Oil, Copper, Steel...oh MY!
NOV down over 40% from high
CLF down over 45% from high
SCCO down over 49% from high
Most of these declines have happened at an alarming pace! Investors have been selling commodity companies like the world is about to implode...
Regardless to say anyone including myself that structures their portfolio core on these types of companies is not going to be very happy this year as far as investment returns. However when you dig deeper the earnings picture could be quite bright in the future.
SCCO has most of their production hedged...so they are not going to take a big ding to earnings this year....if copper supplies dwindle....2012 could be quite bright.
NOV has an enormous backlog....and unless we stop using oil...I think they will lead the rebound.
CLF is an infrastructure play with some of the smartest management around....they will prosper and acquire smaller players if the economy hits a speed bump.
I'd love to hear others feedback if they are buying more, selling or sitting it out?