Upcoming Events at the Museum of American Finance

If you are planning on being in Manhattan during the month of September, you should check out the upcoming events at the Museum of American Finance at 48 Wall Street.

Featured Exhibit

First Share

Actiën Handel: Early Dutch Finance and the Founding of America
Opening Reception: Thursday, September 10, 5:30 - 7:00 pm

September 10, a reception to open "Actiën Handel: Early Dutch Finance and the Founding of America," an exhibit showcasing the relationship between early Dutch finance and the United States. On display will be financial documents from Amsterdam, including the oldest known share certificate, which was issued by the Dutch East India Company in 1606 and featured in the motion picture "Ocean's Twelve." The opening reception is free and open to the public.

Featured Event

Brown Bag Lunch: Screening of "We All Fall Down: The American Mortgage Crisis"
Wednesday, September 16, 12:30 - 1:40 pm

A screening of "We All Fall Down," the award-winning film on the current housing and mortgage crisis. This timely and informative documentary chronicles the history of America's mortgage finance system, from its origins in the 1930s, when the federal government first made available long-term, fixed-rate loans to new American homeowners, to its current state of crisis, after an excess of risky mortgage financing led to the system's collapse, which in turn triggered a wider economic recession. (Run time: 66 min.)

$5 tickets are available at the door and include admission to the Museum. Feel free to bring your lunch.



Featured Tour
Walking Tour Group

Walking Tour: History of Trading
Saturday, September 12, 1:00 - 2:30 pm

The Dutch came to New York to trade, and almost 400 years later we are still doing it. Join the "History of Trading" tour and walk through history from the Dutch to modern day Wall Street. This 90-minute walking tour meets at the Museum and costs $15 per person, which includes Museum admission.

The Road to Financial Reformation: Warnings, Consequences, Reforms by Henry Kaufman

In The Road to Financial Reformation, Dr. Henry Kaufman, who has spent a lifetime entrenched in the world of finance, provides an insightful account of the history and impact of post-World War II financial markets on the economy-what happened, how we got to where we are today, and what needs to be done. Drawing on his vast breadth of knowledge and experience, Kaufman reveals the mistakes that got us into this debacle, the consequences-as they have not been fully realized-and how to put our derailed economy back on track. This book details Dr. Kaufman's warnings and concerns expressed repeatedly throughout the last quarter century, and shows that what he predicted came to pass.

Dr. Kaufman will speak about The Road to Financial Reformation and sign copies of the book at the Museum on September 22.

Dr. Kaufman will speak about The Privatization of Risk and sign copies of the book at the Museum on September 29.

Dutch Stocks: Conservative Companies from a Liberal Country

Did you know that the oldest known ‘modern day’ stock certificate is from The Netherlands? It is the Dutch Vereinigte Oostindische Compaignie VOC dated 1606.

Quick facts:

1. The northeastern part of the country has one of the largest natural gas fields in the world.
2. It is number 10 of all countries in GDP (nominal) per capita.
3. It has the 16th largest economy in the world.
4. Inflation is only 1.3%.
5. It has the lowest unemployment rate of all European Union member states.
6. It is number 3 in terms of of agricultural exports.
7. 85% of the total population speak English.

Here are some Dutch stocks worth investigating, most of which trade on the New York Stock Exchange and almost all pay dividends.

ABN AMRO Holding NV ADS (ABN) is an Amsterdam based company that owns one of the largest banks in Europe. The stock has a yield of 2.9% and has a P/E of 14.3.

Aegon NV (AEG), one of the world’s largest insurance companies has a forward P/E 10.1, and a PEG is 2.2. It has paid dividends twice a year for 15 years, and yields 3.6%.

Arcelor Mittal (MT), a manufacturer of steel and steel products, carries a yield of 1.7%. The stock has a P/E of 10.9.

CNH Global NV (CNH) makes agricultural and construction equipment. They pay a small yield of 0.5% and has a P/E of 35.

Crucell NV (CRXL) is a biotech company involved in the production of antibodies and vaccines that treat and prevent diseases. The company has had negative earnings.

Head N.V. (HED) the famous maker of Head skis, manufactures and sells sporting goods relating to skiing, racket sports, and diving. The yield is a high 8.1%, based on last year’s annual dividend. Dividends have only been paid in three of the last six years, and has generated negative earnings.

