Buying PCU and PVX

by Dual Income No Kids on February 8, 2007 · 0 comments

Good Morning All,

Today’s posting is on my favorite subject: stocks. My wife and I still have some money leftover from our wedding gifts so we are looking at investing about $5,000. After some consideration, I’m favoring putting the bulk of the funds into two companies. These are the 1) the Southern Copper Corporation (PCU) and 2) Provident Energy Trust (PVX).

Southern Copper is a mining company. It owns and operates mines in Peru and Mexico. While the company has taken on a large amount of debt in the past year, most of the financials appear healthy. Additionally, the company currently has a 10% yield. Relative to the S&P 500, a ten percent yield is very good. Since I am in grad school full time, extra income won’t hurt.

Provident Energy Trust. I have owned shares in PVX for since 2004. The price of the trust is stable, but the yield is currently at nearly %11. This is also very good. There are significant risks in the Canadian energy trusts right now, but PVX has the kind of “ho-hum” boring feel that many good investments are made of. In addition, the company has taken prudent steps to increase their gas and oil producing properties in recent years and the firm seems to keep popping up on analysts buy lists. So, it seems like the smart money likes the stock.

As always, if you would like to discuss stocks or investments. Feel free to drop us an email. If not, happy investing and enjoy your adventures in the blogsphere!

Thanks,

James

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