Thursday, January 31, 2008

Thinking of Starting Your Own Business? Read this article!

If you have ever considered starting your own business, you must read the article by James Altucher, called Stop sitting on the sidelines - it's time to play, which appeared on the Financial Times web site recently. This is by far the best article I have ever read on getting off your duff and making the big step. You can either be the one who makes things happen, watches things happen, or says "what happened"?

The Superbowl Advertiser Stocks

With the Superbowl approaching, excitement is growing not just for the game, but the advertisers who have paid almost $3 million to have a commercial, a 30 second commercial. There are several publicly traded companies that are paying the price to enter the Superbowl Advertiser Club. Here is a group of them.
Fox Broadcasting, which is owned by News Corp. ( NWS-A ), will be handling the broadcast of the game. The stock has a P/E of 18 , a PEG of 1.03 , and a yield of 0.6%.

Amazon ( AMZN ) The stock has a P/E of 90 , a PEG of 1.95.

Anjeuser-Busch ( BUD ) The stock has a P/E of 17 , a PEG of 2.02 , and a yield of 2.8%.

Bridgestone ( BRDCY.PK ).

Dell ( DELL ) The stock has a P/E of 15 , a PEG of 1.16.

E*Trade ( ETFC ) The stock has generated a 3.40 loss per share.

FedEx ( FDX ) The stock has a P/E of 15 , a PEG of 0.98 , and a yield of 0.4%.

Hershey ( HSY ) The stock has a P/E of 39 , a PEG of 2.58 , and a yield of 3.3%.

Pepsi ( PEP ) The stock has a P/E of 18 , a PEG of 1.83 , and a yield of 2.2%.

Unilever ( UN ) The stock has a P/E of 13 , a PEG of 1.93 , and a yield of 2.8%.

Volkswagon ( VLKAY.PK )

Yum Brands ( YUM ) The stock has a P/E of 21 , a PEG of 1.74 , and a yield of 0.7%.

Author owns FDX.

By Fred Fuld at Stockerblog.com

Wednesday, January 30, 2008

The Stock Market Superbowl Indicator

The Stock Market Superbowl Indicator says that if the winner of the Superbowl is from the old National Football League, now the National Football Conference [NFC], in this case the New York Giants, then we will have a rising bullish stock market. If the winner is from the old American Football League, now the American Football Conference [AFC], New England Patriots, it indicaties an upcoming bear market. This indicator has reportedly been correct about 80% of the time.

By Fred Fuld at Stockerblog.com

224 Mortgage Lenders Have Gone Under

According to the Mortgage Lender Implode-o-Meter , since late 2006, 224 major U.S. lending operations have "imploded". The site reported that the following lenders have just imploded:
E-Loan (Wholesale)
Allpointe Mortgage (Broker Program)
Popular Warehouse Lending
Allied Lending Corp. (Wholesale)
BF Saul Wholesale Lending
They also report the latest mortgage news and have a list of the top non-imploded lenders.

Tuesday, January 29, 2008

The Nudist Airline Flight

A Travel agency in Frankfurt, Germany, called OssiUrlaub.de, is offering a nudist flight to Usedom, a Baltic Sea resort. The cost of the flight is a pricey $733. The passengers must have their clothes on when they get on board and when they get off the plane, but once they fly high, they can fly nude.

The Al Gore IPO

Former Vice President Al Gore is going public; well actually, his company that he co-founded, Current Media Inc., is going public. Current Media is a television news network which appeals to young audiences between the ages of 18 to 34. They expect to raise $100 million. Revenues for the latest year were up 68% over the previous year.

Monday, January 28, 2008

Guess What They Are Selling in Vending Machines? Marijuana

Something new can now be found in vending machines, and that product is marijuana. These vending machines are available in California (where else), and are supposed to be for people with prescriptions for marijuana for health reasons. The patients have to be fingerprinted, photographed and show their prescriptions. The first machines are being implemented at a center in Los Angeles. Marijuana is currently being prescribed primarily for pain relief, nausea, and hunger enhancement.

$10,000,000 Bill: A very high currency banknote

Zimbabwe has decided to issue a very high currency banknote, a $10,000,000 (that's ten million) bill. The country has been experiencing inflation in excess of 50,000% per year. The currency was created due to the severe shortage of money in the country. By the way $10,000,000 in Zimbabwe dollars equals about $3.90 in U.S. currency.

American Express 10% drop in Earnings

American Express (AXP) reported that their earnings dropped 10% for the latest quarter, primarily due to bad credit card debts. They incurred an after tax charge of $274 million due to credit card losses.

Sunday, January 27, 2008

Brazil Financial Stocks

Brazil is considered one of the leading economies outside of Europe and the U.S. There are dozens of Brazilian stocks that trade on the New York Stock Exchange. Previously I had written about Brazil Chemical, Energy and Mining Stocks . One of the best ways to play this market is through the Brazilian financial stocks.

A diversified way to invest in Brazilian stocks, including the financials, is through the Brazil exchange traded fund, iShares MSCI Brazil Index (EWZ), which invests 95% of its assets in stocks traded primarily on the Bolsa de Valores de So Paulo. The fund pays a yield of 1.5% and was up approximately 75% last year.

Banco Bradesco (BBD), which provides banking and financial services and products to individuals, companies and international corporations around the world, is the largest insurance and pension provider in all of Brazil, based on insurance premiums, pensions plan contributions and income from saving plans. With a head office in Osasco, Banco Bradesco has been in existence for over 60 years and is considered the leader in Brazilian lending. Their private sector branch and service network is the largest in Brazil. The company as nearly 3,000 branches across the country and offers services which include Internet banking, insurance, pension plans, annuities, credit card services and free Internet access for customers. In addition to its branches in Brazil, the company has branches in New York, Grand Cayman and Nassau, Luxembourg, Buenos Aires, and Tokyo.
On January 26, 2008, Bradesco was in talks to acquire a majority stake in Agora, which is the largest brokerage firm in Brazil.
Due to the Brazilian economy, Bradesco was featured on Cramer’s Mad Money financial show on October 30, 2007, with the stock being referenced as the best way to play the booming Brazilian economy. Reasons included few bad loans, a market leader in insurance and pension plans, and 20% of the ATMs in a wealthy country.
The stock has a P/E of 17, a PEG of 1.0, and pays a small yield of 0.3%.

