Tag: euro

FedEx (FDX): Still Set to Deliver?

Filed in Bank Gold, EPS, euro, Guidance, o, ubs by on February 16, 2011 0 Comments
FedEx (FDX): Still Set to Deliver?

Filed under: Newsletters , FedEx Corp (FDX) , Stocks to Buy “It’s not too often that a company lowers its guidance and the stock rises, but such is the case with FedEx ( FDX ),” says Geoffrey Seiler . The editor of BullMarket .com explains, “The company cut its fiscal Q3 guidance; but given the terrible weather, which impacted a number of airports across the U.S. and Europe, and higher fuel costs, it was largely expected. “The package delivery firm now expects to produce adjusted EPS of 70-90 cents, down from prior guidance of 95 cents to $1.15. Analysts were expecting EPS of $1.04 for the quarter. Continue reading FedEx (FDX): Still Set to Deliver? FedEx (FDX): Still Set to Deliver? originally appeared on BloggingStocks on Wed, 16 Feb 2011 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Inflation in (Mostly) the Wrong Places

It is often claimed that inflation is a benign, even positive, force. People assume that prices, wages, and assets will all rise together… In the real world, inflationary episodes don’t play out that way. Wages don’t keep up, and bubbles form in unexpected (and unwanted) places. In America, compensation is clearly stagnant. And the outlook for future pay raises is not good, as this chart from David Rosenberg shows: Contrast that with this next chart, which shows the percentage of companies planning to raise prices: Combine stagnant wages and slow growth with high unemployment and rising prices, and you get a recipe for stagflation. This scenario is being played out around the world. In the UK, consumer prices rose 4% in 2010. As noted by the Financial Times , wages aren’t keeping up: The prices of everyday goods and services are rising about twice as rapidly as average wages, Tuesday’s inflation figures confirmed — which means that the standard of living of many Britons is already falling. According to the Bank of England, average pay at the end of this year will be able to buy no more than it could in 2005. It is the first time that the purchasing power of earnings has fallen so far since the 1920s. I expect this trend to continue as long as the Fed’s mad experiment is ongoing. The thing about Central Bank “easing” is you never know where inflation will pop up… Easy money will always fuel speculators, who have little skin in the game, to find another bubble to “invest” in. Silver, gold, oil With printing presses switched “on” for the foreseeable future, we remain bullish on precious metals. Silver is holding above $30 today and could hit $37.50 on the next leg up. Coal, oil, and natural gas investments should continue to do well. And as my colleague Nick Hodge of Energy and Capital says, “Buy it if it burns.” If you’re not yet convinced that Fed printing is directly related to rising commodity prices, examine the following chart. (The solid blue line represents the Austrian Money Supply (AMS), and the solid teal line represents commodity prices ( IMF Commodity Index )): Note: The version of money supply shown

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The Metal People are Dying For

The Metal People are Dying For

Maybe the weak are simply being weeded from the gene pool so the strong may survive… This theory might help explain why people keep electrocuting themselves to death, cutting into live power lines to extract copper. Stories of deaths related to copper thefts have been all over the news: Last summer, a 42-year-old Appalachian man died while trying to steal copper from a live power line. Charleston Daily Mail reported “American Electric Power says copper thieves are becoming increasingly brazen, and their tactics have resulted in four deaths so far this year in the Appalachian service region.” An Illinois man hit a live wire while scrapping for copper last fall and was electrocuted. Police said this is a recent trend, with similar activity in Granite City, Venice, Brooklyn, Washington Park, and Belleville. In October, a couple from Southern California attempted to steal copper from an electrical vault. The man was electrocuted to death; the woman suffered severe burns from attempts to pull the man from the vault when it exploded. And just last month , a man attempted cutting live copper wires with a bolt cutter. He suffered from electric shock and fell 30 feet from his ladder, later dying at a Charlotte hospital. I could go on, but I think you get the point. I guess these people aren’t bright enough to know that rather than risk electrocution, it’s easier to rob someone’s house and …

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How to Replace Austerity with Freedom, Independence and Prosperity

