Gold, Global Fracking, and Frontier Markets

by admin on September 2, 2010

It’s time to stop the whining on housing, jobs, and banks. If you don’t like the current state of affairs in Washington and the politicians’ cozy relationship with Wall Street — then vote the bums out. If you don’t like the way the fiscal picture has shaped up — then stop believing the banksters and find a better place to invest. One of the great wonders of capitalism is that when one person, group, or company is mired in foolishness and fraud, there is always some up-and-comer waiting in the wings to take them off their high horse. In other words, there’s always a bull market somewhere.  Here are three profitable trends to invest in today. Advertisement How to Get Your FREE “Options for Dummies” Guide Think trading options was just for the most seasoned investors? Think again. Options guru Ian Cooper has put together a free report showing YOU how to easily profit from one of the most lucrative investment strategies out there. Click here now to access your free guide and start making money today. Three Bullish Trends: Gold, Global Fracking, and Frontier Markets Gold is about to break out…   That, my friend, is called an ascending triangle. The fears of a prolonged recession, disgust with the Wall Street shills, and continued monetary easing have investors buying gold to protect their wealth. If we break above the level set in June, we are off to the races. The rule of thumb in breakout patterns is that they go up as far as they went sideways. That would put the price chart around $1,500 per ounce. Gold hit $1,254.73 yesterday — but the crucial turning point is the June 21st level of $1265.30 which was its all-time high. Bloomberg reported that gold holdings in 10 exchange-traded products advanced to a record yesterday. “In the second quarter, investors purchased 291.3 metric tons in exchange-traded funds, boosting demand by 36 percent.” That could be the energy needed to break through to a new high. If you look at the ten-year chart, you’ll notice that gold rises in a stair-step pattern; it consolidates, then launches. New highs are always bullish and breakouts are a buy. The magic number is $1,265. Global fracking According to the Energy Information Administration, there are 1,744 trillion cubic feet of technically recoverable natural gas in the U.S. — enough to supply the country for 90 years at current rates of production. Fracking involves pumping water or sand into the ground, breaking up the rock, and recovering the natural gas. Right now the threat to ground water has some environmentalists up in arms, but it hasn’t stopped the growth in exploration and development around the world… The fact is that there is a lot of natural gas — and it’s a viable replacement for coal for use in electricity generation. It is cheap, plentiful, and the cleanest burning of all hydrocarbon-based fuels. Europe is particularly eager to gain new natural gas sources as they have been held captive to Russia’s supply …

View post:
Gold, Global Fracking, and Frontier Markets

{ 0 comments }

Market Wrap-Up for Sept.2 (BKC, LTD, JWN, CME, BLK, BRCM, more)

by admin on September 2, 2010

If you remember, I mentioned Burger King ( BKC ) was the subject of takeover rumors yesterday, but that I would consider the shares if they pulled back from the big one-day spike. Well, this time it didn’t pay to wait. It was announced in the pre-market that Burger King will be taken private for $24 a share in cash. I felt the deal talk was legitimate, but chasing a stock after a 1-day spike never usually makes sense. I can tell you of numerous rumors I have heard over the years that almost never panned out. One of the more recent ones I remember was when Countrywide Financial was trading and there was a rumor out that Merrill Lynch was going to make a run at the company. The stock shot up 6 points intraday and CNBC was all over the rumors. The deal made sense at the time, but never came to pass. In this business, you will sometimes miss on an opportunity, but at the end of the day, an investor will never go wrong having a discipline to their investing approach. Looking at the rest of the market, monthly retail sales were out this morning, and Wall Street liked what it heard from Limited Brands ( LTD ) and Nordstrom Inc. ( JWN ) especially. Other stocks doing nicely in today’s trading included CME Group ( CME ) , Blackrock ( BLK ) , and Broadcom ( BRCM ) . I expect volume to begin to recede into holiday mode over the next couple of days. We finished at 3.7 Billion shares on the NYSE, which was not as bad as it could have been. Tomorrow will be an interesting day with the monthly jobs data being released. With the remnants of Hurricane Earl moving up the East Coast, some holiday week trips may not start as early as usual for some of the Wall Street faithful. Use this time to go through your portfolio and check to see if there are any errors in any of the transactions you may have made over the last quarter. You would be surprised to find that even the most organized investors will sometimes make the simplest of mistakes, like hitting the buy button instead of the sell button. Instead of thinking you are out of a position, you may have indeed actually bought more. It pays to look it over. See you tomorrow! Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read more:
Market Wrap-Up for Sept.2 (BKC, LTD, JWN, CME, BLK, BRCM, more)

