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Wednesday, 02/27/2002

PD - Phelps Dodge

Company Description

The manufacturing division of Phelps Dodge Corporation, Phelps Dodge Industries, consists of leading companies that manufacture engineered products for the global energy, telecommunications, transportation and specialty chemicals sectors. It employs more than 5,000 people worldwide.

The division is dedicated to serving customers in any global location and has developed a strong worldwide presence, with 30 manufacturing facilities in 17 countries. In each of those geographic locations, Phelps Dodge Industries' companies possess significant market share, internationally competitive cost structures, and strong quality and technology positions. These strengths allow the division to be a leading manufacturer of products that help bring energy to homes and businesses and extend the life of tires and rubber products.

The mining and metals division of Phelps Dodge Corporation, Phelps Dodge Mining Company, is one of the world's leading producers of copper and molybdenum and is the world's largest producer of continuous-cast copper rod. It employs approximately 10,000 people worldwide.

Phelps Dodge Mining Company has achieved its premier status in the industry through safe, efficient and environmentally responsible production of low-cost, high-quality metals and minerals. The division continues to further its competitive position through the use of advanced technology, strategic acquisitions and the discovery and development of mineral deposits.

Phelps Dodge is Founding Shareholder of Quadrem, Mining, Minerals and Metals eMarketplace. Quadrem is an open, independent, Internet based global procurement and services eMarketplace, serving suppliers and buyers in the mining, minerals and metals industry.

(Source: Phelps Dodge)

Reasons To Invest

Cyclical stocks have shown signs of strength in this market. Those companies tied to the basic materials markets have traded exceptionally well. Phelps Dodge falls into both categories. The company is the world's second largest producer of copper. The firm recently said the it sees a balance in the copper market for the remained of this year, based on the need to restock inventories ahead of the economic recovery. Phelps Dodge officials expect worldwide copper demand to grow by between 2 and 2.5 percent this year and continue expanding into next year. The copper industry contracted by roughly 13 percent last year as a whole, but with a rebound in several copper intensive sectors, the business could exceed expectations this year. Helping along with the rebound has been recent strength in the automobile industry and the construction business. A rebound in the manufacturing of electronic and electrical equipment segments would increase the rebound of the copper industry. Specific to Phelps Dodge, we've noticed a trend in recent insider transactions that bodes well for the stock. Since last fall, insiders have been quietly accumulating shares. Granted the purchases haven't been big, but they've been purchases nonetheless. We're betting with the insider at Phelps Dodge.

DRIP Information:
Shares to Qualify = 10          Accept Foreign Accounts: Yes
Auto-reinvestment = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $100 to $1,000/month

Reinvestment Fees -

Div : 0 
Cash: 12 cents per share
Auto: 0

Transfer Agent:

Chase Mellon


Industry Group:           Metals  52-week high=$51.20
Annual Dividend Per Share=  0.50  52-week low =$25.74
Last earnings 01/1   est = -1.30  actual = -1.01
Next earnings 04-15  est = -1.20  versus = -0.19
                                     P/E =   N/A
Analyst Ratings:
Strong Buy    =  2
Moderate Buy  =  0
Hold          = 14
Moderate Sell =  2
Strong Sell   =  0


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