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3 Stocks Under $100 to Buy and Hold Forever

While some investors like to manage their portfolios actively, others prefer to buy stocks under $100 for the long term. This means holding onto shares…

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This article was originally published by Investor Place

While some investors like to manage their portfolios actively, others prefer to buy stocks under $100 for the long term. This means holding onto shares for as long as thirty years, or even forever.

However, you can’t hold just any stock indefinitely. Plenty of companies seem like a great bet one year, only to plummet the next.

The types of stocks that you can hold forever must have sustainable business models. They should be leaders in their fields and have longstanding reputations as strong companies. Additionally, they should be growing and have solid balance sheets.

With the market continuing to hit new highs, many of the share prices of these companies are in the hundreds or even thousands.  This makes it hard for investors with limited capital to purchase large quantities of shares.

However, there are still top companies that you can hold forever that are trading below $100. And while that level is definitely not low-priced stock territory, it is nowhere near the prices of companies such as Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA).

When you look at stocks under $100 combined with our POWR Ratings system, you get three great long-term picks:

  • Coca-Cola Company (NYSE:KO)
  • BHP Group Ltd. (NYSE:BHP)
  • Pfizer Inc. (NYSE:PFE)

Stocks Under $100: Coca-Cola Company (KO)

Source: Soloviov Vadym / Shutterstock.com

Coca-Cola is the largest non-alcoholic beverage entity globally. It owns and markets some of the leading carbonated beverage brands such as Coke, Fanta and Sprite, as well as non-sparkling brands like Minute Maid, Costa and Glaceau. It has a market share of more than 40% in the non-alcoholic beverage industry.

The firm is evolving its business model to become a total beverage company due to the industry-wide flattening of soda sales. It has investments in alternatives such as coffee, sparkling water and sports drinks. This includes Coca-Cola Energy, Coca-Cola with Coffee and Powerade.

The company had a robust second quarter; both revenue and earnings beat expectations. Sales bounced back from a decline in the prior year’s quarter. This was driven by increased consumer mobility and the widespread reopening of businesses. These factors led to an increase in away-from-home channel sales.

Coca-Cola also gained from an improved price-to-mix ratio, an increase in concentrate sales and a higher unit case volume. As a result, management has raised guidance for the year.

The company has an overall grade of “B,” which translates into a “Buy” rating in our POWR Ratings system. KO stock has a growth grade of “B,” which makes sense as earnings per share rose 61% year-over-year (YOY) in the most recent quarter.

The company also has a Quality Grade of “B” due to solid fundamentals. For instance, KO stock has a current ratio of 1.4, indicating it can easily handle short-term liquidity.

Coca-Cola is highly profitable, with a net profit margin of 23.8%. We also provide Value, Momentum, Stability and Sentiment grades for KO stock, which you can find here.

Coca-Cola is ranked #11 in the B-rated Beverages industry. For more top stocks in this industry, click here.

BHP Group Ltd. (BHP)

a construction worker looks on as an excavator gets to work in a mineSource: Shutterstock

BHP is a leading global diversified miner that supplies iron ore, copper, oil and gas. A 2001 dual-listed merger of BHP Limited and Billiton PLC created the present-day BHP.

The company’s major assets include iron ore, Queensland coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico.

It manages product distribution through a global logistics chain, which includes freight and pipeline transportation. BHP sells products through direct supply agreements with customers and international commodity exchanges.

Population growth and rising living standards should continue to generate demand for energy, metals and fertilizers for years. This can help drive BHP’s growth.

The company is benefiting from higher copper prices that have resulted from increasing demand as well as potential supply disruptions in Chile. BHP is also benefiting from an increase in Potash prices due to favorable farm conditions and constrained supply.

Plus, the long-term prospects for metal prices are solid. The growth in steel production, driven by urbanization, should increase demand for iron ore and help sustain prices. The need for nickel in electric vehicle batteries should also continue to grow. BHP has an overall grade of “A” and a “Strong Buy” rating in the POWR Ratings system.

