Dear Friend,

Best wishes over the holiday.

Attached are our weekly Spot Market Review in which we predict 10%-15% copper, aluminum and hot-rolled sheet price gains in the Spring towards $3.50, $1.20 per pound and $575 per ton.  Nickel, lead and zinc appear less prospective as inventories have accumulated.  We are encouraged that inventories have not risen more in the seasonally slower second-half.

Temple-Inland's price fell in the past two weeks, and we estimate it is paying $10.45 per share for the manufacturing, $11.83 for Guaranty Financial and $8.87 for Forestar.  We believe its unbundling is very attractive, and provides safely 20% upside pro forma the December 28^th spinoffs.

Our colleague Joe Reagor came back to the office this week after a December 12^th right shoulder reconstructive surgery, and we are happy to regain fuller strength.

Faithfully yours,

John C. Tumazos

Copyright © 2008 John Tumazos Very Independent Research, LLC
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Last modified: 05/17/12