Banco Itau Holding Financeria (ITU) is a bank headquartered out of Sao Paulo, which accounts for 11% of all retail banking services in Brazil, making it the second largest bank in Brazil. The company also owns Investimentos Itau. Currently, the company has 50,000 employees. Banco Itau provides a wide variety services including small business banking, credit cards, retail banking, asset management, and brokerage products. They have about 13 million customers.
On January 22, the company was reported to have had its M&A business grow by $7.5 billion, or 12.6% from 2006. This made it among the top ten financial advisers in Latin America, sitting at eighth, above even Merrill Lynch.
In early 2008, Banco announced it would be selling a 15% stake in the Brazilian credit card company Redecard through a share offering. In total, the purchase of the 15 percent would amount to nearly $1.4 billion.
The stock has a P/E of 13, a PEG of 0.85, and a yield of 1.5%.

Uniao de Bancos Brasileiros S.A. (UBB), also known as Unibanco, is a Sao Paulo based bank holding company with four divisions: retail banking, wholesale banking, insurance and pension plans, and wealth management.
The stock has a P/E of 204, a PEG of 0.74, and a yield of 2.1%.

Gafisa S.A. (GFA) is one way to participate in the Brazilian real estate market. It is one of the largest builders in Brazil, and does about 90 % of its business in Sao Paulo and Rio de Janeiro. On December 11, the company hit a new high for its stock price after spiking throughout the day, rising by $3.15 to $42.56.
The stock has a P/E of 107 and a PEG of 0.42.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Wall Street Definition: Dead Cat Bounce

A Dead Cat Bounce is when a stock has a slight rise after a sharp drop. This is generally in reference to a bad stock ("dead cat"). This term also occasionally applies to the stock market in general.

Speaking of dead cat bounces, I just started reading a book called The Dead Cat Bounce: A Home Repair is Homicide Mystery, by Sarah Graves. This mystery is about a woman who is a former Wall Street trader who quits and moves to Maine, buys a fixer-upper old mansion, only to discover a dead body in one of the rooms. The book is written somewhat in the style of Agatha Christie and provides captivating prose. I am only on Chapter 4 four but I'm looking forward to the rest of the book. By the way, there are nine different books (that's right 9 books) called The Dead Cat Bounce, so if you are interested in the book, make sure you get the one by Sarah Graves. It came out about ten years ago.

By Fred Fuld at Stockerblog.com

Saturday, January 26, 2008

The Biggest Employers in the World

Have you ever wondered what companies provide the most number of jobs, both in the United States and worldwide? Here is a list of the largest publicly traded companies by number of employees.

Wal-Mart Stores Inc. (WMT), the huge operator of retail stores, has about 1,900,000 employees. The stock has a forward P/E of 14, a PEG of 1.31, and a yield of 1.8%.

Mcdonalds Cp. ( MCD ) is the largest fast food company in the world, with 465,000 employees. The stock has a forward P/E of 17 , a PEG of 1.45 , and a yield of 3.9% .

Petrochina Co. ( PTR ) is the huge China based petroleum and natural gas company, with over 463,000 employees. The stock has a forward P/E of 11 , a PEG of 0.82 , and a yield of 3.7% .

Siemens A G ( SI ) is the large German based electronic conglomerate, with almost 400,000 employees. The stock has a forward P/E of 12 , a PEG of 0.67 , and a yield of 1.5% .

Target Cp. ( TGT ) is the Minneapolis based operator of general merchandise stores, with over 350,000 employees. The stock has a forward P/E of 14 , a PEG of 1.05 , and a yield of 1.1% .

Sears Hldgs Corp ( SHLD ) is the Illinois based holding company which operates Sears and Kmart department stores, and has over 350,000 employees. The stock has a forward P/E of 24 , a PEG of 2.46 .

Hitachi Ltd ( HIT ) is the Tokyo based conglomerate of electronic and telecommunications businesses, with 350,000 employees. The stock has a forward P/E of 37 .

China Petro & Chemical ( SNP ) is the China based integrated oil and gas company. The stock has a forward P/E of 11 , a PEG of 0.53 , and a yield of 1.8% .

Arcelor Mittal ( MT ) is the Luxembourg based producer of steel. The stock has a forward P/E of 8 , a PEG of 0.79 , and a yield of 2.0% .

Kroger Co. ( KR ) is the large Cincinnati based food retailer. The stock has a forward P/E of 14 , a PEG of 1.37 , and a yield of 1.2% .

Matsushita Electric Ind. ( MC ) is the large Japan based electronic products company. The stock has a forward P/E of 13 , a PEG of 1.1 , and a yield of 1.2% .

Author owns MCD.

By Fred Fuld at Stockerblog.com

Friday, January 25, 2008

Apartment of Rogue Trader Searched by Police

French police spent a couple hours searching the apartment of Jerome Kerviel, the financial trader who reportedly lost $7.1 billion at Societe Generale (SCGLY.PK), which trades on the Pink Sheets in the US. According to the bank, he made unauthorized trades.

Antique Stock and Bond Show in Washington DC

If you are in the Washington DC area, make sure you check out the antique stock and bond show at the Crowne Plaza Hotel in Herndon, Virginia, near Dulles Airport. This show is running today (Friday, Jan. 25) and tomorrow (Saturday, Jan. 26). Find some n ice collectible stock certificates to frame and hang on the wall of you office or home.

Thursday, January 24, 2008

Angelina Jolie Stock Index Update


Angelina Jolie Outperforms the Stock Market

Lots of negative press may appear in the tabloids about Angelina Jolie, but you can't keep a great actress down. Her stock index, which is made up of the stocks of companies that distribute her motion pictures, has significantly outperformed the Dow Jones Industrial Average this year. The stocks in her index include the following.