The company has a Value Grade of “B,” which isn’t surprising with a trailing price-to-earnings (P/E) ratio of 14.13x. Its price-to-tangible-book ratio of 3.1 is also well below the industry average.

BHP also has a Quality Grade of “B” due to its solid balance sheet. The company has a low debt-to-equity ratio of 0.5 and a current ratio of 1.4. For the rest of BHP’s grades (Growth, Momentum, Stability and Sentiment), click here.

BHP is ranked #4 in the Industrial – Metals industry. For more top-ranked stocks in this industry, click here.

Stocks Under $100: Pfizer Inc. (PFE)

blue Pfizer (PFE) logo on the windows of a corporate buildingSource: photobyphm / Shutterstock.com

Pfizer is one of the world’s largest pharmaceutical firms, with 2020 sales of more than $40 billion. While the company historically sold many types of healthcare products and chemicals, prescription drugs and vaccines now account for most of its revenue.

Its top sellers include its pneumococcal vaccine Prevnar 13, cancer medication Ibrance and cardiovascular treatment Eliquis.

The company has benefited significantly from its Covid-19 vaccine. Management reported a solid second quarter; earnings per share rose 73% YOY and sales surged 92%.

The majority of its sales were from its Covid-19 vaccine, BNT162b2. The vaccine brought in $7.8 billion in global sales during the quarter.

The vaccine was developed in record time. It has full approval in the U.S. and emergency use authorization in several other countries. The company expects to make up to 3 billion doses by the end of the year and has agreements in place to deliver 2.1 billion doses in 2021.

Pfizer is evaluating the vaccine in younger patients and testing a booster vaccine dose. Additionally, it is trying to develop an updated version of the vaccine specifically designed to target the delta variant.

The company expects strong growth in key brands such as Ibrance, Inlyta and Eliquis. Pfizer also boasts a sustainable pipeline with multiple late-stage programs that can drive growth. PFE stock has an overall grade of “A,” translating into a “Strong Buy” rating in our POWR Ratings system.

The company has a Value Grade of “B,” as its forward P/E is only 12.72x. Its price-to-free cash flow of 12.7 is also well below the industry average. PFE stock also has a Growth Grade of “B,” as analysts expect revenue to surge 85.7% YOY in the current quarter and 92.2% for the year. Earnings are expected to jump 85.1% this year. 

To access the rest of PFE stock’s grades, including Momentum, Stability, Sentiment, and Quality, click here. It is ranked #8 in the Medical – Pharmaceuticals industry. For more top stocks in this industry, click here.

On the date of publication, David Cohne did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a Consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.

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Drilling kicks off and uranium analysis planned at Benmara battery metals project

Special Report: Resolution Minerals has started drilling at its Benmara battery metals project in the Northern Territory. … Read More
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Resolution Minerals has started drilling at its Benmara battery metals project in the Northern Territory.

The 2,500m RC drilling program is focused on the highest priority targets of 4km and 2km strike length derived from a VTEM survey – and new Geoscience Australia research which identified prospective rock types previously mis-mapped.

The large-scale targets are prospective for sediment hosted battery metals including copper, silver, lead, zinc, and cobalt.

Plus, the targets are on the margin of the South Nicholson Basin and Murphy Inlier on the Fish River fault which is analogous and along strike from Aeon Metal’s (ASX:AML) polymetallic Walford Creek deposits (40 million tonnes at 2% copper equivalent).

It presents the company with strong exposure to the strengthening demand for battery metals – and a tightening market for copper.

And because the targets have no prior drilling, Resolution Minerals (ASX:RML) is confident this underpins the potential to rerate on any discovery made.

 

Fully funded to ramp up exploration

Resolution is fully funded to complete the drilling with existing cash following a recent $1.7 million placement.

“We are very excited to announce drilling has started on our maiden drill program at the under-explored Benmara Battery Metals Project in the Northern Territory,” managing director Duncan Chessell said.

