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Stay Away From This Popular Oil Stock
2012-01-20 16:00:00
Check out some numbers on one of the most widely owned energy stocks in the market and see what you think. For starters, shares of this $37 billion oil and gas producer have been seemingly unstoppable, delivering annual returns of more than 16% for the past 10 years. During that time, the company also posted annual growth rates of 19% for revenue, cash flow, dividends and book value and 23% for earnings per share (EPS). Return on equity (ROE) stands at 17%, nearly twice the industry average of 9%, and the operating margin is just north of 46%, compared with the industry rate of 27%. The company churned out more than 730,000 barrels of oil equivalent (boe) per . . . → Read More: Stay Away From This Popular Oil Stock

EUR Rallies Following Positive Global Data
2012-01-20 14:30:00
Source: Forex Yard EUR Rallies Following Positive Global Data The euro was largely up during yesterday's trading session, as positive global data led to risk taking among traders. A successful Spanish debt auction combined with a lower than forecasted US Unemployment Claims were largely responsible for the euro's bullish trend. That being said, analysts are warning that the overall trend for the common currency is still down and that considerably better euro-zone news is needed before a meaningful reversal will take place. Economic News USD – USD Gains vs. JPY Following Unemployment Report The US dollar saw substantial gains against several of its main currency rivals yesterday, following a better than expected US Unemployment Claims figure. The weekly . . . → Read More: EUR Rallies Following Positive Global Data

EURUSD Rally Approaches 1.3000, Greek Talks Ongoing
2012-01-20 10:02:00
Source: Advanced Currency Markets | G10 Advancers and Decliners vs USD EUR 0.38 GBP 0.21 JPY 0.04 CHF -0.33 EURUSD Rally Approaches 1.3000, Greek Talks Ongoing As we draw to a close the third week of 2012, EURUSD is consolidating just below 1.3000 levels, having rallied steadily from 1.2624 lows on Monday. The reason for the move higher in the euro can be attributed to a number of factors; the most obvious being the way French and Spanish debt auctions were favourably received this week, in spit e of… Read More . . . → Read More: EURUSD Rally Approaches 1.3000, Greek Talks Ongoing

I?ve Found 18 Stocks that Could Have BIG Upside ? and Limited Downside
2012-01-20 03:30:00
Investors have sought out "GARP" stocks for decades. These investments, which represent Growth at a Reasonable Price, typically sport reasonable P/E ratios and possess superior growth prospects. There are a variety of ways to find such a combination of value and growth, but my preferred metric is the "PEG ratio." Companies with a PEG ratio below 1.0 means the forward price-to-earnings (P/E) ratio is less than the forward earnings growth rates. (PEG is formally defined as the P/E divided by the earnings growth rate.) So I'm going hunting for extreme PEGs — stocks with P/E ratios less than one-fifth of the earnings growth rate, or a PEG below 0.2. The reason that number is so low: Every . . . → Read More: I’ve Found 18 Stocks that Could Have BIG Upside — and Limited Downside

Nuclear Energy Markets Tighten: Edward Sterck
2012-01-19 23:00:00
The Energy Report: There hasn’t been much price action in the uranium market since you last spoke with The Energy Report in early September. Does that surprise you at all and what are your expectations for near-, medium- and longer-term market action? Edward Sterck: It doesn’t surprise me particularly. Historically, a lot of utilities were operating on a fairly hand-to-mouth basis in terms of their uranium requirements. The price spike in 2007 was a bit of a wakeup call for utilities. Since then, they’ve been building up some buffer inventories and are pretty fully covered for near-term requirements. By near term, I mean for the next nine months or so. Consequently, they can currently choose to be quite price . . . → Read More: Nuclear Energy Markets Tighten: Edward Sterck
More About: Finance , Nuclear Energy

Which ETFs Could Suffer from Latest Euro-Zone Downgrades?
2012-01-19 18:30:00
If you’re a regular reader of Money and Markets, you weren’t surprised last Friday when Standard & Poor’s downgraded the sovereign debt of nine Euro pean nations. I’ve been expecting it, as have Martin Weiss, Mike Larson and our other editors. My main question: What took them so long? The bigger news came Monday when S&P also downgraded the European Financial Stability Facility (EFSF). EFSF is the mechanism that was supposed to save the euro zone’s unstable members. Now will the rescuer itself need a rescue? If you still have any ETF exposure in Europe, now is a good time to review your risk profile. Intermission is over and the curtain is going back up. Another Look at BUNT . . . → Read More: Which ETFs Could Suffer from Latest Euro-Zone Downgrades?

