04/17/06
The lead segment for today's show
was "Maximum Minerals: Making Money of the Bull Market of
Mineral Extraction".
Today, Jim wants to take a broad
look at the market by looking at a trend, the bull market in
mineral extraction. Much of the interest in this bull market
comes from America, but the real boom is in BRIC (Brazil, Russian,
India, and China) companies. This bull market is really being
driven by BRIC.
There are two kinds of companies:
mineral extraction companies and the companies that make their
equipment and tools.
Rock Stars
These are Jim's best of breed of
mineral companies.
BHP
Billiton Limited (BHP)
is the world's second largest producer of copper and third
largest producer of nickel, and is also very big in many other
minerals.
Freeport-McMoran
Copper & Gold, Inc. (FCX)
is the world's largest producer of copper and gold and Jim
thinks this company is an excellent long term investment for the
mineral bull market. Additionally, the pay out a 2.4% dividend
and often pay out special dividends.
Rio's Grand
Rio
Tinto (RTP)
has a huge stake in industrial metals which is why Jim calls
this company, "Supermarket to the World". BRIC
countries are going to drive the demand for steel, and RTP has
the minerals needed to make all this needed steel.
Dig It
Now its time to check out the
companies that make the equipment for mineral companies. Jim is
making an exception today and picking some companies that are
not best of breed.
Manitowoc
Co. Inc. (MTW)
is the best crane company for this sector. Also, this company
will also benefit from a couple more years of the crane
replacement cycle, in addition to the mineral bull market, as
well as from the U.S. highway bill and Katrina rebuilding.
Terex
Corp. (TEX)
is a company that you need to buy on weakness. They make heavy
trucks and hydraulic excavators. Don't hold this stock, so you
have to do homework to trade this stock.
Caterpillar
Inc. (CAT)
is a best of breed company. CAT makes the best mining trucks in
the world and is also one of Jim's Great Manufacturers.
Mad Money
Lightning Round Picks ( No Lightning Round Today)
Bulls
Bears
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