commodity stocks posts
FeedPosted Nov 2nd 2009 10:40AM by Steven Halpern (RSS feed)
Filed under: International markets, China, Brazil, Newsletters, Commodities, Oil, Stocks to Buy
"We're adding Brazil's Vale S.A. (NYSE: VALE), the world's leading iron ore producer, to our model growth portfolio," says growth stock expert Stephen Leeb.
In his The Complete Investor, he explains, "This outstanding company offers investors simultaneous stakes in two key areas: iron ore-a commodity essential to any and all infrastructure projects-and Brazil's appreciating currency, the real.
"When it comes to understanding the importance of a commodity such as iron ore, the tale starts with China. Even with China's GDP growth again approaching double digits, the Chinese government continues to aggressively promote growth, offering consumers incentives to buy cars and investing in infrastructure, from roads to bridges to sewers to energy plants.
Continue reading Vale S.A. (VALE): Mining for value in iron ore
Posted Oct 14th 2009 1:30PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, BHP Billiton Ltd ADR (BHP), Commodities, Stocks to Buy

"
BHP Billiton Ltd. ADR (NYSE:
BHP) is well placed in coal, oil, gas, and uranium markets, making it a solid play in any investment environment," says global specialist
Yiannis Mostrous.
In The New World 3.0, the advisor explains, "BHP Billiton is the only major listed company to that boasts such a diversified energy portfolio.
"Recently, analysts have unleashed an avalanche of upgrades for companies in the mining sector, coinciding with higher price forecasts for a wide range of metals.
"The main reasons for the recent upsurge in optimism regarding miners are strong economic growth in China and an anticipated restocking of materials in developed nations.
Continue reading BHP Billiton (BHP): 'Avalanche of upgrades'
Posted Oct 9th 2009 1:00PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Commodities, Oil, Stocks to Buy
"I'm adding Bucyrus International (NSDQ: BUCY) -- a maker of mining equipment -- to our 'Wildcatters Portfolio' as a play on coal," says Elliott Gue.
In his The Energy Strategist, the advisor explains, "With commodity prices recovering and Chinese demand for coal picking up once again, Bucyrus has likely seen the trough in its new equipment business."
"Bucyrus' top end-market is coal, which accounts for more than three-quarters of the firm's business. Coal mining equipment includes draglines, a sort of giant scoop used to scrape away the overburden (rocks and dirt) that covers coal.
Continue reading Bucyrus (BUCY): Mining for value in coal sector
Posted Jul 28th 2009 11:00AM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Commodities, Oil, Agriculture, Stocks to Buy
"When most people think of Africa, images of business and commerce don't usually spring to mind -- more like wildlife, safaris and famine," suggests Nathan Slaughter.
In The ETF Authority, he explains, "But those perceptions are beginning to change as these countries continue to industrialize. And at the vanguard of this transformation is South Africa." Here, he looks at the iShares MSCI South Africa ETF (NYSE: EZA).
Slaughter explains, "Once a backwater country shunned by most of the international community, South Africa has made great strides over the past decade and continues to evolve. Fifteen years ago the government began an aggressive overhaul of South Africa's economy.
Continue reading Out of Africa: ETF expert eyes South Africa
Posted Dec 11th 2008 10:10AM by Steven Halpern (RSS feed)
Filed under: Newsletters, Stocks to Buy, Burlington Northern Santa Fe (BNI)
"It's hard to find any good news these days but I was pleasantly surprised with the third-quarter railway results, as almost all of the 'class 1 carriers' reported better than expected earnings," notes analyst Tom Slee.
The contributing editor to Gordon Pape's Internet Wealth Builder explains, "Several rail stocks are starting to look attractive at these depressed levels and Burlington Northern (NYSE: BNI) remains my preferred choice in the group." Here's his outlook.
"Even with the economic downturn starting to bite, reduced fuel costs and increased freight rates offset lower volumes. Equally important, the companies remain cautiously optimistic despite the miserable outlook.
"They are confident that further freight rate price increases in the 4% to 5% range are sustainable and will still allow them to undercut inefficient truckers.
"Unfortunately, none of this prevented the stocks from being battered during the market collapse. However, I think that fourth-quarter profits are likely to remain strong and the longer term outlook for railroads remains favorable.
"Burlington Northern continues to power ahead. A shrinking economy must eventually take its toll but there was no sign of any weakness in BNI's third-quarter results. Operating earnings came in at $1.91 a share, up 29% from $1.48 in 2007.
Continue reading Burlington Northern (BNI): On the right track
Posted Nov 28th 2008 1:45PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Goldcorp Inc (GG), Kinross Gold (KGC), Commodities, Stocks to Buy

"Gold is now looking stronger; it is time that investors have gold in their portfolios," says Curtis Hesler. In the The Professional Timing Service, he looks at gold's seasonal patterns.
"I think they will rush to commodity-based assets because of the serious underinvestment phase the commodity sector is involved in now. This will lead to shortages and very high prices down the road in all commodities.
"Once the dollar begins to roll over, gold will be an instant benefactor. It is already looking stronger in my technical work, and it is time that investors should have gold in their portfolios. I still recommend that you put new money into the major gold miners only.
"We are approaching an interesting seasonal period for gold. Years ago, the Stock Trader's Almanac used to specify a seasonal trade in gold.
