Posted Jul 3rd 2008 3:04PM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Stocks to Buy, Green Stocks
"Renewable fuels and clean energy, a sector beaten down hard since last fall, are now primed for a major comeback," says Eric Roseman, editor of The Commodity Trend Alert. Here's his ETF play on the sector.
"With every passing day the price of crude oil rises, the secular trend to alternative energy becomes even more powerful. Consumers, companies and governments are now sick and tired of soaring energy prices.
"The long-term solution is to obviously reduce our dependence on oil and increase our consumption of renewable fuels like wind, solar, and nuclear energy.
"The bull market in alternative energy began in 2005 when a host of companies in this thriving sector went public, supported by government subsidies, especially in Germany and Spain. Interestingly, Germany and Spain have just reduced solar energy subsidies this spring.
"In my view, those subsidy cuts don't matter at this stage. When companies in the solar sector are making money, why should governments continue subsidizing them?
Continue reading Claymore/MAC Global Solar Energy: Time for a TAN
Posted Jul 2nd 2008 1:43PM by Steven Halpern
Filed under: Russia, Oil
"I've long favored Russia for investment, building my case around its energy sector and the infrastructure boom taking place," says Yiannis Mostrous in Silk Road Investor. Here are his top energy plays.
"Russia is currently in a sweet spot: It's a net oil exporter, has solid GDP growth, isn't dependent on foreign capital flows, is politically stable, has reasonable market valuations and, above all, enjoys solid exposure to the biggest growth story of our time, Asia.
"Russia's GDP grew by 8.5% year-over-year in the first quarter of 2008, stronger than expectations. The expansion was broad based: construction, manufacturing, electricity generation and services all showed healthy growth.
"Russia's energy companies have underperformed because of the relatively heavy tax burden imposed by the state. But the Russian economy has turned around, and the government has announced tax cuts that will take effect 1 January 2009, saving the industry USD1.30 per barrel of crude produced.
Continue reading Russian gusher: Best energy bets
Posted Jul 2nd 2008 12:43PM by Steven Halpern
Filed under: Newsletters, SLM Corp (SLM), Stocks to Buy
"Since the market started its downturn early this year, I have avoided all financial stocks and resisted the temptation of value plays," says Dave Dyer.
In his Dave Dyer's Newsletter, he explains, "Well, it is now time to violate both of those prohibitions at once." Here, he looks at a new buy for SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, the nation's largest provider of college loans and savings programs."
"There must be some financial areas that have predictable, growing demand, willing customers who actually have low default rates, and securitization processes that do not involve the type of financial engineering that is only intended to hide risk.
"Well, there is such an area, and it even involves a product that it makes sense to finance since it will actually increase in value over time. I'm talking about student loans.
Continue reading Sallie Mae (SLM): At the head of the class
Posted Jul 1st 2008 2:00PM by Steven Halpern
Filed under: International markets, Newsletters, AFLAC Inc (AFL), Japan, Stocks to Buy
Aflac (NYSE: AFL) is a new addition to the "Borderless Portfolio" maintained by global expert John Christy. Here's the latest from his industry-leading Forbes International Investment Report.
"If you own a television, chances are you're quite familiar with the infamous squawking duck in Aflac's commercials. Aflac has also been in the news lately as the first American company to give shareholders a 'say on pay', or the ability to vote on executive compensation.
"Less well known, however, is Aflac's huge presence in the Japanese insurance market. In 2007, roughly
75% of the company's pre-tax operating earnings were generated in Japan.
"Alfac has been doing business in Japan for more than 30 years, and one in four Japanese households has an Aflac insurance policy. In Japan, Aflac sells healthcare policies for certain things that aren't covered by the national healthcare system, as well as life insurance. And, yes, they have a talking duck in their ads over there too.
"At a time when many financial companies are reporting massive write-offs, Aflac reiterated its target of 15% earnings growth this year, and double-digit growth in 2009. Aflac Japan is doing its part to help drive this growth with 19% operating earnings growth in the first quarter of 2008."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted Jul 1st 2008 11:15AM by Steven Halpern
Filed under: Newsletters, Technical Analysis, Stocks to Buy
"If you've visited a mall – or if you've ever bought clothing for toddlers – you might already be familiar with our latest Undiscovered Gem: Children's Place Retail Stores (NASDAQ: PLCE)," says Elizabeth Harrow.
In Schaeffer's Research, the technical and contrarian advisor explains, "The stock is on the ascent, but Wall Street isn't taking much notice."
"The company was founded in 1969, and is based out of Seacaucus, New Jersey. The retailing chain boasts a market cap of just under $1 billion. It is is a member of the S&P SmallCap 600 Index, as well as the S&P SuperComp 1500, which lends the shares a bit of Street cred.
"The firm recently pleasantly surprised investors with its same-store sales figures. During May, sales at stores open for at least 1 year rose by 10%, compared to analysts' expectations for a gain of 4.3%. Total sales for the month galloped 19% higher for the 4-week period ended May 31.
Continue reading Contrarian shops at Children's Place (PLCE): No kidding!