The 10% Yielder You?ve Likely Never Heard of
2012-01-19 17:30:00
In case you didn't already know… it's a tough time to be an income investor. Ten-year treasuries yield 2%, the average dividend stock in the S&P pays slightly more at 2.1%, and a savings account earns next to nothing. But if you think that means that high-yield opportunities are in short supply, think again. There are dozens, if not hundreds, of high-yield plays hiding in the market that most investors simply don't know about. You just have to know where to look. Take the energy sector for example. When most people think of energy stocks, integrated oil and gas behemoths like Chevron (NYSE: CVX) usually come to mind. But while Chevron's 3% yield is . . . → Read More: The 10% Yielder You’ve Likely Never Heard of

China to Aid Saudi Arabia in Nuclear Power Development
2012-01-19 17:18:00
Ever since the end of World War Two, the U.S. has come to regard Saudi Arabia as almost its exclusive oil producing enclave. In February 1945, after the Yalta Conference with Soviet General Secretary Iosif Stalin and British Prime Minister Winston Churchill, on his way home U.S. President Franklin Delano Roosevelt and King Ibn Saud met aboard the New Orleans-class heavy cruiser U.S.S. Quincy in the Suez Canal’s Great Bitter Lake. During the meeting, instigated by Roosevelt, he and Ibn Saud concluded a secret agreement in which the U.S. would provide Saudi Arabia military security, including military assistance, training and a military base at Dhahran in Saudi Arabia, in exchange for secure access to supplies of oil. . . . → Read More: China to Aid Saudi Arabia in Nuclear Power Development

New Zealand CPI Drops, Greece Talks Continue
2012-01-19 09:30:00
Source: Advanced Currency Markets | G10 Advancers and Decliners vs USD EUR 0.05 CHF 0.02 JPY -0.02 GBP -0.03 It?s been a busy Asian session today, with a number of economic releases out of New Zealand , Australia and Japan. In New Zealand, Q4 CPI came out much lower than expected at -0.3% QoQ, 1.8% YoY, compared to expectations of 0.4% QoQ, 2.6% YoY. This sent NZDUSD tumbling 50 pips lower immediately following the release, and the pair has continued to drift downwards as the session has progressed ?… Read More . . . → Read More: New Zealand CPI Drops, Greece Talks Continue

Positive News Out of the IMF Boosts EUR
2012-01-19 08:23:00
Source: Forex Yard Positive News Out of the IMF Boosts EUR The euro saw some steady gains in trading yesterday, as news was released that the IMF would increase its lending capacity in order to limit the effects of the euro-zone debt crisis. While the news helped boost riskier currencies, analysts were quick to warn that there are still plenty of unknowns with regards to the European crisis that could still sink the common currency lower. Economic News USD – USD Weakens Amid Risk Taking The US dollar took some losses against the majors yesterday, following news that the IMF would expand lending to help stave off the negative effects of the euro-zone debt crisis. As a result . . . → Read More: Positive News Out of the IMF Boosts EUR

Derisking Gold Juniors, Step by Step: Rick Mills
2012-01-18 22:30:00
The Gold Report: We have seen some incredible volatility in the market over the last three or four months, with many junior resource stocks on the Toronto Venture Exchange beaten down, even if they have proven resources and substantial cash treasuries. We have also seen some volatility in the price of gold and a disconnect between the price of gold and the price of juniors. In this environment, how should investors approach risk in the junior resource space? Rick Mills: I agree with Baron Nathan Rothschild who became a legend during the financial crisis right after the Franco-Prussian War. As the story goes, a panic-stricken investor came screaming into his office yelling, “You advise me to buy securities now? . . . → Read More: Derisking Gold Juniors, Step by Step: Rick Mills