Components of the Angelina Jolie Stock Index:
Sony SNE - Girl, Interrupted
Viacom VIA-B - Lara Croft: Tomb Raider and Lara Croft Tomb Raider: The Cradle of Life; Beowulf
Time Warner TWX - George Wallace; Taking Lives; Alexander
News Corp. NWS-A - Mr. & Mrs. Smith; Life or Something Like It
General Electric GE - [Universal Pictures] The Bone Collector; The Good Shepherd; The Changeling
Disney DIS - Playing by Heart; Gone in 60 Seconds
Comcast CMCSA - Original Sin
DreamWorks Animation DWA - Shark Tale

Assumptions:
This is a price-weighted index, similar to the Dow Jones Industrial Average. It includes dividends.

Returns:
From January through today (12/28/09), the Angelina Jolie Index is up 22%, outperforming the Dow Jones Industrial Average which is up 16%.

Author owns TWX, DIS, and DWA.

By Fred Fuld for Stockerblog.com.

Wednesday, January 23, 2008

Museum of American Finance Re-Opens at their New Location

If you live in or travel to the New York area, you need to stop in an see the Museum of American Finance, which just re-opened at their new 48 Wall Street location. Their 30,000 square feet of space contains numerous artifacts relating to the history of the stock market and commodities market, such as early stock tickers, ticker tapes from the 1929 crash, the oldest known photograph of Wall Street, and a U.S. Treasury Bond issued to George Washington. Don't forget to check out the stocks certificates signed by Harry Houdini, Walt Disney, and Sir Isaac Newton. I just attended the museum and was impressed, especially since it is the only investment related museum that I am aware of in the U.S.

A Penny Saved is 55,000 Earned

A Shreveport, Louisiana woman who has saved 55,000 pennies of the last 19 years has decided to deposit them in the bank. This will give her a $550 bank account balance.

Retail Stocks Follow-up

When I wrote the article on retailer stocks on Monday, during the Martin Luther King holiday, I really did think that they would be good contrarian plays but even I was surprised about how well retailers performed during the last couple days. Stocks such as American Eagle Outfitters Inc. (AEO) [up almost 4% Wednesday], J. C. Penney Company, Inc (JCP) [up over 2.5% Wednesday], Limited Brands Inc. (LTD) [up 7% Wednesday, and Saks Inc. (SKS) [up almost 5% Wednesday], were up substantially two days in a row.

Now I am looking for the next contrarian play.

Disclosure: Author does not own any of the above, unfortunately.

By Fred Fuld at Stockerblog.com

Monday, January 21, 2008

Online Broker Website Crashes

The website for the largest online broker in Australia, CommSec, crashed and was out of service for half an hour today. This came about as the Australian stock market dropped by more than 7% in one day.

Cell Phones Cause Sleep Problems

Researchers at Karolinska Institute in Sweden and Wayne State University in the US have discovered that using a cell phone before going to bed can cause insomnia and sleep problems. They believe these problems are caused by the radiation from the phone.

Free Video Games from Electronic Arts

Electronic Arts (ERTS), which trades on NASDAQ, is issuing free copies of its game, Battlefield Heroes, which will be supported by advertising. This is there first attempt at advertising supported games.

Pink Sheets Third Biggest US 'Stock Market'

Pink Sheets LLC reported that in 2007, there was $162 billion of dollar volume in Pink Sheet stocks, making it the third largest American stock trading venue, with the NYSE (NYX) in first place and NASDAQ (NDAQ) in second place.

Retailers: A Real Contrarian Play

Many of the retailer stocks have taken a beating during the last few months. As anticipated, many of the same store sales during the year-end shopping season were either flat or down. Maybe there is a buying opportunity here. The following is a list of ten major retailer stocks.

American Eagle Outfitters Inc. (AEO) has a P/E ratio of 11 , a PEG ratio of 0.78 , and a yield of 2.1% .

AnnTaylor Stores Corp. (ANN) has a P/E ratio of 10 , a PEG ratio of 0.71 .

Family Dollar Stores Inc. (FDO) has a P/E ratio of 10.8 , a PEG ratio of 1.05 , and a yield of 2.5% .

Fred's Inc. (FRED) has a P/E ratio of 13 , a PEG ratio of 0.97 , and a yield of 1% .

J. C. Penney Company, Inc (JCP) has a P/E ratio of 8 , a PEG ratio of 0.66 , and a yield of 2.1% .

Kohl's Corp. (KSS) has a P/E ratio of 11 , a PEG ratio of 0.71 .

Limited Brands Inc. (LTD) has a P/E ratio of 8 , a PEG ratio of 0.93 , and a yield of 3.8% .

Saks Inc. (SKS) has a P/E ratio of 80 , a PEG ratio of 3.2 .

Wal-Mart Stores Inc. (WMT) has a P/E ratio of 15.5 , a PEG ratio of 1.28 , and a yield of 1.9% .

Sears Holdings Corporation (SHLD) has a P/E ratio of 11 , a PEG ratio of 2.22 .

Author has a long option position in SHLD.

By Fred Fuld at Stockerblog.com

Thursday, January 17, 2008

Amazon Getting into the Film Festival Business

Amazon.com (AMZN), which trades on NASDAQ, and the leading online retailer of books is getting into the film festival business. Amazon's subsidiary, the Internet Movie Database [IMDb.com], is acquiring Withoutabox [withoutabox.com]. Most independent filmmakers and all film festival producers are very familiar with Withoutabox, a top online resource for filmmakers to find film festivals in a simple and streamlined process for distributing their productions. [Authors note: I've used them in the past and was very happy with their services.] 100,000 filmmakers in over 200 countries utilize their service.

The connection with Amazon should increase the distribution options for the filmmakers, and will benefit Amazon by giving them another significant product line. Withoutabox is now looking for other forms of media to encompass in their business besides films.

Author does not own the above.

