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This Says Our Favorite Biotech Is Off to the Races

Shares of a promising biotech we recommended back in February 2013 – jumped as much as 27% to a three-month high of $14.20 yesterday after the company said a new cancer drug met its main goal in a midstage clinical trial.

Its shares backtracked a bit as the day progressed but still closed 17.6% higher for the session. These shares have advanced 361% since we first told you about them. The stock has generated a peak gain of 456%, making it one of the 31 recommendations we’ve made to you that have doubled or better since we launched Private Briefing in August 2011. (More on that later…)

  • Oil Prices

  • Australia Reduces Mining "Super Tax," Reviving Profitability of Resource Sector Australian mining companies declared a huge win today (Friday) when the government announced the proposed mining "super tax" would be reduced, prompting some companies to reactivate shelved projects and reopen merger and acquisition talks.

    Australia's Prime Minister Julia Gillard agreed on a compromise plan that would reduce the planned tax to 30% of profits from iron ore and coal, and 40% tax on oil and natural gas, down from the originally proposed 40% tax on all resources. The new plan, called the mineral resource rent tax, would also raise the tax's trigger level to profits that exceed a 12% rate of return instead of 6%.

    "The reduction in the headline rate is an amazing concession," John Robinson, chairman of Global Mining Investments Ltd., told Bloomberg. "It's certainly better than I had expected."

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  • Oil Prices Set to Soar in the Second-Half of 2010 Oil prices hit a wall this spring. But don't be fooled. The spring retreat simply set the stage for a second-half rally. Despite lingering fears over the global economy, demand for oil isn't slowing down at all. In fact, it's rising... and oil prices will rise right along with it. Read this report to find out why oil is poised to take off in the next six months... and how you can profit. Read More...
  • Oil Prices: Two Ways to Profit From 'Peak Oil' If there's one thing U.S. investors need to know about the future, it's this: Oil prices are headed higher - much higher, in fact, and could well double to reach $150 a barrel.

    And if that's what the future holds, you may as well go along for the ride...

    For a glimpse of this "peak oil" future, please read on...

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  • Money Morning Mid-Year Forecast: Oil Prices Down but Not Out While it looked like they were headed towards the $90 a barrel level, oil prices hit a wall in the spring. Rattled investors who worried about the direction of the global economy shunned black gold in favor of real gold as a means of preserving capital.

    But don't be fooled. The spring retreat simply set the stage for a second-half rally.

    After starting the year at about $81 a barrel, prices climbed as high as $86 a barrel before plunging to $64 on May 25.

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  • The Airline Industry: How to Make Good Money From a Bad Business After years of off-and-on conversation, UAL Corp.'s United Airlines (NASDAQ: UAUA) is getting into bed with Continental Airlines Inc. (NYSE: CAL) in a merger deal valued at $3.7 billion. The merged entity, keeping the "United" name, will be the largest airline in the world. It will have close to $30 billion in combined revenue, 700 aircraft, and service to 370 destinations in 59 countries, according to BusinessWeek. Early estimates predict savings to reach $1 billion to $1.2 billion annually.

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  • High Oil Prices: Four Ways to Profit From the Looming Zoom Let's face it: Over the long haul, oil prices are headed higher -probably much higher. For U.S. consumers, high oil prices will represent a major challenge. For investors, however, those same high oil prices could stand as the profit opportunity of a lifetime. Read this report from Money Morning Executive Editor William Patalon III, and find out how high oil prices could shoot your portfolio to new highs. Read More...
  • Decline in U.S. Natural Gas Imports is Causing Panic in Leading Exporting Nations The world 's biggest natural gas exporters met today (Monday) in Algeria and agreed to index gas prices to oil as shrinking U.S. natural gas imports are causing a global supply glut.

    "All ministers agreed and supported that we continue our efforts to achieve indexing gas to oil," said Russian Energy Minister Sergei Shmatko.

