Two reputable personalities came out towards the end of 2012 with commentary on the commodities supercycle.
One is calling the supercycle dead. The other says no - there are at least a few good years left.
The former is Edward L Morse, global head of Citigroup’s commodity research.
The latter is Ambrose Evans Pritchard, perhaps the poster-child for the finance arm of the British newspaper and website, The Telegraph.
While the headlines seem to conflict, there is a bit of overlap in their thinking, I think ...
Add shares of two energy producers - CONSOL Energy Inc (CNX) and Cameco Corp (CCJ).
CONSOL is primarily a producer of steam and metallurgical coal, but also produces natural gas. Cameco is in the uranium business.
Each company has been beaten down over the past two years and represents an appealing long-term play. Initially, I am going to recommend stop-loss levels to keep immediate risk in check. But as these positions start moving I intend to give them plenty of room to breathe.
CNX (Last price: $30.36)
Buy shares of CONSOL Energy Inc, symbol CNX, at the market. Then place an order to SELL ALL shares of CONSOL Energy Inc, symbol CNX, at $28.27, STOP; this order is good till cancelled.
CCJ (Last price: $21.27)