Disruptive Discoveries Journal

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The Wall Street Journal Gets It (Mostly) Right on Commodities

Chris BerryComment

By Chris Berry

 

 

  •  On Monday, the Wall Street Journal published an article titled “Commodities Rally is Half Baked” (sub, req’d).
  •  There are a number of reasons for this, but clearly excess supply is the main culprit.
  •  Not all commodities have under performed, however, and uranium offers an interesting and painful case study into how to equilibrate supply and demand.

 

 

An Unfortunate Validation of Our Thesis

Yesterday, the Wall Street Journal published an article titled “Commodities Rally is Half Baked” (sub, req’d). The gist of the article is that while 2014 started off as a positive year for commodity returns in general, the tide has turned and many commodities (as measured by various indexes) are now under performing the typical equity index as the latter continue to reach all time highs.

What to Watch for With Energy Metals During this Earnings Cycle

Shelley Chen
  • With evaluation of junior resource companies challenging using discounted cash flow models, an alternative approach to understanding the various market sectors is a must.
  • I have written a great deal in the past about the benefits to be gained from listening to earnings calls from commodity and materials producers.
  • You must "read between the lines" of what is said and written, but statements made by CEOs and CFOs of large cap companies can offer insights into the strengths and weaknesses of various markets. This can only help with your analysis.
  • Today, I offer some of the insights I'll be listening for during calls this week and next. I also offer a list of companies whose calls I will be dialing into.