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Horacio R. Marquez

Buy, Sell or Hold: BHP Billiton is Poised to Pick Up Big Gains on the Back of a Global Commodities Bull

Face it, commodity prices are in a secular rally – and there are three big reasons why.

  • Loose Monetary Policy
  • Growing Demand in Emerging Markets
  • And the Congruent Devaluations of Major CurrenciesWe've already profited from this inflationary trend in the Money Map VIP Trader.  And – just like I did with the broadband revolution – today I am presenting you with a stock that stands to benefit from these developments – BHP Billiton Ltd. (NYSE ADR: BHP).

First, let's talk about policy. Immediately following the 2008 financial crisis, the Group of 20 (G20) countries agreed to stimulate their economies simultaneously.  And, while the emerging economies almost unanimously have already returned to strong rates of growth, most advanced economies are just now turning the corner.

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Buy, Sell or Hold: Bank on the Broadband Revolution with EMC Corp. (NYSE: EMC)

Major fund managers on Wall Street continue to be very cautious and underestimate certain key trends – one of which they have yet to even catch on to.

In the last few weeks, I recommended you to invest in a number of companies that are linked to this underestimated trend: The broadband explosion.

In fact, we got into Cisco Systems Inc. (Nasdaq: CSCO) before that company unveiled its new "super-router." I also recommended buying other beneficiaries of the broadband trend, including Juniper Networks Inc. (NYSE: JNPR) and JDS Uniphase Corp. (Nasdaq: JDSU). Today, we continue diversifying into other beneficiaries with a very strong player: EMC Corp. (NYSE: EMC).

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Buy, Sell or Hold: JDS Uniphase Corp. (Nasdaq: JDSU) Is Yet Another Rising Star in the Broadband Revolution

We keep getting good news with respect to the broadband revolution. If you have not read my prior posts, do not miss this special report on it. These developments are revolutionizing the tech world right now and we are at the very inception of an explosive and highly profitable trend.

For starters, both the U.S. economy and the global economy are faring much better than most of the market expected. In fact, last Friday we saw February's retail sales blow away even the most optimistic forecasts. Sales excluding autos did particularly well, which is good news for Internet sales.

We also saw Cisco Systems Inc. (Nasdaq: CSCO) launch its new "super-router” which is many times faster than existing devices. This will speed up network traffic, enabling faster video, teleconferencing and downloading. More traffic means more bandwidth, and that means more infrastructure.

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Buy, Sell or Hold: Ford Motor Co. Is Ready to Haul In a Fortune for Investors

Last week the Money Map team got together at the Baltimore Marriott and had a two-day conclave to discuss the market and what we can do to better serve you. We had many productive exchanges about our market views, preferred ways to profit, and other important issues.

Keith Fitz-Gerald, Martin Hutchinson and Shah Gilani all had terrific ideas that I am sure you will be reading about here in Money Morning, as well as in their trading services and in the Money Map Report.

But ultimately, we all see opportunities to make very good money out there.

I saved this one for you: Ford Motor Co. (NYSE: F).

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Buy, Sell or Hold: Juniper Networks Inc. (NYSE: JNPR) Will Be the Next Company to Profit from the Broadband Boom

Given the lightening fast expansion that we are seeing in broadband marketsomething I mentioned last week in my recommendation of Cisco Systems Inc. (Nasdaq: CSCO), we are going to look at another strong beneficiary in the sector: Juniper Networks Inc. (NYSE: JNPR).

Juniper Networks beat estimates by a mile in its recent earnings report. It beat both on sales and margins expectations. However, some analysts have raised questions about the company's strategy. And I am one of them.

Let me explain.

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Profit From the Broadband Explosion With Cisco Systems Inc. (Nasdaq: CSCO)

Last Friday I unveiled my two most compelling stock ideas to the readers of my Money Map VIP trading service. They are the best ways to hop onto an exploding trend that I recently discovered and researched extensively – the exponential explosion in broadband traffic.

