Posted Aug 8th 2008 12:05PM by Steven Halpern
Filed under: Newsletters, Lockheed Martin (LMT), Stocks to Buy
"Partial insulation from the economic slowdown, coupled with new military-aircraft programs, give Lockheed Martin (NYSE: LMT) attractive capital-gains potential over the next several years," says Richard Moroney.
In his blue chip oriented Dow Theory Forecasts, the advisor explains, "A diversified business mix provides investors a measure of safety in a difficult economic climate. The stock is a Focus List Buy."
"Lockheed seems well-positioned with regards to the U.S. defense budget, with very little exposure to Iraq. The company is capable of growing profi ts even if the new U.S. president pulls troops out of the country.
"While defense-spending growth is likely to slow in coming years, ongoing security threats and the need to replace aging equipment should keep the baseline defense budget, which excludes war-related costs, growing through at least 2012.
"A diversified business mix provides investors a measure of safety in a difficult economic climate. After the Air Force, Lockheed's next-largest end market is civil government and homeland security, accounting for 26% of revenue.
"The U.S. Navy accounts for 20% of sales and the Army 10%. About 13% of sales are international, and the U.S. communications industry accounts for 3%.
Continue reading A look at Lockheed (LMT): More than defense
Posted Aug 8th 2008 10:30AM by Steven Halpern
Filed under: International markets, China, Newsletters, Mutual funds, Stocks to Buy
"For the next two-and-a-half weeks, almost all you'll hear in the news will be related to the 29th Olympiad in Beijing," points out Brandon Clay, who focuses on a China ETF as his latest investment idea.
In his All Star Investor newsletter, he explains, "Beyond this, in 2010, we will see the World Expo in Shanghai and the Asian Games in Guangzhou." So is now a good time to invest in China? Here's the advisor's assessment and his top pick for exposure to the region.
"China has been gearing up for the Games for the past few years. Finally, with a dozen new sports stadiums and a cross-city underground railway to ferry visitors to different venues, China will be on display to the world.
"If you've been investing internationally, you're no stranger to China. Depending on when you bought, you may either love it or hate it. For instance, in 2007 Chinese stocks rocketed up the charts 97%.
"In 2006, the gains were even more impressive at 130%! But it hasn't been all fun and games in the past two years. China peaked at the same time U.S. stocks in October 2007.
Continue reading Olympic gains for China stocks? Look at FXI to play the games and beyond
Posted Aug 7th 2008 11:00AM by Steven Halpern
Filed under: Newsletters, Bank of America (BAC), BB and T (BBT), Wells Fargo (WFC), Stocks to Buy
Financials have staged an impressive rally from extremely oversold levels," says Kelley Wright, editor of the top-rated IQ Trends, which focuses on high quality, blue chip, dividend-paying stocks. Here's his top long-term buys among banks.
"It is increasingly evident that the banking sector is dividing into two distinct camps; the have's and the have not's. The 'have's' are:
Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) among the big cap area;
SunTrust (NYSE: STI) and BB&T Corp. (NYSE: BBT) in the larger regional banking sector;
Bank of Hawaii (NYSE: BOH) and Southwest Bancorp (NASDAQ: OKSB) in the smaller cap area.
"The impressive rally to date notwithstanding, it still remains to be seen whether another retracement will develop should crude oil, gold and other commodities reverse course.
"A strong rally in these sectors could send the market down again. While Mr. Market can do whatever he pleases, it is highly unusual for stocks to bottom in the summer.
"It would not be imprudent to see what September and October have to offer before anyone begins to talk seriously about the bottom. For investors with an appetite for the financials, however, we would suggest dusting off that old tried and true tactic of dollar cost averaging as a prudent means to establish positions."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted Aug 6th 2008 12:15PM by Steven Halpern
Filed under: Newsletters, Mutual funds, Commodities, Oil, Stocks to Buy, Green Stocks
"There's no 'silver bullet' solution to the energy crisis; but there are some solutions that do work," says Sean Broderick, referring to wind and solar power.
In The Safe Money Report he says, "There are with some choice ETF to power your own bottom line." Here's a look at the two green technologies and how you can invest in these developing fields.
"Many Americans are disgusted by the fact that, faced with an energy crisis, the government seems to produce nothing but hot air. So let me give you my appraisal of two alternative energy solutions that work -- along with some choice exchange-traded funds that can power your own bottom line. Here are two energy solutions that work right now.
Solution #1: Wind Power
"Critics will point out that the wind seems to stop blowing when you want electricity most -- on hot summer days. And that is a problem. However, a study last year by Stanford University shows that wind power from interconnected farms can be used as reliable base load electric power.
Continue reading Investing in solar & wind: Green ETFs
Posted Aug 6th 2008 10:20AM by Steven Halpern
Filed under: International markets, China, Newsletters, Yum Brands (YUM), Stocks to Buy
"I think now is a particularly opportune time to buy the world's largest fast-food company, YUM! Brands (NYSE: YUM) ," says Louis Basenese.
The associate investment director and contributing editor to The Oxford Club observes, "YUM Brands operates 35,000 restaurants under the KFC, Taco Bell and Pizza Hut brands." Here's his review of the firm's outlook, including its expanding role in China.
"For starters, YUM keeps extending its streak of impressive results. For the seventh quarter in a row it beat expectations. Earnings per share increased 16% for the quarter and 28% year-to-date. Not to be overlooked either is the fact YUM raised guidance. Again.
"This quarter, fewer than 5% of companies in the S&P 500 can boast this triple whammy (beating earnings and revenue estimates and raising guidance). Ironically, while most of the other triple-whammy stocks enjoyed hefty single- and double-digit run-ups on the announcements, YUM sold off.
"And here's where I think most investors are missing the boat, and once again focusing too heavily on the short term. Yes, YUM's in a pinch. Food costs are rising and consumers are spending less.
Continue reading Yum! Brands (YUM): 'World class leadership'
Posted Aug 5th 2008 1:05PM by Steven Halpern
Filed under: International markets, Newsletters, Mutual funds
"We've added two bond fund's to our buy list: PIMCO Total Return (PTTDX) and Loomis Sayles Bond (LSBRX)," says Mark Salzinger.
The editor of The No-Load Fund Investor explains, "We favor both funds for many of the same reasons: both have experienced, top-flight management supported by robust credit-research staffs." Here's his review.
"Both bond funds have performed strongly over the long-term and during recent market turbulence. And each has a relatively open mandate that allows their respective management teams the flexibility to scoop up attractive bonds from diverse sectors of the bond market in pursuit of both capital appreciation and income.
"PIMCO Total Return is the world's biggest bond fund, and second large mutual fund of any stripe, with $128 billion in assets. The fund's popularity is a product of the outstanding track record and enormous reputation of its manager, Bill Gross. Its 10-year annualized return of 6% puts the fund in the top 5% of all intermediate-term bond funds over that time.
Continue reading Best bond fund bets: Core picks for income investors
Posted Aug 5th 2008 11:30AM by Steven Halpern
Filed under: Newsletters, US Airways Group (LCC), Oil, Delta Air Lines (DAL), Stocks to Buy
"If there's one sector that stands to benefit handsomely from a further slide in oil or, at least, a moderation in crude's rally: the airlines," explains energy sector expert Elliott Gue.
In The Energy Strategist, he says, "Airlines may make a terrible long-term investment but can be an outstanding short-term trade." Here he looks at Delta Air Lines (NYSE: DAL) and, for the even more speculatively-inclined, US Airways (NYSE: LCC).
"Some investors will rightfully cringe from any mention of this sector; after all, the airlines have consistently lost money throughout their post-deregulation history.
"Most of the majors have declared bankruptcy on multiple occasions since that time. However, we've traded the airlines on a few occasions; we took some triple-digit percentage gains in the airlines back in 2005.
"The airlines' leverage to oil prices is well known. Expectations are so low, in fact, that several major air carriers actually managed to beat consensus expectations in the second quarter.
"And although sentiment is already at rock-bottom, there's a real basis for cautious optimism. First, if I'm right about oil, fuel costs won't rise appreciably in the third quarter. This huge headwind is dissipating.
Continue reading Speculative flyers: Delta (DAL) and US Airways (LCC)
Posted Aug 3rd 2008 4:23PM by Steven Halpern
Filed under: Ford Motor (F), AT and T (T), Citigroup Inc. (C), Sprint Nextel Corp (S), Agilent Technologies (A), Kellogg Co (K), Qwest Communications Intl (Q)
"One group of stocks that has always intrigued us are those whose symbols have one letter," notes George Putnam. The editor of The Turnaround Letter explains, "Odd as this idea may at first seem, it actually makes some sense for a deep value investor. These are often old-line companies with well-known brand names. In some cases the single letter symbols were awarded many decades ago."
After reviewing the 19 stocks with single letter symbols (7 are currently unused), Putnam offers six that he says, have been "beaten down pretty badly and now look particularly appealing."'
"Agilent Technologies (NYSE: A), which makes electronic and bio-analytic measuring devices, was spun out of Hewlett-Packard in 1999. Revenues surged in 2000 as did the stock price, reaching a lofty 162.