By Fred Fuld at Stockerblog.com

Wednesday, January 16, 2008

Oil Drilling Stocks


With the price of oil bouncing around between $90 and $100 per barrel, maybe its time to look at the oil drillers, which can provide substantially more upside than the large integrated oil companies or the oil income trusts. Here are a list of 14 oil drillers, all but two of which have market caps above $1 billion, and all but two of which pay dividends.

Atlas Energy Resources ( ATN ) is a developer of of natural gas and oil principally in Michigan,New York, Pennsylvania, Ohio, and Tennessee. The stock has a P/E of 23, a PEG of 0.42 , and a yield of 7.5 .

Markwest Energy ( MWE ) is a Denver, Colorado based oil and gas company. The stock has a P/E of 28, a PEG of 2.12 , and a yield of 6.1 .

Patterson-UTI Energy ( PTEN ) is a Snyder, Texas based provider of onshore contract drilling services. The stock has a P/E of 6, a PEG of 1.17 , and a yield of 2.5 .

StatoilHydro ASA ( STO ) is a Norway based company that explores for, produces and refines petroleum. The stock has a P/E of 8, a PEG of 2.19 , and a yield of 2 .

Gulf Island Fabrication ( GIFI ) manufactures offshore drilling and production platforms. The stock has a P/E of 16, a PEG of 0.57 , and a yield of 1.3 .

Rowan Cos Inc ( RDC ) is a Houston, Texas based contract drilling company. The stock has a P/E of 11, a PEG of 0.73 , and a yield of 1.1 .

Helmerich Payne ( HP ) is a Tulsa, Oklahoma based contract driller of oil and gas. The stock has a P/E of 9, a PEG of 1.02 , and a yield of 0.5 .

Diamond Offshore ( DO ) is a Houston based an offshore oil and gas drilling contractor. The stock has a P/E of 20, a PEG of 0.96 , and a yield of 0.4 .

W&T Offshore ( WTI ) is a Houston based explorer and producer of oil and natural gas. The stock has a P/E of 19, a PEG of 1.15 , and a yield of 0.4 .

Atlas America ( ATLS ) is a Pennsylvania based producer and developer of oil and gas. The stock has a P/E of 31, and a yield of 0.4 .

Noble Corp ( NE ) is a Texas based company that provides contract drilling services. The stock has a P/E of 13, a PEG of 0.55 , and a yield of 0.3 .

Ensco Intl Inc ( ESV ) is a Dallas, Texas based provider of contract drilling services. The stock has a P/E of 9, a PEG of 0.47 , and a yield of 0.2 .

Transocean Inc ( RIG ) is a Houston, Texas based offshore contract drilling company. The stock has a P/E of 16, a PEG of 0.68.

Parker Drilling ( PKD ) is a Houston based provider of land and offshore contract drilling services. The stock has a P/E of 7.5.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

No French Fries Causes Man to turn McDonalds into Drive-into instead of Drive-thru

According to WFTV news, a Jacksonville, Florida man drove his car into a McDonalds (MCD) restaurant because he didn't get the french fries he ordered. Police found the man's shortly thereafter by following the broken glass.

Project Manager Rips Off Disney, Goes to Jail

A project manager at Walt Disney World was sentenced for tax evasion relating to a scheme where he used a subcontractor to overbill Disney (DIS), then got kickbacks from the company. His unreported income was over $200,000.

Tuesday, January 15, 2008

More Expensive Wine Tastes Better (even if it is the same wine as the Cheap Wine)

Researchers at the California Institute of Technology and Stanford University in California have determined that wine drinkers will rate higher priced wine as tasting better than lower priced wine, even if it is the same wine.

Chinese Students Playing Stock Market Instead of Paying Tuition

Over 400 students in China have been banned from taking their final exams because they have been investing their money in the stock market instead of paying for their tuition. China has advised all students to avoid the stock market.

Monday, January 14, 2008

Warren Buffett's Birthday to have Ping Pong Player

Ariel Hsing is a champion ping pong player, who has even beaten Warren Buffett at the game, will be appearing at Warren Buffett's birthday party for a game with him. She is only 12 years old.

Sunday, January 13, 2008

General Motors investing in Ethanol Company

General Motors (GM) has announced that it is investing in the cellulose ethanol maker, Coskata, which uses wood waste, garbage, and old tires to produce ethanol. It expects a cost to produce of one dollar per gallon by the year 2010.

Wal-Mart Will Sell Google Operating System Laptops

On January 25, Wal-Mart (WMT) will start selling a Google (GOOG) Operating System Laptop for $399. The laptop, called the CloudBook, is Linux-based, and will include Gmail, Google Docs, Google Calendar, Google News, Google Maps, YouTube, Skype, Facebook, OpenOffice 2.3, and Firefox.

Author owns GOOG.

Can Google Do Everything?

The Addict3D.org website has discovered that the Google Calculator created by Google (GOOG) which trades on NASDAQ, can do the Mad Magazine created Potrzebie System of Weights and Measures calculations, which was created in 1957 in the Number 33 issue of Mad. Don't know what a Potrzebie is? It is the thickness of Mad Magazine issue 26, approximately 2.2633 millimeters.

Author owns GOOG.

Saturday, January 12, 2008

Top Gas Utilities


According to the Department of Energy's Energy Information Administration, "natural gas spot price averaged $7.17 per thousand cubic feet (mcf) in 2007 and is expected to average $7.78 per mcf in 2008 and $7.92 per mcf in 2009" which was discussed in their release on January 8. Maybe it's time to take a closer look at natural gas and propane utility stocks.

Amerigas Partners ( APU ) is a Pennsylvania based retail propane distributor. The stock has a forward P/E of 14.29 , a PEG of 3.78 , and a yield of 6.8 %.

Atmos Energy Corp ( ATO ) is a Houston, Texas based of natural gas. The stock has a forward P/E of 13.44 , a PEG of 2.49 , and a yield of 4.6 %.

Nicor Inc ( GAS ) is in the business of natural gas distribution and shipping. The stock has a forward P/E of 14.7 , a PEG of 3.75 , and a yield of 4.5 %.