    The Gas Exporting Countries Forum (GECF) members include Russia, Iran, Qatar and eight other nations that hold two-thirds of the world 's gas reserves. They 've watched gas prices fall nearly 50% in the past two years. Current gas prices of $4 per million British thermal unit (BTU) are about 20 times lower than oil, but are usually around 10 times lower than oil.

    U.S. natural gas prices have fallen 28% since December as an increase in the U.S. shale rock gas supply has reduced the need for U.S. natural gas imports. Shale rock gas is retrieved from tight rock formations and its U.S. boom led the country to extract more gas than Russia last year for the first time since 2001.

    Russia 's energy giant Gazprom has a five-year plan to take 10% of the U.S. natural gas market share, but U.S. shale gas exploration has put a damper on that goal.

    "The influence of shale gas raises the prospect of change on gas markets," Russian Natural Resources Minister Yuri Trutnev told Reuters. "We have a problem with shale gas. This is not only my position, but the position of Gazprom as well."

    As the United States becomes a less reliable consumer, gas suppliers aren 't having much luck replacing the lost business.

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  • Oil Prices On a Tear and Headed Higher Oil prices are at their highest level in more than a year and a half and are likely to head even higher as the global economy bounces back from recession.

    Benchmark crude for May delivery rose $1.75 to settle at $86.62 a barrel on the New York Mercantile Exchange (NYMEX) Monday. That followed gains of $1.11 a barrel on Thursday and $1.39 a barrel last Wednesday.

    In all, prices are up over 5% since last week and over 70% since April 2009. And right now oil is trading at its highest level since Oct. 8, 2008, when crude settled at $88.95.

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  • SandRidge Energy Buys Oil Developer to Reduce Its Reliance on Suffering Natural Gas SandRidge Energy, Inc. (NYSE: SD) on Sunday announced it would pay $1.6 billion for Arena Resources, Inc. (NYSE: ARD) to develop a more oil-focused business, as natural gas prices remain low.

    SandRidge will pay $2.50 in cash and 4.78 SandRidge shares for each Arena share - a 17% premium to Arena's $34.26 Thursday closing price. The combined company will be valued at around $6.2 billion.

    This purchase makes SandRidge one of the largest producers of conventional oil and gas in West Texas. It's the second acquisition for the company since November, when it paid $800 million for Forest Oil Corp. (NYSE: FST) properties.

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  • What's Really Driving Obama's Sudden Interest in Oil U.S. President Barack Obama generated a lot of hubbub with his decision to open up parts of the Atlantic Ocean and Gulf of Mexico to oil drilling.
    We've all heard the criticisms that some of the geological surveys are as much as 30 years old, and the arguments that the ecological impact of drilling off the U.S. East Coast isn't worth the accessible oil, which some critics estimate could play out in as little as six months at current demand levels.

    But even after more than a day of debate over the motivations for - and possible results from - President Obama's apparent energy policy about-face, one thing is very clear: This announcement has nothing to do with oil.

    It's all about the U.S. dollar.

    To find out why President Barack Obama really lifted the moratorium on oil drilling, please read on...

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  • United States Lifts Oil Drilling Ban to Reduce Foreign Energy Dependence President Barack Obama announced will lift a 20-year ban on offshore oil and natural gas drilling and exploration, hoping to create jobs, generate revenue and reduce the United States' dependence on foreign oil.

    Obama and Interior Secretary Ken Salazar released a detailed plan to allow drilling off the Atlantic coast, eastern Gulf of Mexico and north coast of Alaska, provided coastlines are protected. Environmental concerns about the possibility of oil spills initially caused the drilling ban. Drilling would still be prohibited from New Jersey northward, on the Pacific Coast and in Alaska's Bristol Bay.

    The plan aims to bolster the United States' ability to supply its own energy, but also acknowledges the need to move toward clean energy policies and protect natural resources.

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  • How the Little Guy Will Fix Oil Futures and Get In on the Profits Sometimes big things come from small meetings.