Posted Jun 30th 2008 11:34AM by Steven Halpern
Filed under: General Electric (GE), Newsletters, Commodities, Oil, Stocks to Buy, Green Stocks
"To say that alternative energies are critical is a severe understatement." asserts Stephen Leeb, who looks at three plays in the sector that earn a spot in his Growth Portfolio.
The editor of The Complete Investor explains, "Readily scalable energy sources such as solar and wind account for under 1%. It's time to get serious."
Three of the stocks he has selected are holdings in his model Growth Portfolio: FPL Group (NYSE: FPL), Exelon (NYSE: EXC), and General Electric (NYSE: GE). Here's a trio of favorites.
"We have focused on those alternative energy stocks with the strongest growth profiles. None is a pie in the sky fantasy; all provide energy in the here and now and have significant and fast-growing revenue streams.
"The fact that their growth should continue to burgeon is one of the most heartening pieces of news on the energy front. We could argue that investing in these stocks not only will be good for your portfolio but is an act of patriotism as well.
Continue reading Three growth favorites in alternative energy
Posted Jun 30th 2008 11:10AM by Steven Halpern
Filed under: Nucor Corp (NUE)
"Global steel producers are thriving, and their stocks are hitting new highs," note Yiannis Mostrous and Roger S. Conrad, who add, "But the best is yet to come."
In the industry-leading Personal Finance, the two advisors explain, "We're still in the early stage of a truly global bull market cycle for steel, and the companies best positioned to take advantage are headed a lot higher." Here, they look at their "Iron Five."
"As is the case with other building blocks of economic growth, steel is enjoying explosive demand from the developing world. And with the world expanding as never before, steel companies are literally selling as fast as they can produce.
"In the August 2007, we highlighted five first-rate global steel producers. Since then, they've returned an average of 67.4%, versus a decline of 3.7% for the S&P 500.
"The Iron Five are five picks that we believe are ripe for even bigger gains. Like the last group, these stocks are often volatile. They're also vulnerable to the possibility of a general stock market slide and most of all to a dip in global demand growth, particularly from China.
Continue reading Titans of steel: The 'Iron Five'
Posted Jun 27th 2008 1:30PM by Steven Halpern
Filed under: Newsletters, Technical Analysis, Commodities, Oil, Stocks to Buy
"Coal miner Peabody Energy Corp. (NYSE: BTU) looks hot," says Leo Fasciocco, who focuses on stocks that have broken out from technical basing patterns.
In his The Ticker Tape Digest, he explains, "The stock rose above its break points of $81.20, hitting a new high." He adds, "With net set to surge 70% this year, we see an upside target of $105 per share."
"Peabody, based in St. Louis, is a major producer of coal with annual revenues of $4.7 billion. BTU's coal fuels more than 10% of U.S. electricity generation and 2% worldwide.
"The company has mining operations in Appalachia, the Powder River Basin, and the U.S. Southwest and Midwest, as well as Australia and Venezuela. It also markets, brokers, and trades coal, and develops electricity-generation projects.
"Technically, BTU has broken out from a six-week flat base today with expanding volume. It is part of the strong coal group, which has been one of the strongest acting sectors of the market.
Continue reading Breakout for BTU: Technician buys Peabody Energy
Posted Jun 27th 2008 10:35AM by Steven Halpern
Filed under: Newsletters, Mutual funds, Stocks to Buy
"For investors who seek superior relative performance but are unwilling to sacrifice dependability, the we offer four funds that consistently outperform their peers," says Richard Moroney.
In the mid-year forecast for his Dow Theory Forecasts, he explains, "All of these funds have outpaced category averages in each of last five years, and sometimes much longer." Here, he looks at those funds that he considers "perennial winners."
"To be sure, past returns do not guarantee future success. But, while the evidence is not conclusive, academic studies generally indicate performance tends to persist, particularly at the extremes. That is, the best funds continue to outperform their peers, while the worst funds keep lagging.
"Fidelity Export & Multinational (FEXPX), our favorite pick among large-company growth funds, is riding an impressive nine-year winning streak - the longest in its category. Among the more than 1,800 large-cap growth funds, less than 80, or roughly 4%, have outperformed the peer-group average for five straight years.
Continue reading Four favorite funds: 'Perennial winners'
Posted Jun 27th 2008 8:40AM by Steven Halpern
Filed under: Newsletters, Technical Analysis, Commodities, Oil, Stocks to Buy
Using a proprietary "volume reversal" trading strategy, Mark Leibovit has been consistently ranked among the top newsletter timers. In his VRTrader, he looks at the outlook for stocks, oil, gold & silver -- and offers his choice for exchange-traded funds for traders to play these markets.
Leibovit explains, "The stock market's decline, besides being huge, is relentless. Every rally was met with selling and fresh lows were soon hit. The Dow crashed through the March and January lows and is now trading at its lowest level since September 2006.
"Apparently, that 1500 point rally off the March low was just a giant head fake. The Dow is now down 19% since last October and the S&P is down 18%, approaching bear market territory."
