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Insider buying at Citigroup (C)
2009-08-20 06:00:00
"Citigroup (NYSE: C) used to be the world’s #1 bank; it is now ranked #15 after the financial crisis," points out long-standing investing and trading expert Mark Skousen. Despite the financial institution's troubles, the advisor ranks the bank as a speculative buy in his premium Hedge Fund Trader service. Here's his review."The stock fell to $1 a share from $40 a share two years ago. But now Citigroup is showing some breathing room after selling Smith Barney to Morgan Stanley for $6.7 billion and pushing revenues up to $34 billion."Last month, Citigroup reported a 6% rise in total deposits to $805 billion, with the best results coming in the Institutional Clients Group, which earned $2.8 billion."But with $620 billion in debt, Citigroup is still far from recovery, and is struggling to maintain market share compared to other U.S. banks (Chase, Bank of America). Citigroup has no chance of repaying TARP money anytime soon."On the po...
More About: Buying , Insider

IBM (IBM): 'Dynamic transformation'
2009-08-19 14:00:00
"IBM (NYSE: IBM) has transformed itself into a dynamic consulting and computer services company that's leading the charge to help companies streamline efficiency and cut costs," says Ian Wyatt.In his Top Stock Insights he explains, "And most investors are unaware of the change. In our opinion, that's why IBM trades with such an attractive valuation." Here's his review."The transformation of IBM means there should be some solid profits for investors who understand the changing face of business. It started in 2002. IBM bought out PricewaterhouseCoopers Consulting for $3.5 billion."So in addition to computer installation and software writing, IBM now offers companies complete efficiency enhancing services. "For instance, IBM writes software programs that use data from motion and temperature sensors to help railroads get their trains to run on time. And IBM is helping utilities cut electric use with the so-called Smart Grid."Norwe...
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Dow Theory eyes Aflac (AFL)
2009-08-19 14:00:00
"Aflac (NYSE: AFL) is delivering solid growth in operating profits despite the recession, " says Richard Moroney. Here's his latest from the blue-chip Dow Theory Forecasts."Aflac is a low-cost provider of supplemental life and health insurance in Japan and the U.S. The firm' investment portfolio, vulnerable to the fate of European banks, has kept the company in hot water."Its total investments and cash totaled $65.6 billion at the end of June, up 6% from the end of March. Since February, investors have feared investment losses could swamp the stock. The primary culprit is European hybrid securities issued by banks at risk of nationalization. "So far, those fears appear exaggerated — values of European securities have begun to recover. Unrealized losses on investments available for sale are $4.9 billion, roughly 7% of the total portfolio and down from $5.9 billion in March. "The company realized $249 million in investme...
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Seaspan (SSW): Speculative income
2009-08-19 14:00:00
"Seaspan Corp. (NYSE: SSW), a play in the shipping sector, is my largest personal holding," says Jack Adamo. In Insiders Plus he reviews the speculative income issue."Normalized earnings for the latest quarter were up 32%, but due to the greater number of shares outstanding, EPS were noticeably lower. "This is because the stock price has fallen substantially, due to industry fears. As a result, the company had to sell many more shares than usual to fund the delivery of new ships this year. "The good news is the company says it has now arranged funding for all scheduled future ship deliveries."The stock also got hit on the news that two of its small lessees have asked for modifications on their long-term leases. "One company represents less than 3% of Seaspan’s revenue; however, the other leases about 13% of Seaspan’s ships. That’s enough to dent results for a while, but not endanger the company."There&rsqu...
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'Pharmacy benefits' benefit CVS (CVS)
2009-08-18 14:00:00
"Regardless of how you analyze  the company, CVS Caremark (NYSE: CVS) stands out," says Chuck Carlson.In The DRIP Investor, he explains, "Our Quadrix stock-rating system ranks more than 4,000 stocks based on more than 100 different variables. CVS scores better than 90% of the stocks in the Quadrix universe.""CVS’s Sector score — that is, a score devised by evaluating the metrics that have the most influence over performance in that particular sector — is also impressive at 95 out of a possible 100."The good news is that investors can buy this stock at what appears to be an attractive valuation at just 11 times the 2010 consensus earnings of $3 per share."Although healthcare-related stocks have been affected by uncertainties surrounding health-care reform, CVS stands to be one of the winners should more people obtain insurance coverage. The stock represents a quality buy at current levels. "CVS operates tw...
More About: Benefits , Benefit , Pharmacy

