Archives for February 2013

February 2013 - Page 8 of 17 - Money Morning - Only the News You Can Profit From

How to Double Your Money in the "New Space Race"

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The New Space Race is still in its very early stages but a particular small-cap maker of rocket engines is already generating an amazing amount of thrust.

Here's the thing. While the stocks of the major U.S. aerospace ventures have generated miniscule returns over the past year, shares of this California firm have soared by nearly 105%.

And that's just a start.

Indeed, the shares of this company experienced a 6% surge in a single day last week when billionaire investor Mario Gabelli told viewers of the popular CNBC Squawk Box program that this company's shares could double from here.

This Quantum Leap Will "Redefine" Tech by the End of the Year

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It promises to spot terrorists – before they strike.

It will predict killer storms – warning us when and where they'll hit.

This new technology trend known as "Big Data" is sweeping the globe. It's expected to facilitate stunning – even life-saving – transformations in intelligence-gathering, meteorology, medicine, finance, and virtually every other field you can think of.

But only if a major problem can be solved.

That problem – a critical obstacle, really – is one that keeps getting in the way. It's called the "memory wall" and it's the one digital barricade that every computer engineer in the world wants to hurdle.

Today I'm going to give you a peek at the potential solution to this digital bottleneck – a solution so revolutionary that a respected trade journal recently named it one of the 10 technologies most likely to transform the electronics industry.

I'm going to introduce you to the "Killer Elite" that cracked this computing conundrum.

And I'm going to tell you how you can profit from an innovative breakthrough that most retail investors aren't even aware of yet.

Oceaneering Inks Deal with RIG Unit - Analyst Blog

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Oilfield services company, Oceaneering International Inc. (OII) announced that it has won a contract from one of the affiliates of offshore drilling giant Transocean Ltd. (RIG), for the supply of subsea blowout preventer (BOP) control systems. Oceaneering International will add the contracts’ value of more than $40 million to its Subsea Products backlog. Per the […]

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Why We Can't Stop Watching the Epic Herbalife Battle

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The battle between hedge fund titans William Ackman and Carl Icahn over Herbalife Ltd. (NYSE: HLF) is becoming one of the most entertaining Wall Street clashes.

Icahn has fired the latest shot: In a filing Thursday, he revealed he has a 13% long position in the nutritional supplement maker Herbalife. He said the thinks the company is undervalued and has great potential.

That can't be good news for Icahn's longtime nemesis, Ackman, who is betting heavily on Herbalife's failing.

Ackman announced a $1 billion short position in Herbalife on Dec. 19, then detailed on Dec. 20 in a more than three-hour presentation why he believed Herbalife is a multilevel marketing pyramid scheme.

But Icahn couldn't disagree more, highlighted in this latest regulatory filing. Icahn said he plans to have discussions with Herbalife management about business and strategic alternatives to enhance shareholder value and mentioned going private.

Shares of Herbalife spiked 20% before the opening bell Friday and ended the day up 1.2%.

With Icahn's $214 million stake in Herbalife, the stage is set for an epic Wall Street showdown.

We Beat George Soros by Eight Months on the Yen (and Made You 44%)

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One of our promises here at Money Map Press is to keep you ahead of the curve – and certainly ahead of Wall Street.

Frankly, this is what you pay us for, and we take very seriously our responsibility to deliver.

Here's another example of how we have.

The Wall Street Journal reported that some of the country's biggest hedge-fund players have reaped billions in windfall profits by betting against the Japanese yen – capitalizing on the fact that the Asian heavyweight must weaken its currency to save its economy.

Billionaire investor George Soros alone has made nearly $1 billion since November on wagers against the Japanese currency, which has skidded about 20% during the last four months, the newspaper reported.

And Soros isn't alone. Investors say that David Einhorn's Greenlight Capital, Kyle Bass's Hayman Capital Management LP and Daniel Loeb's Third Point LLC have also made big money on the yen's decline.

Indeed, betting against the Japanese currency "has emerged as the hottest trade on Wall Street over the past three months," The Journal reported.

But here's the thing: Money Map Press Chief Investment Strategist Keith Fitz-Gerald was eight months ahead of the hedge-fund heavyweights in identifying this profit opportunity. In February he told Private Briefing, subscribers that the yen was headed for big fall – and he even recommended an ETF that would let them profit from his prediction.

