London Metal Exchange: Base Metal Inventory Update as of February 11
On February 11, 2016, the inventory levels of all base metals declined on the LME (London Metal Exchange), except the stock levels of zinc.
As of Thursday, February 11, 2016 the equities of major base metal miners have continued to decline.
The base metals copper, aluminum, lead gained on Thursday while other base metals drifted down to lower price levels in London Metal Exchange.
On February 11, the base metals showed mixed performance. LME copper, aluminum, and lead gained, but nickel, zinc, and tin declined to lower price levels.
After the sale of CF Industries’s (CF) phosphate division to Mosaic (MOS), CF is left primarily with its nitrogen fertilizer segment.
As of February 11, CF Industries (CF) was trading at $29.04 per share. Let’s look at Wall Street analysts’ recommendations and target prices for the company’s share price over the next 12 months.
Previously in this series, we’ve looked at CF Industries’ (CF) 4Q15 expectations. Let’s now look at the valuation multiple for the company before its earnings release.
For CF Industries (CF), Wall Street analysts are forecasting an earnings per share or EPS of $0.81, which would be a 25% fall from $1.09 in 4Q14.
When we talk about prices, it’s important to understand what could be the floor for nitrogen prices. To find out, we need to look at the cost curve, which we’ll examine closely here.
Average prices received per ton of nitrogen fertilizer are very important for CF Industries (CF). They drive the company’s revenue…
A rise in shipments could spell positives for CF’s upcoming 4Q15 nitrogen shipments, as it’s a pure nitrogen player.
CF Industries (CF) is set to release its 4Q15 earnings on February 17, after the market closes. Year-to-date, CF Industries is down 28.8%.
When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.
Janet Yellen sparked fresh slowdown concerns in her February 10, testimony before Congress. As the Fed cited growth concerns, the markets were quick to send the dollar down, sensing possible delays in future rate hikes.
Goldman Sachs (GS) now expects copper prices to fall to $4,000 per metric ton this year. In its previous guidance, Goldman had expected copper to fall to $4,500 per metric ton in 2016.
The LME three-month copper contract closed at $4,474 on February 11—losing 0.7% from its previous day’s closing. Investors should note that the $4,500 level is a key technical support level.
In this series, we’ll see how Janet Yellen’s testimony before Congress and Goldman Sachs’ revised price targets for base metals could affect Freeport-McMoRan. Freeport closed at $4.89 on February 11, losing 1.8% from its previous day’s closing price.
Silver rose by 3.7% on a five-day trailing basis and touched a high of $15.48 on February 8, remaining shy of the $15.50 mark. The volatility in silver prices spiked to almost 37% on February 9.
As of February 11, 2016, Agrium pays a quarterly dividend of $0.875 per share. In 2015, it paid an annual dividend per share of $3.21, which has grown at a compounded annual growth rate of about 12.6% over the past three years.
Out of 25 analysts surveyed, about 48% of the analysts have “buy” recommendations for Agrium. About 48% of analysts have issued “hold” recommendations and only 4% have issued “sell” recommendations.