Celgene (CELG): Cancer progress boosts biotech
2009-08-18 14:00:00
"Some sectors tend to do better than others in tough times; biotechnology often surprises investors in good times and bad," suggests Brandon Clay.In his Invest with an Edge advisory service, the growth stock advisor looks to Celgene Corporation (NASDAQ: CELG), a player in developing cancer treatments. Here's his review."This sometimes-perilous market niche can make or break a portfolio depending on several factors: drug pipeline, continued investment, market factors, and government approvals."Biotech stock performance is often hostage to government action – or inaction.  If the FDA approves a particular compound, the company’s shares can jump wildly higher.  Denial can make a stock crater. "However, despite the risks, there are times when we believe that individual biotech stocks make sense -- such as our latest recommendation for Celgene."The company recently reported earnings; blood cancer products pushed second quarter ...
More About: Cancer , Progress

Adens: Assessing the major trends
2009-08-18 14:00:00
"Some August weakness wouldn't be abnormal and should be viewed as a great buying opportunity," say Pamela and Mary Anne Aden in their top-notch advisory, The Aden Forecast."One thing is pretty clear: most markets are overbought for the time being, but in the bigger picture they're clearly oversold (in an area that normally coincides with major market bottoms). "The stock market's major trend is clearly up, signaling stocks are going to rise further in the months ahead, and probably beyond."This secular bull market was also confirmed by Richard Russell's Dow Theory when the Dow Transportations surpassed their June high late last week. "For now, the market will remain very strong above the following levels: Dow Industrials 8550, Dow Transports 3300 and Nasdaq 1850. "We recently recommended buying new stock positions in PowerShares QQQ (NASDAQ: QQQQ), iShares S&P North America Technology (NYSE: IGM) and iShares...
More About: Trends , Major

Novatel (NVTL): Broadband bet
2009-08-17 14:00:00
In his small cap The Oberweis Report, money manager and editor Jim Oberweis, Jr. looks to Novatel (NASDAQ: NVTL) as a wireless sector buy for risk-oriented investors."Novatel Wireless a provider of wireless broadband access solutions for the worldwide mobile communications market. "The company’s products include 3G wireless PC card and ExpressCard modems, embedded modems, and USB modems."In May 2009, the company launched its new MiFi product line through wireless carriers in the U.S. and Spain. Novatel’s MiFi product is a credit-card sized device that provides wireless personal internet connectivity (via an umbrella of Wi-Fi coverage) for up to five electronic devices. "While the company did not demonstrate the type of growth we typically seek during its latest reported June quarter, management’s revenue and earnings guidance for the September quarter – based on strong uptake of MiFi – suggest that it will soon meet our cri...
More About: Broadband

Maidenform (MFB): Shapely buy
2009-08-17 14:00:00
"Maidenform Brands (NYSE: MFB), which earns our strong buy rating, saw sales rise 5.6% in the 2nd quarter based on strong demand," reports Tracey Ryniec in Zacks Elite Stocks."Maidenform Brands sells intimate apparel such as bras and shapewear at department stores and other retail outlets."The company provi des a collection of recognizable brands including Maidenform, Lilyette, Control It!, and Sweet Nothings. It also licenses the Donna Karan and DKNY brands, which it launched in the first quarter."The company reported second quarter results on Aug 12 which saw sales increase $6.1 million to $114.2 million. Wholesale segment sales rose 6.5% to $99.7 million but retail segment sales were unchanged at $14.5 million."Shapewear sales continued to hum along, rising 9.2% compared to the year ago period. Net income, however, fell slightly to $7.3 million from $7.8 million in the second quarter of 2008."The company is bullish about ...