I?m Expecting Big Things from This Portfolio Holding
2012-01-18 19:00:00
The stock market is surely unpredictable. My prediction that LED lighting manufacturer Cree Inc. (Nasdaq: CREE), one of the stocks in my $100,000 real-money portfolio, would meet or exceed fiscal second-quarter estimates, turned out to be off the mark. The company trailed both top and bottom line forecasts, and issued fairly tepid third-quarter guidance to boot. Still, shares are up more than 4% in today's trading as investors are (correctly) focusing on the bright long-term view. An update on my $100,000 Real-Money Portfolio holdings… Now that two of my $100,000 real-money portfolio holdings, Alcoa (NYSE: AA) and Cree, have both reported, I look forward to hear what Zoltek (Nasdaq: ZOLT) has to say when the company releases fourth-quarter results . . . → Read More: I’m Expecting Big Things from This Portfolio Holding

Two Credit Card Companies I Got My Eye On
2012-01-18 18:38:00
While the markets have spent the last several months focused on the macro economic issues of Europe, this week brings a slew of earnings. And even in macro-economic dominated periods like the one we’re in now, paying attention to what’s going on at the corporate level can still give you good insight into the health and direction of the economy. One thing in particular that I’ll be watching this week from financial stocks as they report is commentary on loan growth demand, especially from the largest banks. That’s because, as I have long said, one of the issues the economy has wrestled with since the crisis of ’08, and that was recently improving, was the unwillingness of . . . → Read More: Two Credit Card Companies I Got My Eye On
More About: Investment Ideas , Credit Card

Hoisington Quarterly Review and Outlook
2012-01-18 16:10:00
Hoisington Quarterly Review and Outlook John Mauldin January 16, 2012 The “Quarterly Review and Outlook” from Hoisington Investment Management is one of the most significant pieces that crosses my desk – I try and drop everything else as soon as possible. This quarter’s is no exception. The authors, Dr. Lacy Hunt and Van Hoisington, get right down to brass tacks with their opening sentence: “As the U.S. economy enters 2012, the gross government debt-to-GDP ratio stands near 100%.” They cite an influential 2010 historical study of high-debt-level economies around the world, by Professors Kenneth Rogoff and Carmen Reinhart, that concluded that when a country’s gross government debt rises above 90% of GDP, “median growth rates fall by one . . . → Read More: Hoisington Quarterly Review and Outlook

Chinese Dragon To Unshackle Renminbi?
2012-01-18 15:10:00
With the Year of the Dragon around the corner, will the renminbi be unshackled? Will there be a surge in domestic consumption, or will a housing bust weigh on the economy, dragging down global economic growth? To understand how dynamics may play out in China, try to put yourself into the shoes of the proverbial Chinese consumer. Better yet, put yourself into hundreds of millions of such shoes…                             First, let’s put the Chinese housing market into perspective. High-net-worth individuals own, on average, an astounding 3.3 housing units per person (2011 Allianz survey). Many of these “investment properties” have recently been developed and are not occupied. . . . → Read More: Chinese Dragon To Unshackle Renminbi?
More About: Commentary

BoJ Rules Out Exchange Rate Floor For Yen
2012-01-18 10:15:00
Source: Advanced Currency Markets | G10 Advancers and Decliners vs USD EUR 0.51 GBP 0.14 JPY -0.19 CHF -0.49 The main news overnight has been Japanese Finance Minister Azumi once again voicing his commitment to taking firm steps against speculative FX moves. Interestingly, he admitted that it would be difficult for the BoJ to follow the example of the SNB by defending a particular exchange rate for the yen, citing the vast size of the JPY market as a major hurdle to controlling supply. This is the first… Read More . . . → Read More: BoJ Rules Out Exchange Rate Floor For Yen

Better Than Expected German Data Turns EUR Bullish
2012-01-18 08:12:00
Source: Forex Yard Better Than Expected German Data Turns EUR Bullish Positive Chinese and German economic indicators led to some bullish movement for the euro during mid-day trading yesterday. That being said, the gains were for the most part short-lived, as the common currency once again began moving downward by the evening session. Today, traders will want to pay attention to a batch of British and US indicators that are likely to generate market volatility. Economic News USD – USD Moves Downward Following Increase in Risk Taking The USD saw bearish movement against many of its main currency rivals yesterday, as a positive Chinese GDP number combined with a better than expected German economic sentiment figure drove investors toward . . . → Read More: Better Than Expected German Data Turns EUR Bullish

