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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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To: ajtj99 who wrote (53564)3/4/2022 7:06:08 PM
From: Lee Lichterman III2 Recommendations

Recommended By
ajtj99
pak73

   of 97456
 
That is something that has me shaking my head on a lot of stuff.
Many stocks are or were soaring on shortages (AA, ALB etc). However if they can't get the raw materials, they are going to be producing less product. Yes, they will have better pricing power for finished product but their raw material prices are going to be higher too. Even if they can pass these costs through and maybe even squeeze some more profit margins, I seriously doubt profit is going to rise relative to the stock price appreciation on them.
ALB finally seems to be coming back to earth but I'm seeing a lot of other materials stocks flying. Are they pricing in stickyness that once raw material production comes back online, finished product prices will stay higher?? I just don't get it.
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