Heineken NV ADR (HINKY.PK), the noted brewery, has a forward P/E of 17.4 and a yield of 1%.

ING Group NV ADS (ING) is in the business of banking, insurance and investment management services and has a yield of 2.2%. Forward P/E is 8.85.

Koninklijke Ahold N.V. (AHO) operates retail stores in Europe and. the United States. The P/E is 16.9. It hasn’t paid dividends since 2002.

Koninklijke Philips Electronics NV (PHG) produces healthcare, lifestyle, and technology electronics. It has a yield of 1.6% and a P/E of 6.

OCE ADR (OCENY), which trades on NASDAQ, develops and sells printing and document management systems. It yields 5.8%, with a P/E of 23. dividends have been paid twice a year for the last 12 years.

Reed Elsevier NV (ENL) is the publishing company that owns Elsevier, LexisNexis, Harcourt Education, and Reed Business. The yield is 3.6% and the P/E is 24.6.

Royal Dutch Shell (RDS-A) is one of the largest oil and gas companies in the world. It has a forward P/E of 10.9 and a 3.3% yield. Dividends have been paid quarterly.

Royal KPN NV (KPN) is a Dutch telecommunications company. The forward P/E is 15.3 and the yield is 4%. Dividends are paid twice a year and have been paid for the last 12 years.

TNT NV (TNTTY.PK) is an express delivery company. P/E is 14.4, with a 1.2% yield.

Unilever NV (UN) is the well known consumer goods, food, and personal care product manufacturer which yields 3.6%. It has a P/E of 14.

van der Moolen Holdings NV (VDM) is an international investment brokerage and trading company, which has a yield of 3%, based on last year’s dividend, of which has been very erratic. Earnings have been negative.

By the way, if you are looking for a resource on ADRs of countries around the world, I strongly recommend ADR.com.

Author does not own any of the above.

By Stockerblog.com.

Latest at the Museum of American Finance

If you happen to be in New during the next couple weeks, you should check out the Museum of American Finance in lower Manhattan at Wall Street. Coming up:

FEATURED EXHIBIT

Actiën Handel: Early Dutch Finance and the Founding of America
On display through October 17, 2009
This month, the Museum opened "Actiën Handel: Early Dutch Finance and the Founding of America," an exhibit showcasing the relationship between early Dutch finance and the United States. On display are financial documents from Amsterdam, including the oldest known share certificate, which was issued by the Dutch East India Company in 1606. The exhibit ties in with New York's city-wide celebration of the 400th anniversary of Henry Hudson's exploration of the area that became New Amsterdam (and later New York), and focuses on the financial aspects of the area's first 200 years.
A Museum docent will be available to point out exhibit highlights and answer questions about "Actiën Handel" every Wednesday evening, from 4:00-6:00 pm, through October 14.

FEATURED TOUR


Walking Tour: Women of Wall Street
Wednesday, September 30, 1:00 - 2:30 pm
Bold, beautiful, and influential. Discover the female power brokers who have shaped the history of Wall Street. Your guide, a veteran of Wall Street herself, will expose the women who dared to infiltrate this male-dominated industry. This tour highlights women such as Victoria Woodhull, who ran for President and opened the first woman-owned brokerage in 1870, Muriel Siebert, the first women to purchase a seat on the New York Stock Exchange, and many of the women who are movers and shakers in the financial world today.
Tour meets at the Museum and costs $15 per person, which includes admission to the Museum.

Dutch East India Stock dated 1689 for Sale

A stock certificate from the oldest multinational company in the world, the Dutch East India Company, is for sale at a European auction house, booneshares.com, which is having its 39th live auction and international bourse of historic stocks & bonds in Belgium. The Dutch East India stock certificate is dated 1689, is extremely rare, and has a minimum reserve bid price of 20,000 euros or $27,740, although it will probably sell for much more. The auction will be held on September 29 and 30.

If you are interested in rare collectible stock certificates, how about a multiple Disney signature stock certificate or a Houdini signed stock certificate, both offered by antiquestocks.com.

Author is part owner of antiquestocks.com

App for Customs Laws

The Dutch government has an app for smart phones called the 'OK app', such as the Apple (AAPL) iPhone to tell travelers what items they can and cannot bring in to certain countries. It is reportedly the first app issued by the Dutch government.

