"The UltraShort 20+ Year Treasury ProShares (TBT) is a bet on higher long-term interest rates," says Jack Adamo.
In his Insiders Plus newsletter, the advisor explains,"The fund is structured to respond at double the inverse of U.S. Treasuries of 20 years or longer.
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FeedETF Bets on Higher Interest Rates
Kinder Morgan Energy (KMP): 'Paragon of consistency'
"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.
Continue reading Kinder Morgan Energy (KMP): 'Paragon of consistency'
Coal insiders eye Peabody (BTU)
"Peabody Energy (NYSE: BTU), the largest private market coal firm in the world, had a great 2008," says Jack Adamo who has recently added the stock to the buy list of Insiders Plus.
"Peabody has extensive holdings in the U.S. and Australia, the latter serving the China/Asia Pacific markets. It sells steam coal for heating and utility use, and coking coal for steel making.
"Peabody has had some decent iInsider buying in the last few months -- about 30,000 shares -- not enough to get too excited about, but encouraging. There were also 27,000 options exercised, most of it at very low prices, for which the holder took no profits.
"That's also a good sign, particularly since those exercises come with a tax bill, and shares weren't sold to pay it. It implies faith the stock will rise.
China 'search' leads to Sohu.com (SOHU)
"Although I am not a big fan of either technology stocks or Chinese stocks, bear markets do create opportunities -- such as Sohu.com. (NASDAQ: SOHU), says Jack Adamo.
In his Jack Adamo's Insiders Plus newsletter, the advisor reviews Sohu.com, the second-largest internet search engine company in China.
"In recent quarters, it has made 42% of its revenues from search and display advertising; the rest comes from online gaming and wireless services. Earnings in the September quarter grew by more than fourfold year-over-year.
"With the Olympics over and the economy slowing to an expected GDP rate of 7%, earnings growth at Sohu is expected to slow as well. The last few quarters bear that out. But even in the slowing environment, earnings were up 14% compared to the June quarter.
"For a Chinese stock, this may be considered to be a relatively slow grower, but the price is right. Selling at less than 10-times earnings, you'd be hard pressed to find a better buy among well-established Chinese companies.
Avon Products (AVP): A 'beautiful report'
"Beauty is as beauty does, the saying goes, and Avon Products Inc. (NYSE: AVP) has delivered a beautiful earnings report," says Jack Adamo in his industry-leading Insiders Plus. Here's his latest.
"Despite a 14% increase in advertising (or perhaps, because of it) the company delivered EPS up 26%. In North America, the only underperforming region, revenues continued their slow downward slide. But active representatives increased for the first time in ages, which may brighten the future on the company's home turf.
"International sales continued to soar. Latin America was 19% higher in local currencies, and 32% higher after translation into the American Peso, also known as the U.S. Dollar. In Central & Eastern Europe, first-quarter revenue rose 17% (6% in local currency). Revenue in China grew 29% (19% local). Only Japan dragged things down a bit with its 2% gain.
Best Stocks for 2008: Penn West (PWE) for total returns
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"A top speculative idea for 2008 is Calgary-based Penn West Energy Trust (NYSE: PWE)," says Jack Adamo, editor of Insiders Plus. "We would consider this stock a 'smart money' buy.
"Commodities guru Jim Rogers said four years ago that energy prices would go a lot higher and stay there longer than anyone supposed. We believed him, and loaded up on energy, with spectacular results. We're up 45% this year alone.
"The thesis still stands. Within five years Mexico, our second largest oil supplier, will be a net importer of oil. Prices will remain high.
"Penn West Energy Trust is out of favor because Canadian tax laws change in 2009, and it faces corporate taxes. But with the units currently yielding 15%, even a few quarters of lower payouts in a recession, and a 30% tax bite in 2009, the units will still yield near 10%.
"With its long-lived reserves, the company has good growth prospects to boot. Great for current income or long-term total return. Buy up to $33.50."
Best Stocks for 2008: In the 'sweet spot' with Berkshire B (BRK.b)
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"Want to take advantage of the subprime debacle, but you're too frightened or don't know how?" asks Jack Adamo in his Insiders Plus. "The ultimate insider, Warren Buffett, does.
"Every time the market has a sector meltdown, the Wizard of Omaha swoops down like a hawk and picks off great bargains. He made tons of money for Berkshire Hathaway B (NYSE: BRK.b) investors after the tech crash by buying 'junk bonds' of strong telecom companies he knew would survive -- and tech isn't even an area Buffett knows well.
"Financial stocks are his sweet spot. He'll snatch up great bargains in distressed securities in the next few quarters.
"Then, in 2008 or 2009, the company will deliver fabulous earnings, and the stock price will shoot up again. Buy Berkshire-Hathaway Class-B, preferably on pullbacks below $4,200. Don't let the price scare you. The shares are cheap on a P/E or price/earnings-to-growth basis. I consider the stock a top conservative buy for 2008."
Top Picks 2007: Adamo banks on Lloyds TSB for total return
Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Lloyds TSB Group PLC (NYSE: LYG) is a favorite conservative stock idea for 2007 from Jack Adamo, editor of Insiders Plus.
"While it is not the Lloyd's of London of specialty insurance fame," points out Adamo, "this London-based financial services powerhouse has roots dating back to 1765, and operates in three segments: U.K. retail banking; insurance and investments; and wholesale and international banking. It also provides brokerage, asset management, and pension services.
"It's not exactly exciting, but I think it will noticeably outpace the market in 2007. What it has going for it is financial clout, with a $60 billion market capitalization and a current dividend yield of 5.7%. Growth in earnings is expected to come in around 12.5% from 2006 to 2007.
"Lloyds currently trades for 11.25 times expected 2007 EPS of $3.86 per share. I look for total return to come in at around 18% in 2007. Lloyds' high yield provides cover in a down market, and may add extra price appreciation as investors go for yield in a falling market. That could push total return to the 25% range.
"Another significant factor in its favor to consider is the likely appreciation of the British pound sterling against the U.S. dollar, which will provide a boost to returns for U.S. investors."
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