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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...
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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...
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Diamond Foods (DMND): Popcorn play
2009-08-05 06:00:00
Diamond Foods (NASDAQ: DMND), which sells snack nuts and nut mixes, is a buy-rated holdings in the model portfolio of Tom Bishop. Here's his update from BI Research."The company sells products under the Emerald line and culinary nuts under the Diamond brand. And, as of September now owns Pop Secret, the number 2 popcorn brand commanding a 25% market share."Emerald’s sales in U.S. food stores grew 48% over the prior year period, causing market share to jump 250 basis points to 8.4%. During this time, Emerald’s dollar sales growth exceeded the growth of the entire snack nut category which increased sales 2.7%.  So, very impressive growth here."The two flagship products in this line are its Cocoa Roasted Almonds and its Sea Salt and Pepper Cashews. Really you have to try these. I think the Emerald line is capable of taking this stock considerably higher led by these two work horses."And some times it is just that simple. All you need i...
More About: Play , Popcorn , Diamond

ETFs for betting on biotech
2009-08-04 14:00:00
"I'm always looking for market leadership; right now, biotechnology stocks are moving up faster than most anything else," says Ron Rowland. In Money & Markets, he eyes biotech ETFs."Biotechnology is a fascinating sector, one that's made (and lost) a lot of money for millions of investors in recent decades. That's why, in my opinion, you should become familiar with this industry."Broadly speaking, it's the application of technology to biological materials — plants, animals and people."Nowadays a lot of biotechnology involves manipulating genetic material: The DNA that forms the basis for life. The goal is to produce new and useful substances that make life better and, of course, turn a profit along the way."How can you make money in biotech? Well, you could bet on any of the tiny stocks that claim to have a sure-fire winning discovery. But most of the time these bets don't work out. You can easily lose your shirt, in fact.&q...

Gafisa SA (GFA): Brazilian bet on real estate
2009-08-04 14:00:00
"With over 950 completed projects successfully completed, Gafisa SA (NYSE: GFA) is the most successful real estate builder and developer in Brazil," says Paul Goodwin.In The Cabot China & Emerging Markets Report, he explains, "So what is it about a Brazilian homebuilder that interests us so much? Iit’s a combination of 'story, numbers and the chart." Here's the advisor's review."Brazil, one of the largest economies in the world, is still in the process of emerging from an economic crisis that began in the late 90s and bottomed out in 2002."By the end of 2005, the country was paying off its IMF loans and enjoying a relaxation of the sky-high interest rates that had been used to break the back of the country’s murderous infl ation. But the global economic downturn put a damper on the recovery."Meanwhile, Gafisa SA, which had been operating primarily in Rio de Janeiro and Sao Paulo since its ince...
More About: Estate , Real Estate , Real

Microsoft (MSFT) 'Fortress-like' balance sheet
2009-08-04 06:00:00
"Microsoft (NASDAQ: MSFT) is a well-run company with a fortress-like balance sheet," says growth stock expert Brandon Clay.In his Invest with an Edge he suggests, "Maicrosoft’s war chest of cash and their ability to sparkle with products like Bing makes the company an attractive long-term bet." Here's the advisor's review."Microsoft was once the kind of stock investors dreamed of owning.  Rising thousands of percent from its IPO in the mid-1980s to the late 1990s, Microsoft was at one point the largest U.S. company by market cap."As technology evolved and Microsoft matured, Wall Street turned its focus to 'sexier' areas of technology like Internet stocks.  Operating system software wasn't the in-thing anymore.  Microsoft became a value stock rather than a growth play."Microsoft joined Intel as the first pure technology companies to become members of the Dow Jones Industrial Average. Nothing says &#...
More About: Sheet , Balance Sheet , Balance , Fortress

