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While Washington Stews, You Can Cash In on the Biggest "Tax-Inversion" Deal in History

Back in June 2012, we recommended that you pick up shares of Big Pharma player Abbott Laboratories Inc. (NYSE: ABT). The reason: Abbott was planning to split in two at the end of the year, meaning folks who took our advice would end up with stakes in two companies for the price of one.

There was more than bargain-basement thinking at work here.

You see, these corporate breakups – known as spin-offs – have a habit of turning into market-beating profit plays. And the newly minted spin-off firms often end up as takeover fodder – also at big profits.

Abbott followed part of that blueprint.

  • Geopolitical Tensions Will Keep Driving Crude Oil Prices crude oil prices

    A bevy of geopolitical issues sent WTI (West Texas Intermediate) crude oil prices higher late Thursday, with prices peaking at $103.94 per barrel for August delivery just before 7:00 p.m. Today, crude oil prices have settled back down below $103 per barrel this morning.

    Crude oil prices may be back down today, but they're still up nearly 15% from their $89.74 low in January.

    According to Money Morning’s Global Energy Strategist Dr. Kent Moors, here’s where they’re headed now…
  • Profit from High Crude Oil Prices with These Secure, Under-the-Radar Stocks Kent Moors

    WTI crude oil prices for delivery in August were down slightly yesterday (Tuesday) to $103.43 a barrel, which was a $0.10 drop from Monday.

    And while crude oil prices are down from 52-week highs, they're still at inflated levels because of the crisis in Iraq.

    But that doesn’t mean investors can’t profit. Money Morning’s Dr. Kent Moors has found oil stocks to buy now that are profiting from foreign turmoil. In fact, the longer prices stay high, the better they will do…
  • Gasoline Prices Are Headed to $4 Per Gallon… and Here's Why

    Futures prices for both crude and gasoline were down yesterday. Unfortunately, that barely tells the real story.

    Thanks to the growing Sunni insurrection and the rapid unraveling of the Shiite government in Baghdad, you can bet that prices for both crude and gasoline will be making the headlines over the next two months.

    As the next-month rates (August 2014) fell in yesterday's trade, oil prices as far out as December 2018 began to spike.

    Here's why yesterday's drop in prices is just the pause before the storm...
  • Dow Jones Today Moving on These Top Stories BNPQY, SBUX, AAP, Dow Jones Today, stock market today, Dow, Dow Jones Industrial Average, DJIA, Dow Today, Dow Jones, DJIA Today, Dow Jones futures

    Dow Jones today, June 23, 2014: The Dow Jones Industrial Average and the S&P 500 both hit record highs on Friday, finishing the week on a positive note. U.S. crude-oil benchmark closed at its highest level in nine months as geopolitical tension continues to shake Iraq. Brent futures ended a seven-day streak, finishing below $115 a barrel.

    This morning, crude oil prices were again on the rise as battles between Sunni militants and Iraqi government troops continued, and the fight is fast approaching the nation's capital of Baghdad.

    Here's the news that will be moving the Dow Jones today:
  • U.S. Stock Markets Finish in the Green Friday; Oil Futures Notch 2014 Record

    U.S. stock markets posted gains across the board on Friday, despite growing macroeconomic concerns.

    Here's the scorecard from today's trading session:
  • U.S. Oil Futures Today: Watch Them Soar on These Two Factors 03032014KM

    Today (Monday), U.S. oil futures hit a five-month high on fallout from the Ukraine conflict, further supported by inclement weather across the United States.

    On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude for delivery in April rose to a session high of $104.65 a barrel, the highest since Sept. 23.

    To continue reading, please click here...
  • Best Oil Stocks to Buy as U.S. Jumps to World's Top Oil Producer Oil Rig land

    It's time to look at oil stocks to buy as the United States gets ready to surpass the world's biggest oil producers.

    Earlier this month, the International Energy Agency (IEA) reported that the United States will jump past both Russia and Saudi Arabia as the world's top oil producer by 2015.

    To continue reading, please click here...
  • How to Hedge Oil Prices in Volatile Markets The prospects are very good for the oil prices. But the markets promise to be volatile. Here's the best way to build an "oil insurance plan." Read more... Read More...
  • Frack or Fail: Is It Time For California's Liberals to Go? California is in a LOT of trouble financially. Cities are going under and the state can't balance its budget. It also has almost half a trillion in state pensions to fund and revenue is drying up.
    But there is one way out: Tap the largest oil and gas play in the Lower 48.
    The question is, whether this left leaning state crowded with special interests like the Sierra Club will actually let oil services companies begin to start fracking on state land.
    In our inaugural Money Morning Fight Club brawl, Frank Marchant and Garrett Baldwin square off on this contentious issue. The best part is we are asking you to turn in your scorecard and pick the winner at the end.
    So let's get ready to rumble...
    Read More...
  • Buy, Sell or Hold: Strong Oil Prices Make Apache Corp. a Good Bet Apache Corp. (NYSE: APA) is not your average oil company. Even with oil prices still comfortably in the $90.00 range, Apache shares recently fell below their 52-week lows. In fact, since April 2011 Apache shares are down by 44%. But with a strong balance sheet and healthy sales forecasts, this company is doing all the right things. Read More...
  • Australia Shale Oil Discovery Continues the Country's "Lucky" Streak Energy oil dollar small

