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Japan: Contrarian Buys from Autos to Housing

This post is part of Japan: A Special Report for Investors.

"The list of those hurt financially by the earthquake include the Japanese government (so don't buy Japan's government bonds), insurance companies (who will make up their losses through higher future premiums) and the unfortunate Japanese people themselves," says Martin Hutchinson.

The contributing editor to Money Morning explains, "Of course, even among listed companies, there will be some losers. Tokyo Electric Power Co. (TKECY), or TEPCO, is the unfortunate owner of the damaged Fukushima Daiichi nuclear power station.

Continue reading Japan: Contrarian Buys from Autos to Housing

Timber: The 'Forgotten Inflation Hedge'

timber"One of the best inflationary hedges of the 20th century is often forgotten -- timber," suggests Larry Spears.

The contributing editor to Money Morning explains, "In the modern era, inflation has never been a match for timber. On average, the price of harvested lumber itself has risen more than 5% annually over the past 100 years.

"Since 1910, the value of timberland as an investment has risen faster - and with less volatility - than stocks as measured by the Standard & Poor's 500 Index. Here's a trio of stocks to benefit from this trend.

Continue reading Timber: The 'Forgotten Inflation Hedge'

Investing in Chile: From Mines to Wines

Chile"Last year's Chilean earthquake and the recent mine disaster have an important lesson: Countries with really good management should be strongly considered by investors," says Martin Hutchinson.

Hutchinson adds, "Well managed countries will be more efficient. they will use resources and labor better, there will be fewer sink-holes of value destruction in the public sector and the uncompetitive private sector and they will generally be more open to new ideas and new techniques.

Continue reading Investing in Chile: From Mines to Wines

Three Best Buys for a Canadian Portfolio

Canada"Canada right now boasts one of the world's most compelling targets for investors' hard-earned money," says Peter Krauth.

The contributing editor to Money Morning reviews three ways to play Canada: CurrencyShares Canadian Dollar Trust (FXC), the Royal Bank of Canada (RY), and energy distribution and pipeline operator Enbridge (ENB).

"If the safety of a nation's banks is an indication of its economic well being, then Canada gets a clean bill of health, without the need for stress tests.

Continue reading Three Best Buys for a Canadian Portfolio

Ormat (ORA): Powered Up over Geothermal

Geothermal energy isn't a new concept in the United States; it's actually been around for some time, with numerous geothermal power plants in California, Nevada and a few other western states," says David Fessler.

The contributing editor to Money Morning explains, "There are new plants on the drawing board, too. Unfortunately, the recession has stifled the construction progress on many of them. But all that's about to change.

"Thanks to a few key technological developments -- and a big cash infusion from the government -- the stars are aligning to produce the perfect storm for this super-green energy source.

Continue reading Ormat (ORA): Powered Up over Geothermal

Top Picks for 2010: Eldorado Gold (EGO)

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"While my primary focus is on the international financial markets, it's the glint of gold that has caught my eye for 2010," says Martin Hutchison.

The contributing editor to both Money Map Report and Money Morning, explains, "Gold -- or mining companies like Eldorado Gold (EGO) -- an especially compelling investment for 2010."

Continue reading Top Picks for 2010: Eldorado Gold (EGO)

TIPs, munis & corporates: ETFs for income

This post is part of a 12-article feature that can be read here: Today's best income ideas.

"The markets are littered with compelling buying opportunities that may be the best we see in a generation," says Keith Fitz-Gerald.

In The Money Map Report, he looks at a trio of income ETFs -- one focused on Treasury inflation protected securities, one invested in muni bonds, and one that buys high yield corporates.

"We are holding three positions in our portfolio which we believe can be bought with new money. First, we suggest iShares Lehman TIPS Bond ETF (NYSE: TIP). The 10 year TIPS' yield is 2.23% versus 2.40% for 10 year Treasuries.

Continue reading TIPs, munis & corporates: ETFs for income

Best of breed in the gold sector

With gold trading down sharply from its highs, Keith-Fitzerald offers a special report on gold stocks in Money Morning, highlighting three companies that he consider to be the "very best of the best."

"Gold remains a key profit opportunity -- especially if inflation, or even stagflation, is taking hold. It should also help that economic uncertainty is escalating. However, since the economic outlook has grown more uncertain, we've decided to our recommended list down to just three picks:

"The StreetTracks Gold Trust (NYSE: GLD) is an ETF that tracks the price of gold directly, making it the simplest way to invest in the yellow metal via an ETF. And with a market cap approaching $17 billion, this fund has ample liquidity.

"Barrick Gold Corp. (NYSE: ABX) is a Toronto-based company with mostly North American production, as well as properties in South America and Africa, and some copper and zinc add-ons. It has a $38 billion market capitalization, so there's plenty of liquidity.

