by Richard Maseri

Created on: July 24, 2009

Commodity ETF's
FOCUS: Coffee

Jumping Java! The world's 2nd largest cash commodity, has arrived disguised as a Commodity ETF. Those who follow my research, trading and investments know that I am very, very bullish on coffee, that addictive bean that makes it's way down steep mountain terrain via jackasses and into your home and the neighborhood Starbucks (SBUX) which I am also very, bullish on is now neatly packaged as a Exchange Traded Fund (ETF) an efficient alternative trading vehicle:

Commodity ETF's

An Exchange-Traded Fund (or ETF) is an investment vehicle traded on , much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of stock exchanges the trading day. Most ETFs track an index, such as the NASDAQ, S&P 500 or Dow Jones. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.

Buying and selling commodity Exchange Traded Funds (ETF's) is as easy as buying and selling common stock and can be done through any licensed brokerage firm. Unlike traditional commodity futures contracts these commodity ETF's, are not subject to margin calls and/or taking physical delivery of said commodity.

Lets have a closer look at this relatively new commodity ETF (Ticker: JO) as a way to diversify and / or participate on future coffee price movements. But 1st I'd like to make my case for buying coffee, whether via a commodity futures contract, options or this commodity ETF.

For starters, coffee is a highly addictive and it's users love it, that said, multiply all those existing cups times millions perhaps even billions of new empty cup holding consumers thanks to... you guessed it Starbucks, but where? China, yes China the land of tea sippers is slowly being hooked on and converted to coffee! Seismic fundamental changes are taking place worldwide as it relates to the "coffee experience" . Know this and profit!

The Starbucks Angle:

Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipments primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells

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