April 2011 Archives - 9/9 - Money Morning - Only the News You Can Profit From
Uranium Prices – And Producers – Are Poised to Rebound
Uranium spot prices and shares of uranium mining companies have plunged in recent weeks amid fears that the situation in Japan could deteriorate into a nuclear meltdown on par with Chernobyl.
Investors fear that the explosion and subsequent radiation leaks at the Fukushima nuclear power plant will force other countries to tighten restrictions, or worse, abandon their pursuit of nuclear power as an alternative source of energy.
But what if no such thing happens? What if the nuclear fallout in Japan remains relatively contained, and other countries around the world move ahead as planned with their atomic energy projects?
Buy, Sell or Hold: Toyota Motor Corp. (NYSE: TM) Needs to Rebuild from Supply Chain Collapse
Toyota Motor Corp. (NYSE ADR: TM), one of the largest manufacturing companies in the world, has offered strong periods of growth from which investors have profited.
However, today it is a "Sell" – and is likely headed toward a long-term redevelopment of its core company structure (**).
Toyota was founded in 1933 and is headquartered in Toyota City, Japan. Toyota has more than 300,000 employees and a global network of production plants. The company has a market capitalization of $126 billion with an enterprise value of $238 billion, once net cash and debt are accounted for.
- Copper Prices Update: Prosper as Copper Becomes the "New Gold"
China's Highway System Growth Paves the Way to a Stronger Economy
What some have called "the worst traffic jam in human history" happened on the Beijing-Tibet Highway in August 2010. It trapped some drivers for more than 20 days and stretched more than 60 miles (97 kilometers).
The mess was so severe that local residents turned into vendors and profited from selling water, noodles and nuts to stalled travelers.
The cause of the auto standstill was thousands of trucks transporting coal from Inner Mongolia's coal fields to power plants in Beijing's suburbs to satisfy the country's surging electricity demand. The lack of railways connecting the two regions often results in trucks crowding highways, and excessive road damage from heavy vehicles blocks parts of the highway from maintenance.
Watch Out, Zombie Banks Still Haven't Been Buried
In February 2009, I examined the top 12 U.S. banks and gave a generally bullish outlook for them, pointing out that at a fraction of net asset value, their shares were mostly good bargains.
Only a few banks had longer-term problems because of the poor qualities of their loan portfolios. I termed those "zombie banks," and warned that they might not emerge from public ownership.
Well thanks to U.S. Federal Reserve Chairman Ben Bernanke's misguided monetary policies, I have been proved wrong. Even the zombies have emerged, and investors have made excellent returns on holding their stocks since 2009.
However, at this point, investors should beware: Those zombie banks are still among us and they pose an even greater threat to unknowing investors.
Let me explain.
Obama Energy Policy Boosts Natural Gas Stocks
U.S. President Barack Obama addressed Georgetown University students Wednesday with a speech about U.S. energy policy. Many of his goals were the same as previous U.S. government energy policies: cut foreign oil dependence, promote energy conservation, and explore alternative fuels.
However, it was the president's comments regarding natural gas that had the biggest impact on energy markets.
The natural gas contract for May delivery gained 9 cents, more than 2%, to $4.356 per 1,000 cubic feet on the New York Mercantile Exchange following Obama's speech Wednesday.