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A stock that profits from foreclosures

For speculators, Martin Weiss has uncovered a stock that benefits from rising home foreclosures. In the higher risk section of his The Safe Money Report he looks at Lender Processing Services (NYSE: LPS).

"We have a new speculative pick: Lender Processing Services. This company was spun off from Fidelity National Information Services a couple of months ago.

"It is the biggest outsourcing firm in the business of processing home loan defaults and foreclosures.

"As you might imagine, that business is booming due to the massive flood of troubled mortgages -- revenues in the company's default services unit soared 90% to $197.2 million in the second quarter from a year earlier.

"LPS also has a division that helps investors, banks and other clients model prepayments, defaults and other characteristics of mortgage-related securities.

"With everyone trying to figureout the value of all the troubled paper out there, the demand for those services should also ramp up. We emphasize, however, that this is a speculative play."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Inverse ETFs: Four ways to bet on a market decline

"We see the growing risk of a watershed decline very soon," warns Martin Weiss, editor of The Safe Money Report. For those looking to speculate on a downside move, or to hedge an otherwise long portfolio, the advisor looks at several inverse ETFs which benefit from a drop in stocks.

"With a new, potentially bigger wave of the credit crisis sweeping Wall Street, and with the latest energy price surge gutting corporate profits, the U.S. stock market is poised to suffer a far sharper and deeper decline.

"Our near-term forecast: A rapid fall - perhaps including a crash - to the market's 2003 lows: 7200 on the Dow, 770 in the S&P 500 Index, and 1100 in the Nasdaq Composite Index.

"That's too much, too fast for you to just 'ride it out' as many on Wall Street are recommending. oreover, it's too soon to say if those levels will be the final bottom; the market could fall even further.

"With the exception of of selected resource companies, we recommend unloading nearly all stocks. In addition, we suggest buying inverse ETFs, which rise in value when the market falls. Here are our highest priority recommendations:

UltraShort Real Estate ProShares (ASE: SRS)
UltraShort Technology ProShares (ASE: REW)
Short Dow 30 ProShares (ASE: DOG)
UltraShort Consumer Services ProShares (ASE: SCC).

"These four are inverse ETFs - exchange-traded funds that you can buy and sell just like any other ETF or stock, but with one critical difference: They go up in value when the market index they're tied to goes down. And we think they're ideal for this situation."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Gushing gains: Income and growth at Kinder Morgan (KMP)

"Despite sharp intermediate setbacks, the bull market in energy is far from over," says Martin Weiss, editor of the Safe Money Report. Here, he looks at Kinder Morgan Energy Partners LP (NYSE: KMP).

"Earlier, there was some concern that a U.S. recession would dampen worldwide demand for oil, and that could still happen. But right now, the rapidly increasing consumption of crude oil by emerging markets is actually exceeding any declines in industrial nations.

"Kinder Morgan is an energy partnership that transports more than 2 million barrels of energy products every day - gasoline, jet fuel, natural gas liquids and more. It has two additional profit centers: Mammoth oil and gas storage facilities and a business supplying carbon dioxide, which is used to boost production from aging oilfields.

"All three of these businesses can be extremely lucrative in a rising oil market like this one. That's how KMP generated a record profit of $347 million in the first quarter - a big swing from a year-earlier loss of
$150 million.

"Partnerships like Kinder pay out quarterly dividends to 'unit holders' - the equivalent of shareholders in traditional public corporations. And KMP's latest payout is 96 cents per unit, up from 92 cents in the prior quarter and 83 cents a year earlier. The indicated yield is a hefty 6.5%.

"As much as we like KMP, we recognize that energy shares may be extended and could pull back in the near term. So here's what we suggest you do: Buy a half-position in KMP this month. Then hold back an equivalent amount of cash earmarked for a possible second bite at the apple later."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Safe Money seeks safety in Treasuries

"Derivatives - the 'global Vesuvius of debts and bets' that we have been warning about since 2006 is beginning to erupt," says Martin Weiss.

The editor of The Safe Money Report explains, "The time is now to build cash and the best place to put it is in United States Treasury bills or equivalent." Here, he looks at the benefits of Treasuries and the various ways that investors can add them to their portfolios.

"We now have overwhelming evidence of a severe recession. And we have a solid confirmation in the stock market itself. But we also forecast that the Fed would fight back, and do so aggressively, fomenting an
inflationary recession.

"They're pumping in massive amounts of money, trying to calm markets and seeking to avert a recession. But it's too little, too late for the economy. And it's too much, too soon for the already-shaky dollar. *Result: Gold has surged along with other commodities.