Continue reading Best of breed in the gold sector

Harvesting gains from Harvest Energy (HTE)

"Harvest Energy Trust (NYSE: HTE) is exactly what we love – a company with incredible upside and hefty 'dividends' that's being ignored byWall Street," says Keith Fitz-Gerald.

The editor of Money Morning explains, "But the stock is not being ignored by the company's executives. In fact, insiders are buying like crazy. And while this by itself doesn't guarantee higher prices, it's an important indicator of things to come, especially when oil prices are destined to increase in the coming years.

"Harvest Energy is located in Calgary and functions as a Canadian royalty trust, which means its profits are funneled back to investors in the form of 'distributions.' Harvest engages in the exploration, development, production, and sale of petroleum, natural gas, and natural gas liquids in western Canada.

"And the best part is, it's been tamped down in the last two quarters. You see, management has reduced its distribution by 21%, citing volatile energy prices and the new tax rules set to take effect in Canada in 2012. It also carries a lot of debt after having consolidated purchases of other oil and gas trusts and large private producers over the last two years. The company also purchased a refinery complex – and that didn't come cheap.

"Now here's where things get really good: Plain and simple, Harvest is sitting on oil – a lot of it. Large multi-million barrel reserves, with an estimated 9.3 years of proven and probable reserves using conventional extraction techniques. It's also sitting on over 1 billion barrels of untapped oil sands.

Continue reading Harvesting gains from Harvest Energy (HTE)

Taiwan: Invest in the 'other' China

"Taiwan - the so-called 'other China' - is an overlooked gem," says Martin Hutchinson, contributing editor to the top-notch Money Morning.

"With a per capita income of nearly $30,000, and a productivity growth rate of 4% -- more than double the rates enjoyed by Europe and the United States -- Taiwan is one of the world's best bargains." Here, the advisor looks at ways to invest in Taiwan.

"There's no question that the Taiwanese economy is highly dependent on China. Indeed, fully 38% of Taiwan's exports go to China - including Hong Kong - while 16% of Taiwan's imports originate on the mainland."

"Taiwan's inflation rate is a paltry 3%, government spending accounts for a mere 21% of the country's economic activity and the country runs a hefty balance-of-payments surplus. Unlike China, there are no signs of major problems in Taiwan's banking system.

"Thus, even though Taiwan's growth rate is lower than China's 'official' growth rate, the greater stability of Taiwan's economy ought to make the shares of Taiwan-based companies trade at a premium to those based in China. But that's not the case. Instead, Taipei trades at less than half the earnings multiple of Shanghai.

Continue reading Taiwan: Invest in the 'other' China

Best Stocks for 2008: Bank on 'tried and true' with First Horizon (FHN)

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.

"For more conservative investors, my favorite idea for 2008 is First Horizon National Corp. (NYSE: FHN), the Tennessee-based holding company for First Tennessee Bank," says Keith Fitz-Gerald, editor of Money Morning.

"Its banks feature all the offerings you might expect from a good regional bank: Savings, checking, mortgages, investment banking, and brokerage services. It's not exactly an innovative idea -- minimize risks and maximize profits.

"But let's face it, it's a tried-and-true strategy that most US banks have abandoned as they chase after the (allegedly) big profits that subprime-backed debt, leveraged buyouts and other similarly esoteric investments appeared to promise.

"Yes, FHN really over-extended itself in the credit markets and recently announced a loss of $14.2 million. More losses may be coming. And its ultra-high dividend yield off 7.93% may be in jeopardy. Nonetheless, we think the stock's beating was overdone.

Continue reading Best Stocks for 2008: Bank on 'tried and true' with First Horizon (FHN)

Best Stocks for 2008: Contrary call on Citigroup (C)

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.

"In a perverse twist of irony, more adventurous investors could choose Citigroup (NYSE: C), which is my speculative favorite for 2008," says Keith Fitz-Gerald, editor of Money Morning.

"I recognize that you might be thinking that I've completely lost my mind. But I believe this is an opportunity to buy into one of the world's fastest growing and best run financial companies at a bargain basement price.

"First, what's causing Citi's current angst is related to a breakdown of risk management -- not the deterioration of operations. The company remains globally diversified, and many portions of its business still reflect double-digit growth rates, particularly when it comes to China and Eastern Europe.

"In my view, Citi is now trading for a pittance. In fact, it's just barely seven times earnings and eight times 2008 earnings. Yet if you add up the growth prospects and current valuations, the company reflects a value that could be as high as $60 or more a share.

Continue reading Best Stocks for 2008: Contrary call on Citigroup (C)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 04:04 AM

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