Oil and Gas Services Avoid Geopolitical Risk: John Stephenson
2012-01-17 22:00:00
The Energy Report: 2011 was a pretty exciting year with oil prices all over the map, largely fueled by the European debt crisis. What do you expect are going to be the hot topics affecting energy commodities in 2012? John Stephenson: The spread between Brent and West Texas Intermediate (WTI) prices, which was a big story in 2011, will continue to play a role. I expect a lot of talk about how WTI has once again resumed its place as the global benchmark. Another big topic, as it always is, will be the continuing geopolitics of oil, be it a possible Arab spring in Saudi Arabia or Iran’s nuclear program and how that impacts the world. In terms of . . . → Read More: Oil and Gas Services Avoid Geopolitical Risk : John Stephenson

This Biotech Stock Could TRIPLE
2012-01-17 19:00:00
The stock market has been insane the past few years, so many financial advisors are understandably steering clients toward safer blue-chip stocks. It's a sound strategy. Because of their dividends, blue chips are often a lot less volatile than the overall market and many have decent growth potential, too. Still, many investors would gladly tolerate the higher risk of smaller stocks for the chance to earn higher returns, and I think many of these stocks can be good additions to a diversified portfolio. One of my favorites, United Therapeutics Corp. (Nasdaq: UTHR), has certainly seen its share of risk, the latest example being a 25% loss in 2011. But the stock has seen plenty of good years, too, . . . → Read More: This Biotech Stock Could TRIPLE
More About: Stocks

HAS GOLD?S D-WAVE BOTTOMED?
2012-01-17 16:44:00
It seems like most analysts, and gold bugs are now assuming that the reversal on December 29 marked the bottom of golds D-Wave decline. It’s certainly possible that we saw a bottom two weeks ago but it’s still too early to make that assumption. Gold , and most assets are about to be severely tested. How gold handles that test will be a big clue as to whether or not the correction is over.What many analysts are overlooking is the impending daily and intermediate cycle correction that is coming due in the stock market. When the stock market moves down into a cycle low, especially an intermediate cycle low, it generates a tremendous amount of selling pressure. Invariably that selling . . . → Read More: HAS GOLD’S D-WAVE BOTTOMED?
More About: Technical Analysis

Brazil Looks Like a Buying Opportunity Again
2012-01-17 15:34:00
Majority of the population now in the middle class for the first time ever Brazil continues to impress as a country and economy, due in no small way to its government’s multi-year efforts and determination to make it an important global presence. Brazil is the fifth-largest country in the world by geographical area and population (190 million), and now has the sixth-largest economy, having surpassed the United Kingdom last year. It’s long been known for its dirt-poor city slums, which are appalling. But its booming economy of recent years has increased the purchasing power of its population and moved an estimated 20 million out of poverty, with the majority of the population now in the . . . → Read More: Brazil Looks Like a Buying Opportunity Again
More About: Commentary

Strong China GDP Lifts Mood Despite EFSF Downgrade
2012-01-17 10:00:00
Source: Advanced Currency Markets | G10 Advancers and Decliners vs USD EUR 0.61 GBP 0.36 JPY -0.23 CHF -0.53 Risk appetite has been boosted during the Asian session, sending equity indices higher and providing EURUSD with a temporary respite from the chronic gloom which has dogged the pair for some time. The trigger for this turnaround in sentiment was the overnight release of China ?s Q4 real GDP which beat expectations at 8.9% YoY (8.7% expected, 9.1% prior). One of the biggest beneficiaries of this… Read More …

EUR Continues to Tumble amid Fresh Euro-Zone Worries
2012-01-17 08:27:00
Source: Forex Yard EUR Continues to Tumble amid Fresh Euro -Zone Worries The euro started off the week by extending its bearish run, as traders continued to short the currency after last Friday's credit downgrade of several euro-zone countries. News that talks regarding a Greek debt swap deal broke down only increased fears regarding the prospects of a solution to the euro-zone crisis. Economic News USD – USD Approaches 17-Month High vs. Euro in Slow Trading Day Traders continued to short the euro in favour of the US dollar on Monday, as fresh euro-zone worries boosted safe-haven assets. Trading was somewhat light yesterday, as US markets were closed for a bank holiday. Still, the EUR/USD extended its bearish . . . → Read More: EUR Continues to Tumble amid Fresh Euro-Zone Worries

