Inv Reporter says hold HudBay Minerals
HudBay Minerals Inc (C:HBM) Shares Issued 171,971,287 Last Close 10/18/2012 $9.60 Friday October 19 2012 - In the News
The Investment Reporter, in its Oct. 12, 2012, issue, says hold HudBay Minerals Inc., recently $9.68 The Reporter said buy three times from Oct. 12, 2007, to March 6, 2009, at prices ranging from $5.49 to $25.75. Assuming an investment of $1,000 for each of the three buys, the $3,000 position would now be worth $2,855. The company's earnings are expected to plunge sharply to 18 cents a share in 2012, from $1.82 a share last year. Next year, HudBay's earnings are expected to recover, only slightly, to 23 cents a share. Based on this estimate, the shares trade at an excessive price-to-earnings ratio of 42.1. On the bright side, the earnings estimate next year more than covers its 20-cent dividend. The company also trades at a reasonable price-to-cash-flow ratio of 6.8 and remains free of debt. Moreover, it trades below its book value of $10.30 a share. The newsletter recommends holding the stock, at least until earnings fully recover.