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Income from AllianceBerstein (AB)

"Our latest high-dividend stock pick is AllianceBernstein (NYSE: AB), a leading global money manager," says Mark Skousen.

In his premium service, High-Income Alert, he explains, "The company offers mutual funds, structured products, and managed accounts to corporations, endowments, institutions, and government agencies.

"Of course, asset managers collect fees based on the quantity of assets under management. As asset values decline, so do net fees. And, needless to say, with the haircut that world bond and equity markets have taken during the past two years, sales and earnings at AllianceBerstein have fallen.

Continue reading Income from AllianceBerstein (AB)

Insider buying at Citigroup (C)

"Citigroup (NYSE: C) used to be the world's #1 bank; it is now ranked #15 after the financial crisis," points out long-standing investing and trading expert Mark Skousen.

Yet, in his premium Hedge Fund Trader service, the leading advisor ranks the bank as a speculative buy. Here's his review.

"The stock fell to $1 a share from $40 a share two years ago. But now Citigroup is showing some breathing room after selling Smith Barney to Morgan Stanley for $6.7 billion and pushing revenues up to $34 billion.

Continue reading Insider buying at Citigroup (C)

J&J and FP&L: 'Solid American values'

"We've followed Warren Buffett's advice to 'buy American'," says Mark Skousen; his Hedge Fund Trader eyes Johnson & Johnson (NYSE: JNJ) and FPL Group (NYSE: FPL).

"Johnson & Johnson as well as FPL Group are two strong positions in companies that have suffered a few 'hiccups' during this historic panic selling, but are likely to survive and prosper in the next year.

"First, Johnson & Johnson, the health care and pharmaceutical giant, beat expectations in its most recent earnings report. The company's earnings jumped 30% to $3.3 billion on revenues of $15.9 billion. It currently is selling for only 15 times forward earnings -- a bargain price.

"Second,, FPL Group -- known as Florida Power & Light -- is a large Florida utility company that is holding up well. It, too, is a solid company that now is on sale because of the financial crisis.

"Revenues are down slightly to $15 billion, and earnings dropped 40% during the past year. But Florida Power is still profitable, and at 10 times next year's earnings, it should continue to recover.

"We think it is wise at this time to limit our exposure to the markets, and to keep our powder dry by focusing strictly on a few well-financed utilities and consumer product firms.

"Overall, we consider both Johnson & Johnson and FPL Group to be solid companies selling at a substantial discount to their real value."

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.

Mark Skousen seeks "Wisdom" from Japan

Writing from Japan, while speaking at an economic conference, Mark Skousen looks to opportunities in Japan's stock market for his latest buy.

In his top notch trading service, The Hedge Fund Trader Alert, he says, "Surveying the landscape in Japan, two things are perfectly clear: the market and the currency here are both extremely cheap."

"The Nikkei 225 reached 40,000 back in 1989. Today, almost 20 years later, it is around 12,600 -- more than two-thirds lower.

"The yen also is cheap, due in part to ultra-low interest rates. Many international investors are playing a dangerous game, borrowing money in yen at low rates and lending it out in other currencies at higher rates in order to earn 'the spread.'

"This works fine until the yen begins to surge. Then there will be massive buying of the Japanese currency, as traders rush to cover their bets. That day is not here yet. But when it arrives, we may see one of the most dramatic currency surges ever witnessed in modern financial markets.

"A jump in the yen, however, would not be good for Japan's largest companies. Most of them -- such as Toyota, Honda, Sony, Canon and Mitsubishi -- are major exporters.

Continue reading Mark Skousen seeks "Wisdom" from Japan

Potash (POT): Strong growth for fertilizer

For a defensive play that offers exposure to commodities but is not considered vulnerable to the economy, both Mark Skousen and Nick Vardy have added fertilizer producer Potash Corp. of Saskatchewan (NYSE: POT) to their buy lists.

"Steadily increasing demand for ethanol has lead to a 15% increase in U.S. corn plantings, according to the Department of Agriculture," explains Mark Skousen, who points out that crops such as wheat and rice are experiencing high demand as well.

In his Hedge Fund Trader, the advisor says, "As a result, global selling prices for major crops are at their highest level in more than a decade. Farms are pulling out all the stops to maximize production. And the first order of business, of course, is making full use of agricultural fertilizers, chiefly potash."

