PCU

[nedfromsaltmarsh]

Guys, what are your opinions of PCU's outlook for the future, I already own a couple of hundred shares that I purchased at around $20, I had been trading this stock when it was channeling in the $20-$24 range for a couple of months. Well, I liked it at 20 and so I was thinking of picking up 200 more shares now that it's below $16.

Does this have farther to fall?

[Horsefish]

My thought is that we are finally at the end of the denial stage and the market is accepting the fact that we are in a recession. Maybe a bad one. Without demand for copper from construction and other industrial needs, I can't see any near term good news for PCU. That's not to say it won't come back. It will probably be dead money for a while.

If the new president starts some form of infrastructure improvement program, as in electrical distribution, PCU might benefit. PCU could still be a falling knife.

[nedfromsaltmarsh]

OH MY GOD!!! Glad I didn't buy yet, anyone like this at $13

[Rynn]

I lost some money on this one, but I'm holding onto it as I think its undervalued at current prices.

The price of copper has fallen from around $4/lb to $2.60. PCU typically trades futures and derivatives, so it's likely they'll sell their current production for more than the spot price, but if the price remains low for an extended period of time it will have a greater impact on earnings.

The good news is that gold and silver, two of the major byproducts of copper mining, are still selling at fairly good prices, and the drop in oil prices will reduce their cost of production somewhat. So the situation, while not good, is not quite as bad as would be implied solely by a 35% drop in copper prices.

[nedfromsaltmarsh]

Well I just bought in at $14.07, we'll see what happens.