[Looking for well-run commodity/precious mineral companies. Any ideas?]

https://twitter.com/tonyjclayton/status/1142741798554624000), one thing that stuck out was how commodity stocks haven't been this undervalued for close to 100 years (see image

 

This might be mostly about energy companies.

 

Here’s the source of Chart 4, and a description of the index used for “Commodity Stock”:

 

http://blog.gorozen.com/blog/commodity-and-natural-resource-equities-undervalued-versus-broad-market

 

https://us.spindices.com/indices/equity/sp-north-american-natural-resources-sector-index

GICS® energy and materials sector excluding the chemicals industry; and steel sub-industry.

 

["A Value Opportunity in Preferred Stocks"]

From Bogleheads:

 

1. Wells Fargo 30 year bonds yield 4.6%

2. 30 year treasuries yield 3.06%

3. Thus, Wells Fargo spread to treasuries is 1.5%

4. Recovery rates on corporate debt are about 50%. What this means is that on the average, if a company goes bankrupt and you are a bond holder, you receive approximately 50 cents on the dollar. Lehman bondholders only received 30% so perhaps we can look on that as a worst case.

5. Preferred shareholders will get nothing in bankruptcy. They are below bondholders in the capital structure and it is rare for bondholders to recover 100%.

6. Twice the capital at risk roughly means twice the spread, so I'd look to get 6.14% on a 30 year preferred.

 

Does anyone know what historical recovery rates have been for subordinate bonds in the financial sector?