G 20

Gold, Silver, Copper, Nickel and the Slow Death of Money

Gold, Silver, Copper, Nickel and the Slow Death of Money

A huge opportunity to hedge against both inflation and deflation is lying out there in the open. There are no transaction costs and right now there’s even a built-in discount. But most people will never realize any of this. In 1933 President Franklin Delano Roosevelt signed Executive Order 6102, which made it illegal for U.S. citizens to hold gold bullion. Prior to that, the $20 bill was essentially a warehouse receipt for a one-ounce gold coin. Prior to the Federal Reserve Act of 1914, the $20 bill actually told you this. After Executive Order 6102, $20 notes weren’t allowed to be exchanged for gold anymore. Americans couldn’t legally own or trade gold as money and savings, only as jewelry or collectible coins. A year after making monetary gold ownership illegal, FDR revalued gold from $20.67 per ounce to $35 an ounce with the Gold Reserve Act. The Act also required all gold and gold certificates to be turned over to the Treasury. The dollar was debased. A chunk of the gold it used to be good for was legally removed. Instead of  “containing” 1/20 an ounce of gold, each dollar now only contained (or represented) 1/35 an ounce. And of course you couldn’t actually own the gold itself. In 1971 Nixon severed the last official ties between gold and the dollar. The dollar quickly sunk to its real value, which had been debased by years of money supply inflation. By 1975 Americans were allowed to own bullion gold again, but during the roughly 40 years bullion gold ownership had been illegal, the dollar had been drastically debased. At its former lowest point in the summer of 1980, the dollar …

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Time Warner Boosts Dividend as Q4 Results Beat Expectations (TWX)

Filed in dividend, earnings, G 20, Gold Bullion prices, o, revenue, shares, Time Warner by on February 2, 2011 0 Comments

Media giant Time Warner Inc. ( TWX ) on Wednesday reported better-than-expected fourth quarter results, forecast strong 2011 earnings, and announced an 11% hike in its quarterly dividend. The New York-based company reported fourth quarter net income of $769 million, or 68 cents per share, compared with $631 million, or 53 cents per share, in the year-ago period. Excluding special items, adjusted profit was 67 cents per share. Revenue rose 8% from last year to $7.8 billion. On average, Wall Street analysts expected a smaller profit of 62 cents per share, on lower revenue of $7.5 billion. Looking ahead, the company forecast 2011 adjusted earnings to rise in the “low teens” on a percentage basis from 2010′s total of $2.41 per share. That estimate implies around $2.70 per share for 2011, which compares with analysts’ current estimates of $2.70 per share for the year. TWX also said its board of directors approved an 11% increase of its quarterly dividend payout, to 24 cents per share. Time Warner shares rose 89 cents, or +2.8%, in premarket trading Wednesday. The Bottom Line Shares of Time Warner ( TWX ) will now have a 2.91% dividend yield, based on the higher dividend payout and last night’s closing stock price of $32.31. The stock has technical support in the $29.50-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$35 price levels. Time Warner Inc. ( TWX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 .

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CBS Upgraded to “Buy” at Deutsche Bank (CBS)

Filed in CBS, dividend, earnings, EPS, G 20, Gold, Gold Bullion prices, o, shares, target, upgrade by on January 31, 2011 0 Comments

Mass media giant CBS Corporation ( CBS ) on Monday saw its rating, price target, and earnings estimates all boosted by analysts at Deutsche Bank. The firm said it upgraded CBS from “Hold” to “Buy” while lifting its price target from $18 to $23. That new target implies a 19% upside to the stock’s Friday closing price of $19.28. A Deutsche analyst commented, “CBS’s shares have had a terrific two years given the company’s high exposure to advertising and high financial leverage at the trough (3.5x). Nevertheless, from here we see 19% upside to $23, worthy of a Buy rating. We believe the street is too low relative to strong 1H11 ad pacings, the CBS Network should see 10% upfront CPM gains, margin efforts are kicking in, int’l syndication is growing > 10%, and M&A risk is reduced given the large buyback plan. Stock at 8.6x ’11E FCF and 7.0E ’12E, too low, in our view.” Continuing, “After reviewing 2011 by qtr, we are raising our EBITDA estimate by $91m to $2.791b (+17% yoy), EPS by $0.07 to $1.51 (+37% yoy, and vs. street’s $1.38) and FCF by $219m to $1.504b (-17% yoy). Our FCF/share estimate is now $2.24 for ’11E, growing to $2.74 in ’12E, $2.92 in 13E, and $3.42 in ’14E.” CBS shares were mostly flat in premarket trading Monday. The Bottom Line Shares of CBS Corporation ( CBS ) have a 1.04% dividend yield, based on Friday’s closing stock price of $19.28. The stock has technical support in the $16-$17 price area. If the shares can continue to firm up, we see overhead resistance around the $22-$23 price levels. CBS Corporation ( CBS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 .

