Archives for May 2013

May 2013 - Page 18 of 20 - Money Morning - Only the News You Can Profit From

Stocks to Buy: Meet the New Defense Winners

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One segment of the stock market that is widely ignored right now is the defense sector – but as contrarians know, that means there are hot stocks to buy now if you know where to look.

The reason defense is shunned is that future defense budgets will be cut to rein in government spending and hopefully reduce the U.S. budget deficit.

Some programs have been hit by the sequester. Other initiatives are winding down as the endless flow of dollars that has been seen since 9-11 is slowing.

The most recent budget proposals call for reducing defense spending by an additional $150 billion over the next 10 years. That's on top of the $487 billion of cuts already in place and the $41 billion spending cuts mandated by the sequester.

All of this has dampened enthusiasm for defense stocks. While some of the larger defense companies have rallied this year most of the sector has been moribund and is lagging the overall stock market. It is very difficult for analysts and investors to determine which stocks will make attractive opportunities when no one yet knows exactly how much may be cut from the overall budget.

But not all stocks will suffer.

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Ocwen Reports Record Earnings - Analyst Blog

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Though Ocwen Financial Corp (OCN) lagged the first-quarter 2013 Zacks Consensus Estimate by approximately 15%, it reported record earnings. The company’s adjusted earnings came in at 64 cents per share, up from the prior-year quarter number of 25 cents. On a year-over-year basis, the results benefited from impressive top-line growth and a rise in interest […]

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MoneyGram Beats Earnings, Rev High - Analyst Blog

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MoneyGram International Inc. (MGI) reported first-quarter 2013 earnings per share of 27 cents, modestly higher than the Zacks Consensus Estimate of 24 cents and the year-ago quarter earnings of 23 cents. Operating net income in the reported quarter excluded negative impacts of recent debt financing of 39 cents per share, restructuring and reorganization costs of […]

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Bond Market Crash Will Strike By 2016, Expert Predicts

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Not only is a bond market crash inevitable, but it will hit sooner than many think – by 2015 or 2016 at the latest, according to Michael Pento, president of Pento Portfolio Strategies.

"It's the most overpriced, over-owned, oversupplied market in the history of American economics," Pento said of the bond market in an interview with The Street.

Pento compared the current bond market, with its historically low interest rates and flood of U.S. Treasuries, to two of the most recent bubbles – the dot-com bubble of the late 1990s and the housing bubble that burst in 2007.

A sudden bond market collapse isn't likely, Pento said, but his models tell him it will happen, one way or another, within the next three years. And investors will need to be prepared.

How to Invest in Tech in 2013

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If you want to know how to invest in tech in 2013, there's a major shift you should understand.

For much of the past three decades, technology companies have been huge sources of share-price growth. Some of the world's biggest tech companies have let growth stock investors latch on to their innovation potential and watch the share prices soar above other sectors.

These tech stocks have been a great growth story for decades, and their industry dominance has led to huge profits and cash piles.

But, the growth leaders have changed.

Frack or Fail: Is It Time For California's Liberals to Go?

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Editor's Note: California is in a LOT of trouble financially. Cities are going under and the state can't balance its budget. It also has almost half a trillion in state pensions to fund and revenue is drying up.

But there is one way out: Tap the largest oil and gas play in the Lower 48.

The question is whether this left-leaning state crowded with special interests like the Sierra Club will actually let oil services companies begin to start fracking on state land.

In our inaugural Money Morning Fight Club brawl, Frank Marchant and Garrett Baldwin square off on this contentious issue. The best part is we are asking you to turn in your scorecard and pick the winner at the end.

So let's get ready to rumble…

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Silver Prices in 2013: The Reasons for a Bold Forecast

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Don't let the lackluster showing for silver prices in 2013 fool you – things are about to change.

Indeed, the white metal's performance so far has been uninspiring. Silver prices ended April down $4.14 an ounce, or 14.6%, at $24.42 an ounce, marking the third consecutive month of declines. The metal was little changed in March, trimmed by just $0.10. In February, silver shed $2.92. In January, it gained a modest $1.12.

Weighing on the white metal is record stock market rallies. In Q1, the Dow gained 11%, booking its best first quarter since 1998. The Standard & Poor's 500 Index soared 10%, and the Nasdaq was up 8%. The Dow and the S&P have gone on to hit fresh records on numerous occasions, and the Nasdaq rests at its best level since 2000.

The situation in Cyprus is also pressuring silver. Word the Cypriot government must sell 400 million euros of its excess gold reserve to raise $13.2 billion (as part of its bailout deal) sent precious metals reeling. Since Cyprus is the fifth Eurozone nation to seek a bailout, concerns are other European governments may follow suit.

Down about $6.00 an ounce, or 20%, this year, the slump presents a buying opportunity.

Investing now in beaten down silver could prove very rewarding. The silver market looks poised to repeat the 170% gain logged over the seven-month period between April-November 2011.

Money Morning Global Resource Specialist Peter Krauth, sees plenty of potential in investing in silver.

"Because the global silver market is relatively small, silver prices tend to be more volatile; the pounding selloff we witnessed in silver this past month is a testament to that fact. But volatility works both ways, so when silver rises, its prices can explode higher," said Krauth.

Natural Gas Prices Could Triple - And So Could Your Profits

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Natural gas prices are finally turning around, hitting multi-month highs – and piquing the interest of legendary investors who say the commodity has a lot higher to climb.

While most commodities are moving lower in price – some quite sharply – natural gas has soared in 2013.

The June natural gas futures contract on Monday settled at $4.392 per million BTU, putting it up 31% so far this year. This makes natural gas the top performer among the 24 commodities in the Standard & Poor's GSCI index.

Noted contrarian investor Jeremy Grantham of GMO Asset Management is among the natural gas bulls. He recently told a value investing conference in Toronto that investing in natural gas at today's low prices is a no-brainer.

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NII Holdings Posts Loss - Analyst Blog

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Latin American wireless operator, NII Holdings Inc. (NIHD) declared dismal financial results for the first quarter of 2013, missing both the top and bottom line of the Zacks Consensus Estimate, hurt by higher churn, weaker exchange rate, lower ARPU and higher operating expenses. On a GAAP basis, net loss in the reported quarter was $207.5 […]

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ONEOK Partners Misses Earnings Est - Analyst Blog

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ONEOK Partners L.P. (OKS) reported first-quarter 2013 earnings per unit of 42 cents, missing the Zacks Consensus Estimate by 16 cents. Quarterly earnings decreased 53.8% year over year primarily due to considerably thinner natural gas liquids (NGL) location price differentials and the impact of ethane rejection. Total Revenue ONEOK Partner’s revenues were $2,517.4 million, 3.8% […]

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