David Taylor, MBA, CFAAur ResourcesAUR.TOWEAK BUYJun 14, 2006
Cheap. The only concern he would have with this is its exposure to copper. Copper is not as tight as nickel which isn't as tight as zinc. In a base metal rally, this company will do very well.
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.