Archives for March 2011

March 2011 - Page 10 of 10 - Money Morning - Only the News You Can Profit From

Warren Buffett is Taking Berkshire Hathaway Inc. (NYSE: BRK.A , BRK.B ) on the Hunt for Takeover Targets

Iconic investor and Chairman and Chief Executive Officer of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) Warren Buffett announced on Feb. 26 in his annual shareholder letter that his company was eyeing acquisition targets in 2011, sending many "follow the guru" investors on a search for the next big takeover.

Berkshire's cash rose to a three-year high of $38.2 billion and Buffett said the firm was on the prowl for new buyouts.

"We will need more good performance from our current businesses and more major acquisitions," wrote Buffett. "We're prepared. Our elephant gun has been reloaded, and my trigger finger is itchy."

Berkshire Hathaway generated almost $1 billion a month in free cashflow last year. It also completed its biggest purchase, spending $26.5 billion for rail company Burlington Northern Santa Fe Corp.

Many analysts view the defense industry and agriculture sectors as the most appealing sectors.

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How to Clean Up with Waste Management Stocks

Money Morning on Feb. 9 described the profit potential of companies that are dealing with the world's water crisis, noting that 1.15 billion people around the globe currently lack access to clean water supplies.

However, even more people – 2.6 billion, according to the World Water Council – live in areas without adequate sanitation, making waste management an equally pressing global concern.

In fact, any hope that we have of resolving the mounting global water shortage will depend heavily on both cleaning up existing water sources and recycling the wastewater we currently produce – two jobs that will translate into big opportunity for investors in companies that focus on pollution control.

Of course, the bulk of global waste-management activity involves not water, but trash – with the clean-up of toxic materials thrown in for good measure.

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$130 Oil Could Be Just the Beginning as Libya Crisis Intensifies

With rising violence in Libya looking increasingly like a war, the head of Libya's national oil company said yesterday (Wednesday) that crude prices could reach $130 a barrel within a month.

But that may be just the beginning, as other analysts have raised fears of oil prices topping $200 and even $300 a barrel.

"The oil market is very sensitive," Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters. "Speculation is very important for the market. When you see that production in an important country went down you are afraid it will go down even more."

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Mideast Crisis Update: Don't Count on the Saudi Oil Supply

As the autocratic rule that has dominated the Middle East for decades continues to unravel, volatility in the global oil markets continues to point toward one overriding concern: How can we maintain an oil-flow balance in the face of this escalating uncertainty?
Global oil prices spiked to their highest levels in more than two years on Friday because of worries that the unrest and resulting production curbs in Libya would spread to other oil-exporting countries.
Oil prices retreated a bit yesterday (Monday) in the aftermath of several developments that investors perceived as positive. In the first, reports said that Libyan protesters were allowing oil shipments to resume from certain parts of the country. And in the second, Khalid Al-Falih, the head of state-owned Saudi Aramco, said that that "all incremental needs" for extra oil have been met.
Of course, even with the Saudi oil supply pledge, these developments offer only a momentary respite in the Mideast crisis. Almost two-thirds of the world's known conventional oil supplies are located in the Middle East region. And the question that isn't being answered – or even asked – right now is this: Are oil supplies sustainable in the face of a longer-term crisis?
The answer to that question will leave you feeling less than sanguine.
<<BREAK HERE>>To understand why this crisis is worse than most believe, please read on…

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Seven Reasons the Apple iPad Will Remain King of the Tablets

Apple Inc. (Nasdaq: AAPL) today (Wednesday) is expected to launch the iPad 2 – the latest iteration of a tablet device that has revolutionized the mobile computing segment.

Indeed, while most of its competitors have yet to release even their first tablet attempt, Apple is already at work on its third, which shows just how entrenched Apple's lead is in this relatively new and fast growing market.

The debut of the iPad last year ignited a tablet market that had languished for nearly a decade. Apple sold 3 million iPads in the three months following the device's April release, compared to just 2 million total tablets sold in all of 2009.

As with the iPod and iPhone before it, the iPad transformed its market and established Apple as its trendsetter.

Research firm IHS iSuppli (NYSE: IHS) expects sales of media tablets like the iPad to skyrocket from 17.4 million units worldwide in 2010 to 202 million in 2015. It sees the overall tablet market (which includes "PC-type" tablets with more robust computer abilities) to grow from 19.7 million in 2010 to 242.3 million in 2015.

