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Will Wong
04-10-2011, 02:56 AM
There have been a lot of discussion lately about the need to proportion one's investment into the three areas of food (agriculture/grains), energy (oil & gas) and precious metals.

Food price and oil price inflation have started to rear their ugly heads but my holdings in oil and grain stocks have hardly moved in the last two months while gold and silver have taken off.

My question to you folks is are you on board with this three legged investment strategy and are you experiencing the same problems with grains and energy stocks?

BTW: I own call options in AGU, ANDE, DBA, and SEED as well as call options in KOG, BPZ, WNR, and USO

OddVaark
04-11-2011, 08:15 AM
There have been a lot of discussion lately about the need to proportion one's investment into the three areas of food (agriculture/grains), energy (oil & gas) and precious metals.

Food price and oil price inflation have started to rear their ugly heads but my holdings in oil and grain stocks have hardly moved in the last two months while gold and silver have taken off.

My question to you folks is are you on board with this three legged investment strategy and are you experiencing the same problems with grains and energy stocks?

BTW: I own call options in AGU, ANDE, DBA, and SEED as well as call options in KOG, BPZ, WNR, and USO

I'm a believer in these sectors and am investing in each according to my level of confidence. I'm a babe in the woods when it comes to aggri stocks and really haven't found anything yet that seems like a sure thing. I did back up a step and make some investments in potash. Of those ALLRF/AAA turned out to be highly profitable, but I only dipped my toe in for 500 shares.
I've another bet forming up on ENCTF/EPO, but I'm less confident about it. And off in the "watch" column is a small company that produces organic fertilizer, COIN - but they seem to suffer from a typical "Boston" type management team that have taken what seemed to be a great idea and ran it to the edges of oblivion with debt. They might make a strong comeback if family level food prices continue to inflate and more people start growing their own.
I've also avoided "oil" because the volatility and nature of the big time players gives me too much caution. I have zero trust in any of the US ETFs and would rather eat glass than invest in them. Instead I've opted for coal with ICO, a fully veritical hard and soft coal company; and I'm looking into the secondary aspects of Natty gas, specifically LPG shippers like GASS and royalty pipeline companies that have done fabulously well in the last two years (CPNO, GEL, FGP, AHD to name a few). For chills and thrills, I have some money on the table with a gas/oil wildcatter of Aussie origin drilling in the US - SSN.
Food and energy have huge political components to them which always makes me wary, but the inflation effects on both are becoming difficult for governments to hide; and someone, somewhere will be making $$$. Figuring the "who and what" is where the art, savvy, and luck come into play.

nickndfl
04-11-2011, 07:49 PM
WNR may be vulnerable as the crack spread narrows between WTI and Brent. VLO is another analyst favorite, but I see HOC being the most solid stock in the group of refiners.

I am waiting for earnings in a couple of weeks or $32, whichever comes first, to sell my FTO.