Of course I am taking about the 42nd atomic element: Molybdenum (aka Moly)
Long story short, because I believe in a "World of Shortages" (thx TraderMark) I am bullish on the minerals complex (copper, iron, etc.) but moly (short for molybdenum) is my favorite. Supply is constrained until mid-2010 at the earliest, meanwhile it's use in oil drilling, fuel transportation pipes, and refining is growing significantly. Why? Moly has the 6th highest melting point of any element as is often used as as super alloy for steel products.
Anyway, the best pure moly play I can find in this space is TC. TC's 2009 EPS growth is around 40% (it's forward PE is less than 8!). I like stocks with these types of margins of safety; I mean what's it going to do? Trade down to a 5 PE? TC is not Wamu or Citigroup :-) Of course please do your own homework before buying this stock.
No comments:
Post a Comment