Wednesday, November 2, 2011

7 Metal and Mining Stocks Dropping Like Rocks

There is talk of a "hard landing" in China and its long-dominant
manufacturing sector these days. While we can debate the speed and impact of the
China decline that is appearing in recent data points, even the most optimistic
China investor must admit, at the very least, that a slowdown is in the works .
That means demand for steel, aluminum, copper and other raw metals will slow
down in kind. Considering the bleak demand picture in the U.S. and Europe, that
could spell disaster for struggling metals and mining stocks that have been
battered by the global economic slowdown. I watch more than 5,000 publicly
traded companies with my Portfolio Grader tool, ranking companies by a number of
fundamental and quantitative measures. This week, Ive got 7 metal and mining
stocks to sell. Here they are, in alphabetical order. Each one of these stocks
gets a "D" or "F" according to my research, meaning it is a "sell"
or "strong sell." Aluminum Corp. of China (NYSE: ACH ) is a producer of
aluminum and aluminum products in China. ACH stock has slipped more than 43%,
year-to-date, much to the dismay of shareholders. Agnico-Eagle Mines (NYSE: AEM
) is a gold producer that mines in Quebec, Northern Mexico, Northern Finland and
other areas of North America, South America and Europe. Despite its global
operation, AEM stock is down 43% in 2011. ArcelorMittal (NYSE: MT ) is a steel
producer that shipped approximately 85 million tons of steel in 2010. MT stock
has faltered in 2011 to the tune of a 49% drop year-to-date. HudBay Minerals
Inc. (NYSE: HBM ) is a diversified mining company based in Canada. In the last
11 months, HBM stock has dropped 41%, compared to a 1% gain by the Dow Jones in
the same time. Thompson Creek Metals (NYSE: TC ) is another mining company that
is based in Toronto. Like other mining stocks on this list, TC stock is down
54%, while the broader markets have posted small gains. Posco (NYSE: PKX ) is a
South Korean steel company that produced approximately 33.7 million tons of
crude steel in 2010. Like the rest of the companies on this list, big production
hasn't slowed the pace of PKX's 2011 slide. PKX stock is down 22%,
year-to-date. Vale (NYSE: VALE ) is a metals and mining company with a portfolio
including nickel, iron ore and iron ore pellets, manganese ore, ferroalloys,
aluminum, fertilizers, copper and coal. Despite a diversified range of products,
VALE stock has slipped 29% year-to-date. Get more analysis of these picks and
other publicly-traded stocks with Louis Navellier's Portfolio Grader tool, a
100% free stock-rating tool that measures both quantitative buying pressure and
eight fundamental factors.

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