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“Sell earn and cry” strategy: how I sold (PCU) SOUTHERN COPPER, the best stock on my Portfolio February 7, 2007

Posted by deminvest in growth stock, my free stock, PCU Southern Copper, Single stocks, Social investing, stocks that pay high dividends.
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This blog is basically a complain of a crying greedy proletarian investor.

Crying Investor

PCU Southern Copper is a stock I love. Probably the best on the stock in the World… (don’t rush to buy it… remember I am just a simple proletarian investor who knows nothing and maybe writes too much).

You may wonder why I’m selling this stock I love. The reason is that selling it is part of my main investing strategies:

1) “Sell earn and cry”

2) “free stock strategy”

Basically I set a target of 40% gain on every stock. PCU did go up 40%, so I sold enough PCU to get back the money I had invested in the first place. I now only own 11 PCU that I got for free.

Let’s come to find out why I’m crying. I am crying because Southern Copper (BTW… why on earth did they tag PCU a company named Sothern Copper) has wonderful numbers:

1) PCU has a wonderful Dividend Yield of 10.70%

2) PCU is still fairly priced: P/E = 9.59

3) PCU is growing fast its revenue and earnings: Qtrly Revenue Growth (yoy):38.70% Qtrly Earnings Growth (yoy):50.70%

4) PCU hardly has any debt, but does own lots of mining licenses in South America.

I have to stop a moment… My tears are making this Dell notebook wet with tears ( no… I don’t own Dell)

… I am so sorry that I forgot to say what does PCU Southern Copper do: They do mining in Peru and Mexico. Of course they mainly mine, transform and sell copper, but they are also involved with zinc, silver, gold and lead. And it is such a good business! With huge BRIC (Brazil, Russia, China, India) developing at fast pace, the commodities produced by PCU will have larger and larger markets and are, of course, limited in quantity. That is why commodity prices are going up… and PCU is making big money… And I am not because I sold most of my PCUs today!

BTW, writing this article I found out why Southern copper has ticker PCU: their former name was: Southern Peru Copper Corporation. that doesn’ explain the U… But it makes a bit more of sense!

Comments»

1. na - February 12, 2007

copper = cu on periodic table…peru copper, pcu

2. Jan - February 16, 2008

You do know that PCU Southern Copper has a horrible reputation in Ilo, Peru. Before, it was polluting the city of Ilo to the point that CHILDREN were getting severe lung disease. After getting caught, they put in better filters and the pollution is much less. However, they are still refusing to pay some of their temporary workers in Peru. Just thought you should know.


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