With so much potential in this relatively new market, competitors – such as Samsung Electronics Co. Ltd. (PINK: SSNHY), Hewlett-Packard Company (NYSE:HPQ) and Research in Motion Limited (Nasdaq: RIMM) – are releasing tablets of their own.

However, the iPad's competitors, even those using Google Inc.'s (Nasdaq: GOOG) Android operating system, face an uphill battle in their quest to knock Apple from its early dominant position in the tablet segment of mobile computing.

It's true that the iPad's share of the tablet market dropped to 75% in the fourth quarter of 2010 from an unsustainable 95.5% in the third quarter. But it's likely that iPad sales will stabilize at a high level, with Apple holding at least 50% of the market for years to come.

Here are seven reasons why…

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Rising Prices Mean Cautious Year Ahead for U.S. Household Spending

Following the crippling economic turmoil of the past few years, many U.S. households worked hard to tighten budgets, slash excessive spending, and live within their means.

But there are signs that consumers are starting to open their wallets again, and U.S. consumer spending – which makes up 70% of the economy – could help sustain the cautious economic recovery.

U.S. consumer confidence in February hit its highest level in three years, bolstered by economic optimism and salary increases, spurring hope that 2011 could be a year of increased household spending.

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This Middle East Meltdown Will Send Oil to $300 a Barrel - and Pump Prices to $9.57 a Gallon

The unrest in the Middle East oil patch is roiling the global oil markets on an almost daily basis.

The events in Egypt, Libya, Saudi Arabia, Oman and other countries are also forcing us to ask that long-dreaded question: What happens if the countries throughout the Middle East region fall to radical governments?

The answer is both stunning and surprising.

In an absolute worst-case scenario – if the entire Middle East falls under radical control – we could be looking at $300-a-barrel oil and pump prices of $9.57 a gallon. Definitely a stunner.

Here's the surprise: Even such a worst-case outcome would not result in the end of Western civilization as we know it. In fact, you can hedge against such a meltdown – just follow the recommendations that we detail below.

For two moves to make now, please read on…

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Are You Betting on a Bull Market?

On March 9, the U.S bull market in stocks will celebrate its second birthday.

But what everyone really wants to know is this: A year from now, will we be celebrating again – or will we be trying to outrun the bear?

So far, 2011 is delivering on that bull market promise. The just-finished month of February represents the third straight month of U.S. stock-market gains.

All three major indices are up more than 5% so far this year. The Standard & Poor's 500 Index rose 3.02% in February and 2.26% in January. In fact, even with the damage that the Middle East crisis inflicted on stock prices at the end of last month, the S&P 500 and Dow Jones Industrial Average each enjoyed their strongest February showing since 1998.

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Mideast Crisis Update: Don't Count on the Saudi Oil Supply

As the autocratic rule that has dominated the Middle East for decades continues to unravel, volatility in the global oil markets continues to point toward one overriding concern: How can we maintain an oil-flow balance in the face of this escalating uncertainty?

Global oil prices spiked to their highest levels in more than two years on Friday because of worries that the unrest and resulting production curbs in Libya would spread to other oil-exporting countries.

Oil prices retreated a bit yesterday (Monday) in the aftermath of several developments that investors perceived as positive. In the first, reports said that Libyan protesters were allowing oil shipments to resume from certain parts of the country. And in the second, Khalid Al-Falih, the head of state-owned Saudi Aramco, said that that "all incremental needs" for extra oil have been met.

Of course, even with the Saudi oil supply pledge, these developments offer only a momentary respite in the Mideast crisis. Almost two-thirds of the world's known conventional oil supplies are located in the Middle East region. And the question that isn't being answered – or even asked – right now is this: Are oil supplies sustainable in the face of a longer-term crisis?

The answer to that question will leave you feeling less than sanguine.

To understand why this crisis is worse than most believe, please read on...

JPMorgan Chase & Co. (NYSE: JPM) Digital Growth Fund Bets on Twitter Potential

JPMorgan Chase & Co. (NYSE: JPM) may be making Twitter Inc. a main player in the bank's new Internet-focused fund, betting on the profit potential of the social media star.

JPMorgan's asset management unit will run the new Digital Growth Fund and has raised $1.22 billion so far, according to a U.S. Securities and Exchange Commission (SEC) filing last week. It plans to raise $1.3 billion total and hopes to get a 10% stake in Twitter, people familiar with the matter said Sunday. It plans to invest about a third of the total assets, or $450 million, in the online messaging site, valuing it at $4.5 billion.

The fund was established in February to invest in rapidly growing tech companies, most of which are privately held. It will have a maximum of 480 investors, and earn commission of at least $13 million.

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