This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Look What's Outperforming Gold and Silver

It's almost a risk-free business model that allows these kinds of companies to enter into lucrative purchase agreements without having the cost or dangers associated with mining and producing the precious metals.

So what struck me as both odd and inexplicable was why they both weren't up spectacularly on a day when gold was up over 2% and silver was up over 3%. After hitting a 52-week high of $54.92 on Thursday, FNV was trading down over 1% late into Friday's session.

SLW had a stellar day on Thursday, hitting a high of $35.89 before closing at $35.71. As of my last look Friday, SLW had hit a high for the day of $36.56, up 2.2% over Thursday's close on higher than average volume.

Here comes the big surprise as to which metals companies are outperforming the precious-metals sector.

Are you sitting down? The beleaguered and often disappointing king of copper production and the giant of the industrial metal world are almost as hot as molten iron.

None other than Freeport-McMoRan Copper & Gold (FCX - Get Report) and Vale S.A. (VALE - Get Report) are rocking and rolling in the free world.

It's about time!

FCX was up over 9% Friday, partly in sympathy with steel and metallurgical coal companies including Alpha Natural Resource (ANR), the largest U.S. supplier of metallurgical coal for making steel, which rallied almost 17% as the No. 1 performer in the S&P 500 Index.

Another big climber Friday was Cliff Natural Resources (CLF), which mines and produces iron ore pellets as well as metallurgical coal. It's been trading at a PE ratio of 4 and forward PE of slightly above 5, so it shouldn't surprise us to see the 15% plus move Friday based on hopes for a major monetary stimulus announcement from the Fed next week.

Friday's weak employment report is encouraging lots of speculation about additional quantitative easing by the Federal Reserve, so these undervalued companies that are selling at very low price-to-earnings to growth (PEG) ratios are overdue for a powerful rebound.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FNV $51.48 0.00%
FCX $19.65 0.00%
GDX $19.58 0.00%
PAAS $9.44 0.00%
SLW $19.07 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs