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Must See: Wall Street’s "Inconvenient Truth"

Filed in Uncategorized by on February 28, 2011 7 Comments

“Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail, and that’s wrong,” said Charles Ferguson, direction of Wall Street’s own Inconvenient Truth, “Inside Job.” Of course, you’d be fooling yourself into thinking his speech will really change anything… And you’d be fooling yourself if you think the financial scams haven’t continued to this day. It’ll be a cold day in hell when executives are properly jailed for this, but at least Ferguson was able to reignite the anger that most Americans have toward Wall Street. And they have plenty to be angry about… as seen here . Plus, according to Business Insider: “ The industry has made more money since the crisis How disturbing is it that after a crisis of that magnitude and after having to be BAILED OUT in order to survive, the banking industry is still thriving while the average American is barely treading water. Reminds me of a joke I recently read on Facebook: A public union employee, a Tea Party activist, and a CEO are sitting at a table with a plate of a dozen cookies in the middle of it. The CEO takes 11 of the cookies, turns to the Tea Partier, and says, “Watch out for that union guy. He wants a piece of your cookie.” The average salary of a Goldman Sachs employee is $600,000 Honestly, I am less bothered by professional athletes who make that much. It’s despicable that these veritable criminals make 10 times what the average American makes (in some cases more than 10 times). Business Insider points out that the number has gone down — to $431,000 — but is still way, way too high. AIG paid Goldman Sachs $13 billion in taxpayer money Where did those huge salaries come from? Oh yeah! From us! So if you are only making $40,000, never fear. Your tax dollars are making sure someone is making 10 times what you are. Totally fair, right? AIG’s Joe Cassano made $315 million after the company took at least $85 billion from taxpayers There are NO words. None. Lehman CEO Dick Fuld earned $485 million Fuld claims he only made $310 million. Only. Truly, it’s so depressing in this world that so many go about defending these people’s rights to make that much while also vilifying the unions and hard-working people of Wisconsin who just want to earn livable wages and be able to afford health care for their families.” And here’s the video of Inside Job’s win… and a trailer from the must-see documentary… Must See: Wall Street’s “Inconvenient Truth” originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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The 10 Year $1.5 Trillion Tax Hike

Filed in AMAG, BP, dividend, Gold Market, o, obama, revenue, target, ubs, Uncategorized by on February 14, 2011 0 Comments

While our goal with this blog isn’t to bash the government, we do want to point out what’s likely to impact the markets, small businesses, and families across the country. The US government plays a substantial role in what happens on Wall Street… every single day. ————— The new Obama budget basically shoves a 10 year, $1.5 trillion tax hike down our throats. So much for that “No family making less than $250,000 a year will see any form of tax increase” promise . As pointed out by Americans for Tax Reform, here’s what we can look forward to: “President Obama released his budget this morning. Rather than focusing on Washington’s over-spending problem, the budget calls for higher taxes on families and small businesses to pay for even more government spending. Under the Obama budget, tax revenues will grow from 14.4% of GDP in 2011 to 20% of GDP in 2021. By comparison, the historical average is only 18% of GDP. Tax hike lowlights include: Raising the top marginal income tax rate (at which a majority of small business profits face taxation) from 35% to 39.6%. This is a $709 billion/10 year tax hike Raising the capital gains and dividends rate from 15% to 20% Raising the death tax rate from 35% to 45% and lowering the death tax exemption amount from $5 million ($10 million for couples) to $3.5 million. This is a $98 billion/ten year tax hike Capping the value of itemized deductions at the 28% bracket rate. This will effectively cut tax deductions for mortgage interest, charitable contributions, property taxes, state and local income or sales taxes, out-of-pocket medical expenses, and unreimbursed employee business expenses. A new means-tested phaseout of itemized deductions limits them even more. This is a $321 billion/ten year tax hike New bank taxes totaling $33 billion over ten years New international corporate tax hikes totaling $129 billion over ten years New life insurance company taxes totaling $14 billion over ten years Massive new taxes on energy, including LIFO repeal, Superfund, domestic energy manufacturing, and many others totaling $120 billion over ten years Increasing unemployment payroll taxes by $15 billion over ten years Taxing management capital gains in an investment partnership (“carried interest”) as ordinary income. This is a tax hike of $15 billion over ten years A giveaway to the trial lawyers—not letting companies deduct the cost of punitive damages from a lawsuit settlement. This is a tax hike of $300 million over ten years Increasing tax penalties, information reporting, and IRS information sharing. This is a ten-year tax hike of $20 billion. You can read more here. The 10 Year $1.5 Trillion Tax Hike originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Raising Our Target Price on Netflix

