Posted: Jun 17, 2010 10:58 AM by Aryeh Katz
From the time the correction began in late April, the broad market, as represented by the SPDR S&P 500 ETF (NYSE:SPY), never lost more than 14.5%. The lows were set on June 7, 2010, and from that point forward there have been some tremendous bounces in individual issues. Below, we highlight just three that have performed in stellar fashion. Be aware, though, that it's often the case that stocks that spring highest off the lows are also those that drop furthest during a decline.
Titanium Metals Corporation (NYSE:TIE) is just one of three basic materials stocks that led the way from the June 7 lows. The stock is up more than 20% in less than 10 trading sessions, and year-to-date has seen an advance of nearly 64%. That compares favorably with the iShares Dow Jones US Basic Materials ETF (NYSE:IYM), which is down YTD by just over 1%.
Earnings Jumped in Latest Quarter
Titanium Metals melts and mills a variety of products with industrial and commercial applications from facilities in both the U.S. and Europe. Less than 30% of the company's shares are institutionally held, though that may change after the latest earnings release is digested. TIE posted stronger Q1 sales than for the same period last year, mostly due to increased demand for its product and a generally healthier global economic outlook.
TIE has a market capitalization of $3.68 billion.
Coal and Iron Miner Hopping
Cliffs Natural Resources, Inc. (NYSE:CLF) is a global natural resource company with two main areas of business: coal mining and iron ore mining and manufacturing. The company owns and operates eight separate mining facilities in the U.S. and Canada and two more in Australia.
The stock is up over 15% since the June 7 lows, and for the year passed it has tacked on more than 100%. It pays a nominal 1% yield per annum and trades with a price/earnings ratio of 25. Cliffs' market cap now stands at 7.7 billion.
With a market cap of $11.4 billion, International Paper Company (NYSE:IP) is one of the largest pulp and paper operations on the planet. In the last two weeks, the stock has jumped higher by 20%, and for the last 12 months it's up by more than 70%.
IP offers a dividend yield of 1.9% and is 84.5% institutionally owned. (Learn more about dividend yields, see: Dividend Yield For The Downturn.)
The Bottom Line
The basic materials sector has led the advance off the market bottom posted less than two weeks ago. Could it be that the commodities are thereby signaling their resurgence? After a six-month sideways move, perhaps more gains are now in the offing. |
发表于 2010-6-17 15:23
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