Are These On Your Mining Stocks Watch List?
This week started off with a volatile bout of consolidation. Early in the morning on January 13, the S&P saw some consolidation from its premarket highs. However, once the day got rolling, things were back in order and the S&P once again inked yet another, new all-time high.
The U.S. and Chinese officials are set to sign a Phase 1 trade deal this week. However, there are still remaining items that need resolutions. Mainly, issues concerning farmers and laborers weren’t included in the initial sketch of a Phase 1 deal.
Regardless of that being the case, it hasn’t stopped anyone from putting together a list of mining stocks to watch. That’s especially considering that mining and gold stocks typically react inversely compared to the market. That was not the case for a number of mining stocks on January 13th. In fact, as you’ll see, there were many that ended up extending gains further compared to last week.
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Mining Stocks To Buy [or sell]: Vale S.A.
As one of the world’s largest iron ore miners, Vale S.A. (VALE – Free Report) is no stranger to being a sector leader. In 2018 alone, the company managed to produce over 380 million metric tons of iron ore, more than 240 metric tons of nickel, 55.3 million metric tons of iron ore pellets and 11.6 metric tons of coal in 2018 alone. Since late August, shares of the company have been on the move.
At the tail end of 2019, VALE stock had reached highs of $13.57. Following a slight pullback to lows of $12.93, Vale recovered once again to jump-start the week. By the end of the day, shares had hit highs of $13.40. One of the biggest hurdles for the company right now is its trouble in Brazil.
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State prosecutors plan to bring criminal charges against the company “in the next few days” filing charges against 15-20 people including the executives of the company. So this will certainly be something to keep in mind moving forward if you’re looking at this mining stock right now.
Mining Stocks To Buy [or sell]: Gerdau SA
Similar to Vale, Gerdau SA (GGB – Free Report) has been rocking since late August. At the time, shares of GGB stock traded around $2.75. However, since then the stock has managed to not only climb but reach new 52-week highs this week of $5.27. The company produces steel and steel products. These are products like nails, rebar, slabs, mechanical construction bars, etc. With operations in Asia, the Americas, and Europe, Gerdau has established a true, global footprint.
This 91% move hasn’t come without big events from the company. In a press release last month, the company revealed another key milestone. Swedish bearings maker SKF signed a performance-based deal with the steelmaker.
Mining Stocks To Buy [ or sell]: Allegheny Technologies
Unlike these two previous names mentioned, Allegheny Technologies (ATI – Free Report) hasn’t had the best performance over the last few weeks. However, on January 13, that might have changed. After hitting near-52-week lows, ATI stock managed to see its first green close in weeks. The company supplies specialty metals to different end markets. This includes aerospace and defense as well as energy, medical, and automotive.
Given the 1-day performance of the mining stock this week, we can’t forget what’s happened earlier in the year. Shares of Allegheny received several downgrades by analysts along with slashes of price targets. Something to look forward to will be its webcast conference call for Q4 results at the beginning of February. Will it help set the course on the right path for 2020 or are new lows on the way?
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