(Editor's Note: Investors should note the limited trading liquidity of ARRMF, and the inherent risks. Arrium's listing on the Australian Stock Exchange ARI.AX offers enhanced liquidity.)
Companies active in commodity sector are very prone to changes in the price of their products. In times of a bull market, those enterprises are seen doing very well and their share price rises tremendously. If bear market takes over, the effects are exactly the opposite. The whole sector will struggle, and companies with a bad financial structure might get into existential troubles. Recent examples for this can be found in the Australian mining sector. When the country's resource minister declared the end of the mining boom in Australia in 2012, stock prices of...
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