Mr. Dominguez: First of all, regarding my coverage, I'm responsible for covering the base metal sector for North and South America for HSBC. I cover 10 companies, and I'm also responsible for making HSBC's forecast for iron ore. My coverage consists of the following 10 companies: Alcoa is the U.S. aluminum producer listed on New York; Arch Coal, which is one of the four coal names that I cover, along with CONSOL Energy, Massey Energy and Peabody Energy. And then I cover First Quantum (FM.TO), which is a copper and nickel miner with operations in Africa and Australia but is listed in Toronto. I cover Grupo Mexico, which is a conglomerate holding company with assets in Mexico, Peru and the United States. I cover Southern Copper, which is an 80%-owned subsidiary of Grupo Mexico with operations in Peru and Mexico. I cover Teck Resources (TCK), which is a Canadian-listed and domiciled company with operations in Canada and Chile, operations in Peru. I cover Vale, formerly known as CVRD, which is the world's second largest metals and mining company, with operations worldwide. Most of its operations are in Brazil, and some operations are in Indonesia and Canada.
The angle that we try to take when doing equity research is to be different. You are familiar that there are plenty of other houses that do equity research in the States, and we don't have a large equity research footprint in the United States, despite the fact that it's one of the largest banks in the world. But the angle that we have is that we are a global bank; we have a global footprint, and we try to look at stocks more from a global point of view than just a domestic point of view. Like when I look at Alcoa, I am not going to look at Alcoa just from the point of it's an S&P 500-listed company, etc. So I'm going to look at Alcoa versus its peers or competitors in Asia, in India, in Europe, etc., which I believe adds more value to the global investors and makes it more interesting for me, too.
Tickers included in this excerpt: AA, ACI, ASARCO, BTU, CNX, GMEXICOB.MX, MEE, PCU, VALE
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