There has been a lot of debate recently about what Apple (AAPL) should do with its $137 billion cash pile. Some investors think the company should issue a big special dividend. Others are hoping for a huge stock buyback. Hedge fund manager David Einhorn is trying to convince Apple's Board to issue perpetual preferred stock. […]
Archives for March 2013
March 2013 - Page 16 of 20 - Money Morning - Only the News You Can Profit From
Two Energy Stocks to Buy Now Before Prices Rebound
If you're looking for energy stocks to buy, now's a good time to snag some deals.
Energy stocks have seriously lagged the overall stock market for some time now as the weak economy has reduced demand.
The Energy Information Agency released a report Feb. 27 stating that oil demand in 2012 was the lowest since 1996, and gasoline demand was the lowest since 2001.
Although it can be difficult to measure accurately, a slower-than-historical growth rate in China seems to have slowed demand from the world's largest importing nation as well.
As a result, the oil services exchange-traded fund (NYSE: OIH) is up just over 0.2% in the past year, compared to the overall market's 15% return. The Vanguard Energy ETF (NYSE: VDE) has a wider scope of energy companies, but also lags the market with a 12-month return of just 4.16%.
In spite of the current weakness in demand, the one thing we know for certain is that the global economy cannot pick up without an increase in demand for oil and gas. Although these stocks are out of favor right now, the odds are high that over the next several years they will become growth darlings once again as energy demand inevitably rises.
Patient contrarian investors can take advantage of this potential profit landfall by buying into these energy stocks now, while they are unloved and very cheap based on historical levels and future prospects.
What's Behind the 131% Gain in This LED Lighting Powerhouse
The San Francisco Bay Bridge has become the shining symbol of why the future is so bright for LED lighting investors.
The span connecting the East Bay to San Francisco is now adorned with more than 25,000 bright LEDs strung on some 300 vertical wires along 1.8 miles of the bridge's western span.
Called The Bay Lights, the LED necklaces are part of a two-year project by artist Leo Villareal designed to dazzle the millions who see the landmark bridge at night.
My wife and I recently had dinner at a restaurant that looks right at the bridge, and both of us were just dazzled by the quality of the exhibit, funded largely by wealthy donors and local businesses.
But there's more to this display than public art and tourist appeal…
Emerging Markets: Is This A "New Chapter" for Turkey?
In 2012, Turkey was the best performer among the emerging markets we track on our Periodic Table showing a decade of returns. All developing countries rose last year, but stocks in Turkey climbed an astounding 56 percent.
See a decade of results for yourself with our interactive periodic table
While visiting the country last week, I was happy to see my explicit knowledge of Turkey's growth was supported by my tacit knowledge.
A Dozen Reasons to Be Investing in Graphene
Graphene – the lightest, strongest, most flexible material ever made – could revolutionize our way of living, which is why now is the time for investing in graphene.
Graphene, which is 200 times stronger than steel, could make "invisibility cloaks" for the military that will hide tanks and other military vehicles; create bendable, flat-screen TVs that you can roll up and take with you; and lead to major breakthroughs in healthcare, to name just a few of its potential uses.
The graphene industry is expected to have 40% annual growth over the next seven years, going from the $9 million industry it is today to a $126 million market, reports Lux Research, an independent research firm focused on emerging technologies.
We at Money Morning saw graphene's potential early.
"Stronger than steel and lighter than a feather, this high-tech medium will shape virtually every part of our daily lives by the end of this decade," Money Morning Defense and Technology Specialist Michael Robinson wrote in December 2011.
And with these new developments, graphene is certainly on its way to changing the products we use every day – which is why more people are asking about investing in graphene.
Washington Lets Shrinking Middle Class Twist in the Wind
Letting sequestration happen is just the latest burden Washington's politicians have dumped on a struggling and shrinking middle class.
Unless our bickering lawmakers come up with a solution, the Congressional Budget Office estimates that sequestration could knock 0.6% from the nation's gross domestic product and cost up to 750,000 jobs.
And this comes while most middle-class families are still struggling to adjust to the 2% reduction in their paychecks that occurred when Congress allowed the payroll tax break to expire on Jan. 1.
If it seems that Congress doesn't care about the plight of the shrinking middle class, it's probably because they're so far removed from a middle-class lifestyle. They earn $174,500 a year, far above the U.S. median salary of $50,000, and nearly half are millionaires.
Meanwhile, life keeps getting worse for the shrinking middle class – yes, shrinking.
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Chinese Firms Increase Stakes in U.S. Shale Oil Projects
China National Petroleum Corp., the country's largest oil company, is joining a rush of Chinese companies seeking stakes in U.S. shale oil and shale gas projects.
According to Bloomberg News, Chinese energy companies, both state-run and private, are seeking to invest more than $40 billion in U.S. shale energy.
Readers may remember the Chinese oil and gas producer CNOOC Limited's (NYSE: CEO) $19 billion bid for U.S.-based refiner Unocal, which was rejected by federal regulators in 2005. (Unocal later merged with Chevron Corp.)
Although CNOOC was recently able to complete a $15.1 billion purchase of Nexen Inc., a Canadian oil and gas company with assets in the Gulf of Mexico, outright takeovers of U.S. energy assets by Chinese companies are probably still not welcome.
Chastened by its experience with Unocal, CNOOC has not attempted to buy any U.S. company outright.
However, after developing a relationship with Chesapeake Energy Corp, (NYSE: CHK), CNOOC has purchased stakes in specific Chesapeake projects in Colorado and Wyoming.
"They didn't come over here and try to buy Chesapeake," Chesapeake CEO Aubrey McClendon told The Wall Street Journal. "They came over here to buy a minority, non-operating interest in an asset and not take the oil and gas home."
So why do the Chinese want to invest billions of dollars to fund shale oil and shale gas projects in the United States when it won't be able to export the energy products back to China?
February Jobs Report: Here's What to Expect
Expect a disappointing jobs report for February thanks to higher taxes and sequestration fears that put companies' hiring plans on hold last month.
Economists expect nonfarm payrolls to show a gain of 160,000 jobs in February, with the unemployment rate holding steady at 7.9%, when the Labor Department releases the February jobs report tomorrow (Friday) at 8:30 a.m.
Employment growth has averaged 177,000 per month over the last six months, and February is expected to fall short.
One reason is the 2% payroll tax cut that ended with 2012, leaving workers with less disposable income. Also, top income earners were slapped with a higher tax rate.
The full tax impact wasn't felt in January, but retailers and restaurants are beginning to feel the pain.
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Bull of the Day: Hertz (HTZ) - Bull of the Day
Shares of HTZ have gained over 65% since the November lows; and the run may not be over yet… HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Buy, Sell or Hold: Why Wal-Mart Shares Are No Bargain
Like E.F. Hutton of old, when Wal-Mart Inc. (NYSE: WMT) talks about the state of the markets people listen.
With more than 200 million customers and 10,773 stores in 29 countries, the worldwide retail giant has become the ultimate consumer bellwether-especially in the United States where it accounts for approximately 10% of all non-automotive retail spending.
Unfortunately, here's what Wal-Mart has to say about its customers : They are broke.
According to leaked e-mails from some of the top brass at Wal-Mart, February sales were a "total disaster."
So how is it possible that the world's largest retailer with "everyday low prices" is having trouble getting its customers to buy things?…
Let's break down Wal-Mart's recent sales and the hot issues that now surround its share price.