{ 0 comments }

Afghanistan’s Biggest Bank Hopes to Join the Troubled List

September 2, 2010

  According to the FDIC, the government’s list of problem banks is now at its highest level since 1993. In all according to the most recent data, 829 banks are now at the risk of failure, up 53 from the 755 from the first quarter of this year. That’s on top of the 118 banks that have closed this year including the 45 closings during the most recent quarter. That’s troublesome since the FDIC fund set aside to potentially bailout these troubled institutions is itself already $15.2 billion in the red! But as bad as that is that’s not exactly the banking story that has me so worked up today Instead, it’s the prospect of bailing out the biggest bank in Afghanistan that has me so irked today that I can barely type out this rant. After all, everyday I ask myself what exactly in the hell is going on over there. First it’s our blood and now it’s been suggested that we donate even more of our treasure. Either way, I’m certain that this stone age paradise will never be worth any of it. As for the story it is by Andrew Higgins and Ernesto Londono entitled: Karzai’s brother calls for U.S. to shore up Kabul Bank as withdrawals accelerate “ As depositors thronged branches of Afghanistan’s biggest bank, Mahmoud Karzai, the brother of the Afghan president and a major shareholder in beleaguered Kabul Bank called on Thursday for intervention by the United States to head off a financial meltdown. “America should do something,” said Karzai in a telephone interview, suggesting that the U.S. Treasury Department guarantee the funds of Kabul Bank’s clients, who number about a million and have …

Read the full article →

Paul’s Thoughts on The Right Way to Ask for a Raise

September 2, 2010

We all know the job situation out there is pretty bleak, and I can’t disagree with the numbers. But there will be special situations when you need to consider your job role and make a case for why you should receive better compensation for your efforts. If your employer is fighting to stay alive, you may need to bide your time a bit, but if you can help your company save money in some area, that’s a good place to start. Then, you can lobby to have the company pass the of the savings to you (if the business is in a position to do so of course). Finding new customers is another avenue you can go down to make your case. If you can bring in new business that boosts sales, maybe you can see a sliver of that come back to your bottom line. Lastly, if you can show that under your leadership, your team is producing well and lifting the bottom line, you have a good case for a raise. As it is so often in life, timing is everything, so be sure to make your case at the right times. If you see an opportunity in a new job opening with the company, this is a great time to sit down with your employer and have an open discussion about your contributions. Avoid the “I am overdue for a raise”, or “I have been loyal and been here for a long time.” Your company is likely results-oriented, and the same old arguments don’t hold much water anymore. If you see the steps above are not making any headway, and you truly believe you have been overlooked, it may be time to put seeds out to find a new job. Just don’t quit the old one until you have a new position lined up and ready to go. Acting on emotion or anger very rarely pay

Read the full article →

Should You Count Social Security in Your Net Worth?

September 2, 2010

I have heard the argument made that one can count Social Security as part of their net worth. The argument does hold some water, especially when you consider the average check for a retiree is approximately $1168 a month. You would need quite a bit of money to be able to generate those monthly returns, based on today’s CD/Savings rates. That said, the Social Security/net worth argument should not be an excuse to think you are ahead of the curve. Remember, the bills don’t stop coming when you retire. My biggest concern for people looking retire over the next few years is potentially miscalculating their expenses/budget and inflated expectations of their home’s value (and ability to sell in this market). You can figure that there is always going to be a buyer for your property if you price it right, but that’s where most people get hung up. They don’t understand the market as well as they should, and decide to push ahead with retirement without first running the numbers. It’s smart to do some initial research if you’re interested in downsizing. You can easily get a real estate agent give you the latest comparable sales in your area to help you get a handle on your retirement plans. Of course, my hope is that people can begin to generate other income, outside of just the main Social Security pipeline. Investing in quality dividend-paying stocks is one of the best ways to do that today. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read the full article →

Bad Credit or Lack of Credit Can Hurt College Students

September 2, 2010

The college years can be very trying and loaded with distractions, but students need to stay focused on the field ahead. With the job market tight today and employers extremely picky, you may want to keep an eye on your credit scores, because those could be the “little” details that help determine who gets a particular job opening. Employers have become aware of the credit factor, and may be hesitant to push forward with someone who fails to hit the objectives of a good credit score. It’s all too easy for an employer to classify a young person with a bad credit rating as “irresponsible.” Be sure to track your credit score and definitely begin to establish yourself with credit in those college years, so as to give you a head start to building good credit and qualifying for better interest rates when you apply for a loan of any sort. Keep in mind the objective is always to pay your bills on time, and stay disciplined to what will let you attain the higher levels you are looking to achieve, in life, work, and money. Paul Rubillo is the founder and CEO of Dividend.com. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read the full article →

Monsanto’s 2010 Earnings Estimate Cut at Citigroup (MON)

