Agriculture Stocks and ETF's

[billyjoe]

I need an agricuture stock or ETF to balance out my portfolio. Where is Lyehopper ? Maybe an ETF like MOO, COW, or the Chinese HOGS. Or just DBA (doing business agriculture?) Or should I go with John Deere. How about coffee, sugar, corn? I'd say shortages of agricultural commodities are more likely than those in gold or other metals. Any ideas would be appreciated. Not just a trade, but for a longer term investment.

--------------billy

[riverbabe]

I need an agricuture stock or ETF to balance out my portfolio. Where is Lyehopper ? Maybe an ETF like MOO, COW, or the Chinese HOGS. Or just DBA (doing business agriculture?) Or should I go with John Deere. How about coffee, sugar, corn? I'd say shortages of agricultural commodities are more likely than those in gold or other metals. Any ideas would be appreciated. Not just a trade, but for a longer term investment.

--------------billy

Have owned CAT for several years, up 62%, divi currently 1.83%. Not strictly agri stock, but diversified might be better and more stable.

Watch out for commodity stocks though, even ETFs. Pretty volatile. Need to be watched carefully.

http://seekingalpha.com/article/246674-today-in-commodities-correction-coming?source=yahoo

Also, before you jump in long term, learn about "contango" and how it affects commodities stocks and ETFs. These might be better short term rather than long term. http://www.bloomberg.com/news/2010-0...e-rolling.html

http://seekingalpha.com/article/191610-the-problem-with-commodities-etfs

JMHO dear friend.

[riverbabe]

Dd

Was just reading Barrons and this great article jumped out at me: "DuPont: a Feast for Investors." I swear my first thought was, "Wow, this has billyjoe's name written all over it!" Quick synopsis:

"DuPont shares could be one of the best ways to get in on the boom in agricultural stocks. With commodities surging, investors have been scrambling for ag stocks, and DuPont is cheaper than many," naming cheaper than POT and MON as examples.

Apparently they have a bid in for Demark's DANISCO (DCO.Denmark) that, since the bid, is now trading "close enough to the offering price to suggest the deal will go through." Danisco is one of the largest producers of food ingredients, making "probiotics for yogurt, and locust bean gum for ice cream, cream cheese and infant formula. Its products do everything from keeping bread fresh to helping people lose weight."

"DuPont is following a farm-to-table strategy in food, selling pesticides and seeds for corn, soybeans, sunflowers, canola and hybrid rice..." "DuPont gets about a third of its revenue from developing markets, and now is zeroing in on China's surging demand for food. The company already accounts for an increasing share of the corn-seed market in China" (and its CEO was among the American executives visiting with Pres. O and Chinese Pres. Hu Jintao in Washington in Jan.) "China's appetite for agricultural products is most evident in soybeans, where the country has become a net importer."

The financial analysis presented for DuPont is very very impressive and "Although DuPont's stock hit a 52-week high Friday of 52.63, it still trades at an attractive 12.6 times analysts' 2012 consensus earnings estimate. (An analyst) sees it headed to 65 as the Danisco acquisition starts to pay off. While investors wait, they can collect a decent dividend of $1.64a share, which translates into a current yield of 3.2%."

[billyjoe]

River,
I've never looked at DD before and it does look surprisingly good. I did buy some DBA and need to free up some cash to get more ag. Maybe I'll also get some DD. I'm trying to diversify my core holdings along with getting good dividend reinvestment. So far My 7 groups:

Sin---PM---4.4%

Infrastructure--IDE--9%

Banking----NYB---5.4%

Ag------DBA

Energy---NJR---3.4%

Tech----AAPL

Medical or related--AFFX-HQL-8%

I'm in and out of my uptrenders. Trying to fund more core purchases with their gains.

-------------billy

[riverbabe]

Hey, as J.C. would say, you are diversified! Very nice. A little more conservative than me, but you already know that.