Archives for March 2011

March 2011 - Page 2 of 10 - Money Morning - Only the News You Can Profit From

U.S. Companies Spending Record-High Cash Piles On Everything But Jobs

U.S. companies have started to spend their record high piles of cash, but most won't be using it to boost hiring.

Since the credit crisis, U.S. companies have collected about $940 billion in cash. Per-share profit surged 36% in 2010, the biggest jump since 1988, and companies cut capital expenditures 26% in 2009 to compensate for the ailing economy.

Some of the biggest cash hoarders as of the end of 2010 include Cisco Systems Inc. (Nasdaq: CSCO) with $40.2 billion cash, Microsoft Corp. (Nasdaq: MSFT) with nearly $40 billion and Google Inc. (Nasdaq: GOOG) with nearly $35 billion.

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Silver Shines

With it's price at 21%, silver outshines gold for investors. Keith Fitz-Gerald, Chief Investment Strategist for Money Map Press joins Fox Business' Varney & Co. to explain whether everyday investors should put their money into this precious metal, and what choices are available.

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Long-Term Investing Strategies: Global Demographic Trends

If you've been an investor for more than a few months, you've almost certainly heard the adage "the trend is your friend."

This bit of wisdom has been proven correct so often that it has assumed a place as a universally accepted stock market "rule."

Most of us think of trends as market momentum – a shorter-term manifestation that lasts from a few hours to a few weeks. But there's another kind of trend – one that's both longstanding and quite powerful – that can deliver hefty profits to those who understand its value.

Investors interested in long-term investing strategies can take a close look at global demographic trends.

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Buy, Sell or Hold: Endeavour Silver Corp. (NYSE: EXK) is the Perfect Way to Play the Precious Metals Bull

If you're looking for a way to play the rise in silver without having to take on the risk of futures positions, Endeavour Silver Corp. (NYSE: EXK) should be at the top of your list of potential investments.

Founded in 1981, Endeavour Silver is based out of Vancouver, Canada. The company has more than 750 full-time employees, with production of gold and silver in Mexico. It has a market cap of about $700 million, with an enterprise value of $574 million, once net debt and cash is accounted for.

On March 22, 2011 Endeavor released its annual results for 2010; to say that they hit the ball out of the park would be an understatement.

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Don't Believe the Fed: U.S. Inflation Is 10x Higher Than Government Reports

Is anyone else getting déjà vu? In 1973, the U.S. economy had: Record oil prices. A stock market crash. And jaw-dropping inflation. Sound familiar? Yep, brush off your bellbottoms. The 70s are back. And soon even Bernanke's shell games won't be able to hide the truth. After years of the Fed's loose money policy, inflation […]

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Stock Exchange Mergers: The Real Story

Stock exchange mergers are all the rage these days.

The NYSE Euronext Group (NYSE: NYX) and Deutsche Boerse AG are attempting to merge and the London Stock Exchange Group PLC and TMX Group Inc. are also getting together.

The deals are the latest in a consolidation cycle among exchange operators that has accelerated over the past decade. In 2010, Singapore Exchange Ltd. (PINK: SPXCY) agreed to an $8.3 billion takeover of Australia's ASX Ltd (PINK: ASXF) to create Asia's fourth-largest stock exchange. And IntercontinentalExchange Inc. (NYSE: ICE) purchased the Britain-based Climate Exchange PLC (PINK: CXCHY) that same year for $597 million.

So I would not be at all surprised to see other bourses follow up with stock exchange mergers of their own.

CME Group Inc. (Nasdaq: CME) and Nasdaq OMX Group Inc. (Nasdaq: NDAQ) still haven't ruled out a potential counteroffer for NYSE. And some analysts speculate that the Nasdaq could be the first U.S. stock exchange to tie-up with an Asian partner.

Indeed, for the exchanges themselves, there appear unlimited possibilities of expansion, mostly in the derivatives market.

But the sad truth is that the only thing individual investors are likely to get out of all of this activity is a sneaky increase in fees.

To find out why exchange mergers won't benefit investors, read on...

Three Investments to Consider for Your Retirement Portfolio

Americans used to ride a "three-lane highway" into retirement: a traditional pension, Social Security, and individual savings plans, like 401(k)s.

But the recent economic downturn packed a devastating punch to many 401(k) accounts, U.S. households have dipped into savings to make ends meet, and debt-laden federal, state and local governments will have trouble meeting pension and Social Security obligations.

The 2011 Retirement Confidence Survey released last week by the Employee Benefit Research Institute showed 27% of workers are "not at all confident" about their retirement, up 5% from a year ago.

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Hidden Inflation: U.S. Consumers Adjust Spending Habits Amid Soaring Prices

U.S. consumers have watched food and fuel prices eat away at their household budgets, and now those price hikes are spreading to other products – with the worst yet to come.

New York Federal Reserve Bank President William Dudley recently got a taste of public frustration with higher prices. He spoke to a crowd in Queens, New York on March 11 to tackle a mountain of food inflation questions. Dudley told the audience that while some prices are rising, other products are cheaper – like the Apple Inc.'s (Nasdaq: AAPL) latest iPad.

"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," said Dudley. "You have to look at the prices of all things."

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Disasters Driving Japan Auto Parts Makers to China

Disruptions caused by Japan's March 11 earthquake and tsunami could further encourage Japanese auto parts makers to relocate factories to China – an eventuality already being driven by explosive growth in the Chinese auto market.

Japan's Big Three automakers – Toyota Motor Corporation (NYSE ADR: TM), Honda Motor Co. Ltd. (NYSE ADR: HMC) and Nissan Motor Co. Ltd. (PINK ADR: NSANY) – all already operate assembly plants in China. And while 60% to 70% of the parts those plants need come from within China, the rest must be imported from Japan. So if the assembly plants run out of the parts from Japan, production will halt.

Although no plant in China has yet reached that point – Toyota, Nissan and Honda have all said their factories have enough parts to sustain production for at least two more weeks – the possibility has led some to contemplate a more localized supply chain.

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Supply Chain Disruptions from Japan Disasters Hit Auto, Electronics Industries

Companies both in Japan and around the world have begun to feel the sting of supply chain disruptions resulting from the catastrophic March 11 earthquake and its aftermath.

In addition to the damage done to factories in northeastern Japan by the quake itself, companies must contend with ruined roads, fuel shortages, and rolling power blackouts. Many companies are not sure when some of their facilities will be able to resume production, creating uncertainty for companies further down the supply chain.

"This is serious and it's still difficult to evaluate," Nissan Motor Co. Ltd. (PINK: NSANY) Chief Executive OfficerCarlos Ghosntold Bloomberg News. "You have the earthquake, you have the tsunami, rolling blackouts, and fuel shortages hitting at the same time, and they aren't only hitting the car manufacturers, but also the suppliers and the dealers."

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