Copper was the darling of commodity traders. The price rallied from about $6,400 per ton to a record $10,190 in the past year, The Financial Times reports. Momentum was strong and it looked like there was no end in sight. But now, prices have dropped off a bit and miners are worried that the rally has hit a brick wall. The main concern is that what drove drove prices skyward -- China's demand -- may be slowing, according to the FT.
One indication of the slowdown is the amount of stocks held in exchange warehouses. At the LME Asia + Shanghai exchange warehouses, copper stocks have increased from below 150,000 to over 325,000 tons. That buildup has worried miners. The companies affected are Freeport MeMoRan (FCX), BHP Billiton (BHP), Xstrada (XSRAF), Anglo American and Brazil's Codelco, according to the Financial Times.
Continue reading Miners Hedge Copper Inventories as Demand from China Slows
Wynn Resorts (WYNN - option chain) shares are rising today on news that casino revenue in the Chinese province of Macau rose 48% to $2.5 billion in March, according to government statistics. WYNN owns one of the six casinos operating on the island. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on WYNN.
WYNN opened this morning at $130.00. So far today the stock has hit a low of $129.71 and a high of $135.59. As of 11:50, WYNN is trading at $135.29 up $8.13 (6.4%). The chart for WYNN looks bullish and S&P gives WYNN a positive 4 STARS (out of 5) buy ranking.
Continue reading Wynn Lifted by Surging Macau Revenue
There's a big ballyhoo about oil these days. With the turmoil in the Middle East, especially in Libya, the price of West Texas Intermediate (WTI) crude oil is priced over $100 per barrel. Gasoline at the pump is almost $4.00 per gallon.
Why then talk about an oil glut? We should first look at where our oil is coming from. Believe it or not, Canada is the biggest exporter of oil to the U.S. Canada is sending so much oil to the U.S. that our pipelines and storage facilities can't handle it. Reuters reports that our key storage facilities at Cushing Oklahoma are filled to capacity and are not equipped to handle the oil flow.
Continue reading Oil Glut at Cushing Oklahoma Could Last Two Years
In a recent letter to the governor of Illinois, Doug Oberhelman, CEO of heavy machinery maker Caterpillar (CAT), outlined his concerns about new state taxes that could force the Illinois-based company to move operations to another state. Reportedly, Wisconsin, Indiana and New Jersey are all courting the company.
With 23,000 Caterpillar employees in Illinois, the stakes are high. Hopefully, Governor Pat Quinn and Oberhelman will be able to work something out.
Continue reading Caterpillar Mulls Relocating: How Do You Move a Bulldozer Company?
An invasion of U.S. oil fields by Asian buyers is happening. Recently, companies from Korea, China and India have bought land in the oil-rich states of Texas, Colorado and Wyoming, according to Reuters.
In one of the biggest land deals, Korea National Oil (KNOC) bought one-third of Anadarko Petroleum's (APC) land holdings in South Texas for $1.55 billion. The purchase of 80,000 acres is located in the Eagle Ford Shale section, which is believed to have rich deposits of oil, natural gas and liquids, according to Reuters. KNOC also will receive 16,000 acres in the Pearsall Shale in South Texas.
Continue reading Korea, China and India Invade U.S. Oil Fields
Warren Buffett invested $232 million in BYD (BYDDF), a Chinese auto maker during the financial crisis, as reported by Reuters. As of December 2010 Buffett's 225 million shares were worth $1.18 billion. In 2009, the shares were valued at just under $2 billion. So from 2009 to 2010, Buffett's Berkshire Hathaway (BRK.A) lost about 40% of his investment.
But that is just the beginning. Now there is criticism surrounding the new Chinese car, dubbed the hybrid car F3DM.They center around two major areas, authenticity of the design and the overall workmanship of the car itself.
Continue reading Will Buffett Back Away from His Deal with BYD, the Chinese Auto Maker?
With Priceline's (PCLN) stock gaining a staggering 1800% ($23 Jan 2006 to $440 in Jan 2011) since the beginning of 2006, it comes as no surprise that it has been recognized as the single best-performing stock in the S&P 500 over the past five years. Priceline is the second largest player in terms of booking volumes after Expedia and competes with other leading online travel agencies such as Travelocity, Orbitz in the very competitive online travel industry in the U.S.
Continue reading If Priceline Harnesses Asian Growth, Shares Have Ample Upside
"Which stocks and which sectors are relatively inflation-proof while offering exposure to emerging market growth, particularly in China?" asks Glenn Rogers.
The contributing editor to Internet Wealth Builder explains, "I kept coming back to a basket of Chinese Internet stocks which, with a few exceptions, have not significantly pulled back with the rest of the Chinese market.
"There are a lot of things to like about the Internet in China where they had a total of 384 million web surfers at the end of 2009. That is greater than the entire population of the United States and that's with a penetration of only 23% so there is lots of room to grow.
Continue reading Online in China: Baidu (BIDU) and Youku.com (YOKU)
Amid the political and social uprisings in the Middle East, and union protests in the U.S., a recent speech by a pivotal U.S. policy maker received little attention, but it's one that investors should review.
In a speech before the recent G-20 meeting, U.S. Federal Reserve Chairman Ben Bernanke urged emerging market nations to address the flood of money streaming into their markets.
Continue reading Bernanke: Emerging Markets Need to Address Capital Flows
"Taiwan's economy and its stock market should post solid growth in 2011; we also see warming relations between the island of Taiwan and mainland China," suggests global specialist Yiannis Mostrous.
The editor of The Silk Road Investor explains, "Technology should be a major beneficiary of these near-term themes and Taiwan Semiconductor Manufacturing (TSM) is our favorite stock for exposure to the technology turnaround.
"Demand for notebook computers remains solid and mobile phones are expected to sell strongly during the Chinese New Year holiday this week, which will lead to inventory restocking.
Continue reading Taiwan Semiconductor (TSM): Tech Turnaround
China is allowing its citizens to buy physical gold bars. This new program is unleashing an unbridled demand for the metal. The program works this way: The Industrial & Commercial Bank of China (ICBC), China's largest, sells the bars to customers at real-time prices. Persons who own the bars can resell them to the bank.
To give you an insight into the magnitude of these sales, here are a few statistics. The ICBC sold 7 tons of bullion in January alone. In all of 2010, sales were only 15 tons.
Continue reading Chinese Citizens Are Hungry for More Gold
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