    As an example, consider one particularly contentious 1927 session at the Royal Institute of International Affairs that took place at Chatham House in the center of London's Westminster. It originated an idea now used worldwide - the famous Chatham House Rule. Under its most recent revision (2002), the Rule allows the participants of a meeting to use the information received there, but prohibits them from revealing the identity or affiliation of anyone else present.

    The Chatham Rule also governed the meetings I attended at Windsor Castle outside London from a recent Friday through to the early-morning hours of the following Monday. These meetings were the annual consultations of the Queen's Windsor Energy Group, which were meant to be private, high-level, discretionary advisories. This is one of the few "old boys" clubs left in the world where talk can translate directly into action.

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  • Despite the Near-Record Run in U.S. Stocks, Oil, Commodities and China Will be the Long-Term Winners Although U.S. stocks have made a fairly smooth transition into Year Two of what's so far been a near-record bull market, there are still many traps that can quickly ensnare a less-than-cautious investor.

    Moving forward, investors need to focus on quality, take the time to understand what's really happening in Washington, and turn to such once-unconventional investments as oil, commodities and China stocks, says Money Morning Chief Investment Strategist Keith Fitz-Gerald.

    "I expect the markets to remain very fragmented. Volatility will almost certainly increase, leaving investors both psychologically scarred and totally confused," Fitz-Gerald said, underscoring the need for investors to embrace a truly global view. "Fully 75% of the economic activity on the planet now takes place outside U.S. borders. So it only makes sense that investors embrace new ways of thinking in order to avoid getting left behind. At the same time, energy and commodities still have a long way to run - meaning there's substantial profit potential available."

    In a wide-ranging interview, the former professional trade advisor, best-selling author and noted Asia-investing expert:

    • Predicted that oil and commodity prices are headed higher, making them "must-invest" asset classes for investors who don't want to be left behind.
    • Stated that ongoing miscues in Washington coupled with higher growth abroad make it imperative that U.S. investors embrace a truly global view when planning their investing strategies.
    • And predicted that many blue-chip U.S. companies will go for dual-listings, listing their shares on China's Shanghai Stock Exchange (SSE), providing those U.S.-based firms with access to the plentiful capital and robust growth available in that Asian giant's marketplace.
    For a full transcript of this interview, read on... Read More...
  • Money Morning Mailbag: The Capital Wave That Could Blunt the U.S. Recovery Question: How can banks justify not giving out mortgage money in light of the fact that they can now qualify their applicants to a level not previously seen? I am talking about literally millions of people applying for loans with 800-plus FICO scores and Loan-to-Value (LTV) Ratios that are better than ever before.

    How can banks and lending institutions take our money and then turn around and shut nearly everyone out - which simply prolongs this recession? Can anyone explain why the present administration and regulatory bodies are not forcing the banks to loan monies to qualified applicants?

    At this rate, we will be dead soon. Without borrowing, we will die.

    (Signed) Living in Costa Rica

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  • Money Morning Mailbag: Capital Wave Investing Strategies Spotlight the World's Top Profit Plays Question: Shah, your article on capital-wave investing was outstanding. In fact, I would love to see a follow-up piece for those of us who are not traders and who are not out and about following the current short-term market trends.

    For example, when you talk about the Obama administration's determination to keep interest rates low - this has consequences. What will those rates be in, say, a three-year to five-year time frame? What if the European countries keep having implosions like Greece - meaning that countries like Portugal, Spain and Italy follow suit?

    In your opinion, will that eventually sink the euro, or does the Eurozone have to bail out those countries with a plan that's similar to the one that it is developing for Greece? What happens to other currencies in either of these scenarios?

    Finally, is it your opinion that China is trying to curtail its growth to keep itself from overheating? Can Beijing successfully continue to do this - or will this blow up in China's face? If you look down the road, say, three to five years, what do you believe the consequences, if any, will be?

    Again, Shah, this was a really informative article. I would love to hear your views on what you actually see playing out in each of these areas during the next few years.

    Answer: Thank you for your kind words about the article and for taking the time to pose your questions - which are excellent ones, by the way. Let's take a look at them, one at a time...

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