BP Oil Spill Shares Drop: Which Companies Benefit?

The price of BP (BP) shares fell by more than 7% from August 6 to August 16, after US officials warned that they would be taking legal action against the multinational oil giant, preventing them from paying out dividends to existing share holders. Associate Attorney General Thomas Perrelli said the Justice Department was ‘planning to take action’ when he was approached at a conference meeting regarding the spill. He was asked if an injunction would be taken against BP to try and cease all payouts, due to the anger of the oil spill over the Gulf of Mexico.

Due to the pressure being put on the conglomerate by over 40 members of Congress as well as senators, BP share prices have now lost over 35% of their value since the explosion and sinking of the Deepwater Horizon rig earlier this year and the recent oil spill. Prior to these catastrophes taking place, BP was Britain’s largest oil company; since then the market cap of BP has seen a loss of more than $60 billion.

As BP continues to see their share prices fall, their competitors are expected to reap the benefits despite having to also endure falling stock prices. Chevron (CVX), ExxonMobile Corp (XOM) and Royal Dutch Shell (RDS-B) are all anticipating taking on the benefits of the oil spill both at the pump and on the stock market. Yet at the moment they all have to accept the damage that has been done to the overall state of the market.

ExxonMobil, for example, has had to witness a drop in its stock price as shares fell from a high of $69 to a current price of $59. The company sells for nine times forward earnings and pays a favorable yield of 2.9%.

Royal Dutch Shell has also experienced a stock price plunge over the same period. The stock has a price to earnings ratio of 11 and sports a very high yield of 6.3%.

This collective loss of revenue is due to the public disdain that has followed since the major oil spill, which consequently has had an effect on sales at the pump as the negative coverage continues to haunt BP’s share prices. Analysts expect that BP’s competitors will be the ones to benefit from the catastrophe. One such company that may see a rise in its share price is Helmerich and Payne (HP) as a significant portion of their business comes from exploring and extracting fossil fuels on land. The stock sells for 13 times forward earnings and pays a small 0.6% yield.

If you are interested in having a look at how the oil spill will affect other major energy conglomerates then WallStreetNewsNetwork.com has a list of the companies paying out the highest yields and other valuable information relating to oil stocks.

Author does not own any of the above.

By Stockerblog.com

3 Books Worth Reading that have Nothing to do with Investing

Maybe you are looking for some summer reading and you are tired of reading another investment book. Here are three that I think you would enjoy reading and I highly recommend, and they have nothing to do with stocks.

Gang Leader for a Day: A Rogue Sociologist Takes to the Streets by Sudhir Venkatesh

This bestseller is about a sociology student who went to the Chicago projects to see how people live. After an initial resistance, he was accepted into th community. It was eye opening for him and it will be eye opening for you when you read this. An important area of the book is how what many would call the underground economy (I would call the alternative economy) works in the projects. 


The Violinist's Thumb: And Other Lost Tales of Love, War, and Genius, as Written by Our Genetic Code by Sam Kean

This book is written by the same author who wrote The Disappearing Spoon. If you thought DNA was boring, you should check out this book. Kean has a way of making complex stuff understandable and interesting.


The Eighty-Dollar Champion: Snowman, The Horse That Inspired a Nation by Elizabeth Letts

Do you like horses? You will love this book. A horse that was almost sent to the glue factory, literally, is purchased by a Dutch immigrant. The horse eventually becomes a top show jumping horse.


Enjoy your reading this summer.

Steel and Iron Stocks: Are They Getting Stronger?

The smelting of iron began in the second millennium BC. The first making of steel is believed to have taken place in 1400 BC, in East Africa. Now investors are looking at iron and steel as an infrastructure play. All of the following have market caps in excess of $6 billion.

Companhia Vale do Rio Doce (RIO) is a Rio de Janeiro, Brazil company that produces and markets iron ores and pellets to the steel manufacturing industry. They also produce nickel, copper, platinum, gold, silver, coal, and bauxite. The stock has a P/E of 13.67, a PEG of 7.27, and a yield of 1.2%.

Rio Tinto plc (RTP) is a company that mines for everything from iron ore to aluminum to copper to diamonds to coal to talc. Although they are based in London, they have operations in North America, Europe, Asia, Australia, and New Zealand. This $300 per share stock has a P/E ratio of 13.45, a PEG of 0.51, and a yield of 1.4%.