September 2, 2010

Seed maker Monsanto Company ( MON ) on Thursday saw its full-year 2010 earnings estimate lowered by analysts at Citigroup. The firm said it cut its estimate for MON to $2.42 per share from $2.58, citing additional restructuring charges in its Roundup unit, as well as a shift away from corn and into soybeans in Brazil. Citigroup maintained its “Buy” rating and $62 price target, however, which represents an expected upside of 15% to the stock’s Wednesday closing price of $53.99. Monsanto shares rose 20 cents, or +0.4%, in premarket trading Thursday. The Bottom Line We had removed shares of MON from our recommended list back on May 13, 2009 when the stock was trading $90.08. The company has a 2.07% dividend yield, based on last night’s closing stock price of $53.99. The stock has technical support in the $49-$50 price area. If the shares can firm up, we see overhead resistance around the $60 price level. We would remain on the sidelines for now. Monsanto Company ( MON ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read the full article →

Hewlett-Packard Upgraded to “Outperform” at JMP Securities (HPQ)

September 2, 2010

PC and printer maker Hewlett-Packard Company ( HPQ ) on Thursday caught an upgrade from analysts at JMP Securities. The firm boosted its rating on HPQ from “Market Perform” to “Outperform.” JMP also set a $50 price target on H-P shares, which represents a potential 28% upside to the stock’s Wednesday closing price of $39.21. Hewlett-Packard shares rose 30 cents, or +0.8%, in premarket trading Thursday. The Bottom Line We had removed shares of HPQ from our recommended list back on Oct.1, 2009, when the stock was trading at $47.21. The company has a .82% dividend yield, based on last night’s closing stock price of $39.21. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $44-$46 price levels. We would remain on the sidelines for now. Hewlett-Packard Company ( HPQ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read the full article →

KBW Research Initiates Coverage on Moody’s as a “Market Perform” (MCO)

September 2, 2010

Analysts at KBW Research on Thursday started coverage on credit ratings agency Moody’s Corporation ( MCO ) with a neautral “Market Perform” rating. The firm also set a $25 price target on the stock, which represents an expected 14% upside to its Wednesday closing price of $21.95. A KBW analyst commented, “We believe that Moody’s will continue to be an important player in U.S. and international capital markets. While its reputation has been tarnished by the financial crisis and regulatory agencies have focused on ways to constrain its influence, alternatives remain limited and its earnings power remains strong. We do believe that concerns regarding legal and regulatory issues will continue to pressure the stock.” Moody’s shares rose 10 cents, or +0.5%, in premarket trading Thursday. The Bottom Line We have avoided shares of MCO since our early June 2008 coverage began, when the stock was trading at $39.13. The company has a dividend yield of 1.91%, based on last night’s closing stock price of $21.95. The stock has technical support in the $18 price area. If the shares can rebound, we see overhead resistance around the $24 price level. We would remain on the sidelines for now. Moody’s Corporation ( MCO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Read the full article →

Qualcomm Downgraded to “Hold” at Standpoint Research; Valuation Call (QCOM)

September 2, 2010

Mobile chipmaker Qualcomm, Inc. ( QCOM ) on Thursday saw its rating cut by analysts at Standpoint Research, who noted the stock is likely now fully valued. The firm lowered its rating on QCOM from “Buy” to “Hold,” commenting “QCOM has jumped $8 (25%) since July 1 and has out-performed the S&P-500 by > 2000 bps since 7/1. The shares are now trading at > 17X trailing earnings and 15.7X the EPS consensus for 2011. Given the recent move on an absolute and relative (to the S&P) basis, we are not comfortable leaving our highest rating attached to this name in the near-term. QCOM has a market cap of more than $60 bln – 17X trailing twelve months earnings is fair value for this name given the current environment. The recent good news is priced in at this point. After watching QCOM break $37.90 to the downside yesterday, we are happy to exit here at $39.90.” Qualcomm shares were mostly flat in premarket trading Thursday. The Bottom Line We had removed shares of QCOM from our “recommended” list back on Sept.25, 2008, when the stock traded at $46.54. The company has a dividend yield of 1.92%, based on last night’s closing stock price of $39.60. The company has technical support in the $36 price area. If the shares can continue to rebound, we see near-term overhead resistance around the $42 price level. We would remain on the sidelines for now. Qualcomm, Inc. ( QCOM ) is not recommended

Read the full article →

August Employment Report Preview

September 1, 2010

This Friday we have something a bit unusual — an employment situation report right before Labor Day. Since everyone already views this as the most important piece of economic data, can the attention get any greater? You bet! Just watch…

Read the full article →

No Secret to Gold Investing. Just Accumulate.

September 1, 2010

Since I am known as something of a gold bug, a lot of people write to me about gold, but since I am a paranoid lunatic, I don’t read their letters, mostly because I now call myself Marvelous Macho Grande (MMG), figuring that an established alias could potentially come in handy when the prices of No Secret to Gold Investing. Just Accumulate. originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read the full article →

← Previous Entries