Tag: markets

Market Wrap-Up for Feb.17 (WTW, DPS, CLF, WMB, KO, LO, SJM, more)

Filed in AMAG, Apple, dividend, earnings, Ford, Gold, Gold Bullion prices, lead, o, shares by on February 17, 2011 0 Comments

It was an overall steady day for the markets, along with a decent number of dividend payouts coming over the wires. Earnings boosted several dividend names, but the biggest winner of the day was Weight Watchers ( WTW ) after the company just stunned analysts with the size of its 2011 earnings estimates. Shares of WTW rallied over $20 this morning on that news. Other earnings plays that had a good day included recently-recommended name Dr. Pepper Snapple Group ( DPS ). Cliffs Natural Resources ( CLF ) and J.M. Smucker Company ( SJM ) traded in the green as well following earnings results. Williams Co. ( WMB ) was up on news the company will be splitting in two. The company also announced a dividend boost. Late in the morning, beverage giant Coca-Cola ( KO ) announced a 7% increase in its dividend payout. Tobacco play Lorillard ( LO ) announced a 16% increase in its dividend payout to lift shares almost 2%. We had removed shares of Lorillard from our recommended list recently on concerns we have surrounding the coming FDA judgement/opinion on use of menthol in cigarettes, which accounts for the majority of Lorillard’s sales. I have to admit, I am a big fan of American Idol. My kids and I really enjoy the whole “dreams can come true” mindset for the contestants. Last night was another episode of “cut-downs” as singers needed to perform as part of groups. It’s always interesting to see the type of friction this can cause as egos are clashing everywhere you turn. What amazes me is that often times the individual performers that we thought were amazing on their own, begin to crumble when taken into a different situation. They lose sight of what needs to be done to get through to the next rounds. You see some completely unravel and throw the opportunity they had once cherished right down the drain. This phenomenon isn’t unlike the investing world in that many individuals know what needs to get done to build wealth, but for some reason or another, can not seize the moment. Whether it is just putting some extra coin to the side every month, spending some money to find quality research and investment ideas, or swallowing their pride when an investment idea doesn’t pan out, investors consistently make big mistakes. I know the market continues to move higher and some people may be waiting for a pullback. There is nothing wrong with doing so, but don’t skip your monthly investments you can be making because of that. There are plenty of good yield plays that you can still find to put money to work in, even after the nice run the market has had. Taking financial responsibility and knowing what you can afford to do is the key. I talk about investing in quality dividend-paying stocks as a great way to build up your future income, but if you are spending like there’s no tomorrow as well, then that is a risk that could eventually negate all the good you might be doing on the investment side. Saving is a mantra that needs to also be adopted…

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Royal Gold (RGLD): A Net Asset Value Buy

Filed in Bank Gold, commodities, gld, Gold, o, penasquito, Penasquito Mine, revenue, royal gold by on February 16, 2011 0 Comments

Filed under: International Markets , Newsletters , Mexico , Commodities , Stocks to Buy “Royal Gold ( RGLD ), a gold royalty operation, is progressing well, and is a good buy at current levels,” says global resources expert Adrian Day . The editor of The Global Analyst explains, “Over $6 a share income by 2013 makes Royal Gold fundamentally inexpensive; it is also selling below a reasonable net asset value, unusually for gold stocks. “The company hold a gold royalty on part of the huge Penasquito mine in Mexico, which had a good first quarter. Royal Gold has other new projects gearing up to boost revenues. Andacollo started production in October, so this year will see a full year of revenues from two new mines. Continue reading Royal Gold (RGLD): A Net Asset Value Buy Royal Gold (RGLD): A Net Asset Value Buy originally appeared on BloggingStocks on Wed, 16 Feb 2011 12:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Corn Surges on Short Supply

Filed in AT T, Brazil, commodities, New Gold, o, South African Gold, ubs by on February 10, 2011 0 Comments
Corn Surges on Short Supply