Vardy's view: Emerging small caps
2009-08-17 14:00:00
"Our latest ETF pick combines two highly profitable asset classes, small caps and emerging markets," says Nicholas Vardy in his top-notch The Global Bull Market Alert."The SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX) offers you access to small caps in emerging markets that otherwise would be off limits. "While some of the larger emerging market stocks trade in the United States, these smaller players never will."In addition, it's well known that U.S. small caps tend to outperform large caps over the long run. Their small size makes them nimble and quicker to react to changing market conditions. "Small caps in emerging markets are no different. This year, emerging market small-cap ETFs like EWX are outperforming their large cap counterparts by a comfortable margin."Finally, EWX is well-diversified. Consumer goods make up 18.7%; materials, 18.2%; financial, 21.1%; and smaller positions in such areas as energy, utilities,...
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Gas gains with Nabor's Industries (NBR)
2009-08-17 14:00:00
"The US natural gas storage cycle is fairly straightforward: More gas is consumed in winter than in summer because natural gas is a key source of heat," explains energy sector specialist  Elliott Gue.In his industry-leading The Energy Strategist, the makes a bullish case for natural gas as well as contract driller Nabor's Industries (NYSE: NBR)."The year started off with gas storage levels falling in line with the average. In late February or early March that all changed: Storage levels jumped and eventually broke to a new five-year high. "Needless to say, there is a large amount of natural gas in storage in the US and no immediate sign that this glut will be eliminated. Ample supply usually leads to weak prices or at least puts a lid on gas price advances."This inventory picture is the basis for all of the bearish arguments you'll hear surrounding natural gas prices. "But a known fundamental is a useless fundamental; if ever...

Walgreen (WAG): An Obama boost
2009-08-13 14:00:00
"Healthcare-related stocks have been trading up and down based on the latest rumor of how the Obama medical plan might be implemented," observes Glenn Rogers. The contributing editor to Gordon Pape's Internet Wealth Builder asks, "How can we benefit from Obama-Care?" Here, the advisor looks at Walgreen (NYSE: WAG), the largest drugstore chain in the United States.""A recent article in Barron's suggested that Walgreens, Caremark, and Target could benefit from whatever new healthcare system emerges from Congress. "The reason is that these companies operate convenient low-cost walk-in clinics often staffed by nurse practitioners, midwives, and other medical professionals below the rank of M.D. "These walk-in clinics are attractive for state governments in that they free up emergency rooms and hospitals and provide basic services at much lower costs than the offices of fully accredited doctors."Of course, when people come in...
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Bernie's bets: Trading plays
2009-08-13 14:00:00
To select trades, Bernie Schaeffer uses a combination of technical, fundamental and sentiment-based metrics. Here are two new trading buys from Schaeffer's Master Portfolio."I initiated a long position in Whole Foods Market (NASDAQ: WFMI). The company reported earnings on August 4 that surpassed analysts' estimates by 5 cents per share. The stock gapped higher on the news."WFMI has gained more than 200% year-to-date. There is heavy out-of-the-money put open interest for WFMI. The unwinding of short positions related to this open interest could provide an additional tailwind."Short interest for WFMI is high, with more than 34% of the stock's float sold short. A continued increase in the shares' price could lead to a short-covering rally."I also initiated Pool Corporation (NASDAQ: POOL) . The stock has gained more than 31% year-to-date. On July 23, the company reported earnings that beat analysts' estimates by 10 cents per share."Short...
More About: Trading , Plays , Bets

Wind power blowing in China
2009-08-13 06:00:00
"American Superconductor (NASDAQ: AMSC), a U.S.-based play on wind power, is benefiting from demand in China ," says Brendan Coffey in The Cabot Green Investor."The Chinese wind market has powered American Superconductor to an excellent quarter -- its second surprise profitable quarter in a row, and that has turbocharged the shares today."AMSC posted net income for its first quarter of $1.8 million, or 4 cents a share, compared to expectations of a slight loss and the per-share loss of 14 cents in 2Q 2008."Drop out one-time items, and AMSC earned 12 cents a share -- an impressive result for a company that didn't ever post a profit until last quarter."Sales jumped 83% to $73 million. One adage in retail is that the best place to find more sales is with existing customers, and AMSC did just that -- much of its sales came from Sinovel, the leading China wind turbine company, which uses AMSC's designs and electrical components for its ...
More About: Power , Wind , Wind power

Janus Overseas: 'Top of the heap'
2009-08-12 06:00:00
"When it comes to large-growth foreign funds, Janus Overseas (JAOSX) stands at the top of the heap, outperforming its peers by a factor of four," says Ian Wyatt in The Recovery Portfolio."Since reopening to new investors in December 2008, the fund has gained 56% year-to-date in 2009. That's eighteen percentage points more than the MSCI EAFE index, a measure of developed foreign markets. "And its also well ahead of the 14% average return of foreign, large-cap growth funds, according to Morningstar. "What sets Janus Overseas apart from other foreign fund is its willingness to focus on emerging markets and manager Brent Lynn's forte for seeking out fast growing companies in some of the world's turbo-charged countries."Picking 'hot' stocks and targeting the right countries is required for successful international investing, considering the range of differences in foreign markets. "Since the market's recent bottom in Ma...

