I know WIRE is in a great position having a good supply of copper, but I'd be interested to hear from those who have been following this company closely - particuarly about the madness in the copper commodity exchange.
By most accounts, the price of copper is way out of whack. Does this benefit WIRE short term? Will that change if prices don't settle back down?
The price of copper going up positively affects wire on short and long term ratios dirrectly.
Short term the small amount of inventory (I seem to remember a valuation that the inventory turn over rate was around 10-15 times per year, somoene please verify this) will raise in value giving pure profit.
Long term the price of the commodities required to build the end product are going up accross the sector and the cost of the final product is going up. This leads to higher revenue on same amount of volume shipped and assumably increased proffit margin and a standard proffit percentage.