The price of CS is largely dependent on the underlying price of copper, and copper is a factor of both supply and demand. We believe that the long-term demand for copper is strong, and thus we like the long-term prospects of copper. CS is expecting good sales and earnings growth over the next couple of years, and its recent growth has been strong. Its valuation is decent and debt levels are OK. It has been growing its balance sheet and expanding its operations. As a growth play on copper, we like CS and it is set to report earnings next Friday November 3. We feel that in a better market, the materials sector will perform well and CS can benefit from this performance. We would prefer to wait until earnings to add to the name, but for a growth play on copper, we like CS.
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