Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1908-04-19
COPPER QUIET,
SHARES co UP;
A REVIVAL DUE
Walker Says There Is Sure to
Be a Stronger and More
Active Market in the Near
Future.

(By G. l. Walker in Boston Conn.,
Copper is quiet and slightly easier.
Lake is I3 to Is Is, and electrolyuc
1878 to / cents per pound. Domes-
consumers are buying very sparingly
again. The foreign Interests have
withdrawn from the market; but are
occasionally bidding a fraction less
than 10 cents for large lots. Pro
ducers show no disposition to press
the metal for sale. They have 40
surplus supplies. and could not sell in
quantity for earlier delivery imam
May or June. The situation is witt
ing one. As soon as electrical anu
Industrial corporations are able to
sell bonds and get money foI extern
sions there will be a decided increase
in the consumption of copper. II is
probable that the metal market will
remain around Is cents Tor a While
longer; but two or three months
hence II should begin advancing
The long continued duIlness Of the
stock market is giving place to in
creased activity and advancing prices.
A great amount of new financing for
railroad and industrial companies 10
under way. This commits the strong
est interests to the bull side of the
market for the time being. AS soon
as the money sought is raised II will
be expended, and a better market for
raw materials of all kinds, iRciuuing
copper win result The fact that
money is becoming very abundant
and cheap in all banking centers
makes ie practically certain that the
needs of the large transportation ano
Industrial companies will be finauceu
soon. This will cause a revival in
general business Between now and
the end of the year there should be
most decided change for the better
slI around. Improvement will be re-
fected first in the stock market, as
if always has been in the past.
At the moment coppers are Iatnel
heavy as compared vita railroad and
industrial stocks. 1t must be retneLn-
bereS. however, that there can be no
Improvement which viii help one line
Of business witrout benefiting others.
There is sure to be a more active,
stronger market for copper soon, and
when the public sits down with PEN
Gil and paper to compare investments
1t will discover that good coppers
are far and away the cheapest stocks
on tae list / strongly advise the
the purchase of the good coppers at
this level Utah Consolidated, aInar
gamated, Copper Range, Anaconos
and Parrot seen to be especially at
tractive. ! expect all of these stocks
to sell very much higher between
now and the end of the year.
Amalgamated's investment in tin
Der lands alone is understood to be
worth S30.0O0,000. This valuation is
exceedingly conservative, being based
upon the charge made for stumpage
in the same district by the United
States government The Amalgamat-
ed management considers its standing
timber worth more than the govern
ment's charge for stumpage. This is
proved by the fact that the company
is conserving its own timber and buy
ing and cutting considerable portion
of its current requirements from the
government preserve. This means
that it is buying timber at a price
which puts a valuation of S30,0O0,OOO
on its own holdings. One explana-
ton oF this is that the timber it is
buying is of inferior grade to its own,
but is still satisfactory for general
mining use II this is true, Amalga-
mated's timber holdings must be
worth considerably more than the
foregoing estimate.
II Amalgamated's coal mine and
other properties be added to its tim
Der lands, the whole must be worth,
on an equally conservative valuation
basis, $50 900, 900. Assuming the CON-
pany has in its own treasury and
those of its sub-companies S25, 100000
in cash and credits, and that its big
concentrators and smelters are worth
the Sic, 900 5000 which they cost,
these items, added TO the value Of its
outside assets, make a total of $780,
900 900, which is equivalent to the
present market price of $50 per share
for its 1850, 900 SHARES Of stock. 1t
seems, therefore, that Amalgamated
stock would be worth $5S even If 1t
were to give all its copper mines
away. / am sure, however, that It's
copper mines are worth a very great
deal more than all its outside assets
combined, and that Amalgamated,
therefore, is well worth 500 per
share for an investment
The panic Of last year was sufiic-
iently severe to cause stocks TO sell
an average Of rs to 30 per cent belV~
their intrinsic value. In the case OF
Amalganated. however. there vas a
decline of nearly so per cent below
what will prove in the years 70 come
TO have been the real investment var
ne of the stock. Now that the busi-
ness Of the country is recovering
from the panic, the price Of ATnalga-
mated stock may be expected to re-
cover also. ] feel quite sure Amal-
gamated will sell as high as go "a
$50 this year, and next year it should
sell at 500 again. This. in part, is a
repetition Of what ! said when / was
advising and urging the purchase
OF the stock around $45 to $50 per
share. Those who have money and
courage should take advantage of this
exceptional opportunity TO buy good
investment and active speculative
stock az So to so per cent of its value.
When Il sells at par again the whole
world viii want to buy it.
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