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You Just Pocketed 89% From Our Recent Inflation Warning

We’ve been telling you folks for months that the pesky surge in prices we know as “inflation” has been showing up in different spots within the U.S. economy.

In early April, Shah Gilani – editor of our Capital Wave Forecast and Short Side Fortunes advisory services – told us that food prices were spiking. And he even re-recommended an “old friend”.

Folks who acted on that advice have pocketed a 27% gain in less than four months…

  • Microsoft

  • The Bright Future for Cloud Computing is Becoming Much Clearer The cloud computing industry has yet to fully take off, but for an indication of its potential, look at the players getting involved.

    Microsoft Corp. (Nasdaq: MSFT), Hewlett-Packard Co. (NYSE: HPQ), Oracle Corp. (Nasdaq: ORCL), Google Inc. (Nasdaq: GOOG), and Amazon.com Inc. (Nasdaq: AMZN) - the biggest names in the tech sector - are all racing to take the lead in this burgeoning industry.

    So what's all of the excitement about?

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  • Nokia Needs More Than New CEO Stephen Elop to Reverse Its Steep Market Decline Nokia Corp. (NYSE ADR: NOK) on Friday announced it was replacing its chief executive with Microsoft Corp.'s (Nasdaq: MSFT) Stephen Elop, in an effort to reverse its steep decline in the U.S. smartphone market.

    The world's largest mobile phone maker said Chief Executive Officer Olli-Pekka Kallasvuo will step down and Elop, head of Microsoft's business software unit, will take the reins Sept. 21. The move represents a drastic shift for Nokia, which until Canadian Elop had never hired a non-Finnish executive for the top spot. But the company needs a strategy and management overhaul to compete in the profitable future of smartphones.

    The move should appease Nokia's frustrated investors who have watched its market value slip 70% in the past three years as Apple Inc.'s (Nasdaq: AAPL) iPhone, Research in Motion Ltd.'s (Nasdaq: RIMM) BlackBerry, and phones using Google Inc.'s (Nasdaq: GOOG) Android platform stole the smartphone spotlight.

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  • Buy, Sell or Hold: Despite Challenges, Innovation Will Provide Long-Term Boost to Software Leader Microsoft Corp. (Nasdaq: MSFT) Thanks to some shrewd maneuvering with its first major software contract in the early 1980s, Microsoft Corp. (Nasdaq: MSFT) built itself into a tech giant and software powerhouse. But the global financial crisis and increasing competition are eroding that longstanding dominance.

    There's no doubt the company has made successful strategic decisions for decades.

    Founder and Chairman William H. Gates III established Microsoft in 1975 and made it the worldwide leader in software products and services, including operating systems for servers, personal computers and intelligent devices, server applications, business solutions applications, software development tools and video games. It offers product support and consulting services on its impressive array of products, including its widely used Windows operating systems and Microsoft Office software suite.

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  • Tech Stocks Priced for Bargain Deals, Edge Higher on Analyst Upgrades Analyst upgrades lifted the technology sector on Monday, as cheap valuations and strong balance sheets in tech companies are making for good buys, as outlined in Money Morning's Midyear Forecast on tech stocks.

    Analysts say tech stocks haven't been this cheap since 1992, excluding a brief period before the March 2009 bull market started, and now is the time to buy.

    "Tech stocks have some of the strongest balance sheets in the S&P 500," Bruce Bittles, chief investment strategist of Robert W. Baird & Co., told Bloomberg. "The valuations are inexpensive - that's another plus. It's a good time to invest in tech."

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  • Hot Stocks: Can Apple Be a Gentle Giant? Apple Inc. (Nasdaq: AAPL) yesterday (Thursday) supplanted Microsoft Corp. (Nasdaq: MSFT) as the largest technology company in the United States. Apple now trails only Exxon Mobil Corp. (NYSE: XOM) in size, but that size will only make the company a bigger target if it fails to use its newfound market position prudently.

    Just last month, Microsoft's market capitalization exceeded Apples by some $25 billion. But Apple has finally overtaken one its great archrivals. But being the new standard bearer for the technology sector brings with it more than bragging rights. It also will make Apple a bigger target for its competitors and government scrutiny.