Atlanta Gas Light ( ATG ) is an Atlanta based distributor of natural gas in Florida, Georgia, Maryland, New Jersey, Tennessee, and Virginia. The stock has a forward P/E of 13.04 , a PEG of 2.79 , and a yield of 4.3 %.

Laclede Group Inc ( LG ) one of the original Dow stocks, is a distributor of natural gas. The stock has a forward P/E of 14.98 , a PEG of 5.35 , and a yield of 4.3 %.

WGL Holdings Inc ( WGL ) is a Washington, DC based natural gas distributor. The stock has a forward P/E of 14.73 , a PEG of 3.86 , and a yield of 4 %.

Piedmont Natural Gas ( PNY ) is a Charlotte, North Carolina based distributor of natural gas. The stock has a forward P/E of 16.89 , a PEG of 3.04 , and a yield of 3.7 %.

Chesapeake Utilities ( CPK ) is a Delaware based distributor of natural gas. The stock has a forward P/E of 14.59 , a PEG of 2.72 , and a yield of 3.6 %.

Transcanada Corp ( TRP ) is a Calgary, Alberta, Canada natural gas pipeline distributor in Canada, United States, and Mexico. The stock has a forward P/E of 18.16 , a PEG of 4.2 , and a yield of 3.5 %.

N J Resources Corp ( NJR ) is a New Jersey based natural gas distributor. The stock has a forward P/E of 14.5 , a PEG of 3.13 , and a yield of 3.2 %.

These stocks can be tracked at Stockpickr.com and you can download an Excel list of all the dividend paying gas utilities at WallStreetNewsNetwork.com.

Author owns GAS.

By Fred Fuld at Stockerblog.com

Friday, January 11, 2008

Top Yielding Gold Stocks


If you are looking for portfolio protection, gold mining stocks that pay dividends might be the way to go. There are plenty of gold stocks with large market caps over $3 billion and which generate a dividend, so that you can be paid while you are waiting for the stock to increase in price. Here are some dividend paying gold stocks worth investigating. Interestingly, only one of these companies is based in the United States.

Gold Fields Ltd. (GFI), based in South Africa, has a very large market cap of over $10 billion, and generates a yield of 1.5%. P/E is 31 and the PEG is 0.65.

AngloGold Ashanti Ltd. (AU) is another South African company, that also pays 1.5%, and also has a market cap of over $10 billion. Their forward P/E is 22 and the PEG is 1.92.

Newmont Mining Corp. (NEM) is a Colorado based mining company with a market cap of over $20 billion and a yield of 0.8%. They have paid quarterly dividends for 20 years. The forward P/E is 27 and the PEG is 2.25.

Barrick Gold Corp. (ABX) is a Toronto, Canada based company with a $40 billion plus market cap. They yield 0.6%, have a P/E of 45 and a PEG of 3.82.

Compania de Minas Buenaventura SA (BVN), based in Peru, has been paying semi-annual dividends for over ten years. Yield is 0.5% and the P/E is 37.

Goldcorp Inc. (GG) is another Canadian mining company based in Vancouver with a $25 billion plus market cap. They pay a smaller yield of 0.5%, have a P/E of 97 and a PEG of 8.86.

Yamana Gold Inc. (AUY) is another Toronto based company. They have a market cap of $5 billion and they provide a small yield of 0.3%, with a very short dividend track record. Their forward P/E is 51 and a 4.87 PEG.

Agnico-Eagle Mines Ltd. (AEM), yet another Toronto based company, has a market cap of over $8 billion and a similar low yield of 0.3%. Dividends have been paid at least once a year for over 15 years. Their P/E is 70 and a PEG of 5.76.

Randgold Resources Ltd. (GOLD) is based in the Channel Islands but has operations in Africa. The stock, which has a market cap of $3 billion, has a P/E of 74 and a yield of 0.2%.

Author does not own any of the above at the time this was published.

By Fred Fuld at Stockerblog.com

New PC Virus Steals Passwords

A computer virus is spreading throughout Europe which can steal bank account numbers and passwords. It supposedly hides deep within the Microsoft (MSFT) Windows Operating System overriding part of the Master Boot Record, so it is extremely hard to detect. The virus has hit over 5,000 victims.

US Trade Deficit Worst in Over a Year

In November, the US trade deficit increased by 9.3%, the worst in 14 months, primarily due to the purchase of oil.

Banks Caused Foreclosures per City of Cleveland

The city of Cleveland has taken legal action against over 20 banks, claiming that they caused the housing crisis by issuing sub-prime loans which created "a public nuisance" which made real estate valuations drop.

Banks that were named in the suit included:
Bank of America (BAC)
Wells Fargo (WFC)
Deutsche Bank Trust Co. (DB)

Baltimore filed a similar suit against Wells Fargo and the state of Ohio is considering legal action.

Author does not own any of the above.

Stockerblog Interviewed on Brazilian TV

Last year, I was interviewed a couple times on CNBC and even appeared live on Rupert Murdock's new Fox Business Channel on the second day it it started broadcasting.

I have now gone international. I was recently interviewed on a financial news segment of Globo News on the Globo TV network in Brazil, to discuss the Gisele B√ľndchen Stock Index and other celebrity stock indexes. I appeared on the first eight minutes of the segment and the show was extremely well received by Brazilian viewers.

Wednesday, January 09, 2008

JPMorgan Chase Hiring Tony Blair

JPMorgan Chase & Co (JPM), which trades on the New York Stock Exchange, is hiring Tony Blair, the former Prime Minister of the UK. He will be providing political and strategic advice.

Apple Dropping iTunes Prices in UK

The charge for music downloads from Apple Inc. (AAPL) is presently 79 pence in Great Britain, higher than the rest of Europe which is at 74 pence. Apple is planning a price reduction will take place within six months.

Author owns AAPL.

Who Are Young People Voting For?

James Altucher's Wednesday's Daily Blog Watch found a statistic from Crossing Wall Street about who young people, from 18 to 22, voted for in the New Hampshire primary. Hint: It is not Hillary Clinton.

