Posted May 9th 2008 1:00PM by Steven Halpern
Filed under: China, Newsletters, Mutual funds, Stocks to Buy
"A new era could be dawning in Taiwan," says Asia region expert Keith Fitz-Gerald. Here, the editor of The New China Trader looks at an ETF and a mutual fund favorite to benefit from this forecast.
"While there were many reasons we recommended investing in Taiwan, perhaps the single most important was the potential for Taiwan to assume its role as 'China's real beneficiary.'
"We have been reasoning that President-elect Ma Ying-jeou would be far more interested in working with China than antagonizing it, as his predecessor did. We have also suggested that he would 'get on it' sooner rather than later by making relations with China a top priority.
"Indeed, Vice President-elect, Vincent Siew has already 'unofficially' met with Chinese President Hu Jintao on the sidelines at the Boao Forum for Asia. While it's too early to pass judgment, it could set the stage for a new era based on the friendly nature of the meeting according to observers.
"It could also set the stage for a longer-term pan-Asian economic boom. That would be great for the region but especially China and Taiwan, which have had bone-chillingly cold relations for years.
"For China, a fresh start is important because it would allow Beijing to demonstrate peaceful intentions at a time when Tibet and the Summer Olympics have become a lightning rod for all things Chinese.
"For Taiwan, a thawing would lead to new economic development and, we think, previously unheard of levels of business interaction. It would also potentially carry huge trade volumes and stability into the surrounding countries.
"And that's why we reiterate that you buy iShares MSCI Taiwan ETF (ASE: EWT) as well as U.S. Investors China Regional Opportunity Fund (USCOX)."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted May 8th 2008 1:28PM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"Oil prices have made the headlines recently," says Martin Hutchinson in The Money Map Reporter. "But the miracle fuel of the 19th Century is coal, the forgotten fossil fuel."
"Coal is located primarily in politically stable, friendly countries - most notably the U.S. market itself. Coal prices have zoomed northward during the past year. The current spot price is around $135 per metric ton, more than double the level of a year ago. Meanwhile, coal production is running way ahead of forecasts.
"In 2005, the World Coal Institute reported production of 4,970 million metric tons, up 78% over 25 years. The main reason for coal's growth is that 80% of China's power needs and 65% of India's come from coal-fired stations.
"Since both India and China are expected to quadruple their power consumption by 2030, most of that increase must come from coal-fired stations. What are the best buys in the sector?
Continue reading Coal: The 'real black gold'
Posted May 8th 2008 10:55AM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
David Fried is a leading authority on corporate buybacks, focused exclusively on companies that are involved in repurchasing their own shares.
One of the latest 'buys' in his aptly-named The Buyback Letter, is consulting and outsourcing firm Accenture (NYSE: ACN). Here's the advisor's review.
"Accenture is a global management consulting, technology services and outsourcing company, collaborating with clients to help them become high-performance businesses and governments.
"They use industry knowledge, expertise and technological capabilities to help worldwide clients enter new markets, increase revenues in existing markets, improve operational performance and deliver their products and services more effectively and efficiently.
Continue reading Accenture (ACN): Buyback bet on consulting firm
Posted May 7th 2008 1:30PM by Steven Halpern
Filed under: Newsletters, Mutual funds, Stocks to Buy
"Right now, we have a rare opportunity to get paid a monthly double-digit dividend and buy the skills of a legendary investment manager for only 85 cents on the dollar," says Dr. Steve Sjuggerud.
Here, in Daily Wealth, the advisor takes a look at David Dreman -- -- noted contrarian advisor -- and the opportunity currently offered in his closed-end fund, Dreman Value Income Edge Fund (NYSE: DHG).
"David Dreman made one of the greatest calls in stock market history. In 1980, he told investors to buy stocks. He didn't just tell a few clients or friends to buy stocks.
"He literally wrote the book on buying stocks in 1980 -- Contrarian Investment Strategies in which he argued, 'The stock market appears cheap by nearly every historical standard.'
"At the time, saying 'buy stocks' was bold stuff. Stocks hadn't made money in 17 years. But Dreman was absolutely right. After 17 years of losses, the stock market started the longest bull run in recorded history, which stretched from 1982 until 2000.
