Replies to post #5160 on The Rising Influence of Rising Affluence

[dewophile]

there is clearly upside to all commodity stocks right now if there is stimulus and/or EU overhang decreases, but i would argue that of the risky commodity stocks both CLF and HES have some degree of downside protection because of the likely floor in iron ore prices due to marginal costs in china (110-120 per ton) and oil hedges, respectively

[DewDiligence]

I added yet again to HES and CLF today. These stocks are discounting a much more bearish global economy than I foresee.

Both stocks have minuscule P/E ratios based on any plausible 2012/2013 forecasts. Moreover, insiders have recently bought shares at both companies (#msg-75995329, #msg-75705739, #msg-75817830).

Bit the bullet on PG and sold my entire position.

FWIW