    As far as competition is concerned, there's no question that Apple has outdone Microsoft.

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  • HP Shakes Up Smartphone Market With $1.2 Billion Palm Buyout Hewlett-Packard Co. (NYSE: HPQ) today (Thursday) bought Palm Inc. (Nasdaq: PALM) in a $1.2 billion deal that marks a giant step by the computer firm into the burgeoning smartphone market and brings to a close speculation about a struggling company that was running out of options.

    The deal will catapult H-P, the world's largest tech company in terms of revenue, into direct competition with a handful of other tech giants - including Apple Inc. (Nasdaq: AAPL), Google (Nasdaq: GOOG) and Microsoft (NYSE: MSFT) - in the rapidly growing smartphone market.

    H-P said it would pay $5.70 a share in cash for Palm, representing a 23% premium over its Wednesday closing price.

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  • Hot Stocks: The iPad Proves It's Not What Apple Sells, It's How Apple Sells It Apple Inc.'s (Nasdaq: AAPL) iPad has lived up to the hype, garnering rave reviews and meeting sales expectations. That success is particularly impressive because previous attempts by other companies to launch similar products were met with abject failure.

    Because they make up less than 1% of the personal-computer market, few observers realize that so-called tablets have been around for about twenty years now.

    The first models offered detachable keyboards, pen-based applications, and were priced in the thousands. A few contributed to companies declaring bankruptcy shortly after their debuts. Most were as pricey as a laptop but without nearly as much memory or competitive features - "underpowered and overpriced" were the usual complaints.

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  • Pacifying the Panda: U.S. Companies Must Take a New Approach to China There's no question about what kind of profit opportunities the Chinese market offers. Moreover, the willingness of U.S. companies to partner with China in the pursuit of profit is equally blatant.

    So why is it that more U.S. businesses feel less welcome in China now than they did four years ago?

    The fact is that in the past four years, China's economy has continued to grow by leaps and bounds, while a humiliating financial collapse and soaring debt have tarnished much of the shine that once adorned the U.S. market.

    Indeed, for the first time in perhaps more than a century China has the upper hand. How long that will last is a difficult question to answer, but right now, China wants to use its leverage to support domestic companies - and it's doing so unapologetically.

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  • Hot Stocks: Apple's Acquisition of Quattro Puts It on a Collision Course with Google With its acquisition of Quattro Wireless, Apple Inc. (Nasdaq: AAPL) has opened the door to competition with Yahoo Inc. (Nasdaq: YHOO), Microsoft Corp. (Nasdaq: MSFT), and especially Google Inc. (Nasdaq: GOOG) in the mobile advertising market.

    And Apple's venerable App Store will play a key role in the company's expansion.

    All Things Digital, a tech blog affiliated with The Wall Street Journal, reported the deal's value at $275 million, citing several anonymous sources. It is the 24th acquisition in Apple's 34-year history, and is characteristic of the previous 23: buying a small company that can easily be integrated into its existing projects.

    In this case, Apple can use mobile web ads developed by Quattro to generate income from outside advertisers. Read More...
  • Investment News Briefs With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world. Nikkei Hits Three-Month High; Obama to Small Banks: Step Up the Lending; Tax Credit Fuels 7.4% Gain in November Home Sales; OPEC Leaves Oil Output Unchanged; WSJ: Apple Approaches CBS, Disney About Internet Television Service; Report: Computer Hackers Stole Millions of Dollars from Citi; Federal Court Upholds Ruling on Patent Infringement by Microsoft; Buffett Adds Comcast COO to Berkshire Board A weaker yen and strong technology stocks helped Japan's Nikkei 225 finish 1.9% higher at 10,378.03 yesterday (Tuesday), the highest level in three months. Most shares of tech companies gained after Barclays Capital (NYSE ADR: BCS) upgraded its rating on Intel Corp. (Nasdaq: INTC) from overweight to market weight on Monday. "The U.S. dollar strength is undoubtedly helping out the Nikkei," Cameron Peacock, an analyst at IG Markets told MarketWatch.com. "With Japan being such an export-focused economy, the weaker yen is a real positive for Japanese companies' earnings." The White House will seek to remove bureaucratic barriers that prevent community banks from lending so they can help businesses seize "enormous opportunities" for growth, U.S. President Barack Obama told the heads of a dozen small lenders yesterday (Tuesday). The president encouraged the bankers to keep the nascent recovery of the U.S. economy going by increasing their lending to small businesses and supporting the financial reform measures being proposed on Capitol Hill. Read More...
  • Investment News Briefs With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world.

