Ever wonder why Jim Rogers prefers commodities rather than the commodity businesses... and why I'm bearish on commodities
This is very short-term and not indicative of any strong results but one just needs to look at the uranium market and see how the commodity has done well in the last few weeks while the stocks of uranium companies have not : The spot price for uranium has surged 25 per cent over the past five weeks, a performance unmatched by the stocks of companies in the uranium sector. From a basket of 56 stocks tracked by Haywood Securities, for example, 42 fell over the last week, three were unchanged, and just 11 saw gains. This example illustrates why Jim Rogers prefers owning the commodities themselves rather than the businsses. One just needs to look at the charts of various stocks in the referenced article to see how terrible the stocks have done. To make matters worse, I think some of those companies will likely go bankrupt or end up severely diluting shareholders even if uranium prices go up 50% or 100% from here. The painful feeling for uranium company shareholders must come from the fact