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Market Wrap-Up for Jan.25 (KMB, VZ, HOG, AXP, JNJ, MMM, more)

Filed in dividend, earnings, G 20, Gold Investment, lead, Lear, o, Tegra by on January 25, 2011 0 Comments

We are getting more data on housing today, and essentially nothing new has come to light. The latest numbers are finding single-family home prices fell for a fifth straight month in November. At some point, business television will lose the emphasis on the importance housing will play in the current economic recovery. Unfortunately for us, Dow 12K is starting to get on the radar for the pundits, as if it really matters. There is a bit of a new vibe when it comes to the American dream of owning a home. Increasingly, Americans are disregarding the home as an integral part of their nest egg, opting instead to rent. There’s still money to be made in buying and selling real estate, but for the average Joe, the roadblocks to owning real estate have gotten much bigger with much stricter lending standards. Many banks are actually reverting back to requiring 20-30% down payments to consider a buyer “serious.” I stick to the idea that if you are looking to reap money out of buying a property, focus on multi-family units where you can take residence and have the tenant help pay for a piece of your mortgage note. Just be ready to be a landlord — it’s not for everybody. Some of my relatives and friends have been very successful with this strategy, eventually moving on to buying larger multi-family properties. It makes sense to start small at first, though. There’s no sense in buying something too big unless you’ve tasted life as a landlord and can stomach it on a larger scale. This morning, we added two more dividend names to our “Best Dividend Stocks” List . Be sure to check out …

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India Outsourcing Boosts Cognizant (CTSH)

Filed in Bank Gold, G 20, o by on January 20, 2011 0 Comments
India Outsourcing Boosts Cognizant (CTSH)

Filed under: International Markets , India , Newsletters , Stocks to Buy “Outsourcing play Cognizant Technology ( CTSH ) is a bet that after a strong 2010, this sector will continue to yield big profits for investors,” says Nicholas Vardy . The editor of Global Bull Market Alert explains, “CTSH, a New Jersey-based company with more than 75% of its 100,000-plus employees based in India, is set to continue performing well as the global economic recovery gains momentum. “Cognizant does more than just staff low-end call centers, or process online catalog orders. Cognizant’s workers test drugs, develop software and engage in a host of other sophisticated activities. Continue reading India Outsourcing Boosts Cognizant (CTSH) India Outsourcing Boosts Cognizant (CTSH) originally appeared on BloggingStocks on Thu, 20 Jan 2011 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Tenneco (NYSE:TEN), Dana Holding (NYSE:DAN), Lear (NYSE:LEA), ArvinMeritor (NYSE:ARM) Among Barclays’ Auto Favorites,

Even after a strong 2010 Barclays (NYSE:BCS) says they believe the auto sector could have more room to grow, including their favorites Tenneco (NYSE:TEN), Dana Holding (NYSE:DAN), Lear (NYSE:LEA) and ArvinMeritor (NYSE:ARM), as well as Ford (NYSE:F) and GM (NYSE:GM). Barclays said, “Even after strong 4Q10 and YTD 2011 performance auto stocks may have room for further strength. Based on our

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Top Picks 2011: United States Oil Fund (USO)

Filed in Bank Gold, commodities, G 20, Gold, o by on January 6, 2011 0 Comments
Top Picks 2011: United States Oil Fund (USO)

Filed under: Newsletters , ETF Investing , Commodities , Oil , Best Stocks for 2011 This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011 . This special report is courtesy of TheStockAdvisors.com . “Oil prices have been on a roller coaster ride during 2010, and as we look ahead to 2011, “black gold” looms as one of the potentially most lucrative markets for investors around the world,” says John Nyaradi . The editor of Wall Street Selector explains, “For bullish investors wanting to participate in this market, my top pick for 2011 is the United States Oil Fund ( USO ). Continue reading Top Picks 2011: United States Oil Fund (USO) Top Picks 2011: United States Oil Fund (USO) originally appeared on BloggingStocks on Thu, 06 Jan 2011 17:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Palladium: Best Performer of 2010, Hits Nine-Year High

Filed in commodities, copper, G 20, o, South African Gold, Spot Gold by on January 3, 2011 0 Comments
Palladium: Best Performer of 2010, Hits Nine-Year High

Filed under: International Markets , Forecasts , Russia , Economic Data , Commodities Looking back can be painful, especially if you missed the biggest bull move of the year. The star performer was palladium, which is used in catalytic converters. The metal rallied 95% during 2010, according to the Financial Times . One major reason for the jump was the belief that Russia has exhausted its stockpiles of palladium that they had accumulated during the Cold War. The big metals trader, Johnson Matthey, said that palladium could swing into a “serious deficit” if sales from the Russian government diminish. On the futures market, March palladium touched $800 per ounce. Some analysts are forecasting $1,000 per ounce in 2011. Continue reading Palladium: Best Performer of 2010, Hits Nine-Year High Palladium: Best Performer of 2010, Hits Nine-Year High originally appeared on BloggingStocks on Mon, 03 Jan 2011 09:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Trade The News Weekly Market Update