Arcelor Mittal (MT) is a Dutch based company that is in the business of producing and marketing steel. They have operations in North and South America, western and eastern Europe, and Africa. The stock has a P/E of 10.43, a PEG of 1.01, and a yield of 1.6%.

POSCO (PKX) is a Seoul, South Korea based company that manufactures and markets steel products throughout Korea. The stock has a P/E of 14.53, a PEG of 1.73, and a yield of 1.1%.

Tenaris SA (TS) is a Luxembourg based manufacturer and marketer of steel pipe products. It has a P/E of 13.45, a PEG of 2.23, and 1.3%.

Nucor Corp. (NUE) is the Charlotte, North Carolina based company that makes and markets steel and steel products. The P/E is 10.51, the PEG is 1.5, and the yield is 0.8%.

Companhia Siderurgica Nacional (SID) is a large Sao Paulo, Brazil based steel producer. The stock has a P/E of 14.5 and a yield of 4.1%.

Gerdau S.A. (GGB) is yet another Brazil based producer of crude steel and steel products. The stock has a P/E of 10.62, a PEG of 7.41, and a yield of 2.5%.

Mechel (MTL) is a Moscow, Russia based producer of steel, coal, and iron ore. The stock has a P/E of 8.7 and a PEG of 1.62.

Ternium S.A. (TX) is another Luxembourg based producer of flat steel and long steel products. The stock has a P/E of 6.99, a PEG of 0.74, and a yield of 1.6%.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Cheapest Place to Buy Gas in the US

A few weeks ago, BillionairesLife.com had an article about the most expensive place to buy gas in the US, at $4.03 per gallon. Earlier this week, you could have paid 33 cents per gallon at a gas station in Minocqua, Wisconsin, due to an error in the price setup by one of the employees.

What is most interesting is that both the most expensive and least expensive gas was being sold by Shell stations. Royal Dutch Shell plc (RDS-B) trades on the New York Stock Exchange.

German Adult Toy Company Loses Soccer Star Suit

The German company, Beate Uhse (BEUHF.PK), which trades very rarely on the Pink Sheets in the US, but generally trades on all German stock exchanges, just lost a lawsuit filed by two German soccer stars, because the company, which owns a chain of adult shops, was marketing two "toys" which they named with the first name and last initial of the two soccer players.

What is most unusual about this company is that they have copyrighted their stock certificate, which features very scantily clad women, and have defended their copyrights vigorously against anyone who publishes an image of the certificate on the web, according to a German friend of mine who deals in antique stock certificates. I was actually going to publish a scan of the certificate, of which I own a few, but I didn't want to deal with the copyright hassle, although I do consider it fair use. If you really want to see what it looks like, a Dutch company, HUGO VAN DER MOLEN'S, has a picture along with a few other stock certificates of the same "style".

The company was founded by Beate Uhse-Rotermund, a very entrepreneurial woman who got her pilots license at age 18, became Germany's first female stunt pilot, flew during World War II, and was still flying in her seventies. After WWII, she started selling products door to door to make a living, then expanded to mail order, finally to a chain of retail shops.

US Prices Capital One Financial Warrants

The U.S. Department of the Treasury announced today that it priced a secondary public offering of 12,657,960 warrants to purchase common stock of Capital One Financial Corporation (the "Company") at $11.75 per warrant. The net proceeds to Treasury from the offering are expected to be approximately $146,500,064.55. These proceeds provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock.

The warrants have been authorized for listing on the New York Stock Exchange under the symbol "COF WS."

The closing is expected to occur on or about December 9, 2009, subject to customary closing conditions. The offering was priced through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager and Siebert Capital Markets is the co-manager for the offering. This offering represents Treasury's sale of its remaining investment in the Company.

The warrants were offered pursuant to an effective shelf registration statement that was filed by the Company with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement relating to the offering was filed with the SEC on December 1, 2009, and a final prospectus supplement will be filed by the Company with the SEC and will be available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement relating to these securities may be obtained, when available, from Deutsche Bank Securities, Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611.