The upshot: Keith's recommendation has so far reaped a 44% windfall – which is more than double the 20% yen decline the hedge-fund Johnny-come-latelies have been able to profit on.

And this isn't an empty claim.

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Is this Growing Trend About to Fuel a 5-Year Stock Market Rally?

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A rising tide of capital expenditure (capex) spending by U.S. companies will drive a stock market rally that could last as long as five years, BMO Capital Markets Chief Investment Strategist Brian Belski says.

In a message delivered to several news outlets, Belski argued that U.S. companies will soon start using their increasing cash piles to invest in their own businesses. He sees it as the next logical progression for companies with strong balance sheets.

Of the four ways a company can spend cash, he said, three have already been widely employed.

"What typically happens is you have a surge of [stock] buybacks, which has occurred. You have a surge of dividends, which has occurred," Belski told Bloomberg News. He also noted the wave of recent mergers and acquisitions.

Capex is the fourth way, and Belski not only thinks it's inevitable, he says the corporate growth that will result will power a stock market rally that will last "at least three to five years" and could well be the beginning of a "super bull market" that could go on for as long as 15 to 18 years.

"We think this train has a very long tail," Belski told Breakout.

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M&A Deals Alive and Well - and Dishing Out Huge Profits

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Deal making is back on Wall Street – in a big way.

Mergers had been nearly non-existent for nearly six years in the wake of the financial crisis as global economic uncertainty, heightened scrutiny of corporate boards, high unemployment and the housing market bust had put a damper on M&A deals.

But 2013 has begun with a flurry of deal making, with $160 billion worth of merger activity thus far, the most at this point in the year since 2005, according to Dealogic.

And the stellar start to the markets this year – the S&P gained 6.6% in January and the Dow is quickly approaching its all-time high – suggests deal making will heat up in the months ahead.

The latest M&A deals come at a time of historically low financing costs, renewed corporate confidence, and companies flush with stockpiles of cash. In this climate, companies are seeking growth through deals and see them as a way to expand while appeasing anxious shareholders.

"The dam is burst. The forces were too powerful to hold back forever," James B. Lee,
vice chairman of JPMorgan Chase & Co. (NYSE: JPM), told The Wall Street Journal.

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Would Turkey in the Shanghai Co-op Cause a Global Power Shift?

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Is Turkey about to join the Shanghai Cooperation Organization (SCO)?

After years of delay on its application to join the European Union (EU) as a full member, Turkey has made overtures to the SCO as an alternative to the EU.

Turkish Prime Minister Recep Tayyip Erdogan said after a meeting with Russian Prime Minister Vladimir Putin that Turkey was seriously considering becoming a member of the SCO instead of continuing its efforts to join the EU.

"The European Union needs to stop stalling us," Erdogan said. "We have a strong economy. I told [Putin], 'You should include us in the Shanghai Five [the former name of the SCO] and we will say farewell to the European Union.' The Shanghai Five is much better off economic-wise. It is much more powerful. We told them, "If you say come, we will.'"

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Why You Can Bet on Platinum Prices Going Higher

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Platinum prices, which have been below gold prices since mid-2011, are once again higher than the yellow metal, and the spread's widening.

Platinum was trading around $1,674 an ounce Friday, while gold was down around $1,605.

Platinum prices have been climbing since the start of the year as industrial activity and automobile production have picked up in the U.S. and in China.

The white metal has also been given a boost by new restrictions on platinum ore exports by the government of Zimbabwe and the closure of several mines in South Africa.

With production down and demand rising, many analysts expect platinum prices to continue to rise.

Gold, on the other hand, continues to consolidate after hitting an all-time high in the fall of 2011.

Historically, platinum has usually traded at a small premium to gold. For most of the period from 2000 until the financial crisis of 2008, platinum traded at a premium of 50% to 100% over gold, occasionally spiking even higher.

However, as platinum and other platinum group metals (palladium and rhodium) became widely used in catalytic converters, demand for these metals has skyrocketed and so have prices.

This makes now a good time to be investing in platinum.

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Algarrobo Property Being Advanced More Quickly Than Expected by Swingplane Ventures - Analyst Blog

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Algarrobo Property Being Advanced More Quickly Than Expected by Swingplane Ventures By Steven Ralston, CFA The stock price of Swingplane Ventures (SWVI: OTCBB) continued to rally this week as more information about the potential of the Algarrobo property has been released, since our previous article. The project is advancing more quickly than expected with near-term […]

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