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Diageo (DEO): Toast to growth & income
2009-07-22 06:00:00 "Diageo (NYSE: DEO), the world's largest spirit maker, offers a solid and safe dividend, as well as the potential for strong capital appreciation," says Louis Basenese.The senior analyst for the prestigious The Oxford Club suggests, "Moreover, investors can also prepare for a US dollar decline by buying these shares." Here's his bullish outlook."Headquartered in London, roughly 70% of the company's sales come from outside the United States. So any dollar dip will increase the value of our ADRs. "Moreover, management concedes that positive currency tailwinds in the other countries where Diageo sells spirits will help the company easily grow earnings by double digits this year."Sound dollar hedge? Double-digit earnings growth? Those two factors alone justify an investment. But it gets better. Diageo also sports top-notch fundamentals..."As the world's biggest spirits company, it operates in over 180 countries, which provides... More About: Income , Growth , Toast
The Adens on gold
2009-07-21 14:00:00 "Gold has yet to take off in true bull market fashion, but its chart suggests that it’s coming," says Mary Anne and Pamela Aden. In their top-notch The Aden Forecast, the resource experts discuss the outlook for gold as well as some of their favorite mining stocks for investors to consider."Considering that the Summer months tend to be slow months, we could still see some short-term weakness. "More important, however, is the bigger picture as gold is poised to rise during the second half of the year." Here, they discuss their outlook and some favorite ming stocks."On the upside, gold is strong above $920 and shows renewed strength above $950. It would be very strong above $985 and a full on bullish C rise and new phase of the bull market would happen above $1004, the record high. "On the downside, if gold weakens during these Summer months, it would happen below $920. It could then go to possibly $882, or to the April low near $868. Howe...
SmartHeat (HEAT): Energy savings
2009-07-21 14:00:00 "SmartHeat (NASDAQ: HEAT), is a play on saving money, increasing energy efficiency, less pollution, and China’s stimulus," says small cap expert Tom Bishop in BI Research."In our view, the profitability of this company -- maker of Plate Heat Exchangers -- is only expected to improve despite the global recession."Installing more efficient heating and heat transfer products can save money by saving energy and by burning less energy per unit of heat, this helps to reduce pollution and thus is right up there on the list for China’s $586 billion stimulus package."Proposed spending in China's stimulus package includes $58 billion for funding of rural and urban infrastructure and energy efficiency projects. There have been a number of developments that have pushed the stock up 47% since my initial recommendation in December."First the company reported earnings. Q1 is a slow quarter for the company in part due... More About: Energy , Savings
Celgene (CELG): Biopharma bet
2009-07-21 14:00:00 Celgene (NASDAQ: CELG), which develops treatments for cancer and immune-inflammatory disease, is a stock of the month," from Dennis Slothower in Stealth Stocks."The drug and cell therapies developed by CELG are designed to treat life-threatening diseases or chronic debilitating conditions where patients are poorly served by current therapies. "CELG is investing in a range of innovative therapeutic programs that are investigating ways to treat and manage chronic diseases by targeting the disease source through multiple mechanisms of action. "Its three hematology products significantly impact survival of patients with cancer and other diseases. "The company continues to develop breakthrough products in areas of unmet medical need, creating one of the deepest and most diverse clinical pipelines in hematology and severe inflammatory diseases. "Despite a very challenging environment, CELG’s global reven... More About: Celgene
China funds for growth and income
2009-07-20 14:00:00 "China is one of the hardest places on the planet to find high yields," says income specialist Carla Pasternak.However, in her High Yield Investing, she suggests, "We found some select China funds that do offer a dividend yield along with tremendous long-term potential." Here, she looks at two favorites: Oberweis China Opportunities (OBCHX) and Matthews China (MCHFX)."I think we're in the early stages of China's economic boom, and I believe the country can continue to grow at a high single-digit pace for the next decade; if that happens, then plenty of Chinese companies will provide handsome returns for their shareholders."The Oberweis China Opportunities is taking full advantage of some of China's best investing opportunities. It invests at least 80% of its assets in Chinese securities. The fund generally invests in small and mid-cap companies, and its holdings have an average market cap of about $850 million.The fund wa... More About: Income , Growth , Funds
MarketWatch's technical look
2009-07-20 06:00:00 "The technical backdrop has taken a distinctly bullish turn," says Michael Ashbaugh. in MarketWatch's The Technical Indicator he looks at the market averages and a trio of trades."Perhaps most obviously, the S&P has staged a 10-to-1 rally, and a 28-to-1 spike, from its 200-day moving average. And by any measure, this raises a bullish technical flag."With a gravity-defying rally, the S&P extended its gains, clearing resistance at 930 last Thursday. From current levels, significant resistance holds at the 2009 closing high of 946 while initial support rests at 930."Meanwhile, the Dow's near-term view is similar. With this week's rally, it's staged a 'V'-shaped reversal, breaking to one-month highs. Looking ahead, significant resistance holds at 8,799 - matching the 2009 closing high - while support rests at 8,580, matching the breakout point."The Dows spiked atop both major moving averages this week, notching one-...