"But the company subsequently suffered along with its customers in the communications and technology sectors. However, the financials are sound, including strong cash flow that is supporting a $2 billion share buyback, and management has been restructuring and realigning operations for long-term growth.
Continue reading 'Singular' values: A, C, F, K, M, N, Q, S, T
Posted Aug 1st 2008 11:10AM by Steven Halpern
Filed under: International markets, Russia, Newsletters, Stocks to Buy
"In Russia, as in many other emerging markets, a new crop of homegrown companies is on the rise," says global expert John Christy, editor of The Forbes International Investment Report.
He says, "While relatively unknown outside their home markets, these firms have proven to be worthy competitors against much bigger multinationals." Here's a look at Wimm-Bill-Dann Foods (NYSE: WBD).
"In a research report in March, the Boston Consulting Group (BCG) called these emerging companies 'Local Dynamos'. Wimm-Bill-Dann Foods was one of just three Russian companies to qualify for BCG's exclusive list. WBD is Russia's largest food and beverage company.
"It has a whopping 76% market share for dairy products like milk and yogurt.It is the #3 player in beverages,mainly fruit juices,and it has the #1 market share for baby food in Russia.
"In developed markets, selling baby food and fruit juice is a mature,ifnot mundane business.But in Russia,these can still be considered relatively attractive growth opportunities.
Continue reading Wimm-Bill-Dann (WBD): Russia's largest food & beverage bet
Posted Aug 1st 2008 10:25AM by Steven Halpern
Filed under: International markets, Newsletters, Tiffany and Co (TIF), Stocks to Buy
"Tiffany & Co. (NYSE: TIF), founded in 1837, is a recent buy recommendation from value investor Charles Mizrahi. In his Hidden Values Report he looks at the high-end retailer.
"Tiffany and Co. is a jeweler and specialty retailer whose merchandise offerings include an extensive selection of jewelry (83% of net sales in fiscal 2006) as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.
"Tiffany was founded in 1837 when Charles Lewis Tiffany opened a store in downtown Manhattan. Today, more than 150 Tiffany & Co. stores and boutiques serve customers in U.S. and international markets.
"The company's key growth strategies are to selectively expand its channels of distribution in important markets around the world without compromising the long-term value of the Tiffany & Co. trademark; to increase sales in existing stores by developing new products.
• Ranked in Top 100 Global Brand by BusinessWeek in 2007 with a brand value of $4 billion (as much as the current market cap).
• Since 2003, TIF has bought back over 23 million shares, or 16% of the shares outstanding.
• Management and insiders own 13% of shares.
• Balance sheet is strong: Current ratio is 3.2 and long-term debt/equity is a manageable 11.5%.
"Overall, TIF is a well-run business, and a price of $34 or lower per share represents a very good value. If TIF can grow earnings at only 10% per annum and maintain a P/E of 15, the stock will handsomely reward investors during the next five years."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted Jul 31st 2008 1:15PM by Steven Halpern
Filed under: International markets, China, Newsletters, Mutual funds, Stocks to Buy
"When you own iShares FTSE/Xinhua China 25 Index (NYSE: FXI), you own the 'best-of-the-best' blue chip stocks traded in the Chinese market," explains Doug Fabian in his The ETF Trader.
"I had been waiting for what I thought would be the inevitable turnaround in Chinese stocks. Much to my dismay, that turnaround hadn't really materialized -- that is, until now.
"For the past couple of months, the value of the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) has undergone a prolonged move to the downside.
"However, the recent strengthening in price has led me to believe that a short-term bottom may be in place for Chinese stocks. I now am recommending that you add the iShares FTSE/Xinhua China 25 Index to your portfolio.
"I like to say FXI is the Dow Industrials of China. This investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 index.
"As FXI has just started to turn off of its lows, I think it has a strong possibility of moving up another 5%-to-10% from here. Make the move into FXI and jump on that fast train to China. We also note that the iShares FTSE/Xinhua China 25 Index just underwent a 3-for-1 share split."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
Posted Jul 31st 2008 11:33AM by Steven Halpern
Filed under: Newsletters, Mutual funds, Stocks to Buy
"After reviewing financial statements and data on dozens of closed-end funds, we identified MFS Intermediate Income Trust (NYSE: MIN) as one of my top picks," says income expert Carla Pasternak.
In her High Yield Investing, she explains, "You won't find many closed-end funds with a better mix of high-quality bonds than MIN's AA+ rated portfolio." Here's her look at this fund that offers an estimated 9.8% yield.