Carl Icahn?s Top Stock Idea Right Now
2012-01-17 00:30:00
Billionaire corporate raider Carl Icahn is no fool. When he makes his multimillion dollar investments in companies, he's done a lot of homework and has a high degree of confidence that he stands to profit. During the summer of 2011, he loaded up on shares of WebMD (Nasdaq: WBMD), which I discussed in November. (He owns close to 10% of the company now, a stake worth about $156 million.) Icahn knew that this company possessed had a very strong web presence in one of its most lucrative niches: health care information. And he figured there were ample paths to unlock value when he bought shares last year. At first blush, Icahn looked brilliant, as shares of . . . → Read More: Carl Icahn ’s Top Stock Idea Right Now

Gold Stock Investors?Buy ?Best of Breed?: John Stephenson
2012-01-16 21:30:00
The Gold Report: As a portfolio manager and an author of two books, The Little Book of Commodity Investing and Shell Shocked: How Canadians Can Invest After the Collapse, how do you see the prospects for the resource commodities in 2012? John Stephenson: I think, in general, my prospects and outlook are very bullish. The story continues to be one of strong demand out of China. I don’t see that story changing. Obviously, there have been a lot of headlines and the Purchasing Managers’ Index data in China recently are not as robust as they were, but its economy is still going to grow at 8.5?9%. That’s pretty darn good. That’s really where demand for most of these commodities . . . → Read More: Gold Stock Investors—Buy “Best of Breed”: John Stephenson

The End of Europe?
2012-01-16 19:25:00
One of the interesting things about being in Hong Kong is that I get to see the weekend edition of the Financial Times12 hours early. And the headlines were not all that pleasant. As I promised last week, we will cast our eyes to Europe and ponder what is in store for Europe for the year and the next five years. And what do we read on page 2? The "ECB raps revisions to draft a fiscal pact." Seems they feel there are too many loopholes, which will make the document meaningless … somewhat like the treaty they have now. And we further learn that "Greek default threat grows as talks falter." Seems there is a lack of agreement . . . → Read More: The End of Europe?
More About: Analysis

Why the Cascade of Downgrades Has Barely Begun
2012-01-16 17:40:00
If you think our politicians are often hypocritical in their denials of financial sins, take a look at what’s happened in Europe: Just a few weeks ago, when leading European politicians feared their countries were going to lose their triple-A ratings, they reacted with anger and venom, tacitly acknowledging that the looming ratings downgrades would be tragic. But on Friday, when the dreaded downgrades were actually announced, those very same politicians solemnly denied that the event was of any importance! Where’s the truth? For the best answer, you need only remember the famous 19th century refrain of Otto von Bismarck: “Never believe anything in politics until it has been officially denied.” And for the best . . . → Read More: Why the Cascade of Downgrades Has Barely Begun
More About: Commentary

Ahmedinejad Visits Latin America, Washington Implores and Seethes
2012-01-16 16:15:00
At the best of times, the U.S. government is regarded as somewhat out of touch with what’s happening in the America n "heartland," much less the world at large, so much so that the phrase "inside the Beltway" was coined to define the syndrome. But every now and again, an incident occurs that so perfectly encapsulates Washington ’s self-absorbed navel gazing that little further comment is needed. On 9 January U.S. State Department spokeswoman Victoria Nuland provided such a "Kodak moment" to the Washington press corps. The object of her concern? Iranian President Mahmoud Ahmedinejad’s visit to Latin America , where he is touring Venezuela, Cuba, Ecuador and Nicaragua. Nuland said that, because of its civilian nuclear energy . . . → Read More: Ahmedinejad Visits Latin America, Washington Implores and Seethes

The US Government Is Bankrupt
2012-01-16 15:05:00
By Doug Casey, Casey Research Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it’s possible to get a clear picture. As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What’s even more shameful, though, is that the sought-after $1.5 trillion cut wasn’t meant to apply to the annual budget but to the total budget of the . . . → Read More: The US Government Is Bankrupt

One of My Top Picks for this Year Gained 50% in 3 Months
2012-01-16 14:30:00
It pays a yield of 10.5%. And it's one of the most unique dividend payers on the market. It's not a regular business — it doesn't have thousands of employees or millions of dollars worth of equipment — and it doesn't have complex operations that take a doctorate degree to understand or track. In fact, I think it's one of the simplest investments on the market. It has only one mission — take in royalties from dozens of oil wells and pay them out to investors. If you read my articles regularly, then you'll remember when I first told you about SandRidge Mississippian Trust (NYSE: SDT) just a few weeks ago. As a royalty trust, SDT . . . → Read More: One of My Top Picks for this Year Gained 50% in 3 Months