Banking turnarounds: Rebound in regionals?
2009-08-04 06:00:00
"Even among the broad-based market carnage of the past year, regional banks with heavy real estate exposure have been notably poor performers," notes turnaround expert George Putnam.In The Turnaround Letter, he explains, "While investors are still wary of this group, there are cases where the market has overreacted and the stocks will eventually rebound dramatically." Here, he looks at four favorite regionals."Many regional banking stocks are now trading at a small fraction of their 'book value.'  In more normal times, most banks will trade for two to three times book value and sometimes more."However, it can be tricky to pick the rebound candidates because banks are by their nature very leveraged, and a small increase in non-performing loans can often wipe out the stockholders equity. "In searching through the long list of troubled banks, we decided to enlist the help of two groups of experts: federal banking regulators and ...
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Stryker (SYK): A 'hip' selection
2009-08-03 14:00:00
"Stryker Corporation (NYSE: SYK), one of the world’s leading medical technology companies, is our latest "stock of the month"," says Charles Mizrahi in his Hidden values Alert."Stryker has the most broadly based range of products in orthopedics and a significant presence in other medical specialties. "The company’s products include implants used in joint replacement, trauma, craniomaxillofacial and spinal surgeries; biologics; surgical, neurologic, ear, nose and throat, and interventional pain equipment."Stryker was incorporated in Michigan in 1946 as the successor company to a business founded in 1941 by Dr. Homer H. Stryker, a leading orthopedic surgeon and the inventor of several orthopedic products. "The orthopedic implants segment sells orthopedic reconstructive (hip, knee, and shoulder) and spinal implant systems."The company's net profit margin has been trending higher over the past five years and is currently ...
More About: Selection

Kinder Morgan (KMP): 'Paragon of consistency'
2009-08-03 14:00:00
"Kinder Morgan Energy Partners L.P. (NYSE: KMP) is a paragon of consistency; the stock continues to rise and the company continues to deliver on its expectations," says Jack Adamo.In his Insiders Plus newsletter, he explains, "The master limited partnership has made great strides in cost controls to compensate for the weak economic environment. When things turn around, it could really take off.""KMP is one of the largest and most respected pipeline and energy storage LPs in North America. It operates or owns interests in more than 26,000 miles of pipelines and 170 terminals. "Its pipelines transport crude oil, natural gas, fuels, other distillates, ethanol and CO2. Its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke."KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States. That’s the system by which CO2 is injected into oil wells to force the ...
More About: Consistency , Paragon

VisionChina (VISN): Media 'bargain'
2009-07-31 14:00:00
"If you travel by bus or subway in China, you will likely be exposed to countless screens put there by VisionChina Media (NASDAQ: VISN)," says Jim Trippon in The China Stock Digest."The company’s first-quarter net profit jumped 23.7% year on year to $6.7 million from $5.4 million a year earlier. In the quarter ending March 31, total revenues surged 100% year on year to $27.3 million."Operating profit was $6.1 million, up 35%, exceptional results for a company with a 9.1 P/E multiple. VisionChina Media says it’s expecting a surge in second quarter revenues upon easing of the global financial crisis."The company distributes advertising using real-time mobile digital television broadcasts to deliver content and advertising on mass transit systems in China. "Its digital displays can be found on buses, subway trains in Beijing, and other selected locations that can receive mobile digital television broadcasts.&qu...
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General Mills (GIS): Tasty selection
2009-07-31 14:00:00
"Few investments have a proven track record of defying a sinking economy and market, but General Mills (NYSE: GIS) is among them," says Martin Weiss in his Safe Money Report."You probably have some of General Mills ’ products in your pantry or freezer. The Minneapolis-based food firm makes everything from Cheerios and Chex cereals to Fruit Roll-Ups, Bisquick pancake mix, and Haagen-Dazs ice cream. "This broad consumer product line has helped it deliver solid single-digit earnings growth not only in good times, but also the worst quarters of the recession. Now, in its fiscal fourth quarter ended May 31, General Mills knocked the cover off the ball. "Its profit shot up 94%, while earnings excluding non-recurring items topped analyst estimates by a nickel per share. General Mills also hiked its full-year 2010 outlook, citing a widening out in profit margins. "Most important for conservative investors: General Mills’...
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Bet on Blackrock (BX): Crisis creates opportunity
2009-07-31 13:00:00
"As a private equity firm, The Blackstone Group, L.P. (NYSE: BX) makes money for itself and its investors by buying distressed companies, taking them private, turning the businesses around and selling them for a profit," explains Carla Pasternak.In her High Yield Investing, she says, "The financial crisis has created an abundance of out-of-favor and undervalued companies that have been Blackstone's bread and butter.""Founded in 1985, the private equity firm was once the exclusive preserve of wealthy private and institutional investors like pension funds and endowments."It went public in 2007 and raised a massive $4 billion in one of the largest initial public offerings on record. "The firm holds stakes in over 40 companies, manages hedge funds and other funds, and oversees corporate mergers, acquisitions, and restructurings. "BX has paid quarterly distributions of $0.30 per share since going public. Because of the difficult and uncert...
More About: Opportunity , Crisis