Breakout for KONG
2009-07-17 14:00:00 KongZhong (NASDAQ: KONG), a Chinese mobile telecom player, is a recent featured buy from Leo Fasciocco, a technician focused on breakout situations in his The Ticker Tape Digest."The firm said it is one of the largest mobile game publisher/developers in China. It sells its products through the Chinese telecom carriers' networks. "The company generally receives 60% to 85% of the revenue for services delivered and pays the remainder to these operators for transmission and service fees. The firm relies on these carriers to collect money from its customers."The stock came public back in 2004. The shares made their peak around 15, before pulling lower due to the severe bear market. This year the stock has rallied strongly. Indeed, it has been a star performer, rising 180% the past 12 months versus a 25% drop in the S&p 500 index."After surging from 4 earlier this year to 10, the stock has rested and formed a flat base. The base was well formed s...
Duoyuan (DGW): Water pollution in China
2009-07-17 14:00:00 "Decades of rampant economic growth have taken their toll on Chinese waterways; a recent survey found that nearly all — 95% — of urban water samples were polluted," explains China expert Tony Sagami.In his Asia Stock Alert, he suggests, "Duoyuan Global Water (NYSE: DGW) recently went public on the NYSE; I believe it’s the most profitable way to profit from China’s desperate need to clean up its polluted water.""Much of China’s meager water supply isn’t safe to drink. One-third of the country’s rural population — an estimated 360 million people — does not have access to safe drinking water because more than 70% of China’s rivers and lakes are polluted."Nearly half of China’s 640 major cities face water shortages, with 100 facing severe shortages. Some 278 cities in China don’t have any wastewater treatment facilities whatsoever and dump raw sewage directly into their local ... More About: Pollution
Playboy (PLA): Bunny buy
2009-07-17 14:00:00 "Playboy Enterprises (NYSE: PLA) is a speculative stock, with plenty of potential but also downside risk," suggests Alex Green. In The Oxford Club, he eyes the firm's turnaround potential."Yes, Playboy's publishing empire is a big money loser. But it still has one of the most recognized brands in the world. The rabbit head logo generates more than $1 billion in licensing fees annually. "When you consider that Playboy Enterprises has a market capitalization of a little over $100 million, you begin to see how undervalued this stock is. "In 2006, Playboy opened an entertainment venue at the Palms Resort in Las Vegas, including a casino and nightclub. Early results are good given the current economy. The company is in the process of building its second such destination in Macau. "Moreover, Playboy is under new management. Hugh Hefner’s daughter Christie – after struggling at the helm for years – finally ste... More About: Bunny
Duoyuan (DGW): Water pollution in China
2009-07-17 14:00:00 "Decades of rampant economic growth have taken their toll on Chinese waterways; a recent survey found that nearly all — 95% — of urban water samples were polluted," explains China expert Tony Sagami.In his Asia Stock Alert, he suggests, "Duoyuan Global Water (NYSE: DGW) recently went public on the NYSE; I believe it’s the most profitable way to profit from China’s desperate need to clean up its polluted water.""Much of China’s meager water supply isn’t safe to drink. One-third of the country’s rural population — an estimated 360 million people — does not have access to safe drinking water because more than 70% of China’s rivers and lakes are polluted."Nearly half of China’s 640 major cities face water shortages, with 100 facing severe shortages. Some 278 cities in China don’t have any wastewater treatment facilities whatsoever and dump raw sewage directly into their local ... More About: Pollution
'Green shoots' for Corning (GLW)
