"We've traded Southern Peru Copper (NYSE: PCU) profitably more than once; it’s time to do it again," suggests Mark Skousen.

In his High Income Alert, he says, "Make no mistake, this is a contrarian play. But if you believe in buying straw hats in winter, PCU is an exceptional value at these levels."

"More than 2.9 billion pounds of copper are used in construction every year, primarily in plumbing and wiring, while electronic products use more than 1.9 billion pounds a year.

"Transportation equipment -- including cars, trains, planes and submarines -- uses more than 1 billion pounds a year.

"The manufacture of industrial equipment requires another 1 billion pounds annually. And consumer and general products, from cookware to church bells to pennies, require another 800 million pounds.

"Southern Peru operates the world's largest copper mine high in the Andes mountains, producing more than 800 million pounds of copper a year.

"Of course, the commodity bull market that was running at a full gallop in the first half of this year has stopped dead in its tracks. Copper prices are no exception. When building and manufacturing slow, so does the demand for the red metal.

"However, the slowdown is more than reflected in Southern Peru’s current price, down 70% during the past year even though operating margins are 52% and management is earning a whopping 46% return on equity.

"This stock is so cheap that it sells for just six times earnings. That’s pretty amazing when you consider that the company is benefiting from lower fuel costs and continued strong demand in China, India and other major emerging markets.

"Southern Peru also is yielding 10%. With the company sitting on more than $1.2 billion in cash, it will have no trouble paying its dividend.

"Make no mistake, this is a contrarian play. Commodity prices are unpredictable from one week to the next. But if you believe in buying straw hats in winter, PCU is an exceptional value at these levels."