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Copper Stocks Hurt As Worries Continue In Peru (NYSE:BVN) (NYSE:SCCO)

Posted by Aadil on June 7, 2011 at 11:28pm
As election results were tallied, Ollanta Humala was the reported winner with 52.6% of the vote. Humala is known as a left-wing nationalist that may bring the country the way of Hugo Chavez. The stock market in Peru collapsed 14% on these results as fears of nationalization spread quickly. Stocks all over the world with ties to Peru also collapsed. Precious metals miner Compania de Minas Buenaventura SA (NYSE:BVN) dropped from $42.00 to $35.75 and copper producer Southern Copper Corporation (NYSE:SCCO) fell 10% on this news.

In the short term these stocks will most likely remain under significant pressure until more clarification can be gained. While their valuation seems attractive, if nationalization does become a reality, they will go much lower. Stay tuned to this story and be ready for the trade.  To get more insight, analysis, swing trades and guidance, take the seven day free trial to the Research Center. Click here.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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