"Breadth is dismal, and down volume is ten times greater than up volume. Sector action is terrible. Seven of the nine market sectors are down more than 2.5%. Ouch! Financials have done it again and have set a new five-year low. Oil spiked through previous records setting a new record high.
"The precious metals also showed strong gains today with gold up 32.80 to 915.10. We cleared the June 9th high of 907.20 touching 909.50 opening up potential to 931.00 (May 21 high).
Continue reading Top timer's upside targets: Stocks, oil, gold & silver
Posted Jun 26th 2008 2:34PM by Steven Halpern
Filed under: International markets, Newsletters, ConocoPhillips (COP), Commodities, Oil, Stocks to Buy
Leading advisor Jack Adamo, editor of Insiders Plus, reports that a Goldman Sachs analyst has chosen one of the stocks on his newsletter's buy list -- ConocoPhillips (NYSE: COP) -- as his top pick in the energy sector.
"There was an extremely interesting piece recently in Barron's by the oil analyst at Goldman Sachs who predicted $100 oil back in late 2004. We'd been buying energy stocks for almost a year at that point, but, although I expected oil prices to rise, I had no idea they'd go this high.
"In any case, the analyst, whose name is Arjun Murti, said he expects oil to reach $150 to $200 sometime within the next 24 months. The low end of that range is only a Middle East incident away, but the high end still seems like a reach, especially given weakening economic conditions.
Continue reading Goldman Sachs analyst bets on ConocoPhillips (COP)
Posted Jun 26th 2008 1:11PM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
"Skechers USA (NYSE: SKX), a trendy California-based retailer, is a new buy recommendation on our 'hot list'," says John Reese, who selects stocks based on the criteria used by several legendary stock pickers.
In his always-fascinating Validea newsletter, the advisor explains, "Skechers gets approval from two of my guru-based strategies, those that I base on the writings of Peter Lynch and Kenneth Fisher." Here is his review.
"My Lynch-based model considers the firm to be a 'fast-grower' because of its 23.08% long-term growth rate (based on the average of the three- and five-year earnings per share figures).
"Lynch was perhaps best known for using the P/E/Growth ratio, which divides a stock's price/earnings ratio by its growth rate to identify growth stocks that are still selling at a good price.
"P/E/Gs below 1.0 are acceptable to my Lynch-based model, with those under 0.5 the best case. With a P/E of 10.99 and that 23.08 percent growth rate, Skechers has a P/E/G of 0.48, passing this critical Lynch-based test with flying colors.
Continue reading Sketchers (SKX): A hot idea for Peter Lynch or Ken Fisher
Posted Jun 25th 2008 3:15PM by Steven Halpern
Filed under: International markets, India, Newsletters, Mutual funds, Stocks to Buy
"India is one of the hottest economies on the planet and holds tremendous profit potential," says Larry Edelson in Real Wealth. Here, he looks at a trio of fund poised to "capitalize on India's boom."
"India's economy is growing at a 9% rate, ten times faster than the U.S. and only a couple of percentage points behind China. And the Indian economy is not merely outgrowing the U.S. by leaps and bounds; it's also at the very epicenter of the booming natural resource markets.
"India has the fastest-growing population in the world, expanding at the rate of some 16 million per year. At that rate, India's population will exceed 1.4 billion people and be larger than China's by 2030.
Continue reading The case for India and three ways to invest
Posted Jun 25th 2008 1:02PM by Steven Halpern
Filed under: Industry, Economic data
"Normally, you hear that in the event of a recession, defensive sectors such as healthcare and consumer staples are the best place to be," note technical experts Dr. Marvin Appel and Gerald Appel in their Systems & Forecasts. But are they?
"The reason these are called 'defensive' is that consumer demand for these goods does not shrink by very much during recessions. As such, corporate profits should hold up better than average. Consumer staples has the added advantage of being a sector with below-average volatility generally.
"Data from Ned Davis Research confirms this bit of investing folklore. Briefly, the two best-performing sectors in the six and 12 month periods following the onset of the five recessions from 1973 through 2001 were healthcare and consumer staples. So far, so good.
"The problem is that just because the performance of these sectors during recessions has been better than other areas of the S&P, that does not mean that their returns have been very good.
Continue reading Defensive sectors for a recessions: Myth or reality?
Posted Jun 25th 2008 12:49PM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"Frontline Ltd. (NYSE: FRO) is the 'mac daddy' of the oil transport business," says growth and income expert Bryan Perry, who has added the shares to the model portfolio of his 25% Cash Machine.
"Frontline is doing a much better job of executing profits in the current market for transporting crude oil. FRO posted first quarter results that showed a jump in profits of 40%, with a dividend hiked to $2.75 for the quarter. That translates into a current annual yield of 18.25%. Even better, the company forecasts continued strength in operations and quarterly distributions.
"This kind of profit growth is a result of FRO being leveraged to the spot market for day charter rates for double-hull tankers. The company is by far-and-away the largest shipping company, with 76 vessels and a market cap of $4.4 billion.
Continue reading Frontline (FRO): The 'mac daddy' of oil transports
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