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Re: fung_derf post# 354

Wednesday, 03/27/2024 12:02:49 PM

Wednesday, March 27, 2024 12:02:49 PM

Post# of 384
Derf, >> SCCO <<

SCCO does look interesting, and the chart has been zooming. Copper seems like a logical place to be considering the push toward 'electric everything'. RIO is another idea, though they are diversified, so not a pure play on copper, and are dependent upon global demand for iron. One thing I worry about with miners is that they often operate in dicey countries, with SCCO being heavy in Latin America.

Looking at the dividends, RIO's is huge at 7%, and the div payout ratio is only 65%. SCCO's dividend is 3.1%, but the payout ratio is 127%, which suggests a dividend cut at some point. Not that it will happen, but a div payout ratio over 100% is usually a red flag. These stats are from Yahoo Finance, so might be a little dated.

With the cannabis sector, I'm also reluctant, so only have a tiny exposure. One thing with SMG is their relatively high debt level of 3.3 bil, vrs the company's 4.1 bil market cap. That's definitely on the high side, though these figures may be somewhat dated. Either way, I figure it's best to keep these dodgier stocks / sectors as tiny positions in the 'fun / entertainment' category :o)




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