2009-07-16 14:00:00 "Corning (NYSE: GLW) is seeing green shoots; it recently announced significant gains in demand for LCD glass due to strong TV sales," says Tracey Ryniec of Zacks Research."Corning is a specialty glass, ceramics and optical fiber manufacturer. It produces glass for LCD flat panel TVs and laptops, ceramic substrates, cable for Internet communication networks and advanced optics and specialty glass for various industries."Overall, LCD TV demand remains hot. The company is seeing much stronger demand for glass in the second quarter than it anticipated even just a few weeks ago."The company expects second-quarter sequential volume to rise about 100% at its wholly owned business which is higher than the 75% growth it projected in May."LCD television sales have been hot overseas. Retail data shows April sales rose 22% in Europe and 77% in China. In May, sales climbed 48% in Japan. "In the US, sales appear to have slowed in April after a still-strong ... More About: Green , Shoots
A trio of muni bond funds
2009-07-16 14:00:00 "Think munis are a risky deal?" asks income expert Neil George. In his Stocks that Pay You, he states, "Don't. Instead, buy them now." However, rather than buying individual bonds, the advisor suggests that investors focus on buying closed-end muni bond funds. Here, he looks at a trio of favorites."The muni market isn't for the uninformed or the novice. Unlike the treasury market and much of the corporate market - when it comes to munis - you have to know each bond inside and out before you buy, and keep tabs on it after you buy."Everything - from visible supply, calls, sinking funds, and underlying backing and assets, to who is trading them - comes into play. I know - I've traded them professionally. This is why I like the closed end funds."I continue to recommend three very specific closed-end muni funds that have proven out to pay and perform: they are the AllianceBerstein National Muni Income (NYSE: AFB), the Nuveen Quality Inc... More About: Bond , Funds , Trio
Intel (INTC): 'x86 everywhere'
2009-07-16 14:00:00 Strong results for Intel (NASDAQ: INTC) came as a surprise to Wall Street; not to Paul Williams, who has been adamant in his forecast that the company would exceed expectations.In his Next Inning newsletter, the technology sector specialist suggests that the story behind Intel's success is very simple and can be summed up in the expression "x86 everywhere." Here's his assessment."To a great extent, Intel's Q2 report proves that Wall Street wasn't only wrong about INTC, but wrong in a big way as to how the tech industry has managed the sharp downturn that unfolded during the last nine or so months."While The Street expected tech companies to react as they have in the past by adapting too slowly and stuffing supply channels with tons of inventory, tech companies demonstrated they learned lessons in 2001- 2002 and immediately clamped the supply lines and held back production while channel inventory was digested."I'm not going to suggest that...
E-Trade (ETFC): Takeover target?
2009-07-16 06:00:00 For the speculatively-inclined, stock expert Mark Skousen looks to E-Trade Financial Corp. (NASDAQ: ETFC), and asks, "Is the company a takeover target?" In his Hedge Fund Trader Alert, he considers that possibility noting, "With 4.5 million accounts, the online broker might be an enticing opportunity.""The high-profile online brokerage firm may be entering stage two of its recovery plan, having announced that it has completed issuing 65 million new shares worth $550 million."Altogether, E-Trade now has raised nearly $2 billion in fresh equity capital to alleviate regulators’ concerns about its roughly $23 billion loan portfolio, including its troubled mortgage securities investments. "Much of the capital involves convertible debentures, but this obligation is favorable toward E-Trade, as the company avoids interest payments with a zero coupon bond."Meanwhile, its online business (4.5 million accounts) continues to expand and se... More About: Takeover , Target
'Emerging' gains in currencies
2009-07-15 14:00:00 WisdomTree Dreyfus Emerging Market Currency (NYSE: CEW) is a new featured idea from exchange-traded fund expert Carl Delfeld. Here's the latest from his Chartwell ETF Advisor."This brand new emerging market currency ETF offers investors the opportunity to gain access to emerging market currencies."The countries in this basket of currencies include Brazil, Chile, China, the Czech Republic, Hungary, India, Israel, Malaysia, Mexico, Poland, Russia, Singapore, South Africa, South Korea, Taiwan, Turkey, and Thailand."Diversification into these emerging market currencies has the potential of helping your global portfolio in a number of areas, principally, higher yields, stronger economic growth leading to chances for appreciation."Emerging market currencies also offer exposure to non-correlated assets that will likely move opposite or contrary to equities and other asset classes."Emerging market equities react to factors independent of those factors ... More About: Currencies