    GM Hires Former Microsoft CFO; French Drug Maker Buys U.S. OTC Firm; Ford Looks to Reduce Workforce by 41,000; Galleon's Rajaratnam Pleads Innocent; China Backs Out of Investment In U.S. Gold Miner; Gold Falls Amid Interest-Rate Speculation; Recovery Hopes Send Treasury Yield Curve to Record High

    • General Motors Co. hired Microsoft Corp. (Nasdaq: MSFT) Chief Financial Officer Chris Liddell to the same position, GM said yesterday (Monday). Liddell replaces Ray Young, who will be transferred to China as the automaker's vice president of international operations. "Chris will lead our financial and accounting operations on a global basis and will report directly to me," said GM Chairman and Interim Chief Executive Officer Ed Whitacre."We're also looking to his experience and insights in corporate strategy as a member of the senior leadership team in helping our restructuring efforts." Liddell, who already announced his Dec. 31 departure from Microsoft, will begin at GM sometime next month.
    • French drug maker Sanofi-Aventis SA (NYSE ADR: SNY) has agreed to buy U.S. consumer healthcare group Chattem Inc. (Nasdaq: CHTT) in a deal valued at roughly $1.9 billion in cash, or $93.50 per share, a premium of 34% to Chattem's Friday closing price. The deal should give Sanofi a presence in the over-the-counter U.S. drug market. "It looks for me an interesting deal to generate a lot of synergies," Landesbank Baden- W rttemberg analyst Timo Kuerschner, told Reuters.
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    • FTC Sues Intel in Antitrust Action as EU Settles With Microsoft The U.S. Federal Trade Commission sued Intel Corp. (Nasdaq: INTC) yesterday (Wednesday) accusing the world's leading computer chipmaker of illegally using pricing deals and other tactics "to stifle competition and strengthen its monopoly."

      The complaint says Intel tried to block "superior" products by rivals and deprived consumers of choice and innovation for 10 years.

      "Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly," said Richard A. Feinstein, the FTC's director of competition. Read More...
    • Investment News Briefs AOL Goes It Alone; Citi to Pay Back TARP Funds; Jim Rogers: Audit, Then Abolish The Fed; Goldman Sachs Adopts "Say on Pay" Policy; GE Gets Contract for World's Largest Wind Farm; Weekly Jobless Claims Rise, Trade Gap Narrows; Gold Bounces Back; U.S. Households' Net Worth Gains in Q3

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    • Investment News Briefs Existing Home Sales Up 10% in Oct.; IMF: Dollar Not at Risk; Cadbury Stock Gains On Rumors of Competing Bid; Microsoft and News Corp. in Discussing Possible Pact; Tyson Earnings Beats Street; Campbell Soup Raises Forecast; Holiday Shoppers Preparing to Pare Spending; Twitter IPO a Possibility Read More...
    • Buy, Sell or Hold: Microsoft Corp. (Nasdaq: MSFT) Is Winning the Race for Cloud-Computing Dominance

      Microsoft Corp. (Nasdaq: MSFT) reported a strong quarter at the end of October on the back of resurgent demand in the PC market. But the key issue to watch is the important transition in the company’s major technologies.

      Microsoft just launched its very successful Windows 7 operating system, which has produced a major new upgrade cycle in the industry. In England, for example, Amazon.com Inc. (Nasdaq: AMZN) had more success selling Windows 7 packages than it did Harry Potter books. Windows 7 has major advantages over Vista, including speed, simplicity and booting time. This is prompting Vista users, as well as those who skipped Vista, to upgrade.
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