jim,
Either this Coxe call is going to turn out very prescient or a disaster. In the S-T it could be a disaster, I think. AFAIKT, China is pouring cold water on a bunch of real estate projects...projects that consume metals and such at the margin. I see the majors ramping up iron ore production. Perhaps, like oil, the cheapest metals are in the stock market. Which, while it makes M&A a bargain, doesn't mean they won't sell off. Can't this be compared to some oil stocks, which are a bargain at $50 oil when the analyst targets have been set at $32, and which have been selling off, but for a cash-rich producer, perhaps it is just a matter of buying before your competitor does?
Frankly, in both cases, they could wait and see if we get a dollar spike as USD reserves could be used to fund the deals in AUD and CDN. A higher USD will make the acquisitions cheaper.
We are getting a USD spike aren't we? For once, holding cash, and holding USD, seems smart.
D |
