Sunday, November 25, 2007

Stock of the Day 11/26/07

(BVN) Compania de Minas Buenaventura S.A.A. engages in the exploration, mining, and processing of gold, silver, and various metals in Peru and internationally. It primarily produces refined gold, and various metal concentrates, including silver-lead concentrate, silver-gold concentrate, zinc concentrate, and lead-gold-copper concentrate. The company operates six mines and holds controlling interests in two mining companies; BVN also owns an electric power transmission company; an engineering services consulting company; and interests in various mining companies. It sells its metal concentrates to smelters, traders, and banks principally in Peru, Europe, North America, Asia, Oceania, and South America.


The company boasts a strong management and has shown consistent and predictable financial performance. BVN has a forecasted EPS of $4.01 per share and has a forecasted Earnings Growth Rate of 23.00%. BVN has a P/E of 13.66. Sales Growth of 35.00% per year. Consistent stock price performance over the past few months. Its recently retreated from a 52wk high of 62.50, and is stiil around it's 50 day moving average, its held up well in the downturn. BVN stock is undervalued and could see fair value between $90-95.

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$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.