Research in Motion (RIMM): Blackberry bet
2009-08-12 06:00:00
"By 2017, wireless service providers could generate more than $100 billion from services such as text messaging, GPS and movie, and music downloads." says Roger Conrad.In Personal Finance, he adds, "Even this forecast could prove extremely conservative thanks to an explosion in sales of smartphones." How to play this trend? Here, he looks at Research in Motion (NASDAQ: RIMM)."Smartphones account for only 11% of the world’s mobile handsets; penetration remains under 20% in the US. This leaves plenty of room for further growth."Research in Motion’s calling card is the BlackBerry, the dominant brand in the US smartphone market with a 55% market share in the first quarter."Research in Motion retains major competitive advantages in the market for large corporations thanks to its proprietary BlackBerry Enterprise server system. The system provides superior security and faster e-mail delivery than competing systems such as Microsoft&rsquo...
More About: Blackberry , Research In Motion

Chevron (CVX): Growth & value
2009-08-12 06:00:00
In his Validea, editor John Reese picks stocks based on the long-standing strategies of "legendary" investors.Here, the advisor takes a look at Chevron (NYSE: CVX), based on the investment strategy of leading growth and value investor James O'Shaughnessy."O'Shaughnessy 's approach, know as the Cornerstone Value Strategy,  looks for large, well known companies whose market cap is greater than $1 billion. These companies exhibit solid and stable earnings. CVX's market cap passes this test."The second criterion requires that the company exhibit strong cash flows. Companies with strong cash flow are typically the value oriented investments that this strategy looks for. "The company's cash flow per share must be greater than the mean of the market cash flow per share ($0.55). CVX's cash flow per share of $15.36 passes this test."This particular strategy looks for companies whose total number of outstanding shares ar...
More About: Growth

STEC (STEC): Flash profits
2009-08-11 14:00:00
"STEC (NASDAQ: STEC), a maker of flash memory and dynamic random access memory," is our latest "Stock of the Month'," says Dennis Slothower in Stealth Stocks."Headquartered in Santa Ana, California, the company specializes in developing high-speed, high-capacity flash solid-state drives (SSDs) and memory cards used in sensitive and highly volatile environments and high-density DRAM modules."Over the past several years, the company has expanded its custom design capabilities of flash products for OEM applications. "It has invested significantly in the design and development of customized flash controllers, firmware and hardware, and made strategic acquisitions that have expanded its flash design capabilities and sales and marketing infrastructure."Flash product revenue increased 20.2%, from $91.7 million in 2006 to $110.2 million in 2007, and increased 36.4%, from $110.2 million in 2007 to $150.3 million in 2008. "The company expe...
More About: Profits

Ag ETFs: Gains from grains
2009-08-11 14:00:00
"Both short and long-term factors suggest higher agricultural prices," says Leonard Goodall in No-Load Portfolios. Here, the fund expert looks at a pair of agriculture-based ETFs."Bad weather through the country has had a negative impact on the agriculture sector. Rain and flooding in the plains states has caused a delay in harvesting the winter wheat crop and other grains are behind in their normal growing season."Moreover, current grain supplies are low as compared with demand. These factors point to the possibility of higher grain prices in the months to come."Over the longer term, growing world affluence will increase the consumer demand for good, putting upward pressure on grain prices."Another factor that has been in the news lately is the potential vulnerability of the world wheat crop to the resistant Ugandan 99 Stem Rust fungus. The fungus is spread by the wind and infections have spread outside Africa to the MIddle East. It is thought that it ...
More About: Grains

