PERU COPPER (CUP)

[Pecuniam]

The company is still in the exploration stage, but it has generated some buzz because its primary mining target, copper, is so hot right now. As the price of copper itself soars, the stocks of copper-mining companies like Southern Copper (NYSE: PCU) have been consistently hitting 52-week highs. And with the massive $26 billion buyout of Phelps Dodge by Freeport-McMoRan (NYSE: FCX), Peru Copper shareholders certainly have reason to believe that their $660 million company could be a serious takeover candidate.

The company is currently working with UBS to figure out its next move. It claims it's keeping all of its options open -- in addition to considering an outright sale of the company, it's also mulling bringing in a partner to help with development of the Toromocho Project, or raising capital to do the development itself.

CAPS players have largely supported the stock and believe it could be worth a lot more than it's currently selling for. All-Star Jeffreyw posits:

Peru Copper is undervalued at $5/share. As copper prices and demand increase, the market will fairly value [the company] (around $10/share) or it will be bought by another company for close to fair value.

UofMNorthman also points out that the stock has a thin following on Wall Street and calls it "a diamond in the rough."