|
|
|
|
January 2, 2008 Dear Friend, We want to call your attention to our research reports written on Temple-Inland's unbundling that we sent you on December 5th and December 21st. On December 31st, the first day the "unbundled" companies traded, Temple-Inland rose up $3.58 though up to one-fourth of the December 31st gain eroded January 2nd. We continue to believe the demerger is attractive, and rate Temple-Inland Overweight. We have initiated coverage of TeckCominco with an Overweight investment rating at a $60 target for several reasons described in the report attached. It offers fine exposure to possible copper and zinc commodity recoveries. It has excellent mine development efforts in copper, nickel, oil sands, zinc and other minerals. Share repurchases, business restructuring or mergers could unlock values as well. We want to call your attention to the Copper Industry report enclosed comparing 21 major copper mine sale transactions of the past three years. The five producing mines sold for an average of 9.1 times aftertax cash flow. The 21 transactions averaged $0.134 per pound of proven, probable, measured, indicated or inferred resources prior to deducting recovery losses, applying all engineering constraints or permitting. Wide variations existed in the values paid. Continued best wishes and prosperity in the New Year. Faithfully yours, John C. Tumazos |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
|
