By Terry Weiss, Money Morning An alarming new report warns that several European banks could be heading for a "market shock in September or October that will match anything we have ever seen before." The problem, according to the report recently issued by the Telegraph, is a "shortage of liquidity." "It feels exactly as it […]
Archives for August 2012
August 2012 - Page 5 of 20 - Money Morning - Only the News You Can Profit From
Regis Tops, Revenue Lags - Analyst Blog
Regis Corporation (RGS) reported fourth quarter 2012 adjusted earnings of 40 cents per share, surpassing the Zacks Consensus Estimate of 31 cents as well as the year-ago quarter earnings of 37 cents per share. The better-than-expected results were driven by lower tax-rate. However, the company delivered net loss of $63.6 million or $1.11 per share […]
Zacks #1 Rank Additions for Monday - Tale of the Tape
Here are 5 stocks added to the Zacks #1 Rank ("strong buy") List today: Ashland Inc. (ASH) Auxilio, Inc. (AUXO) Cedar Realty Trust Inc. (CDR) Chelsea Therapeutics International Ltd. (CHTP) China Cord Blood Corp. (CO) View the entire Zacks #1 Rank List. ASHLAND INC (ASH): Free Stock Analysis Report AUXILIO INC (AUXO): Free Stock Analysis […]
Flushing Financial Corp. - Momentum
Since its second quarter report late last month, shares of Flushing Financial Corp. (FFIC) have surged about 15.0% to hit its 52-week high of $15.30 on August 21. The rising share price and positive estimate revisions make this Zacks #1 Rank (Strong Buy) savings and loan holding bank a solid momentum pick. Impressive Second Quarter […]
Five Miraculous New Brain Secrets You Need to Know About
It's the most complex organ on earth – the human brain.
And our understanding of the brain is about to reach critical mass.
Our knowledge of the human brain grows by leaps and bounds almost every week. In just the last two weeks, researchers have made several new breakthroughs crucial to learning more about diseases that can cause mental illness or kill us outright.
I predict that in the near future our knowledge of the brain will become so complete we will find cures for such deadly diseases as Alzheimer's and Parkinson's. The same holds for depression and schizophrenia.
And that's one of the key benefits of living in the Era of Radical Change. What was a deep mystery about the brain (and other areas) just a few months ago is now much better understood.
Of course, the pace of change is nothing short of amazing. Consider that as I was preparing this report on five new brain secrets, I came across two more brand-new advances in brain science. Each one holds great promise in our drive to live, longer, healthier, and smarter lives.
Take a look…
Brain Secret No. 1: SuperAgers Have the Right Kind of "Senior Moments"
For decades, researchers have studied the brains of diseased older patients to see what went "wrong." They focus on the origin of diseases, like Alzheimer's, that cause memory loss or dementia.
But a team at Northwestern University took just the opposite approach – they've been studying the brains of highly alert seniors. And the results give hope to millions of aging Baby Boomers.
Turns out there's an elite group of older folks called "SuperAgers" whose brains seem to defy the effects of aging. In fact, their brains match those of people 30 years younger.
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Is Gold Still "The Next Greatest Trade Ever"?
Believe it or not, the housing crash wasn't all heartache and tears. When the mortgage bubble burst a few select investors made a boatload.
One of them was hedge fund titan John A. Paulson.
In what has been called "the greatest trade ever," Paulson earned $15 billion for himself and his clients as the rest of the markets fell hard.
But thanks to artificially low interest rates, incessant money printing, and ongoing stimulus plans, the same opportunity is beginning to build.
I'm talking about gold, where the "the next greatest trade ever" is only a matter of time.
You see, there's no mania like gold mania.
And despite the fact that we've been in a powerful gold bull market for more than a decade already, I believe the best is yet to come for gold prices.
As it happens, so does John A. Paulson, who is already lining up for round two.
Here's why…
Billionaires Love Gold
As the dust settled on his housing mega gains, Paulson's research led him to conclude the demand for gold would be strong in the years ahead.
Thanks to profligate central banks and ongoing fear about the sustainability of our fiat financial system, Paulson decided real money was the place to be setting up his next great trade.
So he put a huge portion of his wealth into one asset class: gold.
In January 2010, Paulson launched a dedicated gold fund, which invests in gold stocks and gold derivatives, committing $250 million of his own capital.
