Commodities stocks

[MikeL09]

Anyone into commodities?

Lately, I found myself drawn into it. I've bought into

Noble (10 lots),
First Resources (15 lots)
Golden Agri (20 lots)

They seem to be undervalued. I am taking a medium term strategy and am willing to wait longer if necessary to ride the next wave. Commodities, I believe, are cyclical and will always recover.

In the immediate term, I am keeping my fingers crossed that what's coming out of N Korea is just hot air. It's a risk I am taking.

No risk, no gain.

 

[MikeL09]

No interest in commodities stocks?

I sense there is a lot of interest in reits here, but not half as much in commodities.

Perhaps because dividends 'no enough' for commodities stocks, ya.

 

[remy3413]

No interest in commodities stocks?

I sense there is a lot of interest in reits here, but not half as much in commodities.

Perhaps because dividends 'no enough' for commodities stocks, ya.

I'm bullish on commodities, but only for oil & gas

The margins for agricultural/plantation owners are too razor thin

Good prices for commodities counters now but they have not bottom out

REITs and yield plays are bubbles to me

 

[Carnesir]

Is not the time yet for commodities. Wait for interest to rise before hot money flow out of reits then talk commodities.

I will be watching this space. Agree that commodities is a neglected field, but not their time to shine yet.

 

[remy3413]

Is not the time yet for commodities. Wait for interest to rise before hot money flow out of reits then talk commodities.

I will be watching this space. Agree that commodities is a neglected field, but not their time to shine yet.

But the window frame will be short in my opinion, the moment interests starts to rise and inflation starts to pick up

Bond markets around the world will suffer

For a moment, there's no news in the Middle East, I'm looking forward to Iran creating trouble in the Middle East

 

[Dividends Warrior]

No interest in commodities stocks?

I sense there is a lot of interest in reits here, but not half as much in commodities.

Perhaps because dividends 'no enough' for commodities stocks, ya.

Commodities no Power of CD.......

 

[Maserati]

Anyone into commodities?



In the immediate term, I am keeping my fingers crossed that what's coming out of N Korea is just hot air. It's a risk I am taking.

No risk, no gain.

I guess the fat boy is NATO (no action talk only)
Every few days bring his war head and parade around.

I hold noble looking at wilmar

 

[supertanweekiat]

Used to invest in wilmar...but not any more. Now invest in cord life. Has plenty of room to move up and has dividend...not sure cord blood can consider as commodities...

 

[Futureskid]

Anyone into commodities?

Lately, I found myself drawn into it. I've bought into

Noble (10 lots),
First Resources (15 lots)
Golden Agri (20 lots)

They seem to be undervalued. I am taking a medium term strategy and am willing to wait longer if necessary to ride the next wave. Commodities, I believe, are cyclical and will always recover.

In the immediate term, I am keeping my fingers crossed that what's coming out of N Korea is just hot air. It's a risk I am taking.

No risk, no gain.

Why don't u buy direct on the commodities that u want instead? Buying on commodities shares depends on many other factors, not just commodities prices.

 

[addict951]

must buy the bluest of them all

 

[Dividends Warrior]

In this era, the best commodity is '"bandwidth"'........

That's why telcos keep rising......

Power of tiered data plans!!!!!

 

[kenpachi82]

I agree with one comment above that says commodities have not bottomed out yet. Currently it is still yields play (reits+telcos fly until cannot see ground). Need to wait for the BBs to switch gear, which i think will take another couple of months..
And if economic problems persist, people will continue to play yields..

(I'm waiting for opportunity to go into commodity stocks as well)

 

[Milo-Dino]

Anyone into commodities?

Lately, I found myself drawn into it. I've bought into

Noble (10 lots),
First Resources (15 lots)
Golden Agri (20 lots)

They seem to be undervalued. I am taking a medium term strategy and am willing to wait longer if necessary to ride the next wave. Commodities, I believe, are cyclical and will always recover.

In the immediate term, I am keeping my fingers crossed that what's coming out of N Korea is just hot air. It's a risk I am taking.

No risk, no gain.

a good entry price will let you sit comfortably on your position...

commodities companies usually have high gearing... so if economy turns further down, they might need to borrow, do rights issues or other forms of dilution...