"Fast forward to 2008. Dreman is guarded, but optimistic again. In the May issue of Forbes he says: 'Frightening as the markets look today, there will come a time when the liquidity crisis ends and today's prices for bank stocks look, in retrospect, like bargains.'
Continue reading David Dreman: Value manager trades at a discount
Posted May 7th 2008 11:30AM by Steven Halpern
Filed under: Earnings reports, Pfizer (PFE), Newsletters, Stocks to Buy
"Although Pfizer (NYSE: PFE) recently posted an 18% drop in its first-quarter earnings, I remain a long-term bull on the shares," notes Nilus Mattive in the income and growth oriented Dividend Superstars.
"Results were hurt by tougher generic competition for the company's blood-pressure drug Norvasc and allergy treatment Zyrtec. Pfizer pulled in $0.41 a share in the quarter, but would have earned $0.61 excluding costs associated with two acquisitions.
"A lot of investors are treating the poor earnings as a death knell for the company, especially since Lipitor - PFE's biggest product - will also lose patent protection in 2010. However, I've watched countless drug stocks go through these cycles before, and I continue to believe it's smarter to buy when things look the worst.
"This is still the world's largest drug company ... it still delivers big, fat dividend checks ... and it is making strong moves to reorganize its operations and focus on new drug development. For all those reasons, I remain positive on the shares."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted May 7th 2008 9:43AM by Steven Halpern
Filed under: Walgreen Co (WAG)
"Shares of Walgreen (NYSE: WAG) have come under pressure in recent months, reflecting a slowdown in sales because of a weakening economy and intensifying competition," notes Richard Moroney.
The editor of Dow Theory Forecasts adds, "However, Walgreen's long-term prospects remain appealing, and the stock is attractively valued. Walgreen is a Long-Term Buy." Here is his review.
"Big, strong, and healthy, Walgreen is the largest U.S. drugstore chain as measured by revenue and the second-largest based on store count.
"The company operates more than 6,200 stores in 48 states and Puerto Rico and plans to boost the count to 7,000 by fiscal 2010 ending August. Walgreen sees long-term potential for about 13,000 U.S. stores. Prescriptions generate about 65% of total sales, with the rest coming from general merchandise.
"In fiscal 2007, both pharmacy and general merchandise sales growth outpaced the industry average, and Walgreen increased market share in nearly all of its core categories.
Continue reading Walgreen (WAG): A 'big, strong and healthy' buy
Posted May 6th 2008 1:17PM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Agriculture, Stocks to Buy, Green Stocks
Peter Way selects his buys by following the trading activity of block traders -- those making large, million dollar bets. Here's the latest from his Block Trader Oil & Gold Monitor.
"The volume stock market liquidity-providers are hedging their necessary position risks in ways that foretell declining oil stock prices. Their records on such outlooks in the past are pretty good, so pay attention.
"The million-dollar market-makers are not always right, and here they tend to be a bit early, but it's obvious they can save you some grief and provide a chance to pick up some meaningful extra profit.
"From our recent review of energy ETFs, we also note that the pros' perception seems to be that energy stocks have been bid up too far. Ok, so what to do? Sell the oil holdings? Then where to put the proceeds?
Continue reading Solar & shipping: Bets from big block traders
Posted May 6th 2008 11:35AM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
"On the strength of two key acquisitions, Brightpoint (NASDAQ: CELL) has become the largest global distributor of wireless devices," says quantitative analyst Vahan Janjigian of Forbes Growth Investor.
"The acquisitons helped boost the number of wireless products handled in 2007 by 55% to 83 million. The company is also the leading provider of customized logistics services to the wireless industry.
"CELL purchases cell phones, batteries, chargers, and memory cards, and then sells them to a global network of 25,000 customers.
"The objective is to acquire distribution rights to products offering the greatest potential for growth. It sells brands made by LG Electronics, Nokia, Kyocera, Motorola, Samsung, Sony, Siemens, and Ericsson. This category produced 92% of total 2007 revenues, but it had a gross profit margin of just 4.24%.
