I thought JML shareholders would like to read this post....

I thought JML shareholders would like to read this post. Normally I post on ABY, but it's also applicable to a stock like JML.

Post #: 5809415
You have to laugh, as analysts are now telling their clients to buy copper stocks.
One client said
"So why the advice now, why not before these stocks took off. Wait for a dip to buy in? I am looking for advise that would have told me to buy in August before the run up?"


This client should have been reading Hot Copper, we have been posting about the declining copper stocks for many months.
That client would have had a chance to buy in at 62 cents to 90 cents, and would have doubled his money by now.

The analysts advice

"Right now, observers say, Chinese companies are running down their inventories in an effort to postpone buying at currently high prices. Chinese companies have enough inventory to get them through the end of the year before they have to begin buying again, according to London copper traders.

It's on the supply side, though, that copper is different and where it is a fundamentally better story than gold, in my opinion.
Production at older copper mines -- those opened in the 1980 s- -is declining as miners dig their way through the richest ore bodies and begin to work lower-grade ores. That means a company has to move and smelt more rock to get out the same amount of copper. That, of course, is more expensive, but at some mines it's also not just possible: If a smelter has a capacity of 100 tons, that's all the rock a miner can run through the smelter, no matter what the grade of the ore.

With lower grades of ore containing less copper per ton of rock, production falls. So, output from the world's top four publicly traded copper producers declined by 12% in the first half of 2010.
Increasing production isn't quite as simple as it sounds -- even if you think that creating new mines in increasingly remote and unforgiving locations doesn't sound particularly easy.

Not only does a company need to find a new deposit of copper, but getting the copper in that deposit to market has to be economically viable (we're talking about building railroads and ports, for example), the ore has to be of a higher grade than in existing older mines, and the political situation has to at least allow the mining company to delude itself into believing that it stands a good chance of actually owning the concession by the time production starts.
All this means that when copper stocks go into rally mode again, I want to own pure plays"

They have obviously missed the boat, and they are now telling clients

"I don't want to buy any of these just yet. There's a good chance that we'll see a dip in the very short term. I'll have more on a specific pick if prices move the way I'd like them to -- or when I give up waiting for even a mini-correction in the industry."

The poor sucker will have to pay more.

END OF POST


You have to feel sorry for Hotfire, he'll have to pay more now for JML, and if he sits back and waits too long he'll be paying double the price.