Archives for January 2010

January 2010 - Page 4 of 8 - Money Morning - Only the News You Can Profit From

Markman on the Markets: Cytori Therapeutics Up 40% and Headed Higher

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On Dec. 21, 2009, we introduced Cytori Therapeutics Inc. (Nasdaq: CYTX) to Money Morning readers as a "special situation" stock worthy of consideration. The stock has surged more than 40% since then.

A big reason for that move was that the company received approval from the U.S. Food and Drug Administration (FDA) to start marketing a product called PureGraft that prepares a patient's fat tissue for reinjection into the body for cosmetic procedures. Technically, this was what the industry calls a 510(k) clearance, which is the equivalent, for medical devices, of clearing Phase III trials for a drug.

So, what exactly is PureGraft and why is it so important? For those questions, I turned to one of my sources on the company, an investor and analyst who asked not to be identified.

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In an Uncertain Market, Defensive Investing is Smart - And Profitable

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For U.S. investors looking to profit in the near term, the best offense may be a good defense.

"Defensive investing" becomes a mantra for investors who are seeking to navigate periods dominated by high risk, slow growth or excessive uncertainty. Given that the current market outlook probably contains an element of each of those scenarios, a strategy that includes elements of care and caution will make for a wise course of action.

This is actually a healthy thing, and will likely include a pause in the broader market. But all indicators point to the prospective pause being just that – not a new bear market, just a time out as overfed risk appetites take a breather before being reinvigorated.

Despite the emphatic negative trading session we saw on Friday, most of last week was rather buoyant, with a net gain in the broad market averages. Yet measures of internal market health continued their slow deterioration, with much more volume appearing on down days than up days.

My belief: U.S. stocks are in the process of remedying the overbought condition created by the big upward move in the first week of the year, as well as the overbought condition that's visible on some monthly charts.

For the Top Defensive Plays to Make Now, Read on...

Current "Bull Market Monday" Trend Points the Way to Maximum Market Profits

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Call it the "Bull Market Monday" syndrome.

In fact, if weren't for the last month and a half of Mondays, the U.S. stock market would be a very dour place right now.

Since the start of the 2009 fourth quarter, the Standard & Poor's 500 Index has posted positive returns on 14 of the last 16 Mondays, with an average gain of 0.85% on that first day of the week (See accompanying graphic), the Bespoke Investment Group said in a research report last week.

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Buy, Sell or Hold: Ford Motor Co.'s (NYSE: F) Turnaround Could Put Investors on the Fast Track to Profit

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Back on July 28, 2008, I recommended buying a speculative stake in Ford Motor Co. (NYSE: F). The stock has more than doubled in value since then, and I believe it's positioned for even more gains.

Let me tell you why.

Investing in a company as it turns around from a highly distressed situation is one of the most profitable investments one can make.

Many billionaires, like Wilbur Ross and David Tepper of Appaloosa Management LP, are masters of this style of investing. And they have the profits to prove it.

That's why I am always looking for these rare situations, which can play a very important role in a portfolio, even with a small initial investment. And right now there are a few very strong signals that the U.S. auto sector, which was demolished by the financial crisis, is going to bounce back stronger than ever.

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Housing Market Still in Shambles as Obama's Loan Modification Program Falls Flat

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Despite a concerted effort by the Obama administration to rebuild the housing market, it continues to languish. The government's Home Affordable Modification Program (HAMP) failed to stymie foreclosures last year, and 2010 may not be any better.

Instead of declining, the number of foreclosed homes in the United States last year increased to a record 2.8 million, a 21% rise over 2008 and 120% over 2007, according to RealtyTrac. Foreclosures in the fourth quarter jumped 18% over the same period last year.

Not helping matters is HAMP, which was designed as an incentive for banks to restructure mortgage payments for homeowners facing foreclosures. The Obama administration set aside $75 billion to subsidize lenders that successfully modify troubled loans by reducing interest rates, extending loan repayments, deferring principle payments for as long as five years and adjusting other mortgage terms.

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Intel and JPMorgan Results Boost Fourth Quarter Earnings Season, but Market Swoons

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Stock market bellwethers Intel Corp. (Nasdaq: INTC) and JPMorgan Chase & Co. (NYSE: JPM) gave earnings season a booster shot Friday when they released fourth-quarter results that exceeded analysts' expectations.

And even though the market reacted negatively to the news — suffering its worst losses of the New Year — their results add positive momentum to an earnings season that is expected to provide an abundance of good news.

For the first time since the second quarter of 2007, fourth quarter earnings of stocks in the Standard & Poor's 500 Index should be higher than they were the year before.  That would break the longest losing streak since S&P began keeping track of operating earnings in 1991.

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Why Gold Beats the Market Manipulators

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There's one investment that Wall Street manipulators can't touch – and neither can the Fed or the U.S. government. Right now, that investment is gold. Taking a stake in a hard asset like gold may well be the surest way to make some money for yourself despite the shenanigans on Wall Street.

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The January Effect

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Money Morning's Chief Investment Strategist Keith Fitz-Gerald discusses Fed Chairman Ben Bernake, interest rates, and 2010 market predictions on Fox Business News. Keith predicts a stronger 2 nd half of 2010, but also expects the pace of growth to slow. For more specific recommendations, check out The Money Map Report, the vibrant advisory service from […]

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Why Fourth Quarter Earnings Season Will Bode Well for Stocks

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As earnings season kicks into high gear in the coming weeks, many analysts expect an abundance of good news, mostly because earnings last year were abnormally low. And that bodes well for investors.

For the first time since the second quarter of 2007, earnings of stocks in the Standard & Poor's 500 Index should be higher than they were the year before. That would break the longest losing streak since S&P began keeping track of operating earnings in 1991.

"It's going to be on the plus side again," James Swanson, chief investment strategist at MFS Investment Management told The Wall Street Journal.

TARP Tax More Politics Than Economics

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U.S. President Barack Obama today (Thursday) unveiled the widely anticipated "Financial Crisis Responsibility Fee," which effectively amounts to a tax on banks to pay back money the government lost on the Troubled Asset Relief Program (TARP).

The fee would apply to financial firms – both domestic firms and U.S. subsidiaries of foreign companies – with more than $50 billion in consolidated assets, and equate to 15 basis points, or 0.15% of a company's covered liabilities each year. Deposits assessed by the Federal Deposit Insurance Corp. (FDIC) would not count toward those liabilities.

The tax, which must be approved by Congress, would go into effect on June 30, 2010, and earn about $90 billion over 10 years, but could go on longer. The White House said collecting $117 billion would take about 12 years.

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