Filed in BP, earnings, GOld juniors, Gold Market, Netflix, o, shares, target, Uncategorized by on February 14, 2011 0 Comments

When Netflix hit a high of $145, we knew $200 wouldn’t be far behind, telling readers: “It looks like Netflix just broke above the channel… and could be headed higher. Considering future growth, an $8 billion market cap is nothing. We could see $10… even $20 billion when all is said and done with this stock. Plus, with the momentum crowd jumping in, and quickly churning that float, there’s no telling how high this can run.” But the NFLX run, we believed, was just getting started. And we were right… as the stock just hit $245. But, as The Wall Street Journal reports: “Not to be a stick in the mud, but it’s worth thinking about how far Netflix has climbed. The stock is up 287% over the last 52 weeks. In 2011 alone, the shares are up 39%. That enthusiasm has translated into nosebleedingly high valuations. The stock is trading 83 times the last twelve month’s earnings and 52 times the consensus expectations for the next 12 months, according to FactSet. Valuations like that entail a really high amount of risk. If the growth rate of the company starts to deviate even modestly from the sizzling rate Wall Street has priced in, the stock could get hammered. Of course, with the amount of momentum there is behind this stock, it could very well keep rising for quite some time. Just do yourself a favor and don’t bet the kid’s college fund on it, alright?” While we agree that NFLX is extremely overbought… it’s all about the blind momentum at this point. And it could push the stock to our new target of $300 by September. An outrageous call? Sure. But we were the same people that called for NFLX $200 when the stock traded at just $145. Raising Our Target Price on Netflix originally appeared

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Weekend: Morning in America

Filed in Uncategorized by on February 6, 2011 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. I was working Jack Watkins over when the word finally reached us. Down the steps and through the mud, every eye on the team was watching as Mr. Darnaby suddenly appeared. Taking Coach Davis aside, he broke the strange, unexpected news… And just like that, lacrosse practice was over a mere 15 minutes after it began. It was March 30, 1981, the day President Reagan was shot outside the Washington Hilton Hotel. It’s a day I’ll never forget. And while I can tell you with certainty where I was, I can’t really tell you how I felt that day. Too young to be Left, Right, or anywhere in between, I wasn’t connected enough to be deeply moved by it. Sure, it was tragic… But it didn’t really go much further than that for me. At that point in my life, presidents had been nothing more than crooks and bunglers; like most kids, I didn’t have many deep thoughts about anything besides sports, girls, and adult beverages. So I slapped my gear on my stick and headed quietly for the locker room. Advertisement The “Doctor Recommended” Investment… Across the world, biotech companies …