To learn more about this broadband explosion – and the two top stock picks I isolated from my research – check out this new report. It's a huge issue – with the potential to cause the kinds of network breakdowns and outright outages that could cost the economy billions of dollars and that could even cost people their lives.

In the course of my research, I discovered a third company that's perfectly positioned to benefit from this broadband paralysis. My conclusion: Cisco Systems Inc. (Nasdaq: CSCO) is going to see a lot of upside from this trend, too.

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Buy, Sell or Hold: Buying Into Brazil by Betting on Vale (NYSE: VALE)

On Oct. 27, 2008, I strongly recommended that Money Morning readers invest in the Brazilian stock market through the iShares MSCI Brazil Index Fund (NYSE: EWZ).

It was a momentous decision. The U.S. economy and the global financial system seemed to be coming to a precipitous end.

The day before Money Morning published my lengthy analysis and recommendation, The New York Times published an editorial by the newly anointed economics Nobel laureate Paul Krugman, entitled "The Widening Gyre." Krugman in that editorial criticized those of us who believed emerging economies would decouple from the financial melee that was wrought by the over-leveraged and imbalanced developed economies.

"The really shocking thing, however, is the way the crisis is spreading to emerging markets – countries like Russia, Korea and Brazil," he wrote. And he derided the notion of "the supposed ability of emerging market economies to keep growing even if the United States fell into recession…. Now the emerging markets are in big trouble."

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Buy, Sell or Hold: Paychex Inc. Offers a Chance to Profit From the Paradigm Shift in Employment

The U.S. labor picture may not be clear, but investors can profit by acquiring shares of Paychex Inc. (Nasdaq: PAYX) to take advantage of the new employment paradigm.

As the former head of credit and analysis for ADP Capital Management, the investment arm of Automatic Data Processing (Nasdaq: ADP), I know the outsourced payroll industry from the inside out.  ADP – a company in which I have kept the stock I received – is the leader in the payroll sector.  It focuses on the larger and more stable companies in the United States.
Today, taking into account the latest employment dynamics, and the massive change in the structural characteristics of the U.S. economy, we are going to focus on an ADP competitor – Paychex Inc. 

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Buy, Sell or Hold: McDonald's Corp. (NYSE: MCD) Is Undervalued and Offers Exceptional Upside

I first recommended McDonald's Corp. (NYSE: MCD) to Money Morning readers on Feb. 23, 2009. A few weeks later the stock bottomed out at $50.44. It then took the turn that we expected and went on to rally some 28%, achieving a 52-week high of $64.78 by the end of the year. The stock is now consolidating at these levels, and, from a technical standpoint it appears to be forming a cup-and-handle pattern.

This is important because this type of pattern often leads to explosive breakouts once the resistance level is breached. And while we wait for this to occur, we have the luxury of sitting on a 3.23% dividend yield, which is very safe given McDonald's very solid balance sheet.

I am confident that the only downside scenario to this investment would be to see the stock move within its well-established trading range for a little while longer. In times of economic and political uncertainty, this stock is a desirable one to hold as a core portfolio position.

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Buy, Sell or Hold: General Mills Stock Has Shown Its Short-Term Value and Is Still a Long-Term Winner

On May 26, 2009, I recommended buying shares of General Mills Inc. (NYSE: GIS) stock. Investors who took my advice then would have paid about $52.61 for the stock, which is currently trading at $70.96 a share, resulting in a gain of about 35%.

The stock at the time had been neglected and offered a very compelling risk-reward situation, especially considering the market conditions. But the market often takes some time to recognize tremendous opportunities that to others seem obvious.

That was the case with General Mills, which has been successful for decades. Strong execution and a strong product lineup in a stable business have led to sustained capital formation that weathered the debacle of 2008 relatively well. The 30% drop the stock suffered turned out to be a gift for investors, as it has completely reversed course.

In fact, GIS earlier this month hit a fresh all time high of $72.25. The question now is: Can General Mills keep it up?

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