Posted Aug 20th 2008 2:28PM by Steven Halpern
Filed under: International markets, Newsletters, Commodities, Oil, Stocks to Buy
"Our 'Forecasts Focus List' contains only two energy stocks, both of which are in the oil services sector: Oceaneering International (NYSE: OII) and Transocean (NYSE: RIG)," says blue chip advisor Richard Moroney.
The editor of Dow Theory Forecasts says, "While stocks in the equipment and services group tend to move with oil prices in the near term, their profits depend more on exploration spending than on commodity prices."
"Concerns about slowing demand for crude oil and re?ned products both in the U.S. and overseas have many investors worried. But investors in the equipment and services group should not panic.
"Most producers continue to spend aggressively. And U.S. crude-oil inventories remain well below the average for this time of year, with fewer than 20 days of supply in storage.
"Demand for offshore-drilling services remains strong, giving Transocean excellent growth potential. Consensus estimates project per-share profits will rise 69% in 2008 and 15% in 2009. Transocean, the world's largest offshore drilling contractor, operates in every major drilling region.
"A combination of tight global rig supplies and the ongoing discovery of new offshore reserves have driven rig lease rates higher and kept Transocean's fleet busy. The company's largest, most expensive rigs are 95% sold out for 2009, and the backlog is growing.
Continue reading Drilling for gains in offshore drilling services
Posted Aug 20th 2008 12:48PM by Steven Halpern
Filed under: International markets, China, Newsletters, Stocks to Buy, China Mobile Limited (CHL)
"Whenever anyone asks, 'Why invest in China?' the answer is very simple: that's where the money is, and it's where exponential future economic growth is also," says Jim Trippon.
The editor of The China Stock Digest then asks, "Will China suffers an Oympic hangover?" Here, he explains why that should not happen and offers a look at China Mobile (NYSE: CHL), which he calls the "top dog" in the Chinese wireless sector.
"The Bank of China (BOC) conducted a study of the effects of 12 Olympiads on their host countries over the course of 60 years. They found that nine of the twelve Olympic host countries suffered a decline in GDP growth in the eight years after the games.
"The key to a post Olympic slump is the size of the economy. Smaller economies like Korea suffered larger downturns after the games, while larger economies like the United States were not affected at all. In smaller economies the enormous investment dedicated to staging Olympic games created an artificial bubble which was followed by a slump when Olympic building booms came to an end.
"China has made one of the largest investments ever in the Olympic Games with some estimates of spending topping $40 billion. But we don't believe the capital city will go into a slump after the games.
Continue reading Olympic hangover? Not for China Mobile (CHL)
Posted Aug 20th 2008 10:00AM by Steven Halpern
Filed under: International markets, China, Newsletters, Stocks to Buy
"WuXi PharmaTech (Cayman) Inc. (NYSE: WX) provides laboratory and manufacturing services for the drug and medical device R&D process," notes China stock specialist Jim Trippon.
In his The China Stock Digest, he explains, "Because Chinese researchers receive much smaller paychecks than their Western counterparts, Shanghai-based WuXi is able to lower the cost of this research." Here's his review.
"We have often heard major Western pharmaceutical companies complain of the extraordinary cost of discovering and developing drugs.
"More costly than the laboratory infrastructure is the burden of paying for armies of highly trained, highly paid chemists, researchers, analysts and physicians. WuXi has become the secret weapon of many big name global pharmaceutical companies.
"China educates tens of thousands of engineers, chemists and technologists, and outsourcing that expertise has become a growth industry. WuXi became a leader in this trend in 2000 and has gone on to attract an impressive roster of clients.
"The firm's senior management team consists of Ph.D.s and MBAs with experience in drug and medical device R&D. Wuxi management has more than 200 patents pending or granted, and has published more than 800 scientific publications.
Continue reading WuXi (WX): A 'secret weapon' in global drug research
Posted Aug 19th 2008 1:11PM by Steven Halpern
Filed under: International markets, China, Newsletters, Commodities, Oil, Stocks to Buy, Green Stocks

"Around the globe, wind-generating capacity has been expanding at a rapid 30% clip in recent years," notes value investor
Nathan Slaughter, who adds, "And 2008 is already shaping up to be even better."
The editor of Half-Priced Stocks looks at industrial product firm Trinity Industries (NYSE: TRN), explaining, "The company's most promising division is involved in the production of structural wind towers." Here's the advisor's of the latest addition to his "deep-discount' model portfolio.