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Why Egypt Matters

Filed in Uncategorized by on February 1, 2011 0 Comments
Why Egypt Matters

Experienced investors follow politics. It’s practically required today, as economy and politics are increasingly, and disturbingly, intertwined. Budgets in the United States and EU are hitting the breaking point. Dictatorships in the Middle East are being overthrown. Now is a time to pay attention, and ensure ones financial affairs are in order. The next few years will be a transformative period for the world. It could be every bit as big and important as the fall of the U.S.S.R. — bigger, maybe. Imperialism, oil, and the dollar. These are the trends that matter for the next decade. How events are (mis)handled by politicians means everything — for investors and the world. The gold bug lesson Back in 2000, what led early gold bulls to buy at around $300? Primarily, an understanding of four things: Fed easing and moral hazard fueled the bubble. People are in denial about fundamental problems. Politicians are dependably stupid and short-sighted in nature. Further money printing is easier, in the short term, than more rational alternatives. Few recognized the meaning of these observations at the time. Wall Street didn’t. I certainly didn’t (in my defense, I was 20 years old and didn’t have a care). In the 11 years since, gold has gone from under $300 to north of $1300. The Fed, gold, and inflation remain a key theme today. But the amazing speed with which revolution is sweeping the Middle East has taken center stage. The implications are impossible to overstate. Revolution in the ME and oil Yesterday, the price of Brent crude for March delivery surpassed $100. The same contract traded for $76 in August of 2010, as this chart from ZeroHedge.com shows: If Egypt isn’t a major producer of oil, why are prices spiking on unrest? Three words: House of Saud. If the regime in Egypt is overthrown, Saudi residents may start to rethink the state of the Kingdom. And if analysts get a whiff of revolt in the Kingdom, oil will go through the roof. For now, I suspect oil is the best investment angle. My colleagues at Energy and Capital have been all over the oil story for years. But there are other opportunities emerging. Waiting to invest in Egypt If a real democracy takes hold in Egypt, the investment opportunity will be tremendous. An economy never reaches its full potential under martial law. So one investment I am watching closely: EGPT , an Egyptian ETF. Egypt has the potential to be a vibrant, growing economy— one with 2.5x the population of Canada. But for now, I’m waiting for confirmation that the revolution will succeed. Obstacles remain, but some signs are encouraging. As I write this, some reports say over a million …

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Dividend Payout Changes for Jan.26

Filed in dividend, Gold Investment, o, Uncategorized by on January 26, 2011 0 Comments

The following companies announced a change in their dividend payouts today. Companies Increasing Dividend Payouts Access National Corp ( ANCX ) has raised its annual dividend payout from $0.04 to $0.08. The new dividend yield, based on today’s closing stock price of $6.99, is 1.14%. ANCX is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3 out of 5 stars. Buckeye Technologies, Inc. ( BKI ) has raised its annual dividend payout from $0.16 to $0.20. The new dividend yield, based on today’s closing stock price of $25.11, is 0.80%. BKI is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Ball Corp ( BLL ) has raised its annual dividend payout from $0.20 to $0.28. The new dividend yield, based on today’s closing stock price of $71.67, is 0.39%. BLL is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Cardinal Financial Corp ( CFNL ) has raised its annual dividend payout from $0.08 to $0.12. The new dividend yield, based on today’s closing stock price of $11.74, is 1.02%. CFNL is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. DPL Inc. ( DPL ) has raised its annual dividend payout from $1.21 to $1.33. The new dividend yield, based on today’s closing stock price of $26.46, is 5.03%. DPL is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Energen Corp ( EGN ) has raised its annual dividend payout from $0.52 to $0.54. The new dividend yield, based on today’s closing stock price of $54.99, is 0.98%. EGN is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Praxair ( PX ) has raised its annual dividend payout from $1.80 to $2.00. The new dividend yield, based on today’s closing stock price of $91.49, is 2.19%. PX is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. RBC Inc. ( RES ) has raised its annual dividend payout from $0.19 to $0.28. The new dividend yield, based on today’s closing stock price of $17.08, is 1.64%. RES is not a “Recommended” stock at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Teekay LNG Partners L.P. ( TGP ) has raised its annual dividend payout from $2.40 to $2.52. The new dividend yield, based on today’s closing stock price of $35.32, is 7.13%. TGP is not a “Recommended” stock at this

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Amgen (NASDAQ:AMGN) Targets Remain Intact on ESAs in CKD

Filed in Amgen, barclays, Gold Bullion prices, Gold Prices, o, target, Uncategorized by on January 21, 2011 0 Comments

After the CMS MEDCAC of ESAs in CKD review, Barclays found the results giving no reason for them to change their current targets on Amgen (NASDAQ:AMGN).Barclays says, “We are maintaining our rating on AMGN following today’s CMS MEDCAC review of ESAs in CKD. While the panel had low conviction regarding adequacy of data to support ESA use in preventing renal transplant rejection, expert commentary

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Apple (AAPL): Time to Accumulate

Filed in Uncategorized by on January 18, 2011 0 Comments
Apple (AAPL): Time to Accumulate

