So, last year there was a coffee stock that went from 0.25 a share to 35 a share in a fairly rapid fashion. This year we see something similar happening already with Jammin Java (JAMN) which has already risen from 0.10/share to 5.50+/share. Another up-and-comer that just showed up on my screeners is Healthy Coffee International (HCEI) which is currently rising from below 0.01/share and currently sits somewhere around 20-30 cents. [more]
The post below addresses Agriculture only. I don't recommend only owning Agriculture in your portfolio. However, if you currently don't have it you are potentially missing out on huge gains.
It seems like Agriculture and anything related to it will be growing stocks in 2011. Apparently the crop market didn't do so good and a shortage of crops is predicted, specifically corn interestingly enough. On top of all this is the rising world population (more mouths to feed). All of this is driving the price of crop up, which in turn drives everything else associated with agriculture up. These include: fertilizer corporations, seed companies, tractor and farm machinery companies, etc... Face it: We live in a world that could run short of food. Between the Russian drought of the summer (bullish for wheat) to the slow Chinese planting this year (bullish for corn), demand for agricultural products is strong but supply is subject to the whims of nature. Even water could become a hot commodity in the near future.
Some articles to read at your leisure:
I have started investing in July into several of these companies, and while they rarely have huge gain days (I define those as over 6% in a day) they do have very nice growth which is only predicted to get faster and higher.
Companies that I currently own stock in:
Agrium (AGU) - Agrium Inc. is a retailer of agricultural products and services in the United States, as well as Argentina, Chile and Uruguay and a global producer and wholesale marketer of nutrients for agricultural and industrial markets. Up 50% in the last 3 month since I bought them. They are based out of Canada.
Mosaic (MOS) - The Mosaic Company (Mosaic) is a producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry. As of May 31, 2010, the Company operated through two business segments: Phosphates and Potash. The Phosphates Segment produces phosphate-based animal feed ingredients in the United States. The Company sells phosphate-based crop nutrients and animal feed ingredients throughout North America and internationally. Up 57% in the last 3 months. They are based out of the USA.
Other companies in the field:
Potash (POT) - Potash Corporation of Saskatchewan Inc. (PCS) is an integrated fertilizer and related industrial and feed products company. However, I feel these guys are not going to grow as fast as others because they are a little over-priced in my opinion. I could be wrong though. A few months back they were offered a buyout from another company, which boosted their stock price quite a bit, but they refused the buyout.
CF (CF) - CF Industries Holdings, Inc. (CF Holdings) is a manufacturer and distributor of nitrogen and phosphate fertilizer products in North America. I want to buy stock into these guys soon. Up 58% over the last 3 months. Also pays a small dividend.
Terra Nitrogen (TNH) - Terra Nitrogen Company, L.P. (TNCLP) produces and distributes nitrogen fertilizer products. Its principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which it manufactures at its facility in Verdigris, Oklahoma (Verdigris). Up 57% in the last 3 months. Also pays around a 7-8% dividend. I want to buy into these guys too in the future.
Corn Products (CPO) - Corn Products International, Inc. (Corn Products) manufactures and sells a number of ingredients to a variety of food and industrial customers. The Company is a corn refiner and a supplier of food ingredients and industrial products derived from wet milling and processing of corn and other starch-based materials. Up about 20% in the last 3 months. Small dividend.
Monsanto (MON) - Monsanto Company (Monsanto) along with its subsidiaries, is a worldwide provider of agricultural products for farmers. The Company’s seeds, biotechnology trait products, and herbicides provide farmers with solutions to produce foods for consumers and feed for animals. The Company operates in two segments: Seeds and Genomics, and Agricultural Productivity.These guys are overpriced in my opinion; however, they are the "go-to" guys when it comes to buying seeds.
Also, you can invest in agriculture indexes which are safer but provide less gain as a result (usually). Two of these are:
MOO - Market Vectors Agribusiness ETF (the Fund) replicates as closely as possible the price and yield performance of the DAXglobal Agribusiness Index (DXAG). Up 24% in last 3 months.
DAG - PowerShares DB Agriculture Double Long ETN. Up 72% in the last 3 months.
Now, there is probably a million other companies in the market, I just can't follow them all. I might have missed some good ones, if I did, please let me know. [more]