Tuesday, June 3, 2008

A welcome dollar rebound

Ben Bernanke's comments on the economy and inflation have strengthened the dollar against major currencies so far today. I hope this appreciation is longer-lasting than a single day, and that it also manifests itself in the dollar/shekel exchange rate. As I've mentioned before, this rate is a big determinant in the reported strength of Alvarion's (common 3.3% of portfolio, calls 3.4%) earnings. Since I have a call position, any source of common stock price appreciation is most welcome.

Part of the recent inflation story has also been in the food sector, where my only holding is NutraCea (2.1% of portfolio). They put out another press release this morning, this time regarding the meat industry. Like many of their releases, it seems positive, but will likely be ignored until it is proven to translate into profitably generated revenue. I am holding a small percentage allocation in my portfolio to take advantage of their long term potential, but am not expecting significant improvement until the end of the year. Any earlier progress will certainly be welcome, but I'm keeping expectations low in light of the disappointments of the last year.