"Led by states such as Texas and California, wind farms around the country will generate almost 50 billion kilowatt hours of electricity this year. Of course, the U.S. is still playing catch-up with many other regions.
"In fact, countries such as Spain, Portugal and Denmark all rely on wind farms for as much as one-quarter of their total power needs. Across Europe, wind turbines will account for roughly one-third of all new generating capacity installed over the next few years and could provide electricity for 90 million people by 2010.
"The outlook is even brighter in many booming, energy-hungry Asian markets. In China, installed wind power capacity surged +130% last year and will reportedly supply a great deal of the electricity needed for the upcoming 2008 Beijing Olympic Games.
"Thanks to the great strides in engineering, wind turbine output has increased by a factor of ten (or higher in some cases) over the past decade.
Continue reading Trinity (TRN): Value play in wind power
Posted Aug 19th 2008 10:40AM by Steven Halpern
"As a discount broker, Charles Schwab Corp. (NASDAQ: SCHW) makes money on every transaction it does for its clients," says Horatio Marquez.
"The contributing editor to the industry-leading The Money Map Reporter explains, "For Schwab, it doesn't matter whether the market goes up or down. It's just matters that the market keeps on chugging along."
"Investing in Schwab is like betting with the casino, and not the gambler. And those kinds of odds I'll take any day. Fact is, all that matters is that stock and options traders keep 'plying their trade.'
"And well they have. Increased trading activity helped Schwab post better results for the last quarter. And that trading surge has continued into July, with average daily trades to date already 7.9% higher than in June.
"Moreover, the growth in the individual investing sector is huge. You see, companies are increasingly putting the responsibility for retirement planning back on their employees.
"So as baby boomers retire en masse and incrasingly get more involved in the management of their own investment accounts, they have to find someplace to turn for sound investment advice.
"Their market share has grown by leaps and bounds – today Schwab is the largest discount broker in the United States – and is the No. 1 provider of online trading services. That dominance should continue well into the future.
Continue reading Charles Schwab (SCHW) keeps on 'chugging along'
Posted Aug 18th 2008 2:30PM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
"Stericycle (NASDAQ SRCL) is a near-monopoly in an essential but unglamorous area, making its an excellent investment in an uncertain economy," says growth stock expert Dave Dyer.
In his Dave Dyer's Newsletter, he states, "If you have something that is dangerous, contaminated, or nasty, and you want it to go away safely, you can rely on SRCL, the leader in medical waste."
"I first recommended the stock almost a year ago, but there is so much good news that I thought this would be a good time to recommend it again.
"And while the stock's 12.4% gain since last August is not spectacular, the S&P 500 is down 14.1% over the same time period -- so SRCL has outperformed the market by a wide margin.
"SRCL is North America's largest provider of medical waste services. In fact, if a major customer wants to contract with a single customer for nationwide services, SRCL is the only choice. Even if the market has not really bottomed out, this is an excellent stock to consider because its business is almost entirely immune to economic cycles.
Continue reading Stericycle (SRCL): Medical waste firm attracts insider buying
Posted Aug 18th 2008 12:12PM by Steven Halpern
Filed under: Apple Inc (AAPL), Newsletters, Research in Motion (RIMM), Stocks to Buy
"Apple (NASDAQ: AAPL) and Research in Motion (NASDAQ: RIMM) are taking the smartphone market by storm," says Toby Smith in his ChangeWave Investing.
"AAPL and RIMM are both pushing all of the other manufactures to the sidelines. It's clear that RIMM's BlackBerry is the dominating force in the corporate smartphone market, but the Apple iPhone has shaken things up quite a bit on the consumer side.
"The combination of the new Apple model flying off the shelves, and rumors of a postponement for one of RIMM's new releases, has raised questions among some analysts as to RIMM's ability to fight back.
"Research in Motion may be planning to release several new smartphones this year, including the KickStart, the Thunder and the already announced Bold.
Continue reading AAPL and RIMM: Smart buys for smart phones?
Posted Aug 15th 2008 5:44PM by Steven Halpern
Filed under: Microsoft (MSFT), Intel (INTC), Exxon Mobil (XOM), Newsletters, Walt Disney (DIS), Costco Wholesale (COST), Staples Inc (SPLS), Lockheed Martin (LMT), Personal finance, Stocks to Buy
"I've always been a big fan of putting into the market on a regular basis regardless of what is happening in the overall market," explains Chuck Carlson, long considered one of the advisory industry's leading experts on dividend reinvestment plans.
