Brian Acker, CAAur ResourcesAUR.TOWEAK BUYApr 28, 2005
Model price is north of $10. A lot of these companies have huge valuations in terms of peak earnings, but have balance sheet restraints in terms of valuation. Looking out a year with earnings analysts are projecting, a high would be about $9.30. The trouble with cyclical stocks is that no one is going to pay top dollar.
Numbers were a little bit below expectations. Adding acquisitions. Extremely strong balance sheet. Feels it can trade back up in the mid-$20's. Could be a takeout.
It is facing the rapid decline in copper prices. You will probably see some element of earnings being reduced. Seems to be holding here reasonably well. If you’re reasonably optimistic, like he is, some of the metals are looking a little more interesting.
Paying a special dividend towards the end of the month. Outlook for copper is a little more guarded at this stage. If there is a re-acceleration of the economy, the stock can spring back to life and trade in the mid-$20's. Would take a little money off the table at that time.