Continue reading Brightpoint (CELL) shines for Forbes quant
Posted May 6th 2008 10:33AM by Steven Halpern
Filed under: Microsoft (MSFT), PepsiCo (PEP), Newsletters, Walgreen Co (WAG), Regions Financial (RF), Procter and Gamble (PG), Stocks to Buy
"Socially Responsible Investing (SRI) is no longer relegated to a tiny corner of the investment landscape; indeed, according to the Social Investment Forum, SRI now accounts for $2.7 trillion, up more than 18% since 2005," says Chuck Carlson.
Here, the editor of The DRIP Investor offers five stock that both rank high for their social responsibility and also stand out based on more traditional earnings and valuation analysis.
"The Social Investment Forum estimates that more than one in every 10 dollars under professional management in the U.S. is involved in SRI investing. What is driving the growth in SRI?
"One factor is the increasing numbers of women and younger investors among the investor populace have fueled demand for SRI investments.
"In addition, we see an increased focus on environment, social, and corporate governance issues. Further, widely publicized stories concerning global warming as well as various corporate governance issues, have caused many investors to reconsider how they deploy their investment capital.
Continue reading Socially responsible favorites
Posted May 5th 2008 11:35AM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
Two leading advisors with noted expertise in the biotech sector have both been long-term fans of Celgene (NASDAQ: CELG), both holding the stock in their respective model portfolios.
Here, Nate Pile, editor of Nate's Notes, and John McCamant, editor of The Medical Technology Stock Letter, each take a look at the encouraging prospects for this biotechnology firm.
Nate Pile explains, "Now that the Pharmion merger is behind us, it appears that investors are once again
recognizing Celgene for what it is – namely, one of the premier stories in the biopharmaceutical space.
"As I have said a number of times before, if I could only own one biotech stock for the next ten years, Celgene would be it... and I encourage you to make it a 'first choice' for your portfolio as well!
"The stock is likely to exhibit its usual volatility around the company's upcoming earnings report, but I encourage you to take advantage of any sell-off that may occur to aggressively add to your position in this market leader. CELG is now considered a strong buy under $60 and a buy under $68."
John McCamant states, "Celgene had some good news of late on the thalidomide front. The company has received approval of the application to expand the drug's label to treat newly diagnosed multiple myeloma (MM) patients in Australia.
Continue reading Biotech experts bet on Celgene (CELG)
Posted May 5th 2008 10:00AM by Steven Halpern
Filed under: Newsletters, Wells Fargo (WFC), Bargain stocks, Stocks to Buy
The model portfolio of Insiders Plus gains 48% last year; here, editor Jack Adamo reviews two of his portfolio holdings -- both bank stocks being accumulated by Warren Buffett's Berkshire Hathaway.
"U.S. Bancorp (NYSE: USB) reported a slight decrease in Q1 earnings of 62¢ per share versus 63¢ last year; the shares rose 2.8% the next day. Compared to the disastrous results of its peers, this small decline in earnings was a home run.
"That's a testament to the company's savvy managers. USB steered clear of the toxic problems that choked most banks. Only 2.7% of its loans are subprime.
"Warren Buffett's Berkshire-Hathaway continues to buy the stock steadily. Recent SEC filings show that in the fourth quarter of 2007 Berkshire increased its share of the Minneapolis-based bank by 3 million shares to a total of 75 million.
"This represents 4.4% of its shares outstanding, and up tremendously from its stake of 23 million shares just a few years ago. The Wizard of Omaha knows what he likes and why he likes it.
"Meanwhile, Wells Fargo & Company (NYSE: WFC) reported Q1 earnings of 60¢ per share down 9% year-over-year, but up 46% from the December quarter. Like USB, Fargo shares continue to be accumulated at Berkshire Hathaway.
"The stock is a solid long-term buy, with good prospects of steadily raising its 4.2% dividend. It has capital appreciation potential to boot, especially after the housing hangover abates."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted May 1st 2008 1:25PM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"Arch Coal (NYSE: ACI) is fired up from its first quarter earnings; the results were well above analysts expectations," notes Joseph Hargett.
And with 13.5 million shares of the stock sold short, the analyst with Schaeffer's Research explains, "Shorts account for about 9.5% of the stock's float, which could result in a short squeeze." Here is his review.