Anyway i'm vested very small in wilmar.. and some in GMG...

 

[killer]

vested in wilmar and hyflux ( water is a commodity afterall). may add noble group next month if the price is good.

and buy physical gold if the price continue to drop, but not gold shares though

 

[MikeL09]

.... and hyflux ( water is a commodity afterall).

Hyflux is reddest of the red stocks in my portfolio. My biggest paper loss of close to 10K!

I bought a week or 2 before the Libya/ Gaddafi crisis. I bought another 10 lots and then boom! came the tsunami and Fukishima. Talk about bad timing. Since then, it has been going downhill, with only a very recent pick-up. I had also thought everybody needs to drink or they will die. Can't go wrong?

 

[killer]

Hyflux is reddest of the red stocks in my portfolio. My biggest paper loss of close to 10K!

I bought a week or 2 before the Libya/ Gaddafi crisis. I bought another 10 lots and then boom! came the tsunami and Fukishima. Talk about bad timing. Since then, it has been going downhill, with only a very recent pick-up. I had also thought everybody needs to drink or they will die. Can't go wrong?

sorry to hear that, but yeah, i do believe the next resource the world will fight over is water. you got in at what price? >$2? i know the feeling. i got capitaland at about $5. couldn't take it anymore and sold off middle of last year. wanted to buy it back but haven't seen a good entry price since

 

[w1rbelw1nd]

sorry to hear that, but yeah, i do believe the next resource the world will fight over is water. you got in at what price? >$2? i know the feeling. i got capitaland at about $5. couldn't take it anymore and sold off middle of last year. wanted to buy it back but haven't seen a good entry price since

I bought hyflux also, but my average price is at around $1.46 (after dividend I would have broke even). Sucks to have it pulling down my portfolio when everything else recovered so much from the crisis.

I dont think it is right to assume that because water will be high in demand, Hyflux will do well. There are many competitors out there, and Hyflux may not do well. Its current business model of BTO is also highly risky as it depends on winning projects to ensure profitability.

There is a right price for everything. Everyone knows that Kobe Bryant/ Cristiano Ronaldo can win games and sell jerseys, but would any club pay US$10 billion for them? No. Even sucky businesses sold at the right price can be a good investment. Similarly, a company that is a leader in R&D like Hyflux may be too expensive for its current business

 

[Mecisteus]

for those who are still at the sidelines, you may consider commodity stocks for a start. of course, good capital management and allocation are strongly adviced. for example, you dont dump everything at 1 go and into 1 sector UNLESS you are very very confident!

reits and many other non-commodity stocks have risen to very high levels and trading at rich valuations. commodity stocks are still depressed at current high market levels. always remember past losers may turn into tomorrow winners. so its good to sell some of your winners and buy into the least favorite sector which is commodity at the moment.

 

[MikeL09]

... buy into the least favorite sector which is commodity at the moment.

'Sell seeds, sell fertiliser, or get a Lambhorghini dealership in rural area, because the farmers will be the ones who will be rich. Stockbrokers will be driving taxis..."

From the mouth of who else, but Jim Rogers. The man has the propensity to utter outrageous things, but I wouldn't rubbish everything he said.

Only thing is, no one knows if commodities stocks have hit the bottom or is nearing there. Its a call you have to make. For eg, I loaded First Res at 1.89 then it fell to 1.81.... I bought some more... then it fell some more... I loaded some more...and it fell to lows of 1.610 (I think)... and I DARED NOT BUY SOME MORE! More than 3K paper loss within a week!

How's that for good timing?
So if you are convinced that commodities is the way to invest and you are thinking of buying some, first look out for my timing.

 

[MikeL09]

Results of GAR and FirstRes met or outdid expectations.
Noble fell short, which explained the sell down today.

The good results coupled with record low stockpiles of palm oil have lifted the GAR and FirstRes. Those who were daring enough to have bought into FirstRes when it hit recent low of 1.65 would have made money. Its always easy to say with hindsight.

The valuations of commodities at current levels still look attractive compared to reits and the big blue chips. If Noble hit 1 dollar, I will definitely load up.