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I managed to work up enough nerve to actually sell something, and I haven't been struck by lightning yet, so perhaps this is easier than I figured.
My dilemma results from being "successful" on every stock in the fund. I'm not wedded to them but it's difficult to sell winners.
I chose to sell all of my CSCO and 2/3'rds of my IO stake. Both stocks are in positive territory, but just barely as they have been treading water for some time.
I have been thinking about increasing the fund in the agricultural areas; I have some small investments in Monsanto and Potash Corp, but have been lusting after buying Bunge (BG).
There are many reasons why the agricultural companies should do well; a sustained interest in alternative fuels, a record corn crop (caused in large part by biofuel interest), record setting prices for many of the common crops, and as world populations increase - someone has to feed them...
I am purchasing BG on Monday at the market open. I have watched in envy as the price has increased from 80 to nearly 100 over the last 3 months, and this is not merely a market reflection, it appears to be the start of something larger.
Bunge has many businesses, but it is the oil seed processing component that I am targeting. If biodiesel and ethanol are here to stay, who better to enjoy the initial boom than those agricultural companies that process oil from crops now? Surely the Chevron's and Shell's of the world will be in this space with both feet, but no one wants a refinery in their backyard - even if it's refining cocoanut oil...
Instinct suggests that those companies that process crops into components will enjoy the initial surge of profits, the big oil companies will quickly catch-up - but only after they buy or construct the facilities necessary to process whatever wins the grain-into-fuel battle.
What I want to buy is that little New Zealand company that has a process for converting sewage algae into ethanol - skimming the surface of wastewater treatment ponds to convert the algae bloom into fuel... They are not publicly traded however....yet...
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