    Investors are well aware of the shale oil revolution in the United States. But the "revolution" does not end here; it is spreading globally to countries as diverse as China and Poland.

    There is one country in particular though that may experience circumstances similar to the United States, if not greater.

    I'm talking about Australia, which has often been called "The Lucky Country." That description was first penned in 1964 by Donald Horne and he actually meant it negatively at the time.

    But in recent decades, the term has been given a positive spin thanks to Australia's abundance of natural resources and its geographical location near the world's biggest consumer of commodities - China.

    And Australia may have struck luck again thanks to the recent announcement of a massive shale oil discovery.

    To continue reading, please click here...

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  • How China and Saudi Arabia Mean You Should Bet on Higher Oil Prices Energy oil barrel small

    As Money Morning Global Energy Strategist Dr. Kent Moors pointed out not long ago, the sky is not falling on oil prices despite what the doomsayers believe.

    There are two crucial countries that are behind the recent rise in oil prices: China and Saudi Arabia.

    And if these two nations keep on their current path, it will mean one thing...

    Even higher oil prices in 2013. Here's why.

    To continue reading, please click here...

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  • Why Oil Prices Could Soar 40% by Summer Energy oil dollar

    Oil prices have continued their upward move that began at the end of 2012, gaining over 8% in the past month.

    Now, an oil analyst with Goldman Sachs Group Inc. (NYSE: GS) predicts Brent crude could soar much higher in the next few months.

    Jeff Currie, GS's head of commodity research, said he wouldn't be surprised "if we woke up in summer and oil cost $150" per barrel.

    That would be a 35% gain from Brent's recent price of $111.

    Using the narrowing spread between the Brent price and that of West Texas Intermediate (WTI), at $95, Currie's forecast implies a 40% increase in WTI prices.

    And there are many reasons oil could hit those highs by summer, or even sooner.

    To continue reading, please click here...

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  • Play the Bakken Oil Boom Like Buffett Energy oil pumping small

    Many investors have heard of the Bakken oil field in North Dakota and Montana, but most are unaware of how important this formation is becoming to the U.S. economy.

    More germane to investors is the fact that there is still a lot of money to be made from Bakken oil in the months and years ahead.

    Just ask Warren Buffett.

    He spotted the potential of Bakken oil well ahead of most and bought a non-energy company that would benefit greatly from the boom. Three years ago he bought Burlington Northern Santa Fe (BNSF) Railway Co. for $26 billion.

    That railroad is now one of the main beneficiaries of the Bakken oil boom. (And people thought he just had always wanted to own a train set!)

    "We're the 1,000-pound gorilla in the oil markets," BNSF CEO Matt Rose told Bloomberg News. "Crude by rail is going to be really strong for us. It's been a real benefit to us to replace some of that lost coal business."

    The Bakken oil formation isn't just an investing opportunity; it's transforming the U.S. energy landscape.

    To continue reading, please click here...

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  • Where Oil Prices Are Headed In the Face of the Fiscal Cliff You have heard all the stories of what will happen when the U.S. economy falls over the fiscal cliff.

    As I write this, it appears that will happen--at least on paper.

    Of course, it will take some time for the tax increases to kick in, while the automatic spending cuts may take a month or longer.

    That may make it easier for some Members of Congress to act. Since the taxes will have technically increased, it will be easier for them to vote for an artificial tax cut.

    I consider this the pinnacle of absurdity.

    Subjecting most Americans to this charade-making them vulnerable to cuts in paychecks, dividends, and social security benefits merely to make some political brownie points-is the height of travesty.

    But here we are.

    Even if there is a this weekend or Monday, nobody will know what that means for several weeks. This will drag the drama on for a while longer as the precocious children inside the Beltway refuse to play on the same ball field.

    Now we all know how this will end. There will be a stopgap measure rather quickly (probably around the time most receive that first paycheck of the New Year) to prolong the process into the first quarter - right into yet another showdown on increasing the debt ceiling.

    Isn't there anybody else out there as sick of this as I am?

    But in the end, we are interested in what the shenanigans mean for the energy sector.

    Oddly enough, gas and oil prices have acted as if the cliff were an ant hill.

    To continue reading, please click here...

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