China Mobile (CHL) A 'stellar' idea
2009-08-11 14:00:00
"China  is the next Big Thing – and it’s really BIG; and we fully intend to ride that wave," says Richard Schmidt, adding. "In our view, we’re in the right place at the right time with investments in China."In his Stellar Stock Alert, the advisor states, "To increase our holdings of Chinese-based companies, we are now adding China Mobile Limited (NYSE: CHL) to our growth stock buy list.""Not only is China growing, but it has a phenomenal amount of resources -- and at the top of that list is its people. With the world’s largest populations, China has all the human resources it needs to continue to expand."As the government gives more and more freedom to businesses, we’ll see these resources put to good use. This is an undeniable trend that is just gaining momentum."China Mobile is a Hong Kong based provider of digital voice and data services for China. The company has consistently been ...
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Bank on bank yields
2009-08-10 14:00:00
"While I continue to avoid bank stocks and bank ETFs , I very much continue to recommend that you buy and own plenty of nicely high-yielding bank preferreds and bank minibonds for your retirement investing," says Neil George.In his income-focused Stocks that Pay You, the advisors reviews his favorites among these lesser-known investment vehicles."Why invest in banks at all? Because - as they continue to clean up and bolster their balance sheets - banks are getting even better credit risks, which means that you'll be even more likely to get paid your high-yield dividends and interest payments."So, Regions Financial common should be avoided. But do buy the Regions Financial 8.875%preferred (NYSE (NYSE: RF prd Z). The common got hit - but the preferred keeps humming along. Still trading right around 21 bucks - it's a nice yielder paying you over 10%."Wells Fargo's common isn't what I'd want to own - but the Wells Fargo 7% preferred (NYSE: WS...
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Carnival (CCL): Clear sailing ahead?
2009-08-10 14:00:00
"Like a sailboat waiting for a gust of wind, Carnival (NYSE: CCL) hasn't had any means of propulsion lately; in fact, they've been anchored by swine flu and sluggish travel demand," notes value investor Nathan Slaughter. Nevertheless, in his Half-Priced Stocks, he remains optimisticbullish, noting "Eventually these storm clouds will clear."  Here's his bullish long-term outlook for the cruise ship operator."Fortunately, these negatives are macro-level factors, not company-specific issues. All things considered, the world's largest cruise operator is performing admirably in this tepid environment. "The company has carried more than two million passengers to exotic destinations around the globe over the past three months. "That's about 45,000 more than last year, enough to soak up most of the recently added capacity. Unfortunately, while the firm's cabins have been fully occupied, passengers haven't been spe...
More About: Sailing , Clear , Ahead

ETF expert eyes Sweden
2009-08-10 14:00:00
"Our latest pick is iShares Sweden (NYSE: EWD); Sweden is a high quality, fiscally strong country with top flight multinationals in its ETF basket," says Carl Delfeld in Chartwell ETF."The main rationale for recommending Sweden, which is weighted only 1% in the MSCI World index, is its relative value despite being right at the top in terms of performance this year – up 33%."Trading at just over ten times earnings, it seems oversold compared with many other European developed markets trading in the mid and high teens as well as some emerging markets such as Mexico at 18 times, Taiwan at 25 times, and India at 21 times earnings."The top company in the Sweden ETF is the telcom equipment maker Ericsson which accounts for 15% of the basket. Ericsson is a much stronger balance sheet than its peers. Just over 40% of all telephone calls worldwide go through an Ericsson system. "Other top companies in the Sweden ETF include Sandvik, Volvo an...
More About: Eyes , Expert

Wal-Mart (WMT): A 'giant without peer'
2009-08-07 14:00:00
"Wal Mart (NYSE: WMT), the world’s largest retailer, with $405 billion in revenues last year, has remained remarkably strong during the recession even as other retailers have floundered," says Stephen Leeb.In his The Complete Investor, he explains, " Its low prices have lured more customers, while its product line-up emphasizes items seldom cut from consumer budgets, such as food and health care products." Here's his review."Its Wal-Mart stores draw an estimated 100 million people a week, explaining why the company dominates the U.S. supermarket industry, with a better than 25% market share. The company also sells under numerous other names, including Sam’s Club."The key to Wal-Mart’s success is its ability to keep costs and prices low, which in turn stems from its massive size: as far and away the most important customer for many of its suppliers, it wields tremendous bargaining power."Its heavy reliance on cheap Chinese...
More About: Peer , Giant , Wal Mart