Tuesday, January 08, 2008

Analysis of a Baby Boomer Stock

I rarely write in-depth analyses of individual stocks. The last one I did was the article called Why AT&T Stock Could Be Up Substantially by Year End. At the time back on July 24, AT&T was selling for 39.68 and closed at the end of the year at 41.56, an increase of 4.7%, not counting the dividend payment of 35.5 cents per share.

The stock I am covering today is Cynosure, Inc. (CYNO), a manufacturer and seller of aesthetic treatment systems which appeal to the baby boomers. Some of their products include Triactive for cellulite reduction, SmartLipo for laser body sculpting, Cynergy for vascular lesions and pigmentation, Affirm for wrinkle reduction anti-aging, and Elite for hair removal.

The company has customers in over 60 countries and holds 37 patents in the United States. In November, the company reported its third quarter financials. Revenues increased by an amazing 70% to an all time record of $31.5 Million. Their net income was $4.4 million for the quarter versus a net loss of $4.2 million in 2006. International expansion is now a major goal of the company. They are also expanding their marketing and sales support programs along with more distributor partnerships.

With a recent stock price of about 25, the stock caries a forward price to earnings ratio of 14, and a price earnings to growth ratio of 0.63. Last month, Citi Investment Research upgraded the company from a Hold to a Buy. Unless there is a serious recession, this company should continue to do well for several years. Although this is not a recommendation [I never make recommendations], I strongly suggest further research into this company.

Author owns AT&T.

By Fred Fuld at Stockerblog.com

Monday, January 07, 2008

Brazil Chemical, Energy and Mining Stocks

Brazil, one of the four BRIC countries [Brazil, Russia, India, and China], has one of the fastest growing economies in the world. Brazil, which is the fifth largest country in the world by both population and area, has the eighth highest gross domestic product on a purchasing power parity basis, according to the International Monetary Fund. It is the largest producer of ethanol in the world, which comes from sugarcane. Here are the Brazilian chemical, ethanol, and mining companies which trade in the United States.

Braskem S.A. (BAK) is Brazil’s largest petrochemical company, with a significant portion of its shares owned by Odebrecht and Petrobras, a state owned oil company. The company has the largest research complex for their sector in all of Latin America, which is located in Truinfo, in the state of Rio Grande do Sul. The company has shares listed on the Sao Paulo, New York and Madrid stock exchanges. Currently, Braskem has 3,300 employees. The company is headquartered out of Sao Paulo. In addition, the company has offices in Argentina, Bahia, Maranhao, Minas Gerais, Parana, Pernambuco, Santa Catarina, Rio de Janeiro, Sao Paolo, the Netherlands, the United States and Venezuela. The stock has a P/E of 18 and a yield of 2%.

Companhia Siderurgica Nacional (SID), also known as CSN, is the second largest steel-maker in Brazil and has its main plant located in the city of Volta Redonda in the state of Rio de Janiero. The company is the largest full-integrated steel producer in Brazil, making it one of the largest crude steel producers in Latin America. Currently, it has a crude steel capacity and rolled product capacity of over five million tons each. 49 percent of the galvanized steel products sold in Brazil are generated by this company. Currently the CEO of the company is Benjamin Steinbruch.
The headquarters for the company is located in Rio De Janeiro, while the company currently has factories based out of the Vale do Paraiba region, the southern Rio de Janeiro state, In addition is iron mines at Congonhas and Arcos, and coal mines at Sideropolis and Santa Catarina. The stock has a P/E of 15 and a yield of 3.7%.

Companhia Vale do Rio Doce (RIO) is a multinational mining corporation and is the second largest mining company in the world and the largest logistics operator in Brazil. In addition to being a world leader in the production of manganese, copper, bauxite, potash, kaolin and aluminum, Vale is also the largest producer in the world of iron ore, pellets and nickel.
While Vale is headquartered in Rio de Janeiro, it has offices on every continent but Antarctica, and 16 Brazilian states. In its history, Vale has participated in mining operations in Finland, Canada, Australia, Mongolia, China, India, Angola, South Africa, Chile and Peru, In addition as many other countries. Other offices for the company are located in Tokyo, Buenos Aires, Seoul, Lima, Toronto, London, Johannesburg, Singapore and Shanghai. Currently, the company has over 100,000 employees. The stock has a P/E of 14 and a yield of 1%.

The largest producer of long steel in the Americas is Gerdau S.A. (GGB) The company produces and sells crude steel related to long rolled products, drawn products and long specialty products. In addition, the company offers billets, rebar, merchant bars, wire rod, drawn products and nails.
Currently, the Gerdau Group is the 14th largest steelmaker in the world, with 272 industrial and commercial facilities, five joint ventures and two associated companies. The company currently has a capacity of 23.2 million metric tons of steel per year. The company currently has 31,563 employees. The company is based out of Porto Alegre, Brazil and has facilities, offices and factories in Brazil, Argentina, Chile, Colombia, Peru, Uruguay, Mexico, Dominican Republic, Venezuela, the United States, Canada, Spain and India. . The stock has a P/E of 12.5 and a yield of 2%.

Petrobras Energia Participaciones (PZE) is a top oil company that uses state-of-the-art technology in the exploration, production, transportation, refining and marketing of oil and gas. Although the company is based in Argentina, it has operations in Brazil, Venezuela, Peru, Ecuador, Bolivia, Colombia, and Mexico.
Through 50 years of operation, Petrobras has 9,800 wells in operation, 96 production platforms, 1,535,000 barrels of oil per day in production, 44 million cubic meters of gas extracted per day, 16 refineries in Brazil, Bolivia and Argentina, 115 ships, 7,700 gas stations, 15,000 kilometers of pipeline and two fertilizer plants. In addition, the company is a large supporter of environmental programs and is actively involved in over 300 social projects in South America. Currently, the company ranks as the 15th largest oil company in the world. The stock has a P/E of 15.5 and a yield of 1.1%.

