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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: russwinter who wrote (19146)9/28/2004 8:45:27 AM
From: Wyätt Gwyön  Respond to of 110194
 
Starbucks to Raise Drink Prices
By an Average of 11 Cents a Cup
online.wsj.com



To: russwinter who wrote (19146)9/28/2004 11:30:08 AM
From: Roads End  Respond to of 110194
 
You are right, the companies holding the resource have the advantage when the cycle slows but historically they have sold finished products below cost during those periods. One exception mingh be Weyerhaeuser, they have timber holdings going back nearly 100 years that have very low basis though recent acquisitions have diluted this advantage somewhat. The logging costs will pretty much stay unchanged overtime.