– Volatile trading has been the rule during the Thanksgiving-shortened week. In weekend negotiations with the ECB and the IMF, Dublin dropped its initial reluctance to a bailout and agreed to accept funds. Having evidently learned a lesson from the painfully drawn-out Greek crisis earlier in the year, European partners are rushing to finalize details of a rescue package, which will apparently amount to €85-100B, and will include funding from the ECB, the IMF and the UK. Meanwhile, contagion from the sell-off in Irish bonds has already driven risk spreads in Portugal and Spain to record levels, as S&P exerted additional pressure by cutting Ireland’s sovereign rating two notches. On Tuesday North Korea shelled a South Korean island in one of the most dramatic attacks on the nation since the end of the Korean War. The attack sent US and European equity indices tumbling and completely sidelined the relatively strong second reading of US Q3 GDP. Key economic data in the US was also in play this week. After growing in September, existing and new home sales returned to declines in October; sky-high inventories helped push median new home prices to lows last seen in 2003, raising concerns about a double dip in housing prices. The October durables data was also cause for concern, as the nondefense capital goods figure (ex aircraft) was down 4.5%, missing nearly all estimates, though it was cushioned by an upward revision in the prior month. Hope was seen in the weekly initial jobless claims, which fell to their lowest level since July 2008, possibly portending sunnier results in the November payrolls report next week. For the week the DJIA fell 1%, the S&P500 dipped 0.9%, and the Nasdaq gained 0.7%. – It was a big week for private equity deals. An investment group struck a deal to buy software developer Novell for $6.10/share in cash, in a deal valued at $2.2B. The acquiring firm Attachmate, a provider of technology services, is owned by an investment group led by Francisco Partners, Golden Gate Capital and Thomas Bravo. Takeover chatter starting last week materialized in a private equity deal for Del Monte Foods, as a group led by KKR announced it would buy the foods company for $19.00/share. Clothier J. Crew confirmed it would be acquired by TPG and Leonard Green for $43.50/share. Blackstone lost its $602M bid to buy power producer Dynegy after failing to win shareholder support, likely forcing the company to find another buyer, sell assets or restructure. Blackstone met strong resistance from Dynegy’s two largest shareholders, Carl Icahn and hedge fund Seneca Capital. Elsewhere, German fertilizer giant K+S said it would acquire Canada’s Potash…

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News to Sarah Palin: The Middle East Goes Nuclear

Filed in BP, Debt, G 20, Gold, Gold Demand, Gold Market, Gold Prices, miners, o, obama, shares by on November 21, 2010 0 Comments

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. This may come as news to Sarah Palin, but the nuclear genie has been out of the bottle for a long, long time. The “mad mullahs” of her nightmares are just the tip of the iceberg. All across the oil-rich Middle East, Muslim nations besides Iran are about to go nuclear as well. You see, the power of the atom works the same everywhere it’s tried — even if it keeps her up through a long Alaskan night. That’s true, no matter how many planes you send to bomb it. Advertisement $1 Mining Company Takes Delivery of a $273 Billion Mineral Reserve This 500-square-mile chunk of land might be the most valuable property on Earth… And it just became the sole property of a tiny mining exploration company. To get the name and the story on this miraculous “country-making” stock… Click here. A nuclear Middle East Like it or not, a Middle East with a nuclear-powered future is one that cannot be stopped. Not even in Iran. Because while these countries may be flush with oil, the same is not true for natural gas. The primary source for electricity generation, natural gas production in the Middle East has begun to lag — opening up the door for nuclear power. So while Iran works to start up its long-dreaded plant in Bushehr, 12 other countries in the region are taking steps toward joining them: Saudi Arabia, Syria, Kuwait, Qatar, Morocco, Algeria, Tunisia, Egypt, Lebanon, and United Arab Emirates are among them. And according to the World Nuclear Association, at least 15 new reactors are expected to be built in the volatile region by 2025. Even the often violent African nation of Sudan is on the list. A noted ally of Iran, the troubled nation announced in August it intends to build a nuclear reactor for peaceful purposes by 2020. The driver for it all is increased electricity demand as places other than the West continue to modernize. That increase takes more power — even in places with an abundance of oil. But this trend is hardly confined to the Middle East… Around the world, nuclear energy is experiencing a global power surge. Worldwide, 52 reactors are already under construction — with 344 more reactors planned. That’s almost four times the number of reactors already producing 20% of the power in the U.S. With 104 sites, the U.S. operates the largest fleet of nuclear power plants in the world. That also includes plants being built in Korea, where our own Nick Hodge has set his sights on another big nuclear power winner. Three power plays And you can expect this trend to continue. According to the International Energy Association (IEA), world electricity demand is likely to grow 2.7 percent a year from now until 2015, and then at 2.4 percent annually until 2030— giving…

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US Dollar, Economic Influence, Waning on Global Stage

The rebuke and rejection of the request by the U.S. to pressure China to into increasing the value of the renminbi by the G-20 underscores the declining economic influence of America in the world, as well as the U.S. dollar, which has become a disaster. Not only was the idea of pressuring China on their currency rejected, but the U.S. and the disastrous Federal Reserve were castigated by

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