Re: OFF TOPIC - Has anyone else seen this?

["Dennis Conn" <dconn@xxxxxxxxx>]

Richard,

I can understand the concept of wanting to hedge the aluminum purchase, but
(if I understand your post correctly) using the S&P seems like a helluva
cross-hedge! I'm not sure why, but I just get the feeling that something's
not quite right about the inquiry - I had wondered if any brokers had
received it and followed up. I do find the timing of the inquiry strangely
coincidental, since the NYMEX is introducing aluminum futures and options in
a series of seminars across the country.

Regards,

Dennis

-----Original Message-----
From: Richard Bond Sr <rcbond@xxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Monday, March 15, 1999 05:06
Subject: Re: OFF TOPIC - Has anyone else seen this?


>
>
>Dennis,
>
>I spent 5 years running a small military spares
>manufacturer,
>and that kind of situation is real.  Bidding beyond the
>mill's contract period is as bad as planting corn.
>
>The problem I see is the price of Aluminum is hedgable, (sp)
>but I do not know of contracts to hedge manufacturing cost.
>
>Thoughts??
>rcb
>
>
>> Dennis Conn wrote:
>>
>> I received the following email and something about it
>> strikes me as odd - have any brokers on the forum received
>> this and if so, is it on the up-and-up?
>>
>> Thanks in advance,
>>
>> Dennis C.
>>
>> >>Date: Sat, 13 Mar 1999 13:05:05 EST
>> >>Subject: Commodities Trading
>> >>X-Mailer: AOL 4.0 for Windows sub 170
>> >>
>> >>     I own and operate a custom metals manufacturing
>> business.  I have a
>> >>contract with a customer to provide some products which
>> will require me to
>> >>purchase 200,000 pounds of Aluminum Extrusions.  I will
>> not need to take
>> >>delivery of these Aluminum Extrusions from my supplier
>> until the first and
>> >>second quarter of the year 2000.  When it comes time to
>> take delivery of the
>> >>material my supplier is going to charge me "price in
>> effect at time of
>> >>shipment".  Can I protect myself from price increases
>> with the purchase of
>> >>commodities contracts?
>> >>
>> >>SBJ
>
>--
>
>We create our society each time we interact with another
>person.
>What kind of society did you create today?
>Richard C Bond, Sr. 1986