Bull Market in Chocolate

Description:

Burt Rothberg of the Commodityequity blog brings us this portfolio of chocolate related stocks. His reasoning is as follows:

"Commodity traders have been forecasting a coming bull market in cocoa since about forever. It may be materializing now. The real story however is the bull market in chocolate. People around the world are eating more of it and are eating a greater percentage of dark chocolate (which contains more cocoa). People are also using chocolate as a small luxury and spending quite a lot on "upscale" chocolate. I put upscale in fright quotes because much of what goes for quality chocolate is actually pretty bad (Dove, Hershey's Gold). However folks are buying it, and the money is running in. Note that the true high-grade cocoas (Columbian, Ven., etc.) have seen their prices go through the roof."

His reasoning for each stock is quoted in the description box. In a follow up post found here Burt lays out a more complicated trade one can do using futures and stock.

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