Filed under: International Markets , China , Brazil , Market Matters , Economic Data , Commodities , Agriculture March corn futures jumped 24.25 cents a bushel on Wednesday to $6.98. Corn contracts have risen 97% since June. You may be wondering why all this activity in the corn market in the middle of winter. The answer lies in a USDA report that said corn supplies are dangerously low. In fact, they are near the record low set 15 years ago. What that means is that the corn stocks we have must last until our harvest starts in mid summer. Of the 12.4 billion bushels harvested last fall, we will have only 675 million bushels by Aug 31.To add more fuel to the problem, this new report is 9% lower than the USDA”s January projection, as reported in the Wall Street Journal (subscription required). Continue reading Corn Surges on Short Supply Corn Surges on Short Supply originally appeared on BloggingStocks on Thu, 10 Feb 2011 17:50:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Market Wrap-Up for Feb.8 (MCD, CL, AET, CLX, AVP, more)

The second interest rate hike in China in less than a month is being digested by Wall Street right now with a ho-hum reaction this morning. At some point the market will begin paying a bit more attention. With numerous M&A deals still being announced, and IPOs lining up on the runway, we’re not sure when the buying streak will begin to ease up, but we are carefully examining possible scenarios. Gold prices seem to be perking up today, as the last four months have been nothing but sideways action. At some point soon, we will see either a coiled spring effect and higher prices, or impatient investors heading for the exits. Elsewhere in the markets, shares of McDonald’s ( MCD ) got a nice boost from solid January sales. Colgate-Palmolive ( CL ) was also rallying on some takeover rumblings. Aetna ( AET ) and Clorox ( CLX ) had some decent buying following positive analyst comments. Avon Products ( AVP ) went in the opposite direction following lackluster earnings results. I was reading numerous accounts of AOL’s acquisition of the popular news site The Huffington Post yesterday. I tend to pay attention to what is happening in the web media space closely, as our firm is often grouped into that space, since “.com” is part of our brand. You have to question the uncanny love that is expressed for the deal, with the word “innovation” being tossed around in seemingly every other compliment. Sorry, but what is innovative about having 6000 contributors writing free content for your website, as Ms. Huffington managed to achieve? The company does only have 200 employees and can be described as lean and mean, but innovative? I’ve also seen a lot of insults leveled toward “old media” (newspapers, magazines) regarding their new goals of putting up so-called “pay walls” (which just means you charge users to access your content). If I were running the New York Times or any other major paper, I would’ve put some sort of pay wall up years ago. Why charge for a print version and give it away online for free! The lack of vision has costs thousands and thousands of jobs in the newspaper and magazine industries. Some people may say “who cares, it’s free now, I can get the same information anywhere on the web.” I don’t know about you, but reading articles created by content farms that pay writers $3 a post (if that) isn’t exactly very appealing. Unfortunately, that’s the direction that many online media plays are heading. I am not going to knock Arianna Huffington and her major payday, but at the end of the day, it wasn’t so much about innovation, as it …

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January Employment Situation Preview: Signal to Noise Ratio is Poor!

Filed in AIG, BP, Gold Prices, o by on February 3, 2011 0 Comments

Everyone realizes that employment is a paramount consideration in evaluating the economic recovery. With jobs, we try to squeeze information out of each data point. Sometimes the information is just not there. Most media sources do a terrible job of…

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The WSJ’s Most Controversial Article… Ever

Filed in BP, CBS, democrats, economy, euro, Gold, GOld juniors, Gold Market, o, Warren Buffett, yuan by on February 2, 2011 0 Comments
The WSJ’s Most Controversial Article… Ever

On January 9th, The Wall Street Journal ran an article that would become the most viewed, commented-on editorial in the publication’s history. The article was so controversial that the author — a Yale Law School professor — received several death threats. Thousands of enraged American readers went so far as to accuse her of advocating physical and emotional violence against children… Meet Amy Chua: a petite, 48-year-old Chinese American and the author of the WSJ firestorm piece, “Why Chinese Mothers are Superior”. Obviously, the headline caught my attention. My wife is Chinese and we have three children. But what really surprised me was the viciousness of the comments from readers. But as I perused through the comments of anger, hate, and even threats to Chua, I realized I as was actually reading comments of insecurity, fear, and envy. Think about it… Had this article been written by anybody other than a Chinese professor, it would’ve gone largely unnoticed. Bottom line: Americans fear the Chinese juggernaut. Here are just a few headlines from the past year that have caused panic among Americans and the West: Pentagon Surprised, Concerned as China Debuts High-Tech Weapons — Politics Daily Chinese ‘Carrier-Killer’ Missile Could Reshape Sea Combat — Fox News Chinese ‘carrier-killer’ missile raises concerns of Pacific power shift — Associated Press China Stealth Fighter? Photos Released Online Raise Speculations — Huffington Post China’s First Stealth Fighter Test Successful — CBS News China backs Spain to emerge from crisis: Beijing — Sydney Morning Herald Move Over Europe, China Is Pushing to Bailout the Greek Economy — Washington Post Wow: China to Bail Out Europe? — Daily Mail UK China’s Pres. Hu calls dollar’s preeminence ‘thing of the past’ — Wall Street Journal President Hu provoking the US by suggesting yuan replace dollar as reserve currency — AsiaNews.it And now Americans are fearful of the Chinese mother, as reported by Time Magazine: “Tiger Mom: Amy Chua Parenting Memoir Raises American Fears.” I hear it every day… “China is going to overtake the U.S. economy… We need to catch up before they flood our markets with electric cars, wind turbines, and …

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Market Wrap-Up for Jan.24 (MCD, RSH, HAL, CLF, JCP, more)

Filed in ceo, dividend, downgrade, earnings, Gold Investing, lead, Lear, o, Rio Tinto, shares, upgrade by on January 24, 2011 0 Comments

Let me just start by saying it was a tough night trying to get to sleep after watching the Jets nearly make it all the way back from the hole they put themselves in against the Steelers yesterday. It was an exciting year, but once again the team falls short. One day, the Jets will win it all again (as will every team at some point). Good luck to the Steelers (sold this stock too early as I was a fan in my younger days – still enjoyed watching them win their first four Super Bowls – and Packers!) The Super Bowl should certainly be an outstanding match-up. In investing, you can always dig yourself out of a hole, as long as the hole doesn’t swallow up your entire portfolio. What I mean is you should never put all your eggs in one or two baskets. It’s easy to say “I should have just owned Stock XYZ” in hindsight. Unfortunately I have seen too many cases where investors pick the wrong “horse” or couple of “horses” to bet on — sometimes this practice is done in one’s 401k regarding their employer’s stock. How many millions were lost in stocks like Enron, Lucent, Nortel, etc, when these stocks tumbled and never bounced back? One thing is always for certain: companies’ fortunes change at one point or another, but if an investor doesn’t accept the fact it may be time to ring the register and sell, the inherent risk to one’s nest egg increases dramatically. Even if you take a decent-sized loss and don’t stick to my 25% off the 52-week high” checkpoint, you can easily recoup those losses by getting back to the investing basics and put your money to work in quality dividend-paying stocks over the next several years. It never makes sense to give up on the markets, despite the magnitude any correction has on your portfolio. I can’t stress enough that if you adopt a sell discipline for your portfolio, you will always have a portfolio that will be performing at or better than most money managers in the business today. Just before we take a look at today’s action, I just wanted to remind everyone to check out today’s new recommendations if you did not read the alert we sent out earlier. As we start another busy week of earnings, the markets got off to a solid start. Halliburton ( HAL ) and McDonald’s ( MCD ) closed with minors following both companies’ earnings reports. J.C. Penney ( JCP ) had a good day following some new board members coming on board, as speculation of a potential sale makes the rounds. On the flipside, Radioshack ( RSH ) shares got hurt on news the CEO will be stepping down in May. Commodity names are bouncing following the recent selling. Cliffs Natural Resources ( CLF ) and Rio Tinto ( RTP ) paced the gains. I wanted to go over some investing strategy one-liners that were highlighted on my friend and respected market-watcher Charles Kirk’s “Kirk Report”. Investing Strategy #1 – “Keep it…

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Fear the Reaper

Filed in ben bernanke, BP, earnings, economy, Gold, GOld juniors, lead, o, recession, shares, stimulus by on January 24, 2011 0 Comments
Fear the Reaper

It’s been a hell of a run. The economy is back on track. A new survey from the National Association for Business Economics suggested that jobs were coming: The number of economists who saw hiring by their firms increasing over the next six months was 42 percent, compared with 7 percent who expected to lay off workers. The NRI of 35 was the highest in the 12 years that the question has been asked. Some talking heads are suggesting the economy grew 3% in the fourth quarter of 2010. Companies slashed costs, became mean and lean, and drove profitability to record levels. Intel— one of the companies I told you to buy two weeks ago — just said it was buying back $10 billion in shares. Ben Bernanke has been pumping up liquidity to drive the stock market higher. His plan has worked to perfection… The Dow only goes up There is only one trade on right now. Group-think means the trend is your friend. “Don’t fight the Fed” is the mantra bleated by the sheeple. The blind squirrel investors have found their nut and assume there is another one just over there, ready to be eaten. This of course, raises my contrarian hackles. Take a look at this chart… Barry Ritholtz over at ritholtz.com had a great point when he wrote: At 90% gains, this market has run further and faster than any previous rally. Indeed, in just 20 months it has far outpaced every other rally’s 24 month record by some 50%; the next closest gainer was 65.7%. That does raise some cause for concern short term. The market has never gone so far, so fast as it has in the last two years. After a 90% run, which is a more likely scenario— that the Dow goes up another 90%, or that it corrects? Small caps lead Not only do small cap stocks (under $300 million market cap) lead over the long haul, but they also lead the way out of recessions. These are the smaller, quicker companies that are able to adjust to the economic landscape, and fast to roll out new products. T. Rowe Price found that in the 12 months following the previous nine recessions, small-cap stocks gained 24%, versus 17.6% for the S&P 500. Merrill Lynch reported that in the 18 bear markets since the 1930s, small caps gained an average of 41.4% in the 12 months after the end of the decline, compared with a gain of 32.4% for large caps. It has been true with this bounce back, as well. Small caps have been on fire until last week. As of Friday, small caps were down 4% for the week and 1% for the year… No more bailouts to states Another reason to think about taking some profits is that there are no more bailouts coming. The majority of 2008’s stimulus package went to the states. This equals about $400 billion that the states used to keep running…

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Market Wrap-Up for Jan.19 (IBM, GS, STT, MOS, NTRS, POT, more)

I just got the results from my recent blood work and my cholesterol came back at 207. It is about the same it was three years ago, but I need to dedicate a bit more time to exercise and taking care of my body as I do my finances. Without health, what good is wealth? I was never a big fan of going to the doctor (who is?), but as I get older and have much more responsibility (family, thousands of Dividend.com Premium subscribers, etc.), I need to step up being proactive when it comes to health. I am probably one of the few Italians I know that doesn’t eat fish — not a great thing when you are trying to bring down cholesterol levels. It’s time to cut back a touch on the pasta and hit the treadmill more. Hopefully everyone out there is trying to pay attention to health and fitness as well. We all need each other on our “A” game. We are now entering earnings season and this is where there could be some stomach-turning action in the markets. There will be some good news that gets rewarded and some good news that gets sold. It’s always hard to pinpoint why the moves happen as they do sometimes, but just try and hang in there. I am always happier when earnings season is nearing the end for each quarter, so I can examine where the overreactions occurred or where the news may be a bit more gloomy than we like for names that could be on our recommended list. As for today’s action in the markets, we saw some significant selling in more of the growth plays for a change. Earnings results jolted several big-name financial plays, including State Street ( STT ), Northern Trust ( NTRS ), and Goldman Sachs ( GS ). Fertilizer play Mosaic ( MOS ) took a hit as agribusiness giant Cargill may be planning to relinquish its majority control in the company. Selling spread to other names in the sector, including CF Industries ( CF ) and Potash Corp ( POT ). One of the few bright spots that stood out was IBM Corp ( IBM ), up nicely following the tech giant’s earnings results. We’ll continue to monitor the markets closely as we have been and will keep subscribers alerted to any changes we make on our recommended list. Continuing with yesterday’s theme, here are some more common money excuses people use and my response to them: Excuse #6 – “I’ll pay it off next month!” This is where the credit card companies really get you. The minute you start falling behind is when the fees start to pile on. Pay it off quickly and learn to be consistently responsible. Excuse #7 – “Old cars just aren&#…

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What are asset allocation numbers telling us?

Filed in BP, Gold Prices, o by on January 15, 2011 0 Comments

What do the AAII Asset Allocation statistics tell us about stock market turning points? Where are we at the moment?

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Propping up the U.S. economy, with Stephen Roach

Filed in BP, economy, Gold Prices, o, shares, silver by on January 15, 2011 0 Comments

In the two video clips in this post, Stephen Roach of Yale University and Morgan Stanley shares his views on aspects of the U.S. economy and financial markets.

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Picture du Jour: U.S. at risk of losing its AAA status?

While the debate about the U.S. debt ceiling is taking place, Société Générale is of the opinion that a downgrading of the country’s sovereign debt is just a matter of when and how fast interest rates on its borrowings rise.

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