zen

ZEN,
the price of Ni is forecast by futures markets to fall by some 30% into 2008, so CSM would not get spot prices on hedging contracts, but the long term prices for Ni have been rising with the spot prices so CSM feel that if spot prices are likely to fall then so may the long term prices.
With about a 50% profit margin and a doubling of production all they need to do now is crank the stuff out for a guaranteed profit, just as long as they keep costs under control it is a great cash income. Hold.