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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (44205)	1/10/2006 12:58:26 PM
From: regli	Respond to of 116555

"Copper prices in the December quarter averaged about $2 a pound, more than 11% higher than the $1.80-a-pound average that Phelps Dodge had previously anticipated However, this would be more than offset by the price-protection program, which the company (said) will cut operating earnings by $200 million" Sounds like hedging to me.

To: mishedlo who wrote (44205)	1/10/2006 1:03:55 PM
From: patron_anejo_por_favor	Respond to of 116555

It's certainly possible they hedged forward sales, especially with the move copper prices have made. The thing that's really striking to me is their cash position....$400 million less than management had forecast?! WTF! Phelps Dodge also said its total cash balance at the end of 2005 stood at about $1.9 billion, or $400 million less than management had forecast at the end of October