I first wrote about Schlumberger (SLB) here on May 6, 2009, at a price of $56.09. Shares of oil and natural gas servicer have jet-streamed toward major, psychological resistance at $100, easily clearing $90 on the way. It goes without saying that if you haven't already, now would be a good time to consider taking some profits off the table.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain, as SLB will likely continue to head north.

Further, I'd raise the sell/stop loss to $68 from $63.

Continue reading Schlumberger Vectors Toward $100 a Share

Schlumberger Vectors Toward $100 a Share originally appeared on BloggingStocks on Sun, 06 Mar 2011 14:50:00 EST. Please see our terms for use of feeds.

For investors, the emerging markets have been a great place to find profits. No doubt, there are certainly risks, such as seen recently with the market turmoil in Egypt, but a diversified portfolio should solve these problems. Of course, it also helps to have lots of exposure to markets like China and Brazil.

According to Societe Generale, emerging markets may pale in comparison to the growth in commodities. Interestingly enough, it is rising commodities prices that is putting inflationary pressure on these countries. In other words, it is getting tougher for companies to pass along higher raw materials costs. As a result, there has been a rash of interest rate increases.

Continue reading Commodities Even Better Than Emerging Markets Stocks?

Commodities Even Better Than Emerging Markets Stocks? originally appeared on BloggingStocks on Wed, 09 Feb 2011 12:10:00 EST. Please see our terms for use of feeds.

Bond money managers are usually glum. Then again, they need to be cautious since they are locking up money at fixed rate of returns. In a volatile world, this can certainly be a risky proposition.

So it should be no surprise that the biggest bond money manager, Bill Gross, is not enthusiastic about 2011. He leads the Pacific Investment Management Co., which has $1.2 trillion under management.

Continue reading Bill Gross Opines on 2011

Bill Gross Opines on 2011 originally appeared on BloggingStocks on Thu, 06 Jan 2011 13:20:00 EST. Please see our terms for use of feeds.

The shares of oil/natural gas servicer Schlumberger Limited (SLB), first written about here on May 6, 2009, at a price of $56.09, have vaulted higher this fall, from about $59 to $80. Now would be a good time to consider taking some profits off the table.

However, those investors who can tolerate the risk can maintain their full position and go for an even bigger gain.

The removal of the U.S. deepwater offshore oil drilling moratorium and an oil price that never seems to dip for too long -- it's averaged better than $70 per barrel for months -- spell good things for Schlumberger, and institutional investors have piled in to the stock.

Continue reading Schlumberger: Time to Take Some Profits off the Table?

Schlumberger: Time to Take Some Profits off the Table? originally appeared on BloggingStocks on Fri, 17 Dec 2010 17:00:00 EST. Please see our terms for use of feeds.

Sugar prices have been on a roller coaster this year. During the middle of the year, rumors were rampant that supply was tight. Prices more than doubled.

Then rumors spread that there would be a surplus of sugar this year and prices had a sharp sell off. Now the latest guesstimate is that sugar demand will exceed supply in the marketing year ending September 30. As reported in Bloomberg/Businessweek, analysts for ABN Amro and VM Group forecast that demand will reach 165.3 million metric tons, more than 3 million tons more than supply.

Continue reading Sugar Demand to Outstrip Supply

Sugar Demand to Outstrip Supply originally appeared on BloggingStocks on Sat, 11 Dec 2010 12:10:00 EST. Please see our terms for use of feeds.

Last week, investors' were concerned about sugar shortages in the Brazilian crop and that India may have to curtail sugar exports. Sugar prices hit a 30-year high as a result. But when India announced it could have a sugar surplus of 3.5 million metric tons, sugar futures recorded the biggest single day drop since 1980, The Wall Street Journal (subscription required) reported.

India's announcement of a surplus was more than triple market expectations. That news added to the sell-off as sugar futures plunged from 33.39 cents per pound to 29.66 cents per pound (each 1 penny equal $1120). Meanwhile, in Brazil, the backlog of shipments has eased. The lineup of vessels waiting to be loaded was down to 56 from 124 in August. Now the market players must reassess supply and demand and probable price targets.

Continue reading Sugar Plunges from 30-Year High

Sugar Plunges from 30-Year High originally appeared on BloggingStocks on Fri, 12 Nov 2010 10:10:00 EST. Please see our terms for use of feeds.

MSCI Brazil Index (EWZ) closed up $1,01 to $75.40. The Brazilian general election of 2010 will be held on Sunday, October 3. The Presidency of the Republic, all Chamber of Deputies seats, and fifty-four of the Federal Senate seats, will be contested in this election, along with all 26 states (plus the Federal District) governorships and the state legislatures.

October put option implied volatility is at 28, November is at 29, December puts are at 31. This versus its 26-week average of 31 according to Track Data, suggesting non-directional price movement.

Continue reading Options Update: MSCI Brazil Index Volatility Flat into Brazilian Elections

Options Update: MSCI Brazil Index Volatility Flat into Brazilian Elections originally appeared on BloggingStocks on Tue, 28 Sep 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Smithfield Foods Rises as Possible Takeover Target

Smithfield Foods Rises as Possible Takeover Target originally appeared on BloggingStocks on Tue, 29 Jun 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Buffett Looking Beyond Our Borders -- Part 3

Serious Money: Buffett Looking Beyond Our Borders -- Part 3 originally appeared on BloggingStocks on Tue, 22 Jun 2010 15:00:00 EST. Please see our terms for use of feeds.