“The program follows up large scale targets derived from our recent VTEM geophysics survey for sediment hosted stratiform copper and other battery metals.

“With virtually no prior drilling conducted into these large-scale targets, we look forward to the results of this exciting opportunity and accelerating exploration.”

The drilling will take three weeks to complete, with assays expected in early November.

Pic: The company holds the Wollogorang and Benmara copper-cobalt-uranium projects in the NT, which includes the Stanton cobalt deposit.

Assessing uranium upside off the back of strong prices

The area surrounding Benmara is also highly prospective for uranium, with the 51.9-million-pound Westmoreland Uranium deposit nearby.

Additional uranium occurrences have also been mapped within 2km of the Benmara tenement boundaries.

And with rising uranium spot prices close to US$50/lb – a nine-year high – it puts the company in a good position to assess the uranium potential of the project.

 

Wollogorang project potential

Then there’s the company’s Wollogorang project in the McArthur Basin in the NT, which is prospective for sedimentary hosted battery metals: copper, cobalt, and hard rock uranium.

There’s proven mineralisation within the Stanton cobalt deposit of 942,000 tonnes at 0.13% cobalt, 0.06% nickel, 0.12% copper.

And a VTEM survey highlighted the sediment hosted copper potential, identifying 40 conductors.

Plus, drill targets at the Gregjo copper prospect are set to test a chargeable IP geophysical anomaly underlying copper mineralisation intersected in shallow RAB drilling of up to 4% copper.

The project is subject to a $5 million farm-in agreement with OZ Minerals (ASX:OZL) to earn 51% interest, after which the company can retain 49% by participating.

Or at Resolution’s election, OZ has the option to earn 75% interest by sole funding to a final positive decision to mine, with Resolution appointed as operator.

 

 

Resolution Minerals share price today:


This article was developed in collaboration with Fresh Equities, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

The post Drilling kicks off and uranium analysis planned at Benmara battery metals project appeared first on Stockhead.

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Bryah nabs strategic exploration ground around namesake project

Special Report: Bryah Resources has expanded its footprint in WA, securing three exploration licences covering 50 km2 around its existing … Read More
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Bryah Resources has expanded its footprint in WA, securing three exploration licences covering 50 km2 around its existing land holding in the Bryah and Padbury Basins.

The Bryah Basin hosts the high-grade copper-gold mines at DeGrussa, discovered by Sandfire Resources (ASX:SFR) in 2009, and at Horseshoe Lights, which was mined until 1994.

It also hosts several historical and current manganese mines including the company’s Horseshoe South mine.

Bryah Resources’ (ASX:BYH) is confident that the new tenements – E52/3848, E52/3898 and E52/3963 – cover prospective and under-explored areas which have gold, copper-gold and manganese exploration potential.

The tenements were acquired for 4 million ordinary shares at an issue price of $0.055/share.

Tenure right next to historic gold mine

The largest tenement (E52/3898) covers exploration ground adjacent to the historic Wilthorpe shallow open cut gold mine.

The mine straddles the boundary of new tenement E52/3898 and an adjacent E52/2059, held by Westgold Resources (ASX:WGX).

It was mined by Dominion Mining from 1993-94, producing 4,650 ounces of gold from 72,817 tonnes of ore grading 2.0 g/t gold.

And there has been limited gold exploration since.

Based on the reported mineral occurrences, Bryah considers the tenement package highly prospective for copper, gold, and manganese.

Pic: Tenement location plan

Exploration planning underway

The company will shortly commence a thorough desktop review of all historical exploration reports as well as its own extensive database.

The data review will support a detailed phase of exploration planning, ahead of ground exploration activities.

In the meantime, reverse circulation drilling is underway at Bryah’s manganese JV, in a 2000m program fully funded by partner OM Holdings.

 


 

 

This article was developed in collaboration with Bryah Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

The post Bryah nabs strategic exploration ground around namesake project appeared first on Stockhead.

