Metals and Mining: Winners & Losers

NEW YORK (TheStreet) - Among the metals and mining stocks, Massey Energy(MEE), Metalico(MEA), and Schnitzer Steel Industries(SCHN) were the top gainers, while Mechel(MTL) and Arch Coal(ACI) were the top losers last week.

Coal producer Massey Energy was among major gainers past week, up 13.1%. The stock attracted investors after the company announced strategic options such as a possible sale or a private-equity transaction. The company will report third-quarter financial results on October 26. Bloomberg analysts estimate Masssey to report sales of $821.9 million, up from $641.6 million in the year-ago quarter.

Metalico, a scrap metal recycler and fabricator of lead products, gained 7.3% last week on surging volumes. The company is scheduled to report third-quarter financial results on October 29. Bloomberg analysts estimate sales of $139.7 million, from $91.5 million recorded in the year-ago quarter, while operating profit is seen at $10.5 million, up from $7.8 million earlier. On October 25, Canaccord Genuity reassigned a buy rating to the stock with a target price of $8, indicating an upside of 69%. Meanwhile, the stock was part of our picks in mining stocks with most upside.

Schnitzer Steel Industries, a scrap steel processor, accumulated 3% after reporting strong fourth-quarter and full-year results, driven by auto parts sales. Net income for the quarter ended August 31 soared 70% to $17.4 million, or 62 cents per share, exceeding the analysts' expectation of 40 cents a share. For the full year, earnings per share stood at $2.86, as opposed to a loss of 99 cents per share in the prior year. On October 25, Canaccord Genuity reassigned a buy rating to the stock with a target price of $67, indicating an upside of 29%.

Great Northern Iron Ore Properties(GNI) was up 2.8% after it recorded impressive operating results for the period ending September 30, 2010. Net Income for the quarter jumped multi-fold to $5.2 million, or $3.5 per share, from $1.3 million, or 86 cents per share, in the year-ago quarter. The company has a dividend yield of 9.35%, among the highest in its operating segment. Meanwhile, the stock was part of our picks in mining stocks with top dividend yields.

Natural Resources Partners(NRP) and Worthington Industries(WOR) gained 1% each last week. These two stocks were included in our stock picks in a mining stock with top dividend yield .

Major losers last week included Mechel and Arch Coal, down 11.8% and 7.5%, respectively. Mechel reported a weak third quarter in terms of production metrics - coking coal concentrate reduced by 4%, while Pulverized Coal Injection (PCI) and anthracite coal production fell a significant 24% from the second quarter.

Among other losers, Aluminum Corporation of China(ACH), AK Steel Holdings (AKS), and Alpha Natural Resources(ANR) dipped 5.1%, 4.6%, and 4.6% respectively.

>To order reprints of this article, click here: Reprints