I think agriculture is the next big thing, and it still has a few years left in its run. However, recent price action on DBA is not as good as I hoped, and my positions in POT, MOS did better than I hoped. Therefore, recently (mainly today), I reduced DBA and DAG, and added MOO and POT. Now MOO is my new number 1 position. MOO has following main holdings: POT, MOS, DE, ADM and MON. I think all these fertilizer companies, agriculture equipments and service companies will do better than DBA in the coming years if food crisis is to continue, even just keep the price as its current level, these companies will do better.
Just early this year, potash price imported to China is tripled in less than 15 months. I think POT, which controls 22% of world potash reserve, will have great earning power moving forward. So I'll play and trade according to these new information. Even technicals indicate POT may break to new highs soon.
It's easy for POT to double in a year or two, but it's difficult for DBA, even DAG to double(2x DBA). Considering the public outcry on food prices. So I'll keep this as future guidance, usually, companies are better leveraged than the underline commodities.
MOO:
MOO tracks the DAX Agribusiness Index. 0.65% expense ratio. MOO holds 40 companies that trade on 13 exchanges worldwide. Companies must be worth at least $150 million to be included in the ETF, reports Index Universe Staff. The U.S. makes up the most of MOO at 55% followed by Canada at 9.3%. Holdings in the ETF include agriculture chemicals at 34%, agriproduct operations at 33.5%, agriculture equipment at 24.3%, livestock operations at 5.6% and ethanol/biodiesel at 2.3%.
Top 10 holdings of MOO as of 3/31/2008: %
Just early this year, potash price imported to China is tripled in less than 15 months. I think POT, which controls 22% of world potash reserve, will have great earning power moving forward. So I'll play and trade according to these new information. Even technicals indicate POT may break to new highs soon.
It's easy for POT to double in a year or two, but it's difficult for DBA, even DAG to double(2x DBA). Considering the public outcry on food prices. So I'll keep this as future guidance, usually, companies are better leveraged than the underline commodities.
MOO:
MOO tracks the DAX Agribusiness Index. 0.65% expense ratio. MOO holds 40 companies that trade on 13 exchanges worldwide. Companies must be worth at least $150 million to be included in the ETF, reports Index Universe Staff. The U.S. makes up the most of MOO at 55% followed by Canada at 9.3%. Holdings in the ETF include agriculture chemicals at 34%, agriproduct operations at 33.5%, agriculture equipment at 24.3%, livestock operations at 5.6% and ethanol/biodiesel at 2.3%.
Top 10 holdings of MOO as of 3/31/2008: %
| Syngenta Ag | 8.2 | |
| Monsanto Co. | 7.91 | |
| Potash Corp. Of Saskatchewan Inc. | 7.7 | |
| Deere & Co. | 7.69 | |
| The Mosaic Co. | 7.45 | |
| Wilmar Intl Ltd. | 5.25 | |
| Komatsu Ltd. | 4.94 | |
| IOI Corp. BHD | 4.79 | |
| Yara International ASA | 4.6 | |
| CNH Global NV | 4.49 |
1 comments:
I think is time for you to buy gold again: Houston we have a lift-off!!!! I think I will buy MXC and JRCC tomorrow and will get rid of some of my FXE . . .
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