Now to be fair, the results have been less than stellar so far. Thanks mainly to mining stocks, Paulson's Gold Fund was down 23% in the first half of this year.
But here's the thing. His original bets against housing fell at first, too. And we all know how that one turned out. Over time, Paulson's thesis proved to be spot on.
So what has Paulson been buying lately?…
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Merck KGaA to Acquire Biochrom AG - Analyst Blog
Merck KGaA (MKGAF) recently announced a definitive agreement to acquire Berlin, Germany-based Biochrom AG. Biochrom AG, which specializes in the production and marketing of cell culture media and buffer solutions, posted sales of approximately €13 million in 2011. The company also reported a total workforce of approximately 60 in 2011. The financial terms of the […]
Build Your Wealth the Warren Buffett Way With These "Wide-Moat" Companies
It's never a bad idea to bullet-proof your stock portfolio with companies that have a clear-cut competitive advantage.
And now may be the right time to bolster your defenses with exchange-traded funds (ETFs) that buy stocks of companies with so-called "wide moats."
Of course, famed investor Warren G. Buffett originally coined the term to describe companies with distinct competitive advantages over other firms in its industry.
The Oracle of Omaha says he is always looking for "economic castles protected by unbreachable moats."
Indeed, Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) is chock full of wide-moat companies that consistently rake in high returns on invested capital, propelling their shares higher year after year.
The idea is to buy — when they are cheap — shares of companies that have dominant positions in their industries and are likely to maintain their superiority for decades, not months or years.
For example, Berkshire has held positions in The Coca Cola Co. (NYSE: KO) and Exxon Mobile Corp. (NYSE: XOM) for decades, patiently reaping the rewards from their wide moats.
"A company that has a greater duration of competitive advantage is simply worth more," Paul Larson, chief equity strategist at investment research firm Morningstar Inc. (Nasdaq: MORN) told MarketWatch.
So what gives one company a wide moat while others try to scrape by on the leftovers?
Here's what gives them the upper hand…
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Rising Bank Fees Pinching Customers to Fatten Bottom Lines
Stricter rules governing how much banks can charge for overdraft and credit card swipe fees have eaten into the profits of big banks, but they have an answer: raise the bank fees their customers pay.
Banks blame increased regulations that limit fees and other charges for wiping out an estimated $12 billion in yearly income. Now it costs banks between $200 and $300 a year to maintain a retail checking account, but they only take in about $85 to $115 in fees per account per year.
In fact, more than half of all checking accounts are unprofitable for banks, according to a study released in 2010 by consulting group Marsh & McLennan Cos. Inc. (NYSE: MMC).
Banks also have lost money on cash they're holding due to few investing or lending options, depriving them of as much as $8 billion in income.
Banks have had to become more creative in finding ways to compensate for their lost income. Free checking is increasingly more difficult to find, and a slew of other bank fees have been added.
"Banks are closely examining what costs they can eliminate and where they might be able to charge, and what the market will bear and not drive customers away," Beth Robertson, director of payments research for Javelin Strategy & Research in California told Consumer Reports.
Avoiding these myriad new bank fees is difficult, if not impossible, for most consumers.
Fees are "rising across the board," Richard Barrington of MoneyRates.com told Marketplace Economy. "And the least you'll need to keep in your account to get free checking has jumped, on average, by more than 800 bucks."
Barrington said that in addition to the growing bank fees, the average balance requirement has jumped to $4,400 — far more than most people keep in their checking accounts.
Oil Prices Promise to Head Higher As Mexican Production Dwindles
In addition to Iranian threats and growing demand, dwindling production of crude in Mexico promises to push oil prices higher as well.
Mexico is the third biggest exporter of oil to the United States. That's bad news for the U.S. economy which always gets hit when oil prices rise.
From 2004 to 2008, the U.S. Department of Energy reports such jolts, along with OPEC price manipulation, cost roughly $1.9 trillion. Plus, a recession followed each major blow.
According to the U.S. Energy Information Administration (EIA), Mexican oil production reached a peak of 3.2 million barrels a day in 2008. And by 2011, it wasn't even producing 3 million barrels a day.
Since then oil production has slipped to 2.5 million barrels a day.
Worse still, Mexico could actually become a net importer of oil within a decade if it cannot find fresh discoveries to make up for the 25% production drop since 2004 and fails to change its current policies.