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Two Ways To Play: Vulcan Materials To Live Long, Prosper?


Strengthen your portfolio in good times and bad.

Bloomberg reports Vulcan Materials (VMC) got a lift after its CEO hinted that previously forecasted earnings could be better-than-expected because of declining energy prices.

The largest U.S. producer of crushed stone jumped nearly 3% intraday after originally falling as much as 8.4%.

CEO Donald James said in a conference call that there could be "upside" to the earnings projection because of declining crude prices. "Our outlook assumes diesel fuel and liquid asphalt remaining at the high levels existing at the end of the second quarter. Fortunately, crude oil prices have fallen since the end of the quarter."

The company said on its conference call that higher energy related input costs account for approximately a quarter of the total annual decrease in profits.

VMC finished the session slightly lower -0.15% to $68.40.

From the Bull Pen: Bulls can look elsewhere for an upside play. Professor Dispennette mentioned a play in IPC The Hospitals Co. (IPCM) today on the Buzz. Sell-stops can be set near the $18 area.

From the Bear Cave: Energy issues aside, VMC is simply a play on the U.S. economy. Bears believing we are in a recession and that we have yet to reach the bottom can play the downside with buy-stops above the 200 DMA ($72).
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No positions in stocks mentioned.

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