It's no secret that China's phenomenal growth has been driving the global recovery. China's first-quarter GDP grew at an 11.9% annual pace despite three significant increases to reserve requirements that were designed to cool lending and growth. That's why in much of 2009 and early 2010 I was bullish on China and overweighted my global portfolios in favor of this country.

But all good things must come to an end and right now it's time to get selective about which China stocks you buy. That's why I recommend investors cut back their China holdings and look for new opportunities in emerging markets.

Continue reading It's Time to Sell China -- and Buy These Emerging Markets

It's Time to Sell China -- and Buy These Emerging Markets originally appeared on BloggingStocks on Thu, 06 May 2010 13:15:00 EST. Please see our terms for use of feeds.

Continue reading Petrobras: Time for Profit-Taking

Petrobras: Time for Profit-Taking originally appeared on BloggingStocks on Thu, 22 Apr 2010 18:30:00 EST. Please see our terms for use of feeds.

Thursday morning, it was announced that British petroleum firm BP (BP) will pay $7 billion for a group of Brazilian assets held by American firm Devon Energy (DVN). In exchange, Devon will receive half of BP's Kirby assets in Alberta, Canada for $500 million.

BP believes the its entry into Brazil will "add a major position in another attractive deep-water basin." BP will dish out $7 billion for interests in 10 exploration blocks in Brazil, 240 leases in the U.S. Gulf of Mexico deep water, and a nearly 6% stake in an Azerbaijan development. As a result of the deal, BP will have complete control of the Kaskida field in the Gulf of Mexico.

Continue reading BP Purchases $7 Billion in Assets from Devon Energy

BP Purchases $7 Billion in Assets from Devon Energy originally appeared on BloggingStocks on Thu, 11 Mar 2010 11:20:00 EST. Please see our terms for use of feeds.

Continue reading PhoCusWright Sees Hotel Industry Strength in Latin America

PhoCusWright Sees Hotel Industry Strength in Latin America originally appeared on BloggingStocks on Wed, 10 Feb 2010 09:50:00 EST. Please see our terms for use of feeds.

Traditionally, the role of private equity is to buy mature companies and find ways to improve the operations. The result is often a tidy profit.

But over the past couple years, the strategy has been undergoing some changes. Look at the Carlyle Group. Recently, the firm invested $60 million in three growth companies in China. In fact, these deals came only four months after Carlyle raised its Asia Growth Partners IV fund.

Continue reading Carlyle looks south-of-the-border for deals

Carlyle looks south-of-the-border for deals originally appeared on BloggingStocks on Thu, 03 Dec 2009 12:40:00 EST. Please see our terms for use of feeds.

Mexican President Felipe Calderon is urging lawmakers in his country and in Brazil to consider a free-trade agreement between the Latin American giants, Bloomberg News reported.

If it's approved, this would be no small economic development. First, the pact would further diversify Mexico's trade base: currently, 80% of Mexico's exports go to the United States. Second, and perhaps even more significant, the action would create spin-off commerce in each country. Typically, when free trade pacts are passed, they lead to increases in GDP and in aggregate demand, which leads to new businesses.

Continue reading Mexico/Brazil free trade pact would benefit U.S., global economies

Mexico/Brazil free trade pact would benefit U.S., global economies originally appeared on BloggingStocks on Tue, 18 Aug 2009 12:20:00 EST. Please see our terms for use of feeds.

Like oil, sugar is an international commodity. Unlike oil, sugar is an agricultural crop dependent on the weather. This year has seen droughts in some parts of the world and wetter than normal weather in other parts of the world where sugar is grown. Both extremes affect the growth of sugar cane.

Here are some reports from various sugar-growing countries:

• India is both the largest exporter and importer of sugar. This year India will be an importer of sugar. India's inventories will fall 50% to 4.54 million tons, equal to three months consumption. Reports from farmers indicate that plants are only one foot high compared with normal growth of five feet. Rainfall was 64% below normal in the growing regions. To fill the gap, the Indian government is extending duty free imports.

Continue reading Why are sugar prices shooting higher?

Why are sugar prices shooting higher? originally appeared on BloggingStocks on Mon, 10 Aug 2009 14:40:00 EST. Please see our terms for use of feeds.

The BRIC nations -- Brazil, Russia, India, China -- basically the powerhouses of the developing world, recently met to discuss, among other things, the possibility of forming an effort to move away from the dollar as the world's reserve currency.

Among options for consideration: a) a shift to another hard currency, b) a shift to a basket of currencies, and c) the possibility of the International Monetary Fund's special drawing rights unit of account serving as the new reserve currency.

Continue reading No BRIChouse yet: Dollar to remain world's reserve currency

No BRIChouse yet: Dollar to remain world's reserve currency originally appeared on BloggingStocks on Sat, 20 Jun 2009 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Brazilian president warns of protectionist dangers

Brazilian president warns of protectionist dangers originally appeared on BloggingStocks on Tue, 17 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Davos Recap: With castigation stage over, collaboration begins

Davos Recap: With castigation stage over, collaboration begins originally appeared on BloggingStocks on Mon, 02 Feb 2009 18:30:00 EST. Please see our terms for use of feeds.

With every commodity there is a tipping point, a point which when crossed can either produce a supply shortage or a an excess supply. Growers, processors and manufacturers hang on this tipping point and use it to make their business decisions.

So it is with sugar. The tipping point has shifted to a supply shortage. World production is estimated at 158.7 million tonnes while global demand is pegged at 162 million tonnes. The shortage is coming from less production in India, Pakistan, Iran and the European Union.

Continue reading Sugar demand examined

Sugar demand examined originally appeared on BloggingStocks on Wed, 28 Jan 2009 19:23:00 EST. Please see our terms for use of feeds.