Petroleo Brasileiro (PBR), or Petrobras, is a Brazilian oil company which has a significant output of two million barrels of oil per day, which makes it a major distributor of oil products in the world. The company is also a world leader in the development of technology, which can be used for ultra-deep and deep water oil production. The company has business operations in 18 nations in North America, Asia, South America, Europe and Africa.
Over half, 55.7 percent of the company’s shares are owned by the Brazilian government, with other portion being traded on Bovespa and the NYSE. The company is also a very large supporter of arts, culture and the environment in Brazil, including being a main supporter of whale conservation and research through the Brazilian Humpback Whale Institute. The company currently has 50,000 employees. The stock has a P/E of 19 and a yield of 0.4%.

Ultrapar Holdings, Inc. (UGP), through its subsidiaries, distributes liquefied petroleum gas (LPG) in Brazil. It distributes LPG primarily to residential, commercial, and industrial customers in the south, southeast, and northeast regions of Brazil. The company also engages in the production and sale of chemicals, such as ethylene oxide, ethylene glycols, ethanolamines, glycol ethers, and methyl-ethyl-ketone, In addition as specialty chemicals used in textiles, foods, cosmetics, detergents, agricultural chemicals, paints, and varnishes industries. In addition, Ultrapar Holdings provides integrated road transport, storage, handling, and logistics planning services for chemicals and fuels in southeast and northeast regions of Brazil. The company was founded in 1937 and is headquartered in Sao Paulo, Brazil. The company currently has 9,500 employees. The stock has a P/E of 33 and a yield of 2.3%.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Sunday, January 06, 2008

No Kids Allowed in a Disney Restaurant

What would Walt Disney say? Children under the age of ten have been banned from the five diamond Victoria & Albert's Restaurant in the Grand Floridian Resort & Spa at Disney World, which is owned by the Walt Disney Co. (DIS), which trades on the New York Stock Exchange. Prices for the meals at the restaurant start at $125 per patron.

Author owns DIS.

Networking is Important with Venture Capital Investing

According to a study done last year, networking (not computer networking but interpersonal and business networking) is a key to higher investment returns on venture capital investments, over and above what the study calls 'arm's-length, spot market transactions'. The better networked VC investments are more likely to make it to future financing and to survive.

Saturday, January 05, 2008

ATT Offering Naked DSL in California

AT&T (T), which trades on the New York Stock Exchange, is now offering what is known as naked DSL to Californians and residents of several other states. This service is DSL without a landline, in other words, provided over the phone line without the requirement that the customer also buy conventional voice phone service. Prices start at $20 per month.

Author owns T.

Top Films and the Stocks of their Distributors

A popular pastime during the holidays is going to the movies, especially when the weather is really bad with rain or snow, and you can't go golfing or jogging. Several movies that have been released recently have become blockbuster hits, providing a lot of income to the companies that provide the distribution. Here is a list of highly rated and high earning movies along with the stocks of their distributors.

Alvin and the Chipmunks , a revival of the famous cartoon characters, has had a US box office gross of $153,632,443 . The film is distributed by 20th Century Fox Distribution which is a subsidiary of News Corp. (NWS, NWSA) . The stock has a P/E of 18.6 and a PEG of 1.01 .

Enchanted , about a princess who is banished from her animation land to New York City has had a US box office gross of $113,913,026 . The film is distributed by Buena Vista Pictures Distribution which is a subsidiary of Disney (DIS) . The stock has a P/E of 14 and a PEG of 1.04 .

No Country for Old Men , starring Tommy Lee Jones, has had a US box office gross of $42,282,508 . The film is distributed by Paramount Vantage which is a subsidiary of Viacom (VIA, VIAB), and Miramax Films, which is part of Disney . Viacom has a P/E of 16.3 and a PEG of 1.35 .

Juno , about an intelligent teenage girl with an unplanned pregnancy, has had a US box office gross of $31,470,011 . The film is distributed by Fox Searchlight Pictures which is a subsidiary of News Corp. (NWS, NWSA) .

Sweeney Todd , starring Johnny Depp, has had a US box office gross of $30,609,858 . The film is distributed by DreamWorks SKG and Paramount Pictures which are subsidiaries of Viacom.

August Rush , starring Robin Williams, has had a US box office gross of $30,173,217 . The film is distributed by Warner Bros. Pictures Distribution which is a subsidiary of Time Warner Inc. (TWX) . The stock has a P/E of 12 and a PEG of 1.1.

The Great Debaters , starring Denzel Washington and Forest Whitaker, has had a US box office gross of $16,435,030 . The film is distributed by MGM Distribution Company which is owned by several companies including Sony (SNE), which owns 20%, and Comcast (CMCSA), which also owns 20% . Sony has a P/E of 26 and a PEG of 1.17 . Comcast has a P/E of 22 and a PEG of 1.2 .

Atonement , starring James McAvoy and Keira Knightley, has had a US box office gross of $13,001,062 . The film is distributed by Focus Features, a division of Universal Pictures International which is a subsidiary of NBC Universal, which is 80% owned by General Electric (GE). The stock has a P/E of 17 and a PEG of 1.47 .

Author owns DIS and TWX.

By Fred Fuld at Stockerblog.com

Friday, January 04, 2008

Maybe this is why Apple has been doing so well

Could this be why the price of the Apple Inc. (AAPL) stock has been doing so well (not counting the big drop at the end of this week)? The market share for the Apple Macintosh computer broke 8% during the last two days of 2007, giving it a one-year growth rate of about 28%.

Author owns AAPL.

A Car that Runs on Air

Talk about cheap fuel. How about a car that runs on compressed air! This video shows how the car works. The cost of this innovative green automobile is only 3,500 euros.

$100 Oil Caused by One Man

One individual trader was the cause of oil trading at $100. Richard Arens who owns his own one man oil brokerage firm, ABS, was the guy who placed the trade, but ended up losing $600 on the transaction.

