The Company is a manufacturer of finished and semi-finished non-ferrous products based on copper, aluminum and related alloys and of flexible packaging products for use in the mass consumer market for food, snacks and cosmetics products.
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
A Chilean company involved primarily in the metal fabrication business. Their primary revenue earner in the past was their wire and cable business. However they sold this business to a a French company (Nexan) with the sale being completed 30SEP2008. The cash and stock aquisition leaves Madeco with a 9% stake in Nexan and allowed Madeco to dump off the vast majority of their debt. They voted last year to issue out 76% of the proceeds from the Nexan purchase out as a dividend. They paid their 2007 dividend out in January so I figure they'll do it again in January this year.
Their second biggest historically and now largest revenue earner is their Brass Mills section which is invovled in the very unsexy business of manufacturing pipes, sheets, coins, other assorted stuff. Their primaray raw material is copper, which is at 4-5 year lows currently and with the wire and cable business going away they are generating over 50% of their revenues from exports. The Chilean peso is also at lows to the dollar not seen since 2003-2004, which makes Chilean goods cheap comparatively so can be good for an exporter.
The ADS price is around the middle of it's 52 week range. With their debt being drastically reduced, primary material cost going down, the fact that they are export driven, and a dividend payout coming very soon I don't feel too bad green thumbing this on caps at this price. I don't really plan on buying anything at all, this included, until the market comes back down again though.
So when I first reccommended the ADR it was trading at $6.60. They finally payed the dividend I was talking about on the 25th of March and it was a doozie. $2.45 which represented a 32.5% dividend at the previous day's closing price or a 37.1% dividend from when I originally pitched it. This did drive the share price down, but the dividend gains would've offset the capital loss if you bought in Januray. They're up again pretty big today on news that they will be focusing more on their plastics and packaging business, since copper and it's derivitive industries all are still slumping. In slightly older news they had alos announced increasing their stake in Nexan up to 10%. So the company is more or less reinventing itself by switching from a primarily copper based cable and wire producing business to a plastics buisness. At the same time when the cable and wire segements start to recover they'll still get a piece of the action through their stake in Nexan. Chile's economy tends to go the way of copper prices but they're still the most stable South American play and I still like this compnay going forward in the long term. If the share price continues to float sideways ish there's a good chance I'll buy some shares soon as I realign my portfolio over the next month/month n half.