28.01.2011 - How commodity inflation affects stocks in 2011
From Cnbc.com: If you own the stocks with lots of commodity exposure—meaning commodity consumers, not producers—then be forewarned, Cramer said. Your portfolio might see the kind of action that hit Procter & Gamble on Thursday. P&G, which needs commodities like oil to make its products, beat the Street’s earnings expectations, but the stock fell almost $2 anyway. Why? Because commodity inflation cut into the company’s gross margins—they fell 190 basis points! “That’s awful,” as Cramer described them, and a possible indication of what’s to come for the rest of 2011..............................................Full Article: Source
Print