Category: Absolute Must Reads

The government’s big ethanol push is driving up the prices of everything including a night at the movies.  I just heard on the news that the price of popcorn has increased due to higher corn prices as more corn is being used to produce ethanol.  It is time to think like an investor and put a hedge in place to offset rising prices at the grocery store as well as the movie theater.  Purchase a few of these agriculture stocks and not only will it make up for higher prices, but it will put a few extra  bucks in your pocket. 

Our survey begins with the Capital Goods & Services sector – home of Farming Machinery giant Deere Company.  Deere is a household name, but have you heard of CNH Global NV (CNH)?  The company is based in Amsterdam, the Netherlands.  It manufactures and distributes agricultural and construction equipment worldwide.  The company generates $13B in revenue – making it about half the size of Deere.  As the saying goes, good things come in small packages as the market has bid it up 90% year to date. Continue reading “100 Stocks to Combat Rising Food Prices”

On Thursday, June 15, the Admiral, Eric Bolling, of CNBC’s Fast Money, presented an update to his Agricultural Stock trade (Ag Play).  To capitalize on the trend of higher commodity prices allowing farmers to spend more money on new equipment, higher yielding seeds and better fertilizers – he constructed a four stock portfolio. 

The stocks are Monsanto Company (MON), a seed producer, Agrium Inc. (AGU), a fertilizer supplier, Bunge Limited (BG), a grain and seed processor and Deere (DE), a farming equipment company.  I have been trading energy as well as precious and base metal stocks for a number of years.  The idea of playing soft commodities via the stock market was quite appealing. I wrote about it in “Eric Bolling’s Agriculture Stock Play:  Is it Too Late?” 

Continue reading “How I Made Eric Bolling’s Agricultural Stock Play My Own”

My jaw hit the ground last week when Eric Bolling, of CNBC’s Fast Money, stated that his agriculture play was up 59% year to date.  It hit the floor a second time when he mentioned how he was playing the sector.  I have been trading commodity stocks for awhile, primarily gold, energy and base metal producers.  The soft commodities (coffee, sugar, grains) have caught my attention on occasion.  However, I couldn’t figure out how to trade them via the stock market and I wasn’t interested in the futures market.

Jim Rogers stirred my interest a few years ago when I read his book “Hot Commodities.”  He made it quite clear that we are in the midst of bull market in all “real things” not only oil, natural gas, and metals, but also wheat, corn, soybeans, etc.  However, Rogers cut his teeth as a commodity trader.  He believes that the best way to participate is to buy the underlying commodity (futures) or a commodity index fund. Since futures are not for me and mutual funds are right up there with watching paint dry, his book didn’t provide any implementation insight that I could leverage. Continue reading “Eric Bolling’s Agriculture Stock Play: Is it Too Late?”