Number of Analysts:
Stock Price/Earnings Ratio vs. Industry's:
Trailing Twelve-Month Operating Margin:
Trailing Twelve-Month Revenue:
What's to Like About Southern Copper Stock:
Freeport-McMoRan Copper & Gold
( FCX )
may be a great company and be the better-known of the two, but "Southern Copper totally outperforms Freeport if you put the charts together," Mirzam's Meyer said. Almost 4% of his fund consists of Southern Copper stock. The fund also has a bit of Freeport at 1.5%.
"If you put its chart against any other company over ten years, there's not many that's better," he said.
The Arizona-based company, one of the world's biggest of the biggest copper producer giants, has been very shareholder friendly, Meyer said, pointing out that 70% to 80% of their profits are paid out in dividends. "That's very generous. Even during the credit crunch when Freeport canceled their dividends," Southern Copper continued to reward its shareholders with dividends.
Meyer said with copper stocks, investors would have to believe there will be continued to global growth and need for infrastructure, power and telecom equipment. With such forces in place, there will be demand for copper. Meyer for one, believes that global growth will continue, especially in China and India. "There are some copper mines in development in Mongolia, the Congo and Peru, but they only to come on stream in 2014. So I'm keeping that in mind."
Meyer, whose fund is very focused on corporate governance, ranks Southern Copper highly in that respect. "Again on a corporate government side you won't find better ... a $32 billion company where the CEO's basic compensation is less than 1 million in cash, that's just unheard of," he said.