SCCO - slips lower on a downgrade

Southern Copper (SCCO) slipped 4.9% to close @ $39.38, which was the biggest daily fall in over 8 months. The fall was at least partly due to a broker/analyst downgrade, although the daily chart shows SCCO was rolling over since last Thursday anyway.


SCCO, daily

Summary

SCCO is the main rival to FCX, and I remain bullish about both across the longer term.

SCCO has good cash/debt levels, great profit margins, and a dividend that any bond holder should greatly envy.

Even if margins slip a little, it still won't do much to the underlying strong outlook.

From a buying perspective, going long later this week - or early next, in the 37/36 zone would seem a very attractive level. Baring a disastrous earnings-forecast for Q1/2 2013, it would seem very unlikely the 200 day MA @ $32 will be tested any time soon

*SCCO have earnings next Monday, and it will be one to watch.