Bank on J.P. Morgan (JPM)
2009-08-07 06:00:00
Technician Leo Fasciocco, who focuses on stocks breaking out of resistance zones is banking on J.P. Morgan (NYSE: JPM), as a breakout buy. Here's the latest from Ticker Tape Digest."JPM is one of the dominant financial firms. It has 30 million consumer customers and the world's most prominent corporate, institutional and government clients."Recent tape action indicates good institutional buying interest. JPM's long-term chart shows the stock making a bottom around 15 in March. It has since rallied and double in price. "Technically, there is heavy overhead resistance in the 40 to 50 zone. So, it will be important to see how JPM acts on a breakout. "The daily chart shows a recent strong rally and the subsequent base formed between 32 and 38. The stock is now at the upper end of the base and in a good position to breakout."With strong profits expected this year and next, we see JPM as a good big cap stock to play if it can breako...
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Inflation bet on BHP Billiton (BHP)
2009-08-07 06:00:00
"Longer-term, I have no doubt that a ruinous inflationary cycle is on the way," says Jim Powell. In Global Changes & Opportunities, he takes a look at BHP Billiton (NYSE: BHP)."Near-term, deflation is still the dominant condition. However, inflation will begin once the Fed’s $2 trillion finds its way into the economy. At that point, precious metals, most raw materials, strong foreign currencies, and other inflation hedges will pay off."Banks are currently hoarding the funds they are receiving from the Fed. That practice will end once the economic outlook improves and lenders feel it’s safe to make credit available again."When the vaults swing open, I think the flood of money will trigger the sharpest inflationary run-up we have ever seen."Deflation has gained so much momentum that I think it will continue – and probably get worse – for several months. "However, being unprepared for inflation (or a possible doll...
More About: Inflation

Quant picks: A trio of ' best buys'
2009-08-06 14:00:00
"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential." Here, he looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS)."Aeropostale, helped by consistent double-digit sales growth, has met or exceeded the consensus profit estimate in each of the past eight quarters. "A specialty retailer focused on apparel and accessories for teenagers, Aeropostale operates more than 900 stores in the U.S., Puerto Rico, and Canada."Aeropostale has grown same-store sales for the past 11 fiscal years, including an 8% gain in the fiscal year ended January. "Same-store sales have accelerated in the past couple of months, up 20% in April and 19% in May...
More About: Trio

Summer rally: Fact or fiction?
2009-08-06 14:00:00
"While the Summer Rally is one of the oldest, and most popular truisms on Wall Street, it is also one of the most erroneous," says Jim Stack, who looks at "fact vs. fiction" in summer rally forecasts. Adding credence to his forecast, the market historian, money manager and editor of InvesTech Market Analyst not only successfully forecast the recent bear market but also moved to a 97% invested position just after the March bottom."Although it can be said that the stock market often rallies sometime during the summer months, from a recent low, the same could be said for any month out of the year."And here’s the clincher… Such rallies during the early summer months of May, June and July have historically shown the smallest potential gains for all 12 months of the year! "We analyzed the average DJIA gain from each month’s low to a subsequent rally high over the next 3 months -- based on data that has been compiled from the past ...
More About: Fiction , Fact

Metals: 'Get invested'
2009-08-06 14:00:00
"Getting invested in precious metal for the long term is our end game," says Daniel Frishberg, host of BizRadio and editor of The MoneyMan Gold & Oil. Here, he offers two metals plays."It looks as if prices could go higher short term, especially if US dollar weakness continues. The risk of owning gold at today's price level is that net commercial short positions continue to increase. "Attempts by producers and speculators to bid up prices are matched by increases in commercial short positions. Gold prices are being controlled not by physical buyers and sellers, but by futures traders."There is little doubt that higher, perhaps much higher, gold and silver prices will eventually happen. It is just a matter of timing."If the big Commercials can force prices lower to cover their short positions, this will be the best time to buy. If they are unable to drive prices lower and are forced to cover their short positions at higher prices, ...

New Income (PRCIX): Low risk returns
2009-08-05 06:00:00
"I’ve got a great conservative fixed-income fund to add to our portfolio: T. Rowe Price New Income Fund (PRCIX)," says Eric Roseman. Here's the latest from Accelerated Income."T. Rowe Price New Income Fund is managed by Daniel Shackelford since inception in 1999. This manager actually made money in 2008’s bond massacre, and he continues to earn nickels and dimes this year investing in high quality debt."The fund is a low risk vehicle investing mostly in investment-grade high quality debt. The fund currently holds a big chunk in Fannie Mae, German and Mexican government bonds."Only 5.4% of PRCIX is invested in below investment-grade paper – not a big risk factor. Year-to-date the Fund is up 7.1%."The fund has low volatility and low interest rate sensitivity as measured by its duration; PRCIX’s duration is 4.2 years. I don’t see U.S. interest rates rising any time soon; even if they do climb next year this fund’s du...
More About: Risk