Thompson Creek Metals Company Inc (USA) (TC), Arch Coal Inc (ACI), & Molycorp Inc (MCP): Beaten to Pulp, Now Time to Buy?

Page 1 of 2

Thompson Creek Metals Company Inc (USA) (NYSE:TC)This could well be a season of corporate turnarounds. As U.S. equities continue to trend higher on better results and an improving economy, even laggards and beaten down stocks such as Thompson Creek Metals Company Inc (USA) (NYSE:TC), Arch Coal Inc (NYSE:ACI) , and Molycorp Inc (NYSE:MCP) are now recovering. Is it worth considering putting your money in these stocks? Here is a closer look:

Thompson Creek Metals on sale

Thompson Creek Metals Company Inc (USA) (NYSE:TC) is a diversified mining company which primarily deals in molybdenum, copper, and gold. Over the last 12 months, the stock has lost 31% as financial performance deteriorated under the effect of depressed molybdenum prices. The company’s finances were also crippled by increasing costs at its Mt. Milligan copper-gold mine, which was initially expected to involve capital expenditure of $1 billion but has already run over $1.5 billion. On the positive side, the stock is attractively placed at a 54% discount to its book value of $8.3 per share.

A forward price earnings ratio of 4.1 and a debt equity ratio of 0.72 further add to its attractiveness. However, a more important factor is the rapidly improving financial and operational performance of the company. Thompson Creek Metals Company Inc (USA) (NYSE:TC)’s molybdenum production from all mines during the first quarter of 2013 was 7.7 million pounds, up 73.8% from 4.4 million pounds in the same period last year. This sterling performance has been overshadowed by softer molybdenum prices in international markets, but the latest set of numbers is still good.

During the quarter, Thompson Creek Metals Company Inc (USA) (NYSE:TC)’ operations displayed higher production and sales volumes while still maintaining lower operating expenses. As a result, revenue fell only 4.3% to $108.7 million and profits dropped slightly from $1.1 million to $0.9 million.

Coal is another sector which has remained in doldrums for a while. Even though natural gas is still capturing market share from coal, Arch Coal Inc (NYSE:ACI) – which recently posted first quarter results — has managed to get positive rating from analysts. Goldman Sachs raised the stock from Sell to Neutral while Morgan Stanley also raised it from Underweight to Equalweight. This was because the company reported better than expected quarterly results. For the quarter ended March 31, 2013, Arch Coal Inc (NYSE:ACI) posted narrower losses on a sequential basis. Losses dropped to $70 million during the three months, down from $295.4 million in December quarter. This was despite revenue dropping during the aforesaid period.

Following the upgrades, the stock has seen better quotes although a high debt equity ratio of 1.8 still remains a concern. The stock currently trades at multi-year lows and remains deeply discounted despite the fact that natural gas prices are gradually inching up, potentially opening the field for coal.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!