The Economic Collapse Blog has this list of examples of how European-style “austerity” is already hitting the U.S., including cities closing schools and fire stations, and states eliminating whole state agencies and raising taxes. That includes the state of Illinois whose legislature has passed a “temporary” 66% personal income tax hike that the Democrat governor will sign. Rest assured, this income tax hike will be as “temporary” as the one in Massachusetts , still in place since 1989. Such austerity measures may lead to the same kind of social unrest Europeans have been experiencing. The Economic Collapse Blog concludes, We are entering a time of extreme financial stress in America.  The federal government is broke.  Most of our state and local governments are broke.  Record numbers of Americans are going bankrupt.  Record numbers of Americans are being kicked out of their homes.  Record numbers of Americans are now living in poverty. The debt-fueled prosperity of the last several decades came at a cost.  We literally mortgaged the future.  Now nothing will ever be the same again. To say that “nothing will ever be the same again” is just pessimistic and unnecessary. We actually can return to the prosperity of the past, by replacing debt and austerity with freedom and independence. There is no need for Americans to suffer through what European countries are suffering, because nearly all the problems we face are caused by governmental intrusions into many aspects of our personal and economic lives — intrusions by federal, state and local governments. Regardless of the good intentions that the welfare and military socialism statists have in justifying their use of compulsory government powers, what America needs is to cut the shackles of State-imposed dependence, restrictions, regulations, taxation, all those policies of moral relativism that involve violations of the Rule of Law: theft, trespass, denial of Due Process, and other acts of State-initiated criminal aggression. Freeing Americans includes repealing all forms of intrusive presumption-of-guilt regulations and restrictions that are in place having nothing to do with whether any individual is suspected of any crimes against others. Regulations are before-the-fact demands by the government that presume the individual and one’s business guilty, in which one must submit one’s private personal or financial information to the government to prove one’s innocence. Government regulations and arbitrary restrictions are literally searches and seizures by the government of information that is none of anyone else’s business, and effect in the stifling of everyday citizens’ growth and prosperity. Ending all personal income taxes , corporate taxes, estate taxes, and capital gains taxes frees people who own or share in the ownership of businesses — i.e. employers and prospective employers — to invest in their own research and development and in the expansion of their businesses, which is the genuine force behind jobs creation, in both blue collar and white collar sectors. Ending all personal income taxes frees people to explore their own ideas and inventions, and to start their own businesses that will employ more people and advance society further. Also…

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Telefonica (TEF) Calls Up Growth and Value

Filed in Bank Gold, euro, o by on January 17, 2011 0 Comments
Telefonica (TEF) Calls Up Growth and Value

Filed under: International Markets , Newsletters , Stocks to Buy , Telefonica SA (TEF) “Telefonica SA ( TEF ) is a member of our model portfolio; it meets 100% of the criteria we use in our James P. O’Shanghnessy growth and value model,” notes John Reese . The editor of Validea explains, “The company operates in three business areas: Telefonica Spain, Telefonica Latin America and Telefonica Europe.” He continues, “The O’Shanghnessy approach — called the Cornerstone Value Strategy — looks for large, well known companies whose market cap is greater than $1 billion. Continue reading Telefonica (TEF) Calls Up Growth and Value Telefonica (TEF) Calls Up Growth and Value originally appeared on BloggingStocks on Mon, 17 Jan 2011 12:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Tupperware Downgraded at Goldman Sachs on Euro Concerns (TUP)

Filed in dividend, earnings, euro, Gold, Gold Investing, goldman sachs, o, shares, target by on January 12, 2011 0 Comments

Consumer products maker Tupperware Brands Corporation ( TUP ) on Wednesday saw its rating and earnings estimates lowered by analysts at Goldman Sachs. The firm said it cut TUP from “Buy” to “Neutral” with a $57 price target, which still implies a 21% upside to the stock’s Tuesday closing price of $47.30. Goldman also cut its earnings estimates for the company, citing concerns over the weak Euro. Tupperware shares were mostly flat in premarket trading Wednesday. The Bottom Line Shares of Tupperware ( TUP ) have a 2.54% dividend yield, based on last night’s closing stock price of $47.30. The stock has technical support in the $44 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels. Tupperware Brands Corporation ( TUP ) 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.10 (DUK, PGN, DD, SLE, STRA, more)

