Sharing Knowledge in Smallcaps

[Frank Pembleton]

I'm cutting my losses... sold Noranda @ $14.28
ugly market, even uglier story:
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RESEARCH ALERT-Merrill cuts mining companies
Friday October 4, 11:58 am ET


NEW YORK, Oct 4 (Reuters) - Merrill Lynch on Friday downgraded its rating on shares of mining companies Phelps Dodge (NYSE:PD - News) and Noranda Inc. (Toronto:NRD.TO - News) to "sell" from "neutral," citing stalled metal prices.

Merrill also cut its 2002 and 2003 earnings estimates for the two firms, as well as other mining companies Inco Ltd. (Toronto:N.TO - News), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX - News), and Falconbridge Ltd. (Toronto:FL.TO - News)

In a report, Merrill said it had "revised lower its copper, lead, and zinc price forecasts, as well as ratings and EPS estimates for those companies impacted."

Noranda's 2002 loss estimate was widened to 20 Canadian cents per share from 15 Canadian cents per share. Profit forecasts for 2003 were cut to 20 Canadian cents per share from 55 Canadian cents per share.

Phelps Dodge's loss forecasts for 2002 were increased to $2.00 per share from $1.57 per share, while 2003 earnings estimates fell to 20 cents per share from $1.80 per share.

Earnings estimates for Freeport-McMoRan dropped to 85 cents per share from 95 cents per share for 2002. In 2003, Merrill expects the company to earn $1.10 per share versus a previous forecast of $1.50.

For Inco, earnings in 2002 are forecast to be about 85 cents per share compared with a prior view of 90 cents per share. 2003 estimates fell to $1.30 per share from $1.55 per share.

Earnings estimates on Falconbridge were cut to 45 Canadian cents per share from 55 Canadian cents per share. For 2003, estimates dropped to 80 Canadian cents per share from $1.08 Canadian cents per share.
http://biz.yahoo.com/rc/021004/minerals_phelps_research1_1.html