Stocks More Popular thanSex in China

The terms 'stocks', 'China Merchants Bank' (CIHHF.PK), 'Industrial and Commercial Bank of China' (IDCBF.PK) and 'China Construction Bank' (CICHF.PK) all outperformed the term 'sex' for words that were searched for on Google (GOOG) last year in China. In addition, two of the most searched questions were 'what is a blue chip' and 'how to invest in the stock market'.

Is this the sign of a 'hot' market or what?

Thursday, January 03, 2008

Top Yielding Electric Utility Stocks

Investors have historically turned to utilities for income, capital appreciation potential, safety and security. Although they can no longer be considered totally safe and secure, they can provide great yields and many have risen in price during 2007. You can download the entire list of electric utilities in an Excel format which can be sorted, at WallStreetNewsNetwork.com. Here are some of the ones with the highest yield.

The one with the highest yield is Dominion Resources Inc. (D), which pays out 6.7%. The company is based in Richmond, Virginia, has a P/E of 14 and a PEG of 2.14.

The top yielding middle states utility is Great Plains Energy Inc. (GXP), based in Kansas City, Missouri, and yields 5.7%. The stock has a P/E of 16.6 and a PEG of 4.89.

The highest yielding western states utility is Hawaiian Electric Industries Inc. (HE), which yields 5.4%. The stock has a P/E of 30 and a PEG of 2.67.

In the northern states, the Chicago, Illinois based Integrys Energy Group, Inc. (TEG) is the highest yielder at 5.1%. The stock has a P/E of 17 and a PEG of 1.99.

In the southwest, the yield leader is Pinnacle West Capital Corp. (PNW), which pays 4.9%. The stock has has a P/E of 13 and a PEG of 2.55.

The highest yielding Midwest utility is Nisource Inc. (NI), based in Merrillville, Indiana., which yields 4.9%. The stock has a P/E of 16.4 and a PEG of 4.1.

In the northeast, Unitil Corp. (UTL), based in Hampton, New Hampshire, is the highest yielding utility at 4.8%.

In the eastern U.S., CH Energy Group Inc. (CHG) has the highest yield at 4.9%. This Poughkeepsie, New York based company has a P/E of 16.6.

The highest yielding utility in the southeastern U.S. is TECO Energy Inc. (TE), in Tampa, Florida, which yields 4.5%. The stock has a P/E of 12.3 and a PEG of 3.38.

Remember, that all yields and the stock prices are subject to fluctuation. You can get a download of all the other high yield electric utility stocks at WallStreetNewsNetwork.com.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com.

Wednesday, January 02, 2008

Watch Out YouTube: DanceJam is the Next Competition

The famous rapper, M C Hammer, has decided that he wants to take on YouTube by setting up his own video sharing website called DanceJam, where users can share their own dance videos.

Check Out the Art Deco Computer

Jeffrey Stephenson has come out with a small Art Deco PC made with cherrywood, called the G-metric Nano. It has 1GB of RAM and a Nano-ITX motherboard.

Tuesday, January 01, 2008

Stockerblog's Review of 2007 Predictions

Back on Sunday, August 12, 2007, I described a series of predictions for the balance of the year. Here are my predictions and the results:

1. The residential real estate market will get far worse.
That was a slam dunk prediction.

2. Politicians will probably pass laws to severely limit the number of sub-prime mortgages in the future.
I was wrong about this one; the mortgage companies themselves did this on their own.

3. The real estate market is far from the bottom.
That was true.

4. The Federal Reserve Board will eventually lower rates but it will do almost nothing to help the real estate or mortgage market.
They did lower rates, real estate has continued to drop, mortgage defaults have continued to get worse.

5. A few major hedge funds will go under, and at least one major investment firm will experience severe problems.
Several hedge funds have closed their doors, and many investment firms have had major problems.

6. More mortgage companies will declare bankruptcy and at least one major homebuilder will go under.
Since August 10, there have been 93 lenders that have imploded. In regards to homebuilders, Levitt Corporation's (LEV) homebuilding division filed for bankruptcy, along with several smaller homebuilders.

7. The stocks of investment brokers and investment banks will stagnate.
Well that was an understatement.

8. The bank stocks will also languish.
Another understated prediction.

9. Any stocks which have nothing to do with mortgages or real estate with be significantly higher by year end.
There were plenty of those stocks; look at GameStop Corp. (GME), Fluor Corporation (FLR), Research In Motion Ltd. (RIMM), and Amazon (AMZN).

10. Seven stocks which should be much higher by year end.
Finally, the most important section. I gave a list of seven stocks that I predicted would be higher by the end of 2007. Every stocks was up, and the average increase of all the stocks was 10.5% (26.9% on an annualized basis, far outperforming the Dow Jones Industrial Average, which was basically flat, up only 0.2%. The S&P 500 was only up 1%. By the way, the 10.5% gain does not include dividends; if you add those in, it bumps the return up to 11.7%.

The worst performing stock on my list is Kimberly-Clark (KMB), the health and hygiene products company, which was up only 1.7% (or 3.2% if you include dividends). The top performing stock on my list is UIL Holdings (UIL), the Connecticut based utility, which increased by 20.0% (or 23.2% with dividends). The following is a list of the stocks and their returns:

Company ........... 8/10/07 ..... 12/31/07 ..... Gain
Lafarge (LFRGY.PK) .... 39.19 ..... 45.35 ....... 15.7%
URS Corp. (URS) ....... 50.24 ..... 54.33 ........ 8.1%
Pepsico (PEP) ......... 67.95 ..... 75.9 ........ 11.7%
Kimberly-Clark (KMB) .. 68.21 ..... 69.34 ........ 1.7%
Johnson & Johnson (JNJ) 61.15 ..... 66.7 ......... 9.1%
UIL Holdings (UIL) .... 30.78 ..... 36.95 ....... 20.0%
Anheuser-Busch (BUD) .. 48.73 ..... 52.34 ........ 7.4%

Average return 10.5%
Average return annualized 26.9%

Dow Jones Industrial Average 0.2%
S & P 500 1.0%

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Happy New Year!!!

Stockerblog.com wishes everyone a Happy and Prosperous New Year!!!

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