Breaking Wall Street Market News & Reports

I’ve been doing lots of research, and I think I found 3 dominant Undervalued stocks under $7 bucks. These three happen to be in the commodities sector, which has been hot the past month. One is a pure gas player and the other 2 are Gold players. Now mind you, the charts on these 3 are absolutely discouraging, so what I’m recommending is a medium short term hold with price targets. Let me do the leg work for you. I’ve  recognized a downward channel pattern with a bottom. Now your probably saying go on with it, what are they? I’m building up the suspense and stating my disclaimers first. But as an investor I would like details first then I would make a decision there after. Like most hesitant and risk aversion investors out there you’ll probably just read this post and follow it without pulling the trigger. Now that’s fine with me. Readers who have been following me know I’ve been dead on the last 5 years. People ask will we go through a double dip in this current cycle? No- you’ll need a significant policy change like I’ve mentioned in the previous posts. Is this a perfect time to get back in. YES- but choose wisely.

Now onto my slected picks. I will only mention the technical buying point with some highlights why these have been beaten up soo much.

SandRidge Energy, Inc. (SD) – SandRidge Energy, Inc (SandRidge) is a natural gas and oil company. The Company is engaged in the exploration, development and production activities related to the exploitation of its holdings in West Texas. Its areas of focus are the West Texas Overthrust (the WTO) and the Permian Basin. The WTO is a natural gas-prone geological region in Pecos County and Terrell County, Texas and has 562,626 net acres under lease. The WTO includes the Pinon gas field. In the Permian Basin, SandRidge controls approximately 138,691 net acres in West Texas and New Mexico, including approximately 90,000 net acres acquired in December 2009. In December 2009, the Company purchased natural gas and oil properties located in the Permian Basin from Forest Oil Corporation (Forest) and one of its subsidiaries. The Company operates in three segments: exploration and production, drilling and oil field services, and midstream gas services. On 8/4/2010, SD reported 2nd quarter 2010 earnings of $0.22 per share. This result beat the $0.13 consensus of the 14 analysts covering the company. The next earnings announcement is expected on 11/04/2010.

This $2billion market cap player had been overhedged for gas prices which explains it’s 2 year beaten down price. I dont suggest to hold indefinitely but for the medium term. It closed yesterday at $5, my price target is from $6 -  5.75 . Which equates to a potential 15% gain. Now mind you it will fall down due significant resistance between $6 and $5.75 @ 100 day moving average. I would buy again after the minor correction at $5 after this 15% gain.

SD Chart 9-15

Jaguar Mining Inc (JAG) – Priced at $6.75 A Junior Gold Miner engaged in the acquisition, exploration, development and operation of gold producing properties at its 93,000-acre land base in the Iron Quadrangle region of Brazil, a greenstone belt located near the city of Belo Horizonte in the state of Minas Gerais. During the year ended December 31, 2009, Jaguar acquired the 293,000-acre Gurupi Project in the state of Maranhao from Kinross Gold Corporation (Kinross). Through a joint venture with Xstrata plc (Xstrata), the Company is also engaged in gold exploration at a greenfield site in the northeast of Brazil covering 182,000 acres. The Company is producing gold at its Turmalina and Paciencia operations. During 2009, the Company completed the Phase I expansion of the Turmalina operation on schedule and on-budget. The Company’s Caete Project is under its final stage of construction. This too has been over hedged in gold prices as one of their mines had flooded and slowed production significantly. We’ve touched bottom and now are heading upwards. Now exciting new things are happening as A new Facility was launched and a first Gold poor at Caete Mine was announced last month! My price target is $7.75 – $8, which represents a potential gain of 18-20% gain!

JAG Chart 9-15

Hecla Mining Co ( HL) - Priced at $6.07: Hecla Mining Company is engaged in discovering, acquiring, developing, producing, and marketing silver, gold, lead and zinc. The Company produces lead, zinc and bulk concentrates, which it sells to custom smelters, and unrefined gold bullion bars (dore), which may be sold as dore or further refined before sale to precious metals traders. The Company is organized into two segments: the Greens Creek and Lucky Friday units. Its wholly-owned subsidiary is Hecla Alaska LLC. This price of  silver is approaching a profitable price range for miners to mine. HL has been increasing its ROI and Cost of Capital and now is the time strike. I like this as this has a price target of 7.25, which represents a 18-20% gain.

HL Chart 9-15

Good Luck

Tags: bottom, Gas, gold, Hecla, HL, Jag, Jaguar Mining, junior miners, SandRidge Energy, SD, silver, undervalued, upward buys

This entry was posted on Thursday, September 16th, 2010 at 4:06 am and is filed under Commodities, Contributors, Small Cap Stocks, Technical Stocks. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.