Filed under: Management , Apple Inc (AAPL) , Newsletters , Stocks to Buy “By now, everyone probably knows that Apple ( AAPL ) CEO Steve Jobs will be taking another medical leave of absence,” says Geoffrey Seiler . The editor of BullMarket.com explains, “We’d use the weakness in Apple shares to accumulate the stock. The last time Job took medical leave was in 2009 when the stock was trading in the mid $80s. “Chief Operating Officer Tim Cook will take over the day-to-day operations while Jobs is on leave. Cook previously filled in for Jobs in 2004 when Jobs was battling pancreatic cancer and in 2009 when Jobs was recovering from a liver transplant. Continue reading Apple (AAPL): Time to Accumulate Apple (AAPL): Time to Accumulate originally appeared on BloggingStocks on Tue, 18 Jan 2011 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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A Growth and Income Trio for All Investors

Filed in Uncategorized by on January 17, 2011 0 Comments
A Growth and Income Trio for All Investors

Filed under: Time Warner (TWX) , Newsletters , Abbott Laboratories (ABT) , Stocks to Buy “It seems plausible to expect the index to return about 13% in the coming year; not exactly a runaway bull, but a bright enough prospect to keep us in the game,” says blue chip expert Richard Band . The editor of Profitable Investing explains, “Here are three growth-and-income names that I deem suitable for virtually all investors of any age: Abbott Laboratories ( ABT ), Sysco ( SYY ) and Time Warner ( TWX ). “Whether you’re three years or 33 years from retirement, now is a good time to stock up on this trio of growth and income recommendations. Continue reading A Growth and Income Trio for All Investors A Growth and Income Trio for All Investors originally appeared on BloggingStocks on Mon, 17 Jan 2011 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Spree Killers, the Second Amendment, and Those Damned Guns

Filed in BP, deflation, Gold, Lear, o, obama, Progressive, silver, Spot Gold, target, Uncategorized by on January 15, 2011 0 Comments
Spree Killers, the Second Amendment, and Those Damned Guns

Looks like the First Amendment is safe for now…sorta… The Second, however, is in the hot seat again. Everyone is cottoning onto the fact that Jared Loughner was just a nut. Political affiliation is questionable or just plain negligible. It’s getting too hard to blame the limited government and anti-government rhetoric. Even Obama rose above political divisiveness on this one. So now that free speech is no longer being blamed, it’s time to turn our attention back to those damned guns. Loughner would very likely have ended up attacking people no matter which books he had read. The man had already made his psychotic break from morality… But if only guns weren’t available, comes the cry! Then these psychopaths couldn’t do as much harm as they do… A reader sent this: “Gary, “You write, “‘Gun-ownership supporters are getting the usual flack.’ “And so they should. “The time is ripe for the repeal of the Second Amendment. “In Australia 10 years or so ago, we had a psycho gun down a dozen people with an automatic rifle. “The government brought in sweeping powers to reduce the number of guns and make access to guns extremely difficult. “We’re a safer community because of it. Lunatics can’t get access to any gun, let alone the Arnie type. “The guns any of the people who were killed or injured the other day were not sufficient to protect them. They never were. “We didn’t need the guns in the days of the Wild West. It just encouraged thugs, criminals, and lunatics on horses to run amok. Hollywood’s glamorization of the Wild West has jaundiced our view of this mayhem. “We don’t need them now. It still just encourages thugs, criminals and lunatics to run amok killing and injuring innocent people. “Do you carry a gun?” Not right now. But I do have access to cars and knives… Consider Japan, where no one has a gun, yet insane people occasionally kill several strangers en masse with a simple kitchen knife…or with the combination of a vehicle and a dagger. In 2001 in Ikeda, Japan, eight children were killed and 15 people injured in Japan’s worst school tragedy when a middle-aged man with a history of mental illness went on a stabbing rampage at an elementary…

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MDT, Ardian Target Hypertension – Analyst Blog

Filed in BP, Gold Prices, medtronic, o, silver, Uncategorized by on January 14, 2011 0 Comments

Medtronic has completed the acquisition of privately-held Ardian for an upfront payment of $800 million

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Starbucks Enters Indian Market – Analyst Blog

Filed in BP, Gold Investing, o, silver, Uncategorized by on January 14, 2011 0 Comments

Starbucks Corp. has put its first step into India with Tata Coffee Ltd., Asia’s largest publicly traded coffee grower.

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