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May 9, 2006
An example of investors at work, Tues., May 9, 2006, 8:33 AM
We are in the sweet spot of the mining cycle. It's a time when hard assets are given more value than paper assets like USD and bonds. It's a time when Gnomes seek control of the world's biggest mineral resources. And it's a time when the Little People ought to focus their wealth building strategies on the miners.
Today UBS research has published a paper on the Teck-Cominco unsolicited offer for Inco. Teck is the biggest zinc producer in the world, and they'd like to become the biggest at nickel.
In Teck's way are numerous hurdles, most of which are in the backrooms of the principal players. What these people are up to, however, is not play. It's a war.
In the corporate world, this is a fight between two sides to see who will ultimately be the most ruthless in their pursuit of an asset. This is not trading; this is investing.
It happens to be taking place in Canada and trust me the Canadian and Ontario governments are participants in the war.
I hope that Teck-Cominco wins the asset. I happen not to like the ruthless characters on the other side. I have seen what they have done to the Little People.
Here is the UBS report. Enjoy. Download file
Posted by Posted by Bill Cara on May 9, 2006 08:33:34 AM | Category: 15 Materials , Canada