The Small Stocks column in today's WSJ had this explanation for the $2 price drop today. I understand why metals companies were down on a $60 drop in gold and other commodities, but it seems a stretch to think bentonite prices are affected the same way.
Among the commodities-related stocks on the decline were titanium-products maker and distributor RTI International Metals (NYSE), down 3.19, or 7%, to 44.50, and mineral-products maker Amcol International (NYSE), down 2.17, or 7%, to 28.50. Exploration and mining company North American Palladium fell 99 cents, or 15%, to 5.71.
Todd Salamone, Shaeffer's Investment Research vice president, said the commodity selling hit widely across the sectors. "It's really the metals and energy," he said. "There's no hiding whether you're in a small or a large cap."
Steve, I think you are correct, but I have seen this lumping of ACO with mining stocks before. One thing in the 10-K does give a little basis for emphasizing mining: it says some bentonite is imported into US. I would think, then, that with fall of dollar and rise in shipping costs, that ACO can raise prices that much more.
On the other hand, the fall in architectural billings is a bad leading indicator for parts of ACO business.
Just curious, is this where you got the billings information? This is their headline for the recent report.
AIA CONSENSUS CONSTRUCTION FORECAST After Strong Growth in 2007, Nonresidential Construction Activity Is Projected to Flatten Out A weakening economy in 2008 is expected to stall the current nonresidential construction expansion