"MFS Intermediate Income Trust holds U.S. and foreign developed government bonds; it offers a discounted share price and a steady income stream powered by healthy earnings from portfolio assets.
"And like other bond funds, it can be affected by rising interest rates, but its diverse portfolios should help steady returns.
"You won't find many closed-end funds with a better mix of high-quality bonds than MIN's AA+ rated portfolio. The fund invests in AAA-rated U.S. Treasuries and agency bonds, foreign debt of developed countries, and high-grade corporate bonds.
"Management insulates the portfolio assets from currency volatility by holding them in U.S. dollars. A low duration of 4.4 years limits sensitivity to changing interest rates. The fund also may trade derivatives and use leverage to boost returns.
Continue reading Income expert eyes AA+ portfolio
Posted Jul 31st 2008 10:10AM by Steven Halpern
Filed under: International markets, Newsletters, Commodities, Oil, Stocks to Buy
In his Validea newsletter, John Reese assesses stocks based on the investment criteria used by numerous "legendary" investors.
For a recent new recommendation, he explains, "Repsol (NYSE: REP), the Spain-based integrated oil company, gets approval from my Guru Strategies based on both Peter Lynch and James O'Shaughnessy."
"My Lynch-based model considers Repsol to be a "stalwart," because of its high annual sales of $87.2 billion and moderate 12.09% growth rate (based on the average of the three-, four-, and five-year earnings per share figures).
"Lynch typically kept a few stalwarts in his portfolio at all times because they provide protection during down times or recessions. Repsol operates in more than 30 countries. In terms of assets, it is the largest private energy company in Latin America.
"To find growth stocks still selling at a good price, Lynch used the P/E/Growth ratio, which divides a stock's price/earnings ratio by its historical growth rate. Because dividends are often one of the reasons people invest in stalwart-type companies, Lynch adjusted the P/E/G ratio for yield when looking at stalwarts.
Continue reading Repsol (REP): A 'Peter Lynch' play?
Posted Jul 30th 2008 3:20PM by Steven Halpern
Filed under: International markets, India, China, Brazil, Russia, Venezuela, Newsletters, Mutual funds, Eastern Europe, Stocks to Buy
"Closed-end funds are a terrific way to gain diversified exposure to high-yielding foreign stocks," says global expert Nick Lanyi.
In his High-Yield International, he explains, "My latest closed-end fund pick, First Trust/Aberdeen Emerging Opportunity Fund (NYSE: FEO), gets income any which way it can from the world's fastest-growing economies." Here's his review.
"For U.S. investors looking to broaden their horizons, closed-end funds offer an easy way to gain exposure to a diverse mix of foreign stocks without venturing beyond U.S.-based stock exchanges.
"Not only that, they often provide access to stocks that don't trade in the U.S. -- including companies that only institutional investors (such as a fund manager) can buy.
"But these funds offer a bonus that mutual funds don't: in some cases you can purchase them at a discount to their net asset value (NAV) -- the underlying value of the fund's portfolio.
"That's because closed-end funds trade on the major stock exchanges, just like stocks. Their prices are determined by investor sentiment and supply and demand, in addition to the value of the investments they hold.
"Led by Brett Diment, the management team at Aberdeen Asset Management -- which specializes in emerging markets -- has assembled a portfolio that exposes investors to some of the fastest-growing economies in the world: Brazil, Mexico, China, India, Turkey, Argentina and Venezuela are among the fund's top holdings.
Continue reading FirstTrust/Aberdeen Emerging (FEO): Global growth and income
Posted Jul 30th 2008 12:37PM by Steven Halpern
Filed under: Major movement, Forecasts, Newsletters, S and P 500, DJIA
Sy Harding, long-known for his work in cycle analysis, takes a look at the history of Presidential Election Cycle and what this portends for the next few years.
Interestingly, he explains how and why this cycle will impact the direction of the stock market in coming years regardless of which candidate becomes the country's next President. Here's his long-term assessment from his Street Smart Investing.
"As Paul Harvey once said, 'In times like these it helps to recall that there have always been times like these.' Yet the world hardly ever comes to an end. The future arrives. The cycles continue. Sunny weather still follows stormy weather, winter still follows summer, spring still follows winter -- every time.
"For investors there's nothing more important than recognizing that business, the economy, and markets also move in cycles, not endless straight lines. Recessions follow boom times, bear markets follow bull markets, bull markets follow bear markets -- every time.
"There are two cycles, one of intermediate-term duration, the other longer-term, which can be of significant importance to investors. The first is the annual seasonal cycle.
Continue reading Presidental stock market cycle picks no favorites
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