"And consumer price inflation, long a side-show on the American scene, is now surging back. Our urgent appeal: If youhaven't done so already based on our earlier issues, the time is now to shift from complacency to protective action ... from bull-market plays to income opportunities ... from risk to safety.

Continue reading Safe Money seeks safety in Treasuries

Global gains: Ring up New Zealand

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

Investors seeking growth and income should look to New Zealand -- a "gem that shouldn't be ignored," says Martin Weiss. The editor of Safe Money Report notes that New Zealand's short-term government yields of 7.25% are two full percentage points more than the federal funds rate in the U.S.

And, he expects the Reserve Bank of New Zealand to hike rates even further in March -- probably to 7.5%. Meanwhile, he adds, "Growth is strong. While home sales in the U.S. are falling, in New Zealand, they rose 19% year-over-year in December. Consumer spending is rising. So are corporate profits. And the New Zealand dollar is on the upswing, rising about 13% in the past six months.

His top buy on this market is Telecom Corp. of New Zealand (NYSE:NZT), that country's pre-eminent telecom utility. And he points out, investors can buy its American Depository Receipts in the U.S. through a regular brokerage account.

Continue reading Global gains: Ring up New Zealand

Global gains: Two experts bet on Brazil

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

"In 2006, investing in BRIC countries -- Brazil, India, China -- was the rage," notes Carl Delfeld, a expert on exchange-traded funds. In his Chartwell Advisors he focuses on Brazil.

"While China and India received most of the attention last year, the iShares Brazil ETF (NYSE:EWZ) was up 45.4% -- not bad, not bad at all. But the lingering question is whether Brazil's economic recovery is sustainable or just another stage in the economic cycle.

"What is most interesting to me is that Brazil's stock market's performance during the past four years is not due to superior economic growth. It has had an annual average growth rate of only 2.6%, about half of world economic growth during the same period. My view is that Brazil has been primarily a balance sheet story supported somewhat by the commodity boom.

"Inflation is muted and was only 3% during 2006. Brazil is almost energy independent, and foreign exchange reserves are now almost $100 billion after paying off its nettlesome IMF debt. In 2006, it recorded a trade surplus of $46 billion, and while interest rates are high, they are beginning to fall.

Continue reading Global gains: Two experts bet on Brazil

Top Picks 2007: Weiss offers "Prudent" play on global income

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.

Prudent Global Income Fund (PSAFX) is the favorite conservative idea for 2007 from Martin Weiss. The editor of Safe Money Report explains, "The dollar started falling sharply late last year, stabilized a bit this past summer, and is now getting shredded again.

"The main reasons are that we are running gigantic trade deficits month after month after month, and that we owe more to foreign creditors than at any time in history. In addition, our economy is sliding -- while others around the globe are powering ahead.

"This is a big deal in the currency world. International portfolio managers are constantly shifting funds to economies with stronger growth and higher interest rates. If U.S. rates come down a bit -- or even remains flat -- while rates overseas climb, these investors could pull out of the dollar in droves.

Continue reading Top Picks 2007: Weiss offers "Prudent" play on global income

Top Picks 2007: Weiss sees Bema boosting Kinross

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.

Kinross Gold (NYSE: KGC) is the favorite speculative idea for 2007 from Martin Weiss. The editor of Safe Money Report explains, "All the money pumping by central banks around the world is driving investors into the one true currency that's stood the test of time -- gold.

"Once above the July high, around $676, it has a clear path to $700 and beyond. Speculators should consider Kinross, the third-largest gold mining company based in Canada, with mines not only in Canada, but also Brazil and Chile.

"Kinross has also just agreed to take over Bema Gold for around $2.55 billion, which, as with most acquisitions, temporarily depressed the shares of the buyer. Meanwhile, Kinross swung from a loss of $44.4 million in the third quarter of 2005 to a profit of $50.3 million in the same period this year. Revenue jumped 23% to $223.6 million. Cash flow from operations rose nicely -- to $86 million from $53 million a year earlier.

"The best news: The Bema takeover boosts Kinross's reserves by a whopping 68% to 41.6 million ounces and will boost annual production toward the 1.8 million ounce mark. Plus, Kinross is gaining a 49% stake in the $2 billion Cerro Casale gold and copper project in Chile, and a 75% stake in Bema's Kupol project in Russia."

To see Martin's favorite conservative investment for 2007, click here.

Symbol Lookup
IndexesChangePrice
DJIA-35.8310,415.12
NASDAQ-11.782,164.23
S&P 500-2.561,103.68

Last updated: November 24, 2009: 01:54 PM

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