"Cosan SA Indústria & Comércio (NYSE: CZZ) is a terrific company that is benefiting from both higher agricultural prices and higher fuel prices," says Mike Burnick in his newly-launched advisory service, Market Shock Trader.

"Sugar-cane based ethanol has been refined for years in Brazil, at a significant cost advantage to other sources of ethanol. In fact, Brazilian ethanol is about 40% cheaper to make than in the U.S. - and costs less than half the price of European ethanol.

"It doesn't require deforestation or the destruction of natural resources to cultivate it. It can be processed and refined without expensive exploration and drilling. And, it produces 5 times the energy output of corn.

"Today, ethanol accounts for 50% of Brazil's total annual automotive fuel consumption, and more than 70% of all new cars sold in the country are flex-fuel capable, able to run either on gasoline, ethanol or some combination of the two.

"And Brazil's ethanol industry has plenty of room to grow for years to come - and plenty of customers demanding its low-cost cash crop. Germany alone uses about 450 million gallons of bio-diesel a year. An estimated 50% of Europe's cars and trucks can run on this bio-fuel.

"With Brazil at the hub of the alternative fuel revolution, Cosan SA Indústria & Comércio (NYSE: CZZ) is the king-of-ethanol. And, it's also the king-of-agriculture in Brazil too. That gives you double-play profit potential as Cosan earns a fortune from both higher sugar prices and booming ethanol demand.

Continue reading Cosan (CZZ): Double-barreled bet on Brazil and biofuels

Cosan (CZZ): Double-barreled bet on Brazil and biofuels originally appeared on BloggingStocks on Mon, 16 Jun 2008 11:35:00 EST. Please see our terms for use of feeds.

"Will the 'Land of the Rising Sun' ever rise again?" asks Mike Burnick in Global Market Investor. "From a valuation perspective, Japan is a real bargain; in fact, half its stocks trade below book value." Here is his review.

"First, let's cover the bad news; Japan's economy is slowing right now, just like the U.S. and Europe. Consumer spending is slumping worse than in the U.S. In other words, the domestic economy looks dismal. But at the same time, Japan's exports are booming, businesses are flush with cash, and industrial production is running strong.

"The reason is that Japan is an economy in transition, for years they counted on exports to the U.S. and Europe, but today China is becoming its most important trading partner. Exports to China jumped nearly 14% in November, as overall exports expanded 10%. That's why a slowdown in the U.S. and Europe may not hurt Japan as much as some people think.

"What was already one of the world's cheapest markets just went into deep-discount territory last year. In fact, half the stocks listed in Tokyo now trade below book value. In other words, the share price is less than the stock's per share net worth - that's unheard of in developed markets.

Continue reading Japan: 'High yields; bargain prices'

Japan: 'High yields; bargain prices' originally appeared on BloggingStocks on Mon, 28 Jan 2008 16:19:00 EST. Please see our terms for use of feeds.

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.

"My favorite 'home run' speculation for 2008 is playing a rebound in the beaten-down US housing sector," says Mike Burnick, editor of Global Market Investor.

"Specifically, I like the iShares Dow Jones US Home Construction ETF (ASE: ITB). This exchange-traded fund is a pure contrarian play not based on valuation, since fundamentals continue to deteriorate in the US housing market.

"The US housing market is still a mess, home prices are plunging, sales continue to slump, and inventories of unsold homes are at record highs. There's very little we can see to like in this sector.

"But, in fact, that's often the key to earning big returns in the stock market: Make well-timed contrarian bets on the most unloved stocks and sectors.

"However, I believe that negative sentiment in the sector has reached an extreme. Put/call volume on homebuilder stocks is at an extreme, and short interest is near record highs. I believe the turning point for this sector is close at hand.

Continue reading Best Stocks for 2008: Contrary call on US Home Construction ETF (ITB)

Best Stocks for 2008: Contrary call on US Home Construction ETF (ITB) originally appeared on BloggingStocks on Thu, 27 Dec 2007 14:15:00 EST. Please see our terms for use of feeds.

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.

"My favorite, and more conservative investment idea for 2008 is Japan -- specifically, the iShares MSCI Japan ETF (ASE: EWJ)," says Mike Burnick, editor of Global Market Investor.

"Japan has been one of the most out-of-favor major industrial stock markets over the past two years, yet corporate profits are growing at a fast pace, thanks to a robust export market. Japan's proximity to China certainly helps in this regard, as Japan has become a key exporter to China, as well as other emerging Asian nations.

"From a valuation perspective, Japan appears to be the most undervalued major market in the world right now. Many blue-chip Japanese banks and industrial firms sell at book value or even less then book.

"Meanwhile, bonds typically yield more than stocks, to compensate investors for the lack of appreciation potential in bonds. However, in Japan today the normal stock/bond risk/reward relationship is turned upside-down.

Continue reading Best Stocks for 2008: Global expert goes with Japan ETF (EWJ)

Best Stocks for 2008: Global expert goes with Japan ETF (EWJ) originally appeared on BloggingStocks on Sun, 23 Dec 2007 15:35:00 EST. Please see our terms for use of feeds.