Interview: The Run in Commodities Still has Legs

02/16/2008 12:00 am EST


Kimberly DuBord

Partner and Managing Director, Cresset Wealth Advisors

Kimberly DuBord, director of stock analysis,, shared her company’s current outlook for the commodity and energy markets.

Asked if the slowdown in the US will stem the multi-year up cycle in commodities, DuBord remarked that the continued growth in global markets should sustain the uptrend, due to the strength of demand coupled with real supply restraints.

In October, many stocks saw their prices cut in half. Stock sectors that they currently like include the agricultural industry, with names such as Monsanto (Nyse: MON), DuPont (Nyse: DD), Potash (Nyse: POT), and Mosaic (Nyse: MOS). Additionally, equipment maker Deere & Co.(Nyse: DE), is favored, as well as iron ore picks, including Companhia Vale Rio Doce (Nyse: RIO), BHP Billiton (Nyse: BHP), and Rio Tinto (Nyse: RTP). In shipping, DryShips (Nasdaq: DRYS) is the leader.

As for energy, DuBord noted that the valuations of many companies remain good; they are experiencing double-digit growth; and their balance sheets are exceptionally strong.

Her company currently likes some of the deep sea, offshore drillers, exploration companies, and natural gas outfits. Recommended names include Apache (Nyse: APA) and Devon Energy (Nyse: DVN). In transport, Transocean (NYSE: RIG) is their favorite and in international exploration, they like Occidental Petroleum (Nyse: OXY) and Petroleo Brasileiro (Nyse: PBR).

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