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June 30, 2008 Dear Friend, Attached are a coverage initiation with an Overweight rating to Domtar at $5.21 per share, which we regard as an attractive price in the current stock market selloff. Its merger with Weyerhaeuser last year created excellent consolidation in a mature, slowly declining market. We view this as a fine trading opportunity. We may continue to add selective companies to our universe in aluminum, gold, steel or other mining to round out our coverage with the addition of Sean Heberling, CFA this past month. I have asked Sean to "keep me current" in descending order of market capitalization for those stocks we have not updated in past six months. We missed the two prior weekend "Spot Market Reviews" owing to my visit to six Rio Tinto sites across Australia. My coach seat amidst 50 inner city high school kids on the return from Sydney permitted neither sleep nor report writing. We expect decent quarterly earnings and "outlook statements" for gold, silver, iron ore, coal and copper companies in coming weeks as the June quarter closes. Nickel, uranium, zinc and lead exposures will off ghastly comparisons and outlook statements. Diversified companies will vary with mix, but those with lots of iron ore or energy certainly will do better. Faithfully, John C. Tumazos |
Copyright © 2008 John Tumazos Very Independent Research,
LLC
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