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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…)

  • Featured Story

    How to Play Q4 Defense: Hedge Your Bets, Up Your Stops and Sell Your Gold

    So far fourth quarter earnings have made a mockery of things.

    Of the 20 S&P 500 companies that have provided Q4 guidance so far, 18 of them have guided lower, "slashing" their forecasts, according to Goldman Sachs and CNBC (as of Monday afternoon).

    What's more, roughly one quarter of the reported earnings have come in flat to middling. According to Capital IQ, overall revenues are up only slightly at 0.34%.

    Yet, for some reason the S&P 500 is only 3.89% off of its highs and is up 12.01% year-to-date through Wednesday afternoon.

    Under the circumstances this suggests two things to me:

    • There's a lot of volatility waiting in the wings; and,
    • The near-term risk is to the downside.
    First, let's tackle the volatility that's still in store; then we'll move on to what you can do to prepare for it.

    The Q4 Earnings Story

    So far this earnings season, roughly one quarter of the S&P 500 has already reported. That leaves the market with nearly 375 companies that have yet to spit out their numbers, roughly 150 alone this week.

    Assuming the balance follows the pattern set so far, companies like Caterpillar Inc. (NYSE: CAT), Philip Morris International (NYSE: PM), and 3M Co. (NYSE: MMM) are going to show "respectable" (under the circumstances) numbers while talking about the "challenges" they see ahead.

    Meanwhile, a few others, like DuPont (NYSE: DD) and United Technologies (NYSE: UTX), are going to reflect weakening earnings and revenue pressures leading to further cost-cutting as a means of protecting profits. These will include job cuts.

    I also expect the bulk of the remaining companies will take the opportunity to lower their expectations -- especially when you consider that 61% of the companies as of Monday afternoon missed revenue expectations.

    The irony here is that 61% of the companies that have reported over the same period have also exceeded analysts' expectations.

    Naturally the markets will punish those who missed even when what they should recognize is that the analysts were wrong yet again. But that's another story for another time.

    What's important to understand is that top-tier company management is using this earnings season to accomplish three things.

    To continue reading, please click here...


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  • sell gold

  • Gold Mining Stocks: Now is the Time to Buy There are lots of reasons you should own some gold. Despite taking a recent breather, gold prices are still up by 139% in the last five years.

    Even so, shares of gold mining stocks have suffered lately, hurt mainly by higher energy and exploration costs.

    In fact, the stocks of the large gold miners have become nearly as undervalued as they were during the 2008 financial crisis.

    The last time shares of these big gold producers were this cheap, they rallied by 283%.

    At these levels, that means it's time to take a closer look at shares of big gold miners - while they are still a bargain.

    Here's what you need to know...

    The Gold Bull Market is Not Over

    A number of factors point to higher prices for gold:

    • Real interest rates remain in negative territory. Sitting in cash right now is a losing proposition.
    • The austerity movement in Europe is being replaced with more fiscal easing. The European Central Bank may have to print trillions of euros of debt to keep the Eurozone intact.
    • The odds of more fiscal stimulus in China and the U.S. have increased, as two of the world's largest economies struggle to gain traction.
    • Despite healthy demand and rising prices, global production of the metal rose just 0.7% annually from 1999 through 2011.
    Combined with aggressive gold-buying binges by China and other foreign governments moving away from the U.S. dollar, the stage is set for the price of gold to rally.

    To continue reading, please click here...

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  • Uranium Prices Report: Uranium to Double on "Nuclear Renaissance" Uranium stocks got hammered in the wake of the Fukushima disaster.

    But now uranium mining stocks have finally begun to bounce back... just like we told you they would.

    After getting pummeled last year, shares of Cameco Corp. (NYSE: CCJ) - the world's second-largest uranium miner - are up 32%.

    Meanwhile, smaller American competitors Uranium Resources Inc. (Nasdaq: URRE) and Uranium Energy Corp. (AMEX: UEC) are each up about 30%. And the Global X Uranium ETF (NYSE: URA) is up 25%.

    But that's just the beginning...

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