Swedish Stocks: More than Just Old Companies and LiberalSexuality

In a previous article, I discussed the fact that the oldest 'modern day' widely traded stock certificate, Dutch Vereinigte Oostindische Compaignie, is from the Netherlands. However, the oldest known [post cuneiform] share certificate is from the Swedish mining company, Stora Kopparberg, dated 1288. You can see a picture of the Stora stock certificate at the Augustana College website, although it's an upside down picture! The company is still in business, now known as Stora Enso, a pulp and paper manufacturing business now based in Finland.

Sweden is known for a lot more than issuing the oldest stock certificate.

1. Sweden is the third largest country in Western Europe in terms of area.
2. It's a major exporter of iron, copper and timber.
3. It has a significant amount of water power for electrical generation.
4. The country's engineering sector accounts for 50% of exports.
5. It has an inflation target of 2%.
6. It has the oldest central bank in the world, the Riksbank, founded 1668.
7. It's the first country in the world to open an embassy in the virtual world Second Life.
8. It is number one on The Economist Magazine's Intelligence Unit's democracy index.

Here is a list of Swedish stocks which trade in the United States:

Volvo AB (VOLV) manufactures trucks, buses, construction equipment. The stock has a P/E of 17.7 and a PEG of 9.66. It also pays a yield of 3.5%.

Atlas Copco AB Series A (ATLKY.PK) makes and sells industrial tools and equipment. For the quarter ending March 31, the company achieved 24% organic order growth and had its 20th consecutive quarter with organic growth. Profit from continuing operations increased 21%.

Billerud AB (BLRDF.PK) manufactures and markets paper. Operating income increased by 177% over the same quarter last year. The profit per share went up by 19%.

Diamyd Medical ADR (DMYDY.PK) develops treatments for diabetes and its complications. Loss per share for the nine month period before dilution was US$0.60 versus US$0.40 for the same period of the prior fiscal year.

A B Electrolux S ADR (ELUXY.PK) makes and markets home and professional appliances. Net sales for continuing operations increased by 1.5%. Operating income rose by 26.2%.

Husqvarna AB SP ADR (HSQVY.PK) makes chainsaws, lawn and garden equipment. Operating income for the first quarter increased, and the profit margin improved to 10.7%.

Sandvik AB SPONS ADR (SDVKY.PK) makes cutting tools, mining and construction equipment. They are also involved in materials technology. For the latest quarter, sales increased 21% and net profit went up by 26% for the quarter.

SKF AB (SKFRY.PK) makes and markets rolling bearings and elastomeric seals. Operating profit increased by 17.2% and sales were up 8.1%. Basic earnings per share increased by 4.9%.

Svenska Cellulosa B (SVCBY.PK) is a manufacturer of pulp, paper and consumer goods. Earnings per share increased by 23% for the last reported quarter.

Swedbank AB SP ADR (SWDBY.PK) is a banking company which serves customers in Sweden, Estonia, Lithuania and Latvia. Both operating profit and earnings per share were down in 2006 versus 2005.

LM Ericsson Telephone Co. (ERIC) provides telecommunications and technology. The P/E is 16.28 and the PEG is 1.46.

Author does not own any of the above.

By Fred Fuld for Stockerblog.com.

Belgium: Home of the Oldest Stock Exchange

Considering that the oldest stock exchange is in Antwerp, Belgium, it is surprising that there aren’t more Belgium stocks available for trading in the U.S. Here are some interesting facts about Belgium:

1. The Antwerp Bourse, the oldest stock exchange in the world, was founded in 1460.
2. It hosts the headquarters of the European Union.
3. It is ranked number 13 in GDP per capita.
4. It is ranked number 13 in the Human Development Index..
5. It has the the third-highest proportion of 18 to 21 year olds enrolled in postsecondary education of all OCD countries.
6. It has three official languages: Dutch, French, and German.
7. It is one of the world's ten largest trading nations.
8. Its primary exports are are automobiles, food, iron, steel, finished diamonds, textiles, plastics, petroleum products, and nonferrous metals.
9. It was the first continental European country to experience the Industrial Revolution.
10. In 2006, their budget was balanced.

Here are some Belgium stocks worth examining that trade in the United States:

Delhaize Group (DEG), a Brussels based company which trades on the New York Stock Exchange, is an operator of supermarkets in North America, Europe, and southeast Asia. In the U.S., they own Food Lion, Bloom, Bottom Dollar, Harveys, Hannaford Bros., Kash n' Karry and Sweetbay. The P/E is 17.36 and it pays a yield of 1.4%.

