Archives for July 2013

July 2013 - Page 3 of 18 - Money Morning - Only the News You Can Profit From

Don't Be Fooled by the Media, Boeing is a Buy

I was at work here at the office last Monday night when I heard about the Boeing 737 crash at New York's LaGuardia Airport. A nose wheel on the jetliner had apparently given way after a hard touch-down just after 5:30 p.m. (EDT), leading to a crash that injured about eight of the 150 folks on board

"Uh-oh," I thought to myself. "Here's comes another feeding frenzy."
The media has had feeding frenzy at Boeing's expense ever since the tragedy in San Francisco, then the Dreamliner fire and the 737 crash. All it can talk about is the "continuing woes at Boeing." But don't be fooled, appearances can be deceiving.

I've been bullish on this aerospace giant for a while and even when in difficult times, I doubled down. Its recent troubles are a thin veil over some great long-term fundamentals.

Why the Housing Market Recovery is Bypassing Young Buyers – and What that Means to the Market

Think of the housing market as a ladder with first-time homebuyers at the bottom and homeowners on the upper rungs, with homes priced higher as you proceed upward.

The first-time homebuyers make it possible for those in the lower-priced homes to sell and move up to costlier homes, which in turn enables the sellers of those homes to move up to costlier homes – and so on.

But amid the housing market recovery – sales of new and existing homes are up and prices have been rising – many first-time buyers are being shut out of the market.

And that has far-reaching implications for the market as a whole, given the role those first-timers play in creating demand from the bottom of the ladder.

"They're the first rung of the ladder," Douglas Duncan, senior vice president and chief economist at Fannie Mae, told Money Morning.

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The Next Best Investments in Oil Come From This Texas Sweet Spot

As I wrote up this analysis of the best investments in oil, a familiar saying came to mind: "Everything old is new again."

A truer statement could not be said about the Permian Basin, which is a geological formation roughly 300 miles long and 250 miles across that stretches across west Texas and eastern New Mexico.

It's Time to Climb Aboard the Oil-by-Rail Boom

Rail transit is about to make you some big money…in oil.

That's why I'll be headed to Dallas in late August and Calgary mid-September for extensive meetings with all of the key players.

I can promise you, that in a hurry this is going to get a lot bigger.

As it happens, I'll be providing all of the details for average investors to profit from this monumental change.


Let me explain to you how all of this has suddenly come about...

The Best Stocks to Buy Now: A Weekly Roundup

Here's what we learned in the past week on our regular hunt for the best stocks to buy now: investors have more access to biotech's best investments, earnings reports are clearly separating winners from losers, and cybersecurity is looking even more profitable than before.

First, let's start with earnings…

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How to Spot the Best Stocks to Buy in Tech's Fastest-Growing Sector

This week saw San Jose, California networking giant Cisco Systems Inc. (Nasdaq:CSCO) purchase Columbia, Maryland-based cybersecurity company Sourcefire, Inc. (Nasdaq:FIRE).

The purchase price was a rather steep $2.7 billion. That's $76 per share – a handsome 29% premium to the around $49 share price early Monday, before the deal was announced. Shares of FIRE are now trading at just under $76 a share.

If you're looking for stocks to buy, these shares have probably had enough fun for one night, but they may have found a decent support level.

Sourcefire has spurned suitors before, and dallied with its fair share of M&A activity – turning down a buy offer from Barracuda Networks, while acquiring antivirus companies Immunet and Clam AntiVirus in the last decade

An Ever More Urgent Need

Attacks on computer networks are, without exaggeration, ceaseless. There is at least one ongoing attack somewhere in the world at any given time. Sourcefire is one of many network security firms filling an increasingly vital niche.

Sourcefire's flagship product, FirePOWER, which is based on the open-source Snort intrusion detection system, is acknowledged to be among the best in the industry.

Snort itself is said to be the most widely deployed IDP technology on earth. One of the more interesting products is their Advanced Malware Protection, which analyzes malware attacks and works to predict and prevent even the very worst attacks.

It's this kind of killer, boutique technology that makes companies like Sourcefire so attractive to the big boys.

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How to Find the Best Stocks to Buy in a Stock Market Sell-Off

A stock market sell off can be the best time to hunt for stocks to buy. Stocks can slide 10% to 20% before it's all said and done.

But the markets' upward bias means money is always going to look for a place to go. When others are panicking, savvy investors keep their cool and swoop in to have their fill.

The question is, which stocks should you buy in these sell offs?

Money Morning Chief Investment Strategist Keith Fitz-Gerald sorts the good from the bad from the ugly, and tells us where to be when the money comes back home.

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Four Companies That'd Benefit From Corporate Breakups - the Last One May Surprise You!

June 28 saw the corporate breakup of News Corp (NASDAQ:NWSA), the world's 2nd largest media-entertainment conglomerate with some $34 billion in revenues worldwide.

The split took over the headlines and had investors in a tizzy.

When you own equity in a company that undergoes a corporate breakup, you may stand to earn major profits – if it's the right approach for that particular company to stimulate earnings and growth.

Money Morning's Chief Investment Strategist Keith Fitz-Gerald explains how corporate breakups can benefit – or sting – investors:

    "Many times there is a breakup premium attached to a stock when assets are worth more than the sum of their parts. The same is true of revenue streams that are suddenly freed of costs that belong to other divisions or products.

    "Conversely, if a breakup goes badly, that's usually because investors find problems that weren't apparent when the entity was held whole."

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Most Everything You've Heard about China's Currency is Dead Wrong (and that Means Money for Us)

Nearly everything you've heard about China's currency, the yuan, is dead wrong. It's not undervalued and it's not undercutting the U.S. dollar as the financial press and politicians like to point out. I'll show you why.

You likely heard that China recently reported it had grown just 7.5 percent in the second quarter of 2013, the lowest level in over three years.

What you likely don't know is, more than half of that growth came from wasteful infrastructure and property investments, such as this: http://www.ibtimes.com/worlds-largest-building-new-century-global-center-opens-chengdu-china-1330585.

China uses government investments as the main channel to pump money into its economy. The resulting monetary growth makes the Fed's quantitative easing seem like child's play.

Is Now a Good Time to Buy Silver? Rick Rule Weighs In

With silver prices down some 30% year-to-date, is now a good time to buy silver?

We at Money Morning love the buying opportunity being presented in the silver market. With a near zero interest policy in the U.S. likely to stay in place for at least a few more years, and global monetary printing presses continuing to run at full speed, precious metals like silver are once again a lucrative, and now much cheaper, asset.

Rick Rule agrees.

Money Morning recently spoke to Rick Rule, president of Sprott Asset Management and founder of Global Resource Investment Ltd., about silver's decline in 2013 and what investors should do now.

Here's what he said about if now is a good time to buy silver…