Archives for July 2013

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

Buy, Sell or Hold: Out of Staples (Nasdaq: SPLS)

by

Staples, Inc. (Nasdaq: SPLS) investors are thrilled as the world's largest office supply company's share price is making new 52-week highs and is up 40% year-to date. Quite remarkable!

Staples shareholders think that the company is making all the right moves toward transforming this big-box retailer into something beyond what the average customer is accustomed to when they think of a Staples store.

In fact, the company has evolved to the point where, unbeknownst to many, it is no longer just a big-box retailer but also the second largest e-retailer behind Amazon (NASDAQ: AMZN) with internet sales totaling $11 billion in 2012, which currently account for more than half of its business today.

Staples is pushing to downsize operations while moving with some success even further into the e-commerce world. The company faces many headwinds as it struggles with the general economic conditions and small business concerns both in the U.S. and abroad.

Staples could very well be fighting the good fight but is it enough…

Staples Shredding Stores

Obama Finds A New Way to Strangle US Economy

by

The scary question is, is he continuing to wound this recovery on purpose or by accident?

And which answer is worse?

Last Tuesday, President Obama announced his "Action Plan on Climate Change."

One of main "actions" is to kill a core piece of the US energy sector.

Among other things, he promised to use the Environmental Protection Agency regulation of carbon emissions to phase the U.S. out of coal fired power, even for existing stations.

Of course, environmentalists praised this move as a bold step against global warming.

Unfortunately, they're not very good at the economics of this.

So, I ran the numbers. And what I found was infuriating but not surprising: Regulations like this are the principal things slowing U.S. economic growth.

Did the Math

The Top BRIC in the Wall Teeters

by

Over the last decade, Brazil has grown to become the world's sixth largest economy by nominal GDP, a staggering feat fueled by a massive increase in its middle class ranks.

The nation has been rife for investment opportunity based on its fundamentals and strong commodity sectors, and finds itself as the leading BRIC (Brazil, Russia, India, China) emerging market.

But the recent wave of public protests over the last month could be signaling that Brazil has hit a major snag in its quest to displace France in the top five economies, and its opportunities for growth and fortune may be faltering as the nation experiences increased political turbulence.

The wave of protests began a month ago in Sao Paulo after the government increased bus fares by 10% (a rate that subway fares seem to rise in New York every other week). But the increases were quickly revoked in San Paulo and other major cities after the protests became much larger than about mere bus fares.

Residents have been especially frustrated by a lack of transparency across the country, and the government's increased taxation and decreased returns to average Brazilians in the form of basic and essential services.

Brazil has spent approximately $30 billion to showcase itself to tourists during the 2014 World Cup and 2016 Olympics. Meanwhile, the nation's anti-poverty programs have a mere annual of budget $10 billion in a nation of 191 million.

The widespread demonstrations have produced a national movement to demand better education, healthcare, and transportation services. Despite the protests, the country simply can't meet these obligations at this time for one simple reason: government can't keep up with economic expansion.

Brazil provides one important economic lesson that no one talks about when it comes to rising middle classes in emerging nations.

Many governments are not prepared for population shock or the shock of economic growth.

And while this stands to create a wave of new problems for investors looking abroad for investment opportunities in Brazil, it also teaches a valuable lesson and opens new doors to wealth in South America.

The Retched "Incline" of the Middle Class

To continue reading, please click here...

China Gets Hungry for Arctic Oil

by

China is the world's second-biggest importer of crude oil and its companies are on the prowl for oil all over the world.

By 2015, its oil companies are expected to produce more oil outside of China's borders than Kuwait pumps, according to the International Energy Agency.

The global Chinese search for energy has put a new region on the top of its agenda: Arctic oil.

The Arctic oil race is heating up as more countries look for paths in to this new hot source of energy profits.

You see, with the warming and melting of the Arctic ice cap, it is becoming easier to possibly exploit the energy riches that lie beneath the cold waters.

Money Morning Global Energy Strategist Dr. Kent Moors discussed the search for Arctic oil and gas in a recent article. Moors said the long-awaited U.S. Geological Survey's Circum-Arctic Resource Appraisal study found that 84% of the total undiscovered oil and gas left on the planet is located above the Arctic Circle. The oil and gas are mainly offshore and in three large basins that lie under shallow seas.

The vast potential of the Arctic for oil and gas piqued the interest of nations with territory north of the Arctic Circle such as the United States, Canada, Russia and Norway.

But it also got the attention of countries – like China – with no direct claim there, but with an increasing appetite for energy.

The Race for Arctic Oil: China and Iceland