Guangshen (GSH): On track
2009-07-15 14:00:00 "Rail stocks are a good barometer of economic health in the US; what about booming China?" asks Brandon Clay. In Invest with an Edge, he eyes Guangshen Railway (NYSE: GSH)."As such, it stands poised to benefit as China's economy does the only thing it knows how to do: grow. Oddly enough, Guangshen is the only railroad listed on the NYSE based in a country other than the U.S. or Canada."Guangshen Railway should benefit from China's growing appetite for infrastructure projects. After all, someone has to move all that steel and other construction materials across a very large country. "Rail operators like Guangshen will also be counted on to deliver oil, coal, copper and other commodities to destinations throughout mainland China."The stock, which yields 2.5%, has returned more than 28% thus far in 2009. Guangshen is reasonably valued compared to other China stocks at less than 19 times earnings for the trailing 12 months.&nbs... More About: Track
Wyatt calls on Verizon (VZ)
2009-07-15 14:00:00 "We're at the early stages of witnessing a transformation of wireless activities away from voice and towards data for personal and business customers," says Ian Wyatt.In The Recovery Portfolio, he adds, "This portends great things Verizon (NYSE: VZ), which has the best wireless network in the U.S. in terms of reliability and innovation, and a wealth of high-end wireless data users already.'"Verizon provides wireline service to 35 million access lines and 87 million wireless customers. It recently picked up 13 million of these wireless subscribers upon completion of its $28 billion purchase of privately held Alltel in January. "My investment thesis for Verizon is all about growth in its wireless operating segment. Smartphone penetration, which is more profitable for Verizon, is still small and growing very rapidly. "While more affluent individual and business users have been using Smartphones such as the Blackberry, Palm,... More About: Calls
Tech trio: Investing in 'Killer Apps'
2009-07-14 14:00:00 "We believe that the recent relative strength of tech stocks is the start of a longer term trend, not merely a flash in the pan," says Jim Oberweis and Dave Covas.In The Oberweis Report, they explain, "Our confidence stems from the emergence of the next Killer Apps, which drive technology cycles because they change how we live our lives." Here, they make a case for technology and offer a trio of small cap favorites."During the 1980’s and early 1990’s, the personal computer was the Killer App. During the late 1990’s, it was the Internet. During this decade – zilch." Until now. The next Killer Apps – video-on-demand and ubiquitous high-speed wireless connectivity – are coming. "During the next 10 years, video-ondemand will change how we watch TV and see movies. Soon enough, you will be able to watch what you want, when you want. Say adios to the traditional TV networks, and maybe e... More About: Tech , Investing , Trio
Outperformance for Asia Small Cap (MSMLX)
2009-07-14 14:00:00 "Matthews Asia Small Companies Fund (MSMLX) was among the top-performing funds of the first half of 2009, with a return of more than 47%," says Mark Salzinger.In his No-Load Fund Investor, he suggests, "Though volatile, it wouldn’t surprise us in the least if Matthews Asia Small Cap turned out to be one of the top-performing funds we cover over the next decade." Here is the fund's expert's review."The fund has benefited so far this year from its focus on China and India, two of the year’s best-performing stock markets. "However, the fund’s mandate to invest in developing Asia’s small companies also has been a boon. "Generally speaking, small Asian companies tend to be more targeted to their domestic economies and less export oriented than many large Asian companies."With domestic demand throughout some developing Asian countries holding up better than demand in the U.S., Western Europe and Japan, the domest...
