Sunday, April 23, 2006 12:47:37 PM
Copper sell rating from prudential analyst who stated:
>>We believe the adverse substitution [or economization in the form of thinner wall tubing and, lighter gauge wires] occurring today involves reactions to the $1.50 per pound price run-up one year ago. Other factors are specific changes in China to higher refined output and higher copper exports.<<
Someone should explain to the anal-yst that thinner wall tubing has a higher risk of rupture and a lighter gauge of wire will not carry as much electrical current. Copper could go to $100/ pound and it would not be worth the dangers of burst pipes or electrical fires from overheated wires. Also plastic pipe which is a substitute for copper tubing is a petroleum based product. I guess he hasn't noticed that oil is also at a record high price as well.
Motto of this story: When Prudential says sell, it must be time to buy.
>>We believe the adverse substitution [or economization in the form of thinner wall tubing and, lighter gauge wires] occurring today involves reactions to the $1.50 per pound price run-up one year ago. Other factors are specific changes in China to higher refined output and higher copper exports.<<
Someone should explain to the anal-yst that thinner wall tubing has a higher risk of rupture and a lighter gauge of wire will not carry as much electrical current. Copper could go to $100/ pound and it would not be worth the dangers of burst pipes or electrical fires from overheated wires. Also plastic pipe which is a substitute for copper tubing is a petroleum based product. I guess he hasn't noticed that oil is also at a record high price as well.
Motto of this story: When Prudential says sell, it must be time to buy.
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