Sterlite Industries India is a large mining and smelting company based in India. It engages mostly in the mining, smelting, and production of copper in India and Australia. I have liked the company ever since the IPO in the United States, which was not long ago. It has a strong cash flow and balance sheet and has been dragged down along with the rest of the commodities. The price of the commodity, in this case copper, accounts for 90% of the stock's price movement. The stock currently trades at a mere $4.89 per share with a price to earnings ratio of 4.05.
Shares of Sterlite are trading 8% higher on the Indian stock market under the symbol STER.NS. Since the Indian market precedes the US stock market, the price action there is usually a strong indicator of the price movement here. Therefore, SLT should trade higher on the AMEX by at least 5% tomorrow and if it opens anywhere below, it is a sure sign of a buy for a trade. Just to illustrate the strong correlation between the two equities, here is a chart that compares price movement of STER.NS with SLT:
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