Continue reading Potash (POT): Strong growth for fertilizer

Mortgage gains: After the meltdown

A number of leading financial newsletter advisors -- including Mark Skousen, Bryan Perry, Daniel Frishberg, and Neil George -- have recently taken positions in specialty finance and mortgage lending stocks, sectors that had suffered from the "meltdown" in the subprime mortgage market.

Mark Skousen, in his The Hedge Fund Trader, notes, "Mortgage lenders are making a comeback." The recent price recovery, he notes, has been broad ranged, covering most thrifts and mortgage trusts. He notes, "It appears that investors have concluded that the subprime lending scandal was limited."

iStar Financial (NYSE: SFI), he states, is his favorite commercial REIT. In fact, it was a recent announcement from iStar that acted as a catalyst for an improvement in the overall sector.

He explains, "California savings & loan Fremont General Corp. (NYSE: FMT) announced that it would sell its commercial real estate lending business to iStar Financial for about $1.9 billion. With Fremont expecting now to survive its subprime mortgage woes, many now consider the real estate industry recovery to be real."

Skousen also points to strong insider buying of shares in thrifts and mortgage banks.

Continue reading Mortgage gains: After the meltdown

CEO: Quenching China's energy thirst

"We all know that China is the world's fastest-growing major economy, and one with an unquenchable thirst for energy," notes Mark Skousen, economist, author, professor at Columbia University Business School, and newsletter editor .

In his Hedge Fund Trader Alert, he states, "And CNOOC Ltd. (NYSE: CEO) is busy supplying it." CNOOC, based in Hong Kong, explores and develops oil and natural gas in China.

The company, Skousen points out, has four oil production facilities offshore, including Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea. It has offshore facilities in Indonesia and other assets in Africa and Australia. Skousen notes that this is a major oil company, with a $40.7 billion market cap and proven oil reserves that top 2.53 billion barrels.

The advisor notes, "CNOOC is in great financial shape with $4.7 billion in cash and negligible debt. And this stock is cheap, selling at just ten times earnings and yielding 3.7%. Given the breakneck growth in China and the company's 48% profit margins, this is pretty surprising."

And, says Skousen, "I'm not the only one who thinks this stock is cheap. CNOOC is a major holding of Renassiance Technologies, a New York-based hedge fund with excellent returns." Overall, he concludes, CNOOC is a buy at current levels. And for speculators wishing to play this idea more aggressively with options, he suggests the CNOOC September $100 calls.

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

USEC: Going nuclear

Can you add more of your own analysis here? We have to be careful about just kind of paraphrasing other people's stuff.

"We're going nuclear," says Mark Skousen. The editor of the premium Hedge Fund Trader newsletter notes that since 1985, demand for uranium has outstripped supply by 139%."

The advisor adds, "Now is an excellent time to add USEC Inc. (NYSE: USU) – which supplies low-enriched uranium for commercial power plants worldwide -- to your hedge portfolio." Here's his analysis.

Despite increased demand and limited supply, he says, very little has been done to correct the world's capacity to create more uranium. He notes, "That situation has driven spot prices sharply higher."

Skousen adds, "In addition, spot prices are likely to rise. Nuclear energy now supplies a full 16% of the world's total power. That number is expected to grow by leaps and bounds, as petroleum-based economies continue to seek lower-priced alternatives to oil.

Further, he notes, "An estimated 440 power plants in 30 countries now depend on uranium to run steel plants, auto assembly lines, mass transportation and thousands of factories.

China's current plans, he observes, call for building more than 29 new reactors to fuel the country's explosive growth. And, he adds, worldwide, 69 new nuclear reactors are already under construction or will be completed within the next 10 years. All this, he says, will require massive amounts of uranium to operate.

Domestically, he notes that the Nuclear Regulatory Commission just recently issued a construction and operating license for USEC's American Centrifuge Plant in Piketon, Ohio. The license, he points out, is good for 30 years.

Says Skouosen, "Profits at USEC are surging already. Fourth-quarter net earnings climbed 35% to $40.1 million. And with nuclear energy looking like the best alternative to oil right now, the future looks bright.

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Symbol Lookup
IndexesChangePrice
DJIA-55.1710,236.09
NASDAQ-8.572,158.33
S&P 500-6.941,091.57

Last updated: November 12, 2009: 02:07 PM

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