Thursday, March 29, 2007
Position Updates: ALCO, BWLD
As you know, partly thanks to the ethanol fuckers, dry commodity prices have been soaring, specifically corn. Further, it's worth noting, high dry commodity prices is not good for stable food prices and often hurts the profit margins of restaurants.
The bear case for a company like BWLD is high gas and chicken wing prices (chickens eat corn you dumb fucks). Forget about gas. I do not believe the people who swallow whole chickens at BWLD are that destitute, to be affected by $3.00 gas prices. Also, regarding chicken wing prices, the company has been able to pass the cost along to their fat fucking patrons.
However, if you are the worried type, I suggest taking a look at DBA. DBA is an agricultural commodities futures fund. Currently, it consists of 27% for corn, 25% for wheat, 26% for soybeans, and 22% for sugar.
In other words, if you are long restaurant stocks, like CMG (corn tortilla's) or BWLD, DBA can serve as a protective hedge, versus higher food prices.
As for ALCO:
They own a variety of agricultural businesses, such as sugar plantations and orange groves. Another excellent way to play the farm boom.
The bear case for a company like BWLD is high gas and chicken wing prices (chickens eat corn you dumb fucks). Forget about gas. I do not believe the people who swallow whole chickens at BWLD are that destitute, to be affected by $3.00 gas prices. Also, regarding chicken wing prices, the company has been able to pass the cost along to their fat fucking patrons.
However, if you are the worried type, I suggest taking a look at DBA. DBA is an agricultural commodities futures fund. Currently, it consists of 27% for corn, 25% for wheat, 26% for soybeans, and 22% for sugar.
In other words, if you are long restaurant stocks, like CMG (corn tortilla's) or BWLD, DBA can serve as a protective hedge, versus higher food prices.
As for ALCO:
They own a variety of agricultural businesses, such as sugar plantations and orange groves. Another excellent way to play the farm boom.
Comments:
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Broker what do you think of CF (especially on this pullback) to play the "farm boom," I am close to buying a stake here. Have you heard of it?. Chart is nice.
# posted by 
: 11:50 AM
: 11:50 AM
On ag plays, at least wait until the corn planting estimates come out tomorrow, otherwise you have risk of getting whipsawed one way or the other. Everything from ethanol to soybeans will gyrate depending on the number.
Unless Broker has already seen the report and can tell us if its 88M or 98M acres or corn...
Where's the NYX bull? Is this just profit-taking or is NYX going to dump to $85 by lunch. What's the deal.
Unless Broker has already seen the report and can tell us if its 88M or 98M acres or corn...
Where's the NYX bull? Is this just profit-taking or is NYX going to dump to $85 by lunch. What's the deal.
I could care less about tomorrow's fucking corn numbers. Come on.
I pray NYX comes back to $85. I already sold off 3,000 and would love to buy back cheaper.
Thanks for this CF. It looks great. I'll have to read up on it. If it's anything like TNH, it will probably continue to go higher.
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I pray NYX comes back to $85. I already sold off 3,000 and would love to buy back cheaper.
Thanks for this CF. It looks great. I'll have to read up on it. If it's anything like TNH, it will probably continue to go higher.
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