Filed in Debt, dividend, downgrade, earnings, euro, Gold Investment, o, shares, upgrade by on January 10, 2011 0 Comments

According to Standard & Poor’s (S&P), U.S. companies added $26.5 billion to dividend payments in 2010, with $8 billion of that increased amount coming in the fourth quarter. 1,729 companies increased dividend payouts, compared to 1,191 companies recording increases in 2009. Only 145 companies decreased dividend payments in 2010, versus the 804 that did so in 2009. Now that the markets are no longer worried about the expiration of the Bush-Era tax cuts, we can get back to the show at hand. Rising dividends and increased deal-making will likely keep a decent foundation under the price of stocks as we head further out into 2011. Remember, a sideways market isn’t a bad thing when it comes to dividend-paying stocks, since you get paid just for owning them! Everyone that reads our stuff knows that we think dividend-stock investing is a must for building long-term wealth, as well as creating new income streams. Personal Finance legend Suze Orman has a new book coming out this March titled “Money Class”, and she has been talking about dividend investing as part of her game plan as we head into 2011. She continues to see a bit of a shift away from bonds, and into quality dividend-paying stocks and dividend ETFs. I hope everyone had a great weekend (it was great for us Jets fans and some of the others who’s teams pulled out wins as well as the NFL playoffs kicked off). Sports aside, I hope everyone has given thought to what I wrote last week about sitting down with family members and bring everyone …

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Commodity Roundup – Markets on your Radar

Filed in commodities, copper, currencies, Debt, economy, euro, Gold, o, outperform, silver, ubs by on January 8, 2011 0 Comments
Commodity Roundup – Markets on your Radar

MB Wealth Corp. is not responsible and does not endorse anything outside of the content of this article authored by Matthew Bradbard President of MB Wealth. As most followers recognize, I break the commodity markets into seven sectors: financials which include the indices and debt markets, energies, currencies, livestock, metals, grains and finally the softs. So let’s examine sector by sector what should be on your radar as we conclude one trading year and a fresh year of opportunity is upon us. Financials While the first part of the year brought uncertainty and perhaps too much pessimism after a bottom formed in the summer indices have appreciated lifting the Dow and S&P approximately 25%. From here, we think prices have gotten ahead of themselves and expect a 5% depreciation from their current levels. Aggressive clients have started to purchase March ES bear put spreads . Reflecting back on the year, Treasuries have had an inverse relationship to the indices enjoying trade higher in the first half of the year reaching an interim top in the summer and falling off since. The greatest loss has been in Q4, as yields have increased and 30-yr bonds and 10-yr notes have lost considerably. We expect to see a bounce into the new year and have advised aggressive clients to buy dips in 30-yr bonds, 10-yr notes or to position themselves in NOB spreads with their directional bias in the direction of bonds. Energies There has been a powerful force lifting prices higher in crude oil and the distillates virtually all year and we see no reason for that to change. Continue to use price retracements as buying opportunities as we see $110/115 in Crude by mid 2011. Assuming we are correct with this assumption, both heating oil and RBOB would likely be 20-25% higher as well. Natural gas remains a dog unable to make any significant headway all year. There have been fits and starts but the range bound action for the last six months has been discouraging and lost my clients money on several attempts. From here we may opt to scale into long…

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Gold has taken a hit but is it really bad

