Stocks of commodity-based companies had been hitting
all-time highs in 2007, but many of them have recently experienced
significant price declines prompting the question - is the commodities
bubble about to burst or are these stocks just undergoing a normal
price correction process?
Consider the current downside price corrections (in percent) from
all-time highs of eleven large commodity-based stocks:
| Commodity-Based
Stocks - Decline from All-time Highs |
| Stock |
Symbol |
Price |
High |
% Down |
Comment |
| Alcoa |
|
$36.18 |
$48.77 |
-25.82% |
Aluminum producer |
| Terra Nitrogen |
|
$88.62 |
$140.35 |
-38.85% |
Nitrogen fertilizers |
| Cameco |
|
$39.05 |
$56 |
-30.27% |
Uranium mining |
| Cleveland-Cliffs |
|
$68.05 |
$92.06 |
-26.08% |
Iron ore pellet producer |
| CF Industries Holdings |
|
$55.26 |
$68.05 |
-18.80% |
Nitrogen and phosphate fertilizers |
| Freeport-McMoRan Copper & Gold |
|
$86.14 |
$100.15 |
-13.99% |
Copper and gold mining |
| Massey Energy |
|
$19 |
$30.73 |
-38.17% |
Coal mining |
| Rio Tinto |
|
$266.46 |
$327.12 |
-18.54% |
Mining conglomerate |
| Terra Nitrogen |
|
$88.62 |
$140.34 |
-36.85% |
Nitrogen fertilizers |
| Vulcan Materials |
|
$93.76 |
$128.62 |
-27.10% |
Construction aggregates |
| United States Steel |
|
$91.53 |
$127.26 |
-28.08% |
Steel producer |
| NOTE: Price data are from finance.yahoo.com
as August 3, 2007 close. |
It's still too soon to know if the commodities bubble has burst,
but is surely will at some point. Be careful with any commodity-based
stock.
Related Articles:
Anatomy of a Bubble
Top
buyupside.com
Natural Resources Portfolio
Fertilizer Stocks
Metal Mining
Stocks
Price Patterns - A
Bubble Top Is an Extreme Pattern
Steel Stocks
Uranium Mining
Stocks
Posted August 4, 2007.
|
