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February 3, 2006

DBC managed commodity pool starts trading, Fri., Feb. 3, 2006, 11:19 AM

A couple days ago, I discussed the Deutsche Bank Commodities ETF, which started trading today under the ticker symbol DBC. DBC is technically not either a physicals backed security or an index tracking stock. It is a managed commodity pool, which carries a significant management expense.

MarketWatch did a good write-up. You will find a lot more, but I recommend you read the prospectus if you might be inerested.

DBC opened up 20 cents on a weak opening day for the broad equity market, and a downer for Gold. But the March-06 NY Crude Oil is strong, up +$0.22 to $64.90, which helped the DBC trade higher this morning.

You will find some discrepancies in my earlier blog article about DBC. In fact DBC is not a tracking stock, but is a managed fund, which I wanted you to be aware of.

Posted by Posted by Bill Cara on February 3, 2006 11:19:51 AM | Category: 10 Energy

Discourse

do you have a list of oil sands stocks

Posted by: alice [TypeKey Profile Page] at February 3, 2006 11:30 AM [link]

alice - a quick google search found su, pcz, imo. That should get you started.

Posted by: g034 [TypeKey Profile Page] at February 3, 2006 11:44 AM [link]

Regarding DBC, I called Powershares and DB and couldn't get any information on the turnover or tax efficiency of this index. DB gave me legal reasons for the non-disclosure.

I know the cap gains have a 60/40 treatment and I am guessing that the entire portfolio is going to be turned over, but I couldn't get confirmation.

I am really looking for the backtested results, not guesses.

Does anyone know the answer? Is there a K-1?

Thanks

Posted by: g034 [TypeKey Profile Page] at February 3, 2006 11:49 AM [link]

pot...broke out of its trading range it held the past few days...anyone else have anything looking good?

Posted by: Bullring [TypeKey Profile Page] at February 3, 2006 12:20 PM [link]

esi - watching this one - looks good if it gets above 62.50 with decent vol.

Posted by: Bullring [TypeKey Profile Page] at February 3, 2006 12:44 PM [link]

bullring-

I am still looking at the natural gas stocks to see if there will be a breakout. Yesterday may have been a retest but the weather sure isn't cooperating!

Posted by: MarkM [TypeKey Profile Page] at February 3, 2006 12:54 PM [link]

alice-

You get two bites from the oil sands stocks. First, as oil stays high their assets have value and can be more economically exploited. Second, they are acquisition plays for the majors that are desperate for reserves.

Anyone else have thoughts on this?

Posted by: MarkM [TypeKey Profile Page] at February 3, 2006 12:56 PM [link]

markm - chk - i am pretty sure we have both mentioned this one - i am planning on holding it until before earnings - earnings should be great but my concern is forward guidance since natural gas prices have dropped...but it may be a hot summer..i don't know how much ng is use to make electrictiy..so i will probably be selling it too soon... i still like coal but do not have any right now... i sold btu $3 ago..bummer selling too soon.

Posted by: Bullring [TypeKey Profile Page] at February 3, 2006 1:05 PM [link]

if mrvl closes + today i will be looking at that.

Posted by: Bullring [TypeKey Profile Page] at February 3, 2006 1:32 PM [link]

bullring-

The NWS says cold weather to begin in NE next week and be below avg for 14 days. You may get a push on CHK and other NGas stocks from it.

Posted by: MarkM [TypeKey Profile Page] at February 3, 2006 1:50 PM [link]