Leaders and Laggards: Commodity Stocks
With four months complete, 2014 has been a mixed bag for commodity producing stocks. While broad equity markets are hovering at about breakeven for the year, many commodity intensive stocks have made big pushes in both directions. Below is a look at some of the sectors that are both leading and lagging through the first four months of 2014:
Major Commodity Earnings This Week: Big Oil On Tap
As earnings season draws to a close, the commodity world will see, arguably, its most publicized week. The next five days will feature earnings from some of the biggest oil firms in the world, with a few other companies sprinkled in. Investors will be especially keen to see how the recent spike in oil prices has impacted these major producers. Below, we outline some of the most prominent commodity firms slated to report earnings this week [for more commodity news and analysis subscribe to our free newsletter].
An Open Letter To The CKX Lands, Inc. Management And Board Of Directors
By Nat Stewart of NAS Trading LLC Dear CKX Lands’ Inc. Management and board of directors: Over the years, you have done an admirable job as stewards of the CKX Lands Inc. (CKX) properties. I am impressed by the high level of stock ownership by the board of directors and by the meager salaries both executives and directors draw from the company. I was also impressed by the recent moves taken to improve corporate governance practices by removing potential conflicts of interest. All things considered, you have done a fine job, an admirable job, of leading CKX Lands, Inc [for more commodity news and analysis subscribe to our free newsletter].
Housing Data Remains Strong, But Lumber Prices Suffer
As the U.S. economy finally picks up its pace, many investors are returning to the corner of the market that was one of the primary sources of the 2008 financial crisis: housing. Across the board, housing stats have been on the rise in recent years, including home prices, housing starts, building permits and construction. As such, interest in the raw materials involved in housing have also benefited from the uptrend, particularly lumber [for more commodity news and analysis subscribe to our free newsletter].
Earnings Preview: TCP, LPX, BIP
With the earnings season well on its way, many investors still remain understandably skeptical about several commodity producers’ fourth-quarter reports as global economic uncertainties and demand concerns continue to plague the market. Earnings results thus far have been mixed, while lackluster economic data weighs heavily on commodities. Last week, however, oil giants Exxon Mobil (XOM) and Chevron Corporation (CVX) both posted solid Q4 profits, exceeding analysts’ expectations. Chevron’s victory, however, was short-lived after analysts at UBS cut its stock recommendation [for more commodity news and analysis subscribe to our free newsletter].
Earnings Preview: Weyerhaeuser (WY) & Halliburton (HAL)
With the fourth quarter’s earning season in full swing now, investors have, for the most part, been pleasantly surprised. Though many companies have exceeded expectations, earnings estimates for several commodity producers remain rather bearish as global economic uncertainties and demand concerns have left many understandably leery. Last week, leading oil and gas equipment and services provider Schlumberger (SLB) missed analysts’ estimates, reporting fourth quarter net earnings that fell an abysmal 3.7%. Aluminum giant Alcoa (AA), however, reported revenues well above expectations, and the company predicts aluminum demand growth to rise in 2013–-a crucial and positive indicator for the global economy. This Friday, investors will shift their focus to two major commodity producers; Weyerhaeuser (WY) and Halliburton (HAL) [for more commodity news and analysis subscribe to our free newsletter].