Okay, in short it seems bad, price falling from $1,420 to $1,368s as we write and earlier today it tumbled to $1,358s from where it recovered but is it really a big drop? We’d answer that shortly but what is interesting is that how quickly the sentiment is changing regarding Gold. When prices fell from the previous peak or the peak before [$1,430 and $1,420] the sentiment stayed firmly in place whereas the drop from $1,420 peak in early November was a rather sharp one and Gold price retreated almost $100 yet the sentiment stayed firmly bullish which is not the case this time. We yesterday raised a cautionary flag on Gold and stated that if the short term support of $1,363 is given away the probability of gold trading down to $1,300-20 per ounce cannot be ruled out. We stand by it even now and in terms of percentage drop it comes at 8.7% which is in line with the previous corrective spells. As we have written before and most notably have made a part of our recommendation that it is better to own gold in non U.S Dollar terms, now that gold is correction we believe it makes even more sense. As Dollar is strengthening and gold is getting weaker so that’s a double impact whereas with Euro started to weaken before gold did thus it acts as a hedge and the drop thus far rather Gold has pushed ahead in euro terms. Recently commodities have showed the tendency to overcome inverse correlation with the Green back and move upwards as green back strengthened but that is not always the case and it is very much evident right now. At current price Gold is at a pivot region, a slight lean to the downside would be enough for the gravity to get hold of gold and sink it lower. Corrections are good and drop

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Bank of America (NYSE:BAC) on U.S. Dollar, Euro

Bank of America Corp.’s (NYSE:BAC) head of Americas G- 10 currency strategy at Bank of America Corp. in New York, Paresh Upadhyaya, commented on the relationship of the U.S. dollar and the euro after the U.S. payrolls report, which was considered disappointing. Upadhyaya said, “Overall, the tone for the dollar should be stronger as most of the data has been coming in on the stronger side and

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Obama’s Next Bungle

Filed in BP, dividend, economy, EPS, euro, Gold, Gold Market, inflation, o, obama, target by on January 3, 2011 0 Comments
Obama’s Next Bungle

Certainly! And how…; You increased the price of wheat you sell us by 300%, and the same for sugar and cement…; You buy our crude oil and sell it back to us, refined as petrochemicals, at a hundred times the price you’ve paid to us…; It’s only fair that, from now on, you should pay more for oil. Let’s say ten times more.” — Shah of Iran, 1973 In the early 1970s, the oil producing nations in the Middle East discovered the power in crude oil and began hiking the price. On October 6, 1973, Syria and Egypt invaded Israel. This action was the equivalent of throwing water at a grease fire. It made a bad situation worse, and the price of oil jumped from $2 a barrel to $13. This created a decade of economic malaise in the United States, destroyed the future of the American muscle car, and produced negative returns for the stock market… There are indicators that we are heading for a surge in the price of oil again. It’s hard to imagine the price doubling to $184 a barrel— much less rising by a factor of five, like it did in the early 70s — but it could happen. In fact it is likely… and you’ll want to leverage the move when it happens. Price Change Dividend Dist. Rate Total Return Inflation Real Price Change Real Total Return 1950s 13.2% 5.4% 19.3% 2.2% 10.7% 16.7% 1960s 4.4% 3.3% 7.8% 2.5% 1.8% 5.2% 1970s 1.6% 4.3% 5.8% 7.4% -5.4% -1.4% 1980s 12.6% 4.6% 17.3% 5.1% 7.1% 11.6% 1990s 15.3% 2.7% 18.1% 2.9% 12.0% 14.7% 2000s -2.7% 1.8% -1.0% 2.5% -5.1% -3.4% 1950-2009 7.2% 3.6% 11.0% 3.8% 3.3% 7.0% $5 gas by the Fourth of July Over the weekend, former president of Shell Oil John Hofmeister predicted Americans will be paying $5 for a gallon of gasoline by 2012. He blames growing global demand for oil, tighter supplies, and inadequate responses by the U.S. government. Here’s more of what he said: If we stay on our current course, within a decade we’re into energy shortages in this country big time… Blackouts, brownouts, gas lines, rationing — that’s my projection based upon the current inability to make to …

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MEMC’s Solar Unit Wraps Up Rovigo – Analyst Blog

Filed in BP, euro, o, silver by on December 30, 2010 0 Comments

SunEdison, MEMC’s Solar Unit, received the final payment of 230 million euros from First Reserve for the sale of its Rovigo Plant.

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