"Their study showed that if you bought ASA Ltd. (NYSE: ASA) at its low in November and sold it at its high in the first quarter of the next year, you would have averaged a gain of 87.8%.
Continue reading Thanksgiving pattern: A seasonal low for gold?
Posted Sep 23rd 2008 1:20PM by Steven Halpern (RSS feed)
Filed under: International markets, Brazil, Newsletters, Commodities, Oil, Stocks to Buy
"Crude oil remains deeply oversold on an intermediate-term basis, suggesting a rally sometime in the early fall," says Dennis Slothower.
The editor of Stealth Stocks looks to Petroleo Brasileiro SA (NYSE: PBR) as his latest "stock of the month." Here's his review of the Brazilian firm that is now the world's 8th-largest oil company.
"The founding of Petrobras was authorized in October 1953, with the objective of executing, on behalf of the federal government, the activities of the oil sector in Brazil.
"Over the past five decades or so, the company has become the country's leader in the distribution of oil products, an activity not covered by the government monopoly, and today it is internationally acknowledged as the eighth-largest oil company in the world.
"Leading the sector in the development of one of the most advanced deepwater and ultra-deepwater technologies for oil production, PBR was twice (in 1992 and 2001) awarded the Offshore Technology Company (OTC) prize, the most important award in the sector.
Continue reading Brazilian drilling with Petroleo Brasileiro (PBR)
Posted Jul 17th 2008 12:58PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Commodities, Agriculture, Stocks to Buy, Union Pacific Corporation (UNP)
"Railroads are a play on three big secular themes: the drive for increased energy efficiency, growth in coal and the agriculture boom," says Elliott Gue, a energy sector expert who has just returned from Japan where he was covering the G8 Summit.
Meanwhile, in his The Energy Srategist, he states, "Railroads are now among the most fuel-efficient forms of freight transport available." Here, he offers a bullish review of Union Pacific (NYSE: UNP).
"My long-held thesis on the group has been that the railroads are no longer totally dependent on the US economy for their growth.
"It's no longer appropriate to look at this sector as viciously economy sensitive. The traditional relationship between the broader market and the rails has been breaking down for several years, but this trend appears to be accelerating.
"In 2007, according to the Association of American Railroads (AAR), the average railroad moved a ton of freight a distance of 436 miles on a single gallon of diesel fuel. That makes freight trains roughly three to four times more fuel efficient than trucks.
"Union Pacific is the largest railroad in the US and has long been one of my favorites. The company's network is nearly 33,000 miles long and is concentrated in the West and Midwest. It also offers a convenient example of the bullish forces at work for the rails, particularly in the coal and agriculture industries.
Continue reading Union Pacific (UNP): 'Railroad renaissance'
Posted Jul 15th 2008 4:55PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Commodities, Stocks to Buy
"As steel prices continue to climb, one company that is set to profit handsomely is Cleveland-Cliffs (NYSE: CLF)," says Bill Martin.
Adding to the stock's appeal, the editor of BullMarket.com explains, "Event-driven hedge fund Harbinger Capital has been an aggressive buyer of the stock." Here's his review of the situation.
"Shares of Cleveland-Cliffs have been on fire, up over 150% year over year and they have more than doubled year to date. The Cleveland, Ohio-based company is the largest producer of iron ore pellets in North America and a major supplier of metallurgical coal to the global steel-making industry.
"Cleveland-Cliffs benchmarks iron ore prices to the price of steel, so when steel prices rise, so do iron ore prices. The company said all of its North American iron ore mines are producing at or near capacity.
"Cleveland-Cliffs ended the first quarter of 2008 with $186.5 million of cash and cash equivalents and $600 million in borrowings outstanding under an $800 million credit facility. The company expects to generate approximately $700 million in cash from operations in FY08 as it sells through its inventory.
"Event-driven hedge fund Harbinger Capital was an aggressive buyer of the stock in May, paying between $76.96 to $104.75 a share to add to its position in the name. For the month, the firm spent approximately $338.5 million to acquire nearly 3.7 million shares.
Continue reading Cleveland-Cliffs (CLF): Hedge fund eyes steel maker
Posted Jul 15th 2008 3:37PM by Steven Halpern (RSS feed)
Filed under: International markets, Newsletters, Goldcorp Inc (GG), Commodities, Stocks to Buy
"The number one reason I like gold is because of inflation -- now a big problem in the emerging markets and the major economies," says resource expert Eric Roseman.
In his industry-leading Commodity Trend Alert, he says, "One of my favorite companies in the world is Goldcorp (NYSE: GG)." Here, he looks at this gold mining firm.
"Inflation sits at a nine-and-a-half-year high in Asia at 7.5%, a 15-year high in the Euro-zone at 3.7% and in the United States it's at 4.2% -- if you believe government data in the first place. I don't. I say inflation is running closer to 10% in 2008, not 4.2%.
"The cost of living, mainly in food and energy, is now totally out of control and destroying business margins and eroding the purchasing power of consumers, especially in the emerging markets where food and energy consumption devours more than 65% of wages.
"It seems very obvious to me that Asian governments have now lost control of inflation. The same applies to the Gulf countries which peg their currencies to the dollar. And in Europe, the European Central Bank is freaking out because of high inflation.
Continue reading Goldcorp (GG): Go for the gold
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