A 'concrete' idea in China
2009-07-14 14:00:00 "China will account for about 40% of cement consumption in 2010," says Konrad Kuhn. In The Kon-Lin Letter, he looks at China Advanced Construction Materials (Other OTC: CADC)."China has been referred to as the world's largest construction site, using mor than 50% of the world's cranes. It accounts for half of all building activity in the world."The Chinese government's continued efforts to modernize the country's infrastructure is exemplified by such massive projects as the South-North Water Diversion, designed to redirect water to the northern plains from Central and South China. "This project alone will account for cement consumption of over 1 million metric tons per year; this project will take an estimated 40 years to be completed."Much of China's $586 billion stimulus package is allocated towards infrastructure projects, a key focus of China Advanced Construction."The company produces and supplys advanced ready-mi... More About: Idea , Concrete
Favorite BRIC stocks
2009-07-13 14:00:00 "Inflationary fears and the desire to generate higher returns in non-dollar assets should boost BRIC stocks (Brazil, Russia, India and China)," says Chuck Carlson in his The DRIP Investor."Despite the run-up this year, BRIC stock markets are still reasonably valued. Russia, India, and Brazil all trade at price/earnings ratios similar to the U.S."And while China’s stock market does trade at a premium to the U.S., China’s economic growth will swamp that of the U.S. this year and for the foreseeable future. "Bottom line: When considering where to allocate international dollars, the case for a greater allocation to BRIC countries is compelling."Among the BRIC stocks, I especially like Baidu (NASDAQ: BIDU) and China Mobile (NYSE: CHL). "Baidu, based in China, provides Internet search services primarily in China and Japan. The company is often compared to Google in terms of its dominance in the search market in China. &qu... More About: Stocks , Favorite
Bernie's bets: Longs & shorts
2009-07-13 06:00:00 Bernie Schaeffer selects stocks based on a combination of fundamental, technical and sentiment-based metrics. In assessing sentiment, he is know for taking a contrarian stance -- trading against the prevailing sentiment shown by options traders and short sellers. Here's a look at some long & short trading ideas from his Schaeffer's Master Portfolio."I initiated a long position in Shanda Interactive (NASDAQ: SNDA). Price action for SNDA has been strong, with the stock gaining more than 70% year-to-date. "The stock has recently pulled back to potential support near its 50-day moving average. Upgrades are a possibility for SNDA, as only 5 of the 9 analysts rate the stock a 'buy.'"I also initiated a long position in Riverbed Technology (NASDAQ: RVBD), which has been in a strong uptrend since reaching a low in November 2008. In fact, the equity has gained more than 92% year-to-date. "The stock recently pulled back to potent... More About: Shorts , Bets
TransCanada (TRO): Gas is a 'screaming buy'
2009-07-10 14:00:00 "Our focus this summer remains on building positions in the bombed-out natural gas market; there’s no other commodity this depressed, this unwanted and trading at such distressed levels," says Eric Roseman.In his industry-leading, The Commodity Trend Alert, the resource expert explains, "Indeed, the bombed-out natural gas sector is screaming 'buy'." Here, he looks at TransCanada Corp. (NYSE: TRP)."The way prices have been heading over the last several months you’d think the world doesn’t use this clean-burning fossil fuel anymore."Natural gas prices remain 70% off their 52-week high and more than 75% below their all-time highs almost four years ago when Hurricane Katrina smashed the Gulf of Mexico. "And historically, the oil-to-gas ratio signals a major buy signal for natural gas with the spread or difference between crude oil to gas at 17.5. That’s a huge spread."Our newest portfolio position in this ...
Medco (MHS): Ben Graham value
2009-07-09 14:00:00 The Cabot Benjamin Graham Value Letter assesses stocks based on the investing criteria of legendary value investor. Here, editor J. Royden Ward looks at Medco Health (NYSE: MHS)."Medco is the largest pharmacy benefit manager in the U.S. Spun off from Merck & Co. in 2003, the company processes and pays for prescription drug claims."As an intermediary, Medco negotiates discounts from drug manufacturers and sells at a discount to pharmacies, health plans and Medicare Part D participants. In addition, Medco lowers clients’ costs by encouraging the use of generic drugs."How cheap is Medical Health Services? The shares are undervalued at 16.3 times forward EPS. The company is well-positioned in the fast-growing pharmacy benefit management (PBM) sector."MHS is profiting from the increasing use of mail order to purchase drugs, as well as the increasing use of generic drugs compared to prescription drugs. We expect the company to pursue ac...
