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ACEMAN, from UC Berkeley and the University of Paris/Sorbonne, by way of Ole Miss, splits time bouncing from Paris to Northern California and home to NOLA to rest his bones, eat some of the finest food in the world and watch the world go by at the Cafe du Monde with Walker Percy, and good ole'... More
    May 3, 2010 10:58 PM | about stocks: RIO, BHP, XSRAY, AAUKY

    Y'all have to be a risk arbitrageur at heart to manage to stick with private Glencore, one of the world's largest commodities traders and owners of substantial interests in aluminum, bauxite, rare minerals and supply chain logistics. But the squeeze is on and the competition is fierce to grow the company and compete with the Big Boys, so once again it will try to merge via acquistion with XSRAY.PK (XSTRATA: London and Zurich) after being jilted by AAUKY.

    Glencore already has a nice tranche of XSRAY, possibly 37%, and they do have a family inheritance that goes back to Marc Rich and friends. But the real objective will be the ability to go to the liquidity markets while trading off the resultant volatility as long as China's copper consumption remain strong. It's not unreasonable to see higher copper prices if traders think that there's a deficit in inventory in the future. Even copper scrap can't help enough.

    Moreover, China, as the world's largest copper consumer wouldn't mind a third party in the mix to compete with RTP, BHP and et al while its copper appetite continues to grow over the next year.Y'all have to connect the dots on this one and place your money down and have patience as things hot up.


    Disclosure: Long BHP, RTP, XSRAY, AAUKY

    Stocks: RIO, BHP, XSRAY, AAUKY
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