Here, the editor of The DRIP Investor offers a 10-stock "autopilot" portfolio that is diversified among 10 high quality dividend-paying stocks and requiring a monthly investment of under $500.
Carlson says, "If I've learned anything in the more than a quarter of a century of following the markets, it is this fact - buying stocks when you know you should (i.e. during sharp down moves) is really difficult. Our heads says we should; after all, substantial market downturns create the best values.
"But our emotions usually take control, thus making it very difficult to pull the trigger and put money into the market when stocks are falling.
"That's why I've always been a big fan of 401(k) plans. With these investment vehicles, investment programs are put on 'autopilot,' with dollars being put into the market on a regular basis (usually each paycheck) regardless of what is happening in the overall market.
"Fortunately, investors can duplicate the autopilot feature of 401(k) plans with their DRIP investments by taking advantage of automatic monthly investment features provided by most DRIPs.
Continue reading 'Autopilot' portfolio: 10 stocks for long-term investors
Posted Aug 15th 2008 12:30PM by Steven Halpern
One lesser-known company is gaining the attention of the newsletter advisory community: E-House China Holdings Ltd. (NYSE: EJ), China's largest real estate agency services firm.
Indeed, the stock is being recommended by three top-tier advisors: Louis Basenese, Daniel Frishberg, and Tony Sagami.
"The Chinese economy isn't going to suddenly grind to a halt when the Olympic flame is snuffed out," says Louis Basenese, associate Investment Director for The Oxford Club.
"In fact, I believe the Olympics are China's springboard to even more impressive growth. With the nation of 1.3 billion at center stage, look for the world to fall even more in love with the opportunity.
"Still not convinced? Then ask yourself this simple question: Would global giants like YUM! Brands, McDonald's and Nike, among countless others, invest so heavily in a country whose growth could potentially dry up overnight? Absolutely not.
"In fact, roughly 450 companies recently told the American Chamber of Commerce in Beijing that China was among their top-three global investment priorities (many regard China as their top priority). And you can bet the conclusions were based on mountains of favorable data.
Continue reading E-House (EJ): Trio of advisors go for China realty
Posted Aug 15th 2008 10:00AM by Steven Halpern
Filed under: Newsletters, Yamana Gold (AUY), Goldcorp Inc (GG), Kinross Gold (KGC), Commodities, Stocks to Buy
When gold was trading above $1,000 an ounce, Curtis Hesler reversed his buy signal and fortuitously warned of a seasonal pullback expected over the summer.
In his The Professional Timing Service, he stated, "Gold should settle into the cyclical and seasonal lows due in early August. Although you will hear plenty of bearish arguments as gold prices pull back, weakness will be a buying opportunity."
He now explains, "I don't think there is much left on downside for the mining shares. We will likely see the miners firm up and begin to rally before the bullion. My adice is to hold tight and exploit the fear.
"This weakness presents a final opportunity before the late summer and early fall strength returns to precious metals. The coast is clearing for gold to advance to new highs by October when its next seasonal high is due.
"Longer-term, I can't help but wonder if gold isn't anticipating the next break in the dollar. We all should be thinking about the trillions of dollars in U.S. government unfunded liabilities for Medicare, Social Security, pensions, etc. There's going to be a tsunami of dollars printed to cover all of that.
"At the top of my buy list is Kinross (NYSE: KGC). Yamana (NYSE: AUY) is an excellent diversification in the precious metals sector. Also among my favorites is Goldcorp (NYSE: GG)."
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 14th 2008 11:41AM by Steven Halpern
Filed under: Newsletters, Chesapeake Energy (CHK), Commodities, Oil, Stocks to Buy
"Mainland Resources (NASDAQ: MNLU), a small natural gas play, could be a giant in the space in a short period of time," says Charles Payne.
In his WStreet Market Commentary, he explains, " The company involved in the super exciting Haynesville shale region, which could be one of the largest domestic on shore natural gas fields ever."
"The stock has been coming on lately as more investors learn about the company's potential in the Haynesville shale region.
"Discovered in March of this year, the Haynesville field -- according to Energy and Capital -- could conservatively hold 168 trillion cubic feet of natural gas. Chesapeake Energy (NYSE: CHK) has declared Haynesville the most important find in its 19 year history.
"There was always a notion that a big find was in the space that the company currently owns (2,700 acres), but when it was first explored back in the 1950 crude oil prices were much lower and there was no technology to get to the natural gas.