Investing in Israel
2009-07-09 06:00:00 "Our latest pick is a bet on a low-profile foreign market, Israel , which has turned out to be one of the world's top performers this year," says Nicholas Vardy.In The Global Bull Market Alert, he explains, We recommend the iShares MSCI Israel Cap Invest Market Index (NYSE: EIS), as I expect the Israeli market to continue to perform well over the next few months.""Global markets continue to be locked in a trading range, consolidating their gains of the last four months; this kind of see-saw trading is actually quite typical of the summer months, and I expect the range-bound trading to continue."On the one hand, it would take a spate of unexpectedly bad news to take global stock markets much farther down from their current levels. On the other, the markets are so technically oversold that they are due for at least a moderate bounce."In particular, I like Israel. First, before the onset of the global recession, Israel’s GDP has been growing solid... More About: Investing
Perrigo (PRGO): A generic favorite
2009-07-08 15:00:00 "Like others, I've been trying to figure out how to play President Obama's policy initiatives in healthcare," says Glenn Rogers.The contributing editor to Gordon Pape's Internet Wealth Builder adds, "I think the generic drug makers have the best chance of coming out of the upheaval in healthcare smelling like roses." Here, he looks at one favorite: Perrigo (NASDAQ: PRGO)."I've chosen two lesser-known generic drug makers to recommend; I think both should reward investors over the next 12 months with market-beating performances."Perrigo Company is a leading manufacturer of generic over-the-counter and prescription pharmaceuticals. "When you go to your local drugstore and see the retailer's private label of Aspirin or cough syrup selling for substantially less than the branded versions, there's a good chance that Perrigo was the manufacturer of that product. "The company also produces a b... More About: Favorite , Generic
Biotech ETFs: Bets on health care reform
2009-07-08 15:00:00 "Health care reform could mean opportunities for astute investors," says Brandon Clay in his top-notch Invest With an Edge.Here, eyes two biotech ETFs that "should be on everyone's watch list." The advisor notes, "With health care on the front burner in Washington, these biotechnology ETFs may finally be ready to pop.""Investors in health care should think outside the realm of traditional pharmaceutical companies and health insurers. Those sectors are each facing headwinds that make stock picking difficult."In addition, several big pharma companiesare desperate to reload their empty pipelines in the face of increased competition from generic drug makers. Acquiring a smaller biotech firm is the easiest way for a pharma giant to find a potential new blockbuster drug."The best way to play the government-sponsored health care boom is through biotech ETFs. Today, we focus on the two that should be on everyone’s watch l... More About: Health Care , Reform , Care , Bets
Fuqi (FUQI): Peter Lynch jewel?
2009-07-08 06:00:00 In his Validea newsletter, John Reese assesses Fuqi Int'l (NASDAQ: FUQI), a designer of jewelry in China,on the long-term investment strategy 0f the legendary investor Peter Lynch."The company develops, promotes and sells a range of products in the Chinese luxury goods market.The compay has 69 retail jewelry counters and stores in China."According to the Lynch model, this company would be categorized as a fast grower."The Lynch strategy suggests that investors should examine the P/E (10.82) relative to the growth rate (42.99%), based on the average of the 3, 4 and 5 year historical eps growth rates, for a company. "This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for FUQI (0.25) is very favorable."This methodology favors companies that have several years of fast earnings growth, as these companies have a proven formula for growth that in many cases can continue many more years... More About: Jewel
At home with real estate
2009-07-07 06:00:00 "While many won't agree with me, I believe U.S. real estate prices have bottomed and are on the rise," says Larry Edelson. In Uncommon Wisdom, he eyes an ETF in the sector."Mind you, my forecast doesn't mean property prices in every town in the US have hit bottom. Nor does it mean you should run out to blindly buy property and expect to get rich on it overnight."But all the evidence I see tells me real estate prices in the U.S. are now a bargain ... that we're at the bottom ... and that there will be a recovery in property prices, albeit slowly, over the next several years. Amongst the evidence I see ...#1. New home inventories are now at previous recession lows. This is not to say inventories of new homes can't fall lower. But as inventories fall, so does the supply of new homes, which is generally bullish for prices. Looked at another way, the bulk of the oversupply of new homes has largely been worked off.#2. Existing home inventories... More About: Estate , Real Estate , Home , Real
Happy July 4th
More articles from this author:2009-07-03 06:00:00 We wish all our readers and advisors a happy and safe July 4th holiday. More About: Happy 1, 2, 3, 4, 5, 6, 7 |
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