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bell345

12/06/08 10:34 PM

#414 RE: MikeDDKing #411

FCX is considered best of breeds for a copper play.
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downsideup

12/07/08 1:54 AM

#417 RE: MikeDDKing #411

In the current environment, a growing company is by definition one with a lot of cash... as the cash retains its value, while the things they might spend it on get cheaper...

You can grow organically, and earnings certainly are a good thing... but cash on hand is pretty low risk as earnings go, retained earnings, and they represent future investment... "growth potential"... that companies without that pile of cash do not have... and are unlikely to generate in a down economy.

The two factors that will dilute that value of cash are excess debt, and an inability to control costs as prices or sales decline.

Your screening process eliminates those with debt... you'll need tot do the DD to determine whether management is capable of controlling costs or not... and, otherwise, it is up to you to make smart timing choices in trading to buy low and sell high.