david - never try to pick prices in commod equities based on...

david - never try to pick prices in commod equities based on PEs. Prices haven't matched them in a long time, and will not match them any time soon. Prices are determined in stocks like this by:

- The DOW
- The LME
- Funds trading long or short the above
- Sentiment
- To some extent, 1/4ly reports

Example: Zinc could rise by 50% within a month if the stockpile steadily declines by say 20%(started to recently I may add). This isn't really to do with fundamentals, just a trading pattern, and all of a sudden, lots of longs get on zinc. The opposite has occured with copper recently, as a pattern of rising stocks has spooked traders into thinking a glut is on the cards. copper stockpiles however, will likely be tight for a very long time to come, so it hasn't reacted quite the same as zinc. Which ever way you look at it, fundamentals will win out the day, hence stocks like this have underlying support. If an entire generation of Chinese stopped building, buying, shopping, driving and eating, Australian resource companies would have something to worry about. Until then, relax.