Agfa Gevaert NV (AFGVF.PK) is an imaging technologies company which develops, manufactures and distributes analog and digital image products to businesses. Their consumer film and camera business, which was the company’s original business, was sold off in 2004 and later went bankrupt. The stock has a P/E of 23.1.

Option NV SA ADR (OPNVY.PK) develops and sells wireless communication devices, data cards, USB dongles, wireless routers and embedded modules. The stock has a P/E of 14.33.

RHJ International SA (RHJIF.PK) is a diversified holding company which has extensive investments in Japan. Profit margins and operating margins have been negative.

Solvay S.A. ADR (SVYSY.PK) is a pharmaceuticals, chemicals and plastics company. They produce drugs for cardiometabolic, neuroscience, flu vaccines, pancreatic enzymes, gastroenterology, and hormone therapy. The stock has a P/E of 13.01 and pays a yield of 6.1%.

Dexia SA Belgium (DXBGF.PK) is a retail bank which serves individuals, and small and medium size businesses. They also provide asset management, insurance, and investor services. Operating margin is 97.32% and return on average equity is 15.39%.

iShares MSCI Belgium Index (EWK) is an exchange traded fund which allows you to play the Belgian stock market with diversification. It pays a yield of 1.59%.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Stock Dividend Increasers for Early May

The following stocks have recently increased their dividends. This is the sign of a good company and could be the sign of an improving economy.

American Water Works Company (AWK) announced an increase of its quarterly cash dividend payment from $0.25 to $0.28 per share, a 12 percent increase.

Costco (COST) raised its dividend by 12.70% to 31 cents per share.

IBM (IBM) raised its quarterly dividend by 11.8% to 95 cents per share.

PepsiCo (PEP) raised quarterly distributions by 5.6% to 56.75 cents per share.

Royal Dutch Shell plc (RDS-A) raised its quarterly dividend by 4.7% to 90 cents per share.

Jack Henry & Associates (JKHY) declared a quarterly dividend of $0.20 per share, a 54% increase over the prior payout of $0.13 per share.

ExxonMobil (XOM) recently declared a 10.5% dividend increase.

Chevron (CVX) declared an 11% dividend increase.

If you like interesting lists like this, check out the many stock lists at WallStreetNewsNetwork.com, most of which are free.

Guest Article: Growing Revolutionary Guard Spells Uncertainty For Oil Investors In Iran

As the United States edges closer to issuing a fresh round of sanctions against Iran, foreign investors so far unmoved by international pressure will end up doing business with a Revolutionary Guard that makes even local firms nervous, an analyst warns.

The Islamic Revolutionary Guard Corps, known as the IRGC or Revolutionary Guard, is a military branch set up after the 1979 revolution to protect the regime and has become more ingrained in the Iranian economy particularly under President Mahmoud Ahmadinejad’s administration.

In recent weeks, the Revolutionary Guard has declared that it can assume control of the energy industry if Westerners flee under the crush of coming U.S. sanctions. Over the last two-and-a-half decades, the powerful force has gradually moved into sectors like construction, energy and telecommunications, said Alex Vatanka, a scholar at the Washington-based Middle East Institute.

Given Iran ’s oil and gas reserves and the country’s reliance on revenues from crude exports, “it’s very logical for the IRGC’s economic arm” to seek an even stronger footing in the energy sector as U.S. and United Nations financial penalties against firms operating in Iran pick up steam, Vatanka told OilPrice.com.

The IRGC has the “political muscle to push political contracts” through, but it is questionable whether the group is best-suited to coordinate these efforts on a domestic level, he said. “We know their intentions in the Iranian oil industry, and [local firms are] very often hesitant when they see IRGC involvement,” he noted.

Foreign companies would be “equally, if not more hesitant, to deal with the IRGC” because the organization is at the forefront of any U.S. government or U.N. attempt to apply new sanctions, he said.

“So it really just raises the stakes for any foreign participant in these projects,” Vatanka said.

The overriding challenge is whether a firm, domestic or otherwise, can ever have a “fair struggle with the IRGC, if I can put it this way,” Vatanka explained. “They are politically so powerful that they can nullify, change terms and take the credit for anything that’s done positively and claim it to be their own. And if you stand up to them, they would basically label you against the Islamic Revolution.”