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Mining battery metals from the sea floor – could it soon be a low-impact reality?

Low-impact sea mining could become a reality for one ambitious company with the arrival of a 228m ship in Rotterdam … Read More
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Low-impact sea floor mining could finally become a reality for one ambitious company with the arrival of a 228-metre ship in Rotterdam earlier this week, heralding a critical milestone in its plans to become a producer of battery metals sourced from the deep ocean.

Named the Hidden Gem, the vessel is the key to The Metal Company’s (NASDAQ:TMC) vision of developing the world’s largest source of battery metals from the ocean floor with commercial production plans targeted for 2024.

TMC’s strategic partner, Allseas, will be converting a former deep-sea drilling vessel into a subsea mining vessel, retrofitting the ship with equipment to gather polymetallic nodules on the seafloor within contract areas held by TMC in the Pacific Ocean’s Clarion Clipperton Zone (CCZ).

The Hidden Gem. Pic: Business Wire

These potato-sized polymetallic nodules contain high grades of critical minerals such as nickel, manganese, copper and cobalt, which are integral to the manufacturing of electric vehicle batteries and other renewable energy technologies.
 

Enough to power 250 million EVs

Back in April 2020, TMC acquired its third seabed contract area to explore for polymetallic nodules from Tonga Offshore Mining Limited (TOML), which opened it up to a further 74,713km square block of exploration rights.

The third contract area comprises an inferred resource of 756 wet tonnes of polymetallic nodules, meaning its expanded footprint now contains enough nickel, copper, cobalt and manganese to build more than 250 million electric vehicle batteries.

Speaking to the TOML acquisition, TMC’s chairman and CEO Gerard Barron said the project will enable The Metal Company to bring more critical minerals to market to break through the bottleneck and shift away from fossil fuels.

“Our research shows that ocean polymetallic nodules can provide society with these metals at a fraction of the environmental and social impacts associated with land-based extraction.”

Pic: Supplied

 

Environmental concerns about sea floor mining

The environmental concerns which surround mining of the ocean’s floors are well documented, with several jurisdictions and regulatory bodies imposing bans and strict regulations on subsea mining due to the lack of understanding around the environmental impacts and growing fears about the irreversible effects these practices may have on the fragile ecosystems that we know very little about.

Many scientists believe that far more resources have been spent researching ways to mine the ocean floor rather than studying the impact this type of mining might have on the underwater environment.

TMC, however, believes that the Hidden Gem subsea vessel, which will deploy a 4.5km riser to collect the nodules off the seafloor without drilling, blasting or digging, can avoid much of the environmental disturbance associated with traditional sea floor mining methods.
 

Past failures

Planning to mine the oceanic crust’s wealth of mineral resources is a well-trodden path that’s seen many companies fail to deliver on their promises of production due to regulatory and financial hurdles.

Companies such as Nautilius and its high-grade Solwara 1 copper-gold project off the PNG coast is one recent example.

Nautilius had plans to turn its Solwara 1 project into the world’s first underwater copper-gold mining operation but wound up delisting from the TSX and going bankrupt in 2019.

The Canadian company had developed three undersea robots to mine hydrothermal vents on the ocean floor before funding issues became a problem midway through construction.
 

On the road to meeting deep-sea battery metals goal

There are examples of successful mining ventures in the ocean such as in Indonesia’s tin industry, diamond extraction in Namibia, and gold mining off Alaska’s coast, however these ventures are often heavily scrutinised by environmental lobby groups and constantly face the risk of being shut down due to increasing global environmental awareness and a trend towards greener policies from the governments who licence them.

While there is still plenty of obstacles and work to be done, TMC, with the help of Allseas and their new vessel, which is expected to be the first ship classified as a sub-sea mining vessel under American Bureau of Shipping, are much closer than many of their peers to realising the goal of supplying the market with battery metals from the seafloor.

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