Monday, February 26, 2007

Next purchase

It took a while, but I've identified my next purchase for my RRSP:

Souther Peru Copper (NYSE: PCU).

They are some sort of mining company. The stock has a great looking chart. I was actually looking at this back when it was $55, but due to various distractions, never pulled the trigger at that price. 20/20 hindsight, but $55 looks like a bargain now. And to top it all off, it pays a pretty juicy quarterly dividend, good for over 9% yield. I don't think there are too many companies, let alone mining company, that pays 9% yield.

So now the waiting game begins. I'd like to see how the stock responds to support @70, and if it successfully tests that support level, then I will buy on the bounce back up. Otherwise, I will wait some more to see how it behaves at the $65 level.