Continue reading New 'giant' gas field boosts Mainland Resources (MNLU)
Posted Aug 13th 2008 12:00PM by Steven Halpern
Filed under: International markets, Newsletters, Commodities, Oil, Stocks to Buy, Green Stocks
"Geothermal energy, or heat from the earth, is largely non-polluting, and is renewable and reliable," says Ashley Winters and John Parke.
In Stephen Leeb's The Complete Investor, they look at a trio of plays on geothermal energy: Chevron (NYSE: CVX), Calpine (NYSE: CPN), and Ormat Technologies (NYSE: ORA).
"Throughout the globe, heat is continually produced in a layer far below the earth's crust. Large power plants can capture and use this steam to provide electricity on a fairly large scale.
"In Iceland, by some estimates, 50% of all energy needs are met through an alternative energy source that has been known for a long time.
"Geothermal is used in many other places as well. The largest system in operation is in California just north of San Francisco, in an area known as the Geysers.
"Efforts are also underway to use geothermal heat via 'hot dry rock' technology. Rocks are broken up by pumping water through them at high pressure; water is then pumped through the broken rocks so that it can be heated by the earth's energy.
Continue reading Triple play on geothermal energy: Portfolio heat
Posted Aug 12th 2008 1:12PM by Steven Halpern
Filed under: International markets, Starbucks (SBUX), Newsletters, Stocks to Buy
"I've spotted an excellent opportunity to cash in on the turnaround of one of America's most visible companies -- Starbucks (NASDAQ: SBUX)," says Jim Stanton.
The quantitative analyst and contributing editor to Xcelerated Profits Report explains, "I've had my eye on a number of retail stocks for some time now, looking for signs of a potential turnaround, and Starbucks is now high on my list."
"One of the main reasons for the slide in SBUX shares from its high of $40 in November 2006 was the overly aggressive expansion plan.
"And as food and dairy prices have soared, this has led to higher operating costs. In turn, this forced Starbucks to raise prices, just as consumers were struggling from the housing slump and soaring inflation.
"And as competition from the likes of McDonalds and Dunkin Donuts has turned up the heat, Starbucks has suffered charges related to closing out unprofitable stores. But Starbucks is tackling the problems.
Continue reading Turnaround time for Starbucks (SBUX)?
Posted Aug 12th 2008 11:56AM by Steven Halpern
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"The operations of many energy partnerships have nothing to do with the price of crude and natural gas; they only need to have demand to move and process crude oil and natural gas rather than to pump it out of the ground," explains Neil George.
In his specialized advisory services, The Partnership, he looks at Kinder Morgan Energy Partners (NYSE: KMP) and Kinder Morgan Management (NYSE: KMR).
"Midstream partnerships--those that operate pipelines or storage and processing facilities segments as well as those that invest in these segments--are among the most stable distribution payers.
"And, more importantly right now, they're among the most stable investments in what's become a treacherous stock market.
These middlemen, in between the producers and the consumers, are perhaps the best hedge for your portfolio as they continue to generate hefty cash flows for investors.
"Whether the broad energy market is up or down, these partnerships continue to be all-around successes. Kinder Morgan Energy Partners and Kinder Morgan Management, are Foundation holdings in our portfolio.
Continue reading 'Kinder' income: Partnerships for steady dividends
Posted Aug 11th 2008 1:30PM by Steven Halpern
Filed under: International markets, Newsletters, Mutual funds, Stocks to Buy
Jim Lowell is known for his expertise in assessing mutual funds; in particular, he is the newsletter advisory world's leading authority on Fidelity funds.
In his Fidelity Investor, he recently conducted his mid-year ranking of Fidelity managers, and based on these results, offers four favorite funds offering global diversifcation.
"Stephen DuFour, manager of Fidelity Focused Stock (FTQGX), is no stranger to our ranking top notches. He took over this fund in March last year, and turned its performance up a notch (finishing the year up 17% vs. .5.5% for his S&P 500 benchmark): Bam!
"With 52 holdings, this fund is focused. His top 10 basically says it all – a diversified play on global growth in a stock picker's portfolio: Southwestern Energy, Norfolk Southern, Range Resources, T. Rowe Price, NRG Energy, Unilever, Eaton, Cisco, Cabot Oil & Gas, and Apple.
"Tom Soviero, manager at Fidelity Leveraged Company Stock (FLVCX), has jumped from the third spot in the December rankings to the top spot this time around.
"His top-ranked status reflects his stock picking expertise. The portfolio continues to become even more concentrated in his top 10 picks (29.4% of the fund's assets now vs. 27% six months ago).
Continue reading Four favorite Fidelity funds
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