top pick. We think despite the fact the iron ore price has come off, we think it's more than factored in to the current price. We expect consensus earnings upgrades coming from better than expected production growth, and better than expected cost cutting. These should result in higher returns and larger returns to shareholders.
In the precious metals, we like Randgold (GOLD) for similar reasons in terms of its delivery performance. In fact, we rate it as the best management team performance in terms of delivering what it says it is going to deliver over the last five years. Being constructive on the gold side as well helps. And finally Boliden (BOL.ST); it is in copper and zinc, and it also has a management team which has consistently delivered what it says, and we think the market will reward that.
TWST: What do you think are some common misconceptions that average or new investors tend to have about investing in mining?
Mr. Clifford: I think a number of mining investors have short memories and are heavily influenced by near-term stock momentum. During the boom years, the companies could do no wrong, and the stocks were bought almost irrespective of the underlying assets. The same is true on the downside, and we think the stocks are sold off to levels that are detached from the underlying values of the assets, and this is when there are very significant buying opportunities...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
