This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Commodities Impact: Ask the CEOs

NEW YORK ( TheStreet) -- Commodities have been on a spectacular run until only recently, as crude oil and silver in particular have pulled back.

TheStreet staff this week asked three CEOs what impact commodities pricing has had on their businesses. TheStreet's Alix Steel also interviewed noted investor Jim Rogers about the commodities market.

Randgold Resources (GOLD - Get Report) CEO Mark Bristow: "I think that it's a sign of apprehension in the market about exactly what the drivers are and where we are in the complete rehabilitation of the economic situation globally," said the boss of the gold mining company in West Africa.

"I think there's lots of nervousness in how China is going to perform. We are definitely seeing signs of inflation. You saw Greece again with its debt. There's still a lot of real structural issues with the Western World economies. Commodity movements and gold are contagious, but not necessarily aligned."

Rackspace CEO Lanham Napier believes that rising commodity prices threaten economic recovery.

Rackspace (RAX - Get Report) CEO Lanham Napier sees rising commodity prices as a threat to the broader economy.

"I think that, generally, rising commodity prices threaten economic recovery," he told TheStreet in an interview that followed the hosting company's recent first-quarter results. "In an environment of high commodity prices, consumers spend more on staples than on more discretionary items.

"High commodity prices crowd out other forms of expenditure," he added. "I think it slows down advancements in areas that bolster our standard of living, such as technology and health care."

Kosmos Energy (KOS) CEO Brian Maxsted: "Obviously, the oil and gas business is a long-term business, long cycle times; we look way into the future. Long term, we see the fundamentals being extremely strong. We don't take much note of any short-term volatility in the market."

Jim Rogers, contrarian investor, author and financial commentator, is known for his love of commodities and was undeterred by the recent carnage.

"It's just that the CME (CME - Get Report) (Chicago Mercantile Exchange) raised margin requirements four or five times in two weeks by a painful amount, that's all it said," Rogers said. " Maybe it said something else to somebody else."

Rogers is short emerging markets, American technology and long commodities. He has not bought more silver, but said he would review it over the next few months if prices stayed low or went even lower.

What are America's corporate leaders saying about the issues of the day? TheStreet's reporters, during the course of their weekly coverage, will pose a thematic question to the business executives they interview. Have a question you'd like to see TheStreet ask the CEOs? Send it to Follow TheStreet on Twitter.
This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CME $93.31 0.00%
GOLD $84.05 0.00%
RAX $16.82 0.00%
AAPL $94.99 0.00%
FB $99.54 0.00%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs