Tag: retail

Out of Egypt: Protests are Headed for America

Filed in BP, Debt, frontline, Gold, Gold Market, inflation, Lear, o, Quantitative Easing by on February 12, 2011 0 Comments
Out of Egypt: Protests are Headed for America

Don’t think that what happened in Egypt can not possibly happen here. Because the truth is when a big swath of the population is no longer served by the festering status quo, they wake up one day and decide not play ball after all. And once that faith is lost, it is gone forever. I actually think we are much closer to that moment than most people would think. You see, I work all day in an office full of 20-somethings. They are a diverse bunch. They’re smart and they work hard. But the one thing they all have in common is they are stuck on a ladder with no where to go. Buried in debt from student loans and various other sources, they are trapped in time unable grab the next rung. Among them the most common refrain is: “I can’t” They would like to further their education…but they can’t. They would like to buy a house…..but they can’t. They would like to buy a car….but they can’t. They would like to have children….but they can’t. There’s more to the list…but you get the picture. Of course, when you look at their list of wants you realize that what they want is no different than what everyone else has wanted at one time or another. The difference is in their world it’s a lot harder to attain—if not impossible in some cases. The reason for this is pretty simple: The cost of their dreams can’t be met with their incomes and adding more debt for them is not much of an option . Everything single thing on their list and then some simply costs too much. As a result, they go without. One day I suspect they will take to the streets. By the way, here’s a great video I found this morning on zerohedge. It’s your life according to the government… The status quo cannot possibly be maintained. Related Articles: Government Run Amok: Unintended Consequences Trouble in Retail: Three Charts from the Frontlines How Uncle Sam Fiddles with the Figures Quantitative Easing For Dummies To learn more about Wealth Daily click here Advertisement Samurai Super Alloy It was the secret ingredient that turned an ordinary sword into the legendary Samurai Katana— the deadliest weapon before the arrival of modern rifles. Today, it’s crucial to the $987billion/year global steel industry… And the world’s supply is quickly running out. Find out how a tiny mining company sitting on one of the last untapped deposits of this metal could hand you 2682% — in the next 12 months! Out of Egypt: Protests are Headed for America originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Recovery Chronicles: Tales From the Modern Food Line

Filed in BP, frontline, Gold, GOld juniors, inflation, Lear, o, Quantitative Easing by on February 4, 2011 0 Comments
Recovery Chronicles: Tales From the Modern Food Line

Here’s one from the recovery chronicles: food stamp usage is up 14% from last year. Today, the Supplemental Nutrition Assistance Program (SNAP) serves about one in seven Americans. Of these, about half are children USDA officials say. From the Wall Street Journal by Sara Murray entitled: Some 43 Million Use Food Stamps “Nearly a year and a half into the economic recovery, some 43.6 million Americans continued to rely on food stamps in November. More than 14% of the population drew food stamps in November to purchase groceries as high unemployment and muted wage growth crimped budgets. The number of recipients was up 0.9% from October, according to the new report by the U.S. Department of Agriculture. Compared to a year ago, the number of people receiving food stamps was up 14.2%. In both Washington, D.C. and Mississippi more than a fifth of residents received food stamps — the highest recipiency rates of any state. But demand has grown stronger in the past year in a handful of other states that recorded significant increases on a per capita basis. In New Mexico, 19.4% of the population tapped into food stamps. That’s up 3.2 percentage points from the same month a year ago, the largest increase for any state. Idaho reported a similar jump: 14% of residents received food stamps, up 3.1 points from a year ago. Washington, D.C., Florida, Delaware and Texas all experienced similar year over year increases.” For comparison sakes here’s how the food stamp roles have grown

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Bob Janjuah Sees a 10% Correction.

Bob Janjuah Sees a 10% Correction.

Here’s great video from Bloomberg with Bob Janjuah. In it Bob discusses what we have known all along: Without the helping hand of the Fed, the market would have ended the year much lower. Start to finish, Janjuah pretty much nails it. Related Articles: Government Run Amok: Unintended Consequences Trouble in Retail: Three Charts from the Frontlines How Uncle Sam Fiddles with the Figures Quantitative Easing For Dummies To learn more about Wealth Daily click here Advertisement History is About to be Made… As one tiny Nevada-based mining exploration company rewrites the rules on gold mining. And as the global economy gears up for what may be the biggest gold rush in history… Their timing couldn’t be better. Turn $1,000 into $108,000 with this once-in-a-lifetime gold investment. Bob Janjuah Sees a 10% Correction. originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Trouble in Retail: Three Charts from the Frontlines

Filed in best buy, BP, Debt, frontline, Gold, GOld juniors, o, recession, silver by on January 6, 2011 0 Comments
Trouble in Retail: Three Charts from the Frontlines

Here’s one for the bears…. December retail sales came in on the soft side this morning as the all important Christmas numbers failed to meet analysts’ expectations. In all, 52% of the big retailers fell short as they posted only a 3.2% increase overall vs expectations of a 3.5% rise. November,as it turns out, was stronger than December. Despite the miss, that is actually an improvement over the last two years when same store sales fell 2.5% in December 2009 and dropped 0.7% in December 2008. Of course, this is one the bulls are more than happy to blame on the snow. It’s the rationalization du jour. However, these three charts from a slice of Americana would seem to point to something else. Just another sign that the bulls may be getting ahead of themselves. Related Articles: Best Buy Sales Stink, Stank, Stunk Black Friday Madness The American Illusion Consumer’s Revolt, Shun the Chains of Debt The Middle Class Recession To learn more about Wealth Daily click here Advertisement I Just Witnessed the Impossible Not far from the U.S. Capitol, a tiny $0.62 tech firm unlocked the secret to harnessing solar energy — at ANY time, from ANY window! It’s so efficient and affordable that CNBC is calling it energy’s “Silver Bullet.” Before the first big ticket contract comes, through— doubling the share price — click here for your exclusive video footage. Trouble in Retail: Three Charts from the Frontlines originally appeared in Wealth Daily . Wealth Daily

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Digital Realty (NYSE:DLR), DuPont Fabros (NYSE:DFT) Downgraded on Supply Risk

UBS (NYSE:UBS) has downgraded Digital Realty Trust (NYSE:DLR) and DuPont Fabros (NYSE:DFT) on supply risk concerns. UBS said, “We believe the wholesale data center REITs are trading at unsustainably high valuations, despite slowing growth profiles in 2011 (and beyond), accelerating competition from private players, and pricing pressure in the retail channel…Data center obsolescence risks have

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Market Wrap-Up for Nov.9 (ABX, AU, MOS, CF, WFC, PNC, more)

There was a recent CNN/Opinion Research Corporation survey out that said 75% of Americans are unhappy with the direction of the country. The Federal Reserve’s move for a second round of quantitative easing is intended to help keep stock prices going higher, and interest rates locked in at historically low levels. You would think that the sentiment would be starting to improve somewhat, since we are up over 85% on the S&P since the March 2009 lows, but yet many Americans are still unhappy with how things are shaping up for the economy. I continue to believe efforts to create new jobs are going to be the real foundation of what will truly turn sentiment around. The ironic thing for corporate America and investors is that the current situation is actually helping companies regarding profits. There is a “do more with less” mantra that has taken shape across numerous industries. Margins remain robust for plenty of companies we follow, helping push stock prices higher, as well as dividend payouts and stock buybacks (not our favorite use of cash, but Wall Street goes gaga over it). The best thing we can do is to continue to invest in companies that will continue to thrive if things remain as they are now. Practice fiscal discipline as much as possible. If you can hustle more and make some extra coin at work, don’t hesitate to grab the opportunity to make some extra bucks. You can also try starting your own business. There are plenty of ways to do so without putting the family’s financial foundation at risk. Many of you have skills that can lend itself to some freelancing/consulting opportunities. Aside from that, the retail space continues to be an area that needs good talent to fill in the gaps. Getting a second job should not be overlooked if you can find a way to juggle your career and family obligations. I know that…

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Agflation is Here: Hate to Say I told you So…

Filed in commodities, economy, Gold, Gold Market, inflation, o, Quantitative Easing by on November 9, 2010 0 Comments

Surprise… Surprise. Inflation caught up with food prices. What a shock. As the Wall Street Journal points out, “Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they’ll try to make consumers shoulder more of the higher costs for ingredients.” Food prices are actually rising faster than inflation numbers. CPI, which excludes food and energy, was up 0.8% to its lowest 12-month increase since March 1961. Unfortunately, the food index was up 1.4%. And the U.S. Agricultural Department is predicted overall food inflation of about 2% to 3%, says The Reformed Broker. That means the average Joe is screwed… big time. As I said on October 13, 2010 in Energy and Capital: If you thought your $200 weekly grocery bill was bad, just wait. It’s about to jump 20% to 30% next month, as the Fed embraces another round of quantitative easing to combat global currency manipulation and devaluation. But that very move could do more harm than good. It’s likely to create another food price bubble, similar to what we saw in 2007-2008. Three years ago, wheat prices skyrocketed even as the consumption-to-stock ratio warranted falling prices… Bread was up to $1.32 at the time — a 32% rise in less than three years… The price of eggs rocketed 50%. Overall, food prices rose more than 5% and the average family’s grocery bill rang in $80 higher. And we’re going to see it happen again, as historically high corn prices drive the cost of beef to twenty-five-year highs… The sad fact is, this situation has no chance of improvement if the Fed floods the global economy with more dollars. What the move will do is further damage the U.S. economy Apparently, we’re not paying enough for food, energy, or clothing… It doesn’t matter that 20% of Americans are unemployed or under-employed. It doesn’t matter that, since the Fed last spoke, gold and other commodities have spiked… Crude oil has already soared some 27%. Wheat is up 84%. Sugar is up 55%. Soybeans are up some 24%. And corn just rocketed another 15% in two days — the biggest move in recent history, and a move that prompted some to warn of another food crisis. The meat industry just warned of a game-changer in pricing and profitability; the cost and contraction of corn supplies could mean higher prices for beef, pork, and poultry that will be passed on to the consumer. And even more excess cash is showing up in food prices… The U.N. has reported that global meat prices are at a twenty-year high: Pork bellies (think bacon) are at a record $1.50 a pound; Australian lamb prices are at $5.50 a kilo — the highest price since 1973. In August, a JPMorgan analyst who tracks food prices reported that a standard basket of Wal-Mart food in Virginia increased 5.8% over last year. In India, food prices were up 14.05% in the second quarter. This is a big…

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Five Marijuana Stocks to Play Prop 19

Filed in euro, Gold, Gold Discovery, GOld juniors, lead, miners, New Gold, silver, ubs by on October 29, 2010 1 Comment
Five Marijuana Stocks to Play Prop 19

Next Tuesday, California will vote on Proposition 19. This measure legalizes various cannabis-related activities, which include permitting the cultivation, sale, consumption, and taxation of the commodity. If legalized, the new cannabis market will present significant investment opportunities from an industry estimated to be worth over $150 billion . The hype around Proposition 19 alone may even cause several cannabis-related stocks — that you can buy right now — to jump ahead of the vote. And in just one minute, I’ll give you the top five marijuana stocks that could soar if Prop 19 is passed. Bur first, let me give you a better idea of just how much money investors stand to make from this legislation, and what kinds of investments are available. Marijuana: The most profitable commodity on the planet The production and sale of cannabis offers investors the potential to return major league gains. Truth is, the profit margins are through the roof. To produce one pound of hydroponically grown cannabis costs between $100 and $200 per pound. You can sell that same pound of cannabis for anywhere from $7,000 to $10,000 per pound to the retail market, depending on quality. That’s a minimum 3,400% gain ! (To get the same investment gain from the Dow Jones, you would have had to invest in …

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QE2 is a Waste of Time

While every one is all excited about the QE2 hope rally… it may not last. First, we could see a sell on the news event on actual announcement… and two, it will kill the dollar. While that’s a good thing for energy and commodity traders… agflation, for one, could tear us apart. And we’re not the only ones that think QE2 could hurt us. Morgan Stanley’s Stephen Roach, for one, says that QE is one big waste of time. He, too, understands that global imbalances can’t be resolved with kick the can policies. Here’s more on what he said to say… And, as I said in today’s Energy and Capital… If you thought your $200 weekly food bill was bad… just wait. It’s about to rocket another 20%… even 30% next month. And that’s because the Fed is about to screw us… weakening the dollar even more, and sending more Americans to the poor house. All in a pursuit of economic recovery… And the Fed doesn’t care who it hurts in the process… Heck, it just threatened China and the G20 with another round quantitative easing if they don’t play by our rules… And the last thing they need is an economy flooded with excess liquidity. It’d kill them… But it’ll kill us in the process… again. Apparently, we’re not paying enough for food, energy, or clothing… It doesn’t matter that 20% of the U.S. is unemployed or under-employed. It doesn’t matter that since the Fed last spoke, gold and other commodities have spiked… or that we could see a repeat of the 2007 and 2008 food price spike. In 2008, the worst case of food inflation in 20 years nailed Americans… forcing them to give up on going out to eat. They bought fewer luxury food items. They saw record high energy, corn and wheat prices, and startling sticker shock. Bread, for instance, rocketed to an average $1.32 – a 32% rise since January 2005. Eggs rocketed about 50% in less than a year. And overall food prices were up about 5%. And, in 2008, the average family food bill per month rose to $904, an $80 increase in a year. But fast forward to today… and we’re seeing it again. This year alone, crude oil has soared some 27%. Wheat is up 84%. Sugar is up 55%. Soybeans are up some 24%…. And corn just rocketed another 15% in two days – the biggest moves in recent history that prompted some to warn of another food crisis. The meat industry just warned of a “game changer” in pricing and profitability because of the cost and contraction of corn supplies… warning that higher prices for beef, pork and poultry will be passed on to the consumer. Excess cash is showing up in food prices. You gotta eat, right? The U.N. has reported that global meat prices are at a twenty-year high. Pork bellies (think bacon) are at a record $1.50 a pound; Australian lamb prices are at $5.50 a kilo — the highest price since 1973. In August, a JPMorgan analyst…

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China’s Gold Demand Increases 26%

China’s Gold Demand Increases 26%

The World Gold Council reported that Chinese gold demand increased 26% in the second quarter amid booming interest in retail investment demand for gold. During the second quarter, 48% of China’s gold demand came from the retail investment market, which increased 25% from the previous year. As a result, the country retained its position as the world’s second-largest consumer of gold as the demand for gold in China from April to June was 112 tonnes. China outperformed all other countries in the world in terms of the growth rate in the retail investment volume for the metal. Wang Lixin , General Manager of the World Gold Council in China In the long-term, gold demand in China is expected to balloon as mounting inflation concerns and a faltering global economic recovery has recently caused an increase in retail investment demand. The government recently released new guidelines to encourage the development of the domestic gold market. This will spur interest for gold as an investment and boost liquidity in China’s domestic gold market. These new regulation also strongly support foreign investment in China’s gold industry. And companies with well-established Chinese gold positions may be well-leveraged to take advantage of sharp increases in domestic demand. In a report report for Wealth Daily , I discuss how the liberalization of China’s gold industry could have drastic effects on the delicate supply/demand balance for gold and send the price of gold skyrocketing higher as millions of new gold investors in China bust into the global gold market. Plus, I discuss two junior gold stocks that are looking to profit with gold projects in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits China’s Gold Demand Increases 26% originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Target’s Q2 Profit Rises 14%, Matching View (TGT)

Filed in dividend, Gold, Gold Investing, recession, shares by on August 18, 2010 0 Comments
Target’s Q2 Profit Rises 14%, Matching View (TGT)

Retail giant Target Corporation ( TGT ) on Wednesday posted a 14% gain in second quarter profit, as higher retail segment sales pushed revenue up from last year. The Minneapolis, MN-based company reported second quarter net income of $679 million, or 92 cents per share, compared with $594 million, or 79 cents per share, in the year-ago period. On average, Wall Street analysts expected a matching profit of 92 cents per share. Revenue rose 3.1% from last year to $15.53 billion, aided by higher retail sales, but the company noted its credit card division revenue saw lower revenue amid the economic recession. Target shares fell $1.58, or -3.1%, in premarket trading Wednesday. The Bottom Line We have avoided shares of TGT since our 2008 June coverage began, when the stock was trading at $52.52. The company has a 1.96% dividend yield, based on last night’s closing stock price of $50.93. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $54-$55 price levels. We would remain on the sidelines for now. Target Corporation ( TGT ) 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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Digesting the Importance of Chinese Gold Investing

Filed in commodities, economy, Gold, Gold Investing by on August 11, 2010 0 Comments

Naturally, I started having pleasant daydreams about being rich, rich, rich after the Chinese government surprised me by announcing that it would finance the buying of foreign gold mines, and ordered their banks to set up big distributed systems for buying and selling gold at the retail and whole levels and all kinds of stuff Digesting the Importance of Chinese Gold Investing 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.”

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