I have recently been looking into FCStone (FCSX) as an investment... See below seekingalpha article for description and background on FCSX.
I welcome thoughts, opinions, and reasons why this would or would NOT make a good investment. Especially welcome thoughts from people in the risk mgmt and/or commodities business...
"Looking for another way to play the commodity boom? With volatility in commodities increasing, users and producers of products that use them are looking for a way to manage costs.
Enter FCStone (FCSX). Stone provide risk management consulting services to commodity wholesalers, end users, producers and offer customers clearing and execution services on all major domestic and international futures exchanges. Essentially, they enable companies to hedge against commodity price fluctuations and enhance their margins. Customers range from ethanol producers to sellers of heating oil but currently most of its customers are in agricultural grain business and they do business in the U.S., Canada, China, Brazil and Ireland
With the increase in commodity volatility, clients are entering into more transactions with FCStone, which went public March 16. In the second quarter, earnings climbed 78% to 41 cents a share and revenue rose 50% to $403.5 million. In 2006, earning more than doubled 2005's."
I welcome thoughts, opinions, and reasons why this would or would NOT make a good investment. Especially welcome thoughts from people in the risk mgmt and/or commodities business...
"Looking for another way to play the commodity boom? With volatility in commodities increasing, users and producers of products that use them are looking for a way to manage costs.
Enter FCStone (FCSX). Stone provide risk management consulting services to commodity wholesalers, end users, producers and offer customers clearing and execution services on all major domestic and international futures exchanges. Essentially, they enable companies to hedge against commodity price fluctuations and enhance their margins. Customers range from ethanol producers to sellers of heating oil but currently most of its customers are in agricultural grain business and they do business in the U.S., Canada, China, Brazil and Ireland
With the increase in commodity volatility, clients are entering into more transactions with FCStone, which went public March 16. In the second quarter, earnings climbed 78% to 41 cents a share and revenue rose 50% to $403.5 million. In 2006, earning more than doubled 2005's."