GUY
ARG has done well, and is now sitting on a new cash position ($17M). But it is more expensive than some other copper stocks, even though it is quite small. It is attracting income investors with its 7.6% yield. EPS is expected to double this year and triple next. But it has big leverage to copper prices, and of course these can be very cyclical. It has stopped its dividend in prior cycles, but its balance sheet is in better shape this cycle. Cash flow is good, and the last quarter was solid. Payout ratio is fairly high at 75%. We would consider it OK. It size, higher valuation and cyclicality need to be considered here.