"Net income nearly tripled to $81.1 million, or 56 cents per share. Revenue for the auarter rose to $699.4 million from $571.3 million. For the year, Arch Coal lifted its earnings estimate to a range of $2.40 to $2.80 per share, versus Wall Street's consensus view for $2.43 per share.
"Digging into the report, the company noted that profit margins were particularly wide in the Central Appalachia region, while higher prices for coal and cost controls also contributed to the results. Arch noted that the average sales price per ton rose 9.7% to $18.49 from $16.85, while the cash cost per ton rose less than 1% to $13.05 from $12.93.
Continue reading Arch Coal (ACI): All fired up
Posted May 1st 2008 11:55AM by Steven Halpern
Filed under: International markets, Newsletters, Commodities, Oil, Agriculture, Stocks to Buy
"One of my favorite was to play the market is to find a hot area and then invest in companies that provide products to support that market," says Dave Dyer.
In The Dave Dyer Newsletter he explains, "Bucyrus International (NASDAQ: BUCY) is a domestic heavy equipment manufacturer that is focused exactly in the areas that will benefit from the global commodities boom.
"The company's products are focused on mining for coal, iron ore, copper, oil sands, and other minerals needed to support the global infrastructure expansion. Mining is hot right now, and all mines need mining equipment. "Rapid industrial expansion in Asia and Eastern Europe requires raw materials. This trend is not likely to stop soon.
"BUCY is a very old company. In 1880, they started as a small foundry in Bucyrus, Ohio. By 1904, they were supplying excavation equipment for one of the largest projects in the world, the Panama Canal. By 1969, they were making earth moving equipment that was almost 22 stories tall. If you need to dig a really big hole, talk to BUCY.
Continue reading Bucyrus (BUCY): Global boom in heavy equipment
Posted Apr 30th 2008 11:42AM by Steven Halpern
Filed under: Newsletters, Deere and Co (DE), Commodities, Agriculture, Stocks to Buy
Leo Fasciocco is a technical expert who focuses exclusively on finding breakout candidates. In his Ticker Tape Digest, he looks to agriculture equipment manufacturer Deere & Co. (NYSE: DE).
"Deere, with annual revenues of $24.8 billion, makes agricultural, industrial, forestry, and lawn-care equipment. DE is benefiting from the strong demand for its products in the farm sector. The company is also expanding aggressively in Russia.
"DE has broken out from a 13-week flat base. Its long-term chart shows DE soaring from 20 in 2003 - the start of the prior bull market - to 92. It has been a big winner in the big cap sector. The stock has gained 65% in the past 12 months versus a 5% drop in the S&P 500 index.
"The stock is in a base bracketed between roughly 78 on the downside and 91 on the upside. The breakpoint was set at the key upside resistance of the base. Deere has plowed through that resistance on increasing volume.
Continue reading Breakout bet on Deere (DE)
Posted Apr 30th 2008 10:48AM by Steven Halpern
Filed under: International markets, China, Brazil, Newsletters, Freep't McMoRan Copper (FCX), Commodities, Stocks to Buy
"There's no doubt about it: vital resources are in a bull market of gigantic proportions," note Yiannis Mostrous and Roger Conrad.
"The co-editors of Vital Resource Investor caution that "no market moves in a straight line, and in commodities, the action is often extremely violent." However, for long-term investors, they offer some favorites in iron ore, aluminum and copper.
"All commodity bull markets are ultimately gored by demand destruction, alternatives and new supply. But it will almost certainly be years before that happens to this one. And that means plenty of money will be made along the way.
"We're still extremely bullish on iron ore as the market remains in deficit and prices continue to rise. Chinese domestic supply has been falling and, if this continues, imports will make up the difference, thereby helping the miners.
"China consumes 51% of the world's iron supply. Portfolio holding Companhia Vale do Rio Doce (NYSE: RIO), the world's largest iron ore producer, will benefit from the shortage in iron ore supply.
"We favor aluminum in the industrial metals sector. We've been advocating aluminum for some time, and the market's finally going our way. Aluminum prices have been impacted by lack of available power in China and South Africa and higher alumina and bauxite prices.
Continue reading Mining trio: Iron ore, aluminum and copper
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