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Daily News, New York, Guerrilla Investing Column.
Publication: Daily News (New York, New York) (via Knight-Ridder/Tribune Business News) Publication Date: 23-APR-01 |
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COPYRIGHT 2001 Daily News
Byline: Peter Siris
Apr. 23--What do you call a company whose sales and profits swing radically with the peaks and troughs in the economy? A cyclical.
Companies that produce basic materials, such as oil, aluminum and steel, are cyclicals. So are manufacturers of cars, appliances and other durable goods. These companies have high overheads and require large capital investments. When demand is strong, they make a lot of money. When demand is not and the factories are empty, they make very little or, more frequently, lose money....
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