He said questions also linger about the kind of revenue-sharing the Revolutionary Guard would offer international companies.

And whether the Revolutionary Guard can even fulfill Iran ’s “very big intentions” in the gas sector remains to be seen, Vatanka said, noting “there’s no evidence to suggest that they have, in any way or shape, invested technologically in energy. If it was about missiles, it would have been a totally different matter.”

In March, Iranian Oil Minister Masoud Mirkazemi said the Islamic regime is seeking a $200 billion investment in oil, gas and refinery industries over the next five years.

Iran has only waning pools of oil but may become a “huge provider of natural gas on a global scale,” Vatanka said.

Iran holds the world’s third-largest proven oil reserves and the world’s second-largest natural gas reserves, according to the U.S. Energy Information Administration. This includes the South Pars gas field, the “largest natural gas deposit in the world, which Iran shares with the state of Qatar ,” added Vatanka.

The Iranian oil industry has traditionally been aligned with “pragmatic conservatives,” he added, but there has been a shift toward “principalists, the people around Ahmadinejad,” particularly in “this pivotal” sector of the Iranian economy.

In April, Ahmad Ghalebani took over as head of the National Iranian Oil Co. from oil-industry veteran Seifollah Jashnsaz, according to Iranian press reports. Like the Iranian oil minister, Ghalebani does not hail from the oil industry, the reports state.

Regardless of the typical rhetoric emanating from Iran , the country has always had a “pretty well-oiled bureaucracy,” but these “relatively new faces and voices” have spurred more uncertainty for foreign firms, Vatanka said.

Iran has pressured a number of firms to honor previous agreements or pull out of the country entirely. Iran recently gave a two-week ultimatum to Royal-Dutch Shell and Repsol of Spain to forge ahead with their involvement in projects related to the South Pars gas field or be replaced by local firms.

Around the same time, the regime also announced that it is awarding major gas contracts to Chinese, Malaysian and Indian firms for South Pars instead of Western firms widely regarded as frontrunners, according to Iranian news reports.

India is not likely to give up its investments in Iran “without considerable pressure” from the U.N., noted Robert Ebel, a senior adviser in the energy and national security program at the Center for Strategic and International Studies, a Washington-based think tank. Not only does India have business interests in the country, Iran provides it with “over 400,000 barrels of oil a day,” Ebel told OilPrice.com.

At the moment, India has proposed resuming talks with Iran on importing gas through a pipeline passing through Pakistan , according to Indian press reports.

China , which has a big interest in Iran as an oil supplier, is unlikely to be fully supportive of the United States and the U.N., Ebel said. About 430,000 barrels of oil move from Iran to China every day, he added. China , India and Japan probably account for half of all Iranian oil exports, Ebel noted.

On the weekend, the head of Brazil 's energy regulator was reported as saying that his country could assist Iran with equipment and engineering if Iran offered drills to help Brazil in the exploration of deep-water oil.

Despite these holdouts, many firms have already caved into pressure and abandoned some of their investments as talk of sanctions builds, said Ebel.

Russia ’s Lukoil has stopped gas sales to Iran , while India 's Reliance Industries will not renew a contract to import crude oil from Iran this year.

China and Japan are cutting crude-oil imports from Iran . Vitol, Glencore and Trafigura have all stopped their gas supplies to the country. And Shell also stopped selling gas to the regime.

At a congressional hearing last week, the U.S. Homeland Security and Governmental Affairs Committee issued international firms a stark warning: “Either do business with Iran ’s $250 billion-a-year economy, or do business with America ’s $13-trillion economy, but you cannot do business with both.”

The proposed U.S. legislation is known as the Iran Refined Petroleum Sanctions Act and will be tougher on firms than its predecessor, the Iran Sanctions Act. The revised law will pursue financial institutions and firms that do business in Iran ’s energy sector or help the regime build its refining capacity.

The Government Accountability Office, an arm of Congress, released a report during the hearing that found that seven of 41 companies previously identified as doing business with Iran received combined payments of nearly $880 million from the Defense Department. This includes $319 million to Repsol and $312 million to Total of France for the purchase of fuel.

Ultimately, the relationship between Iran and the international community will be tough to walk away from, Vatanka of the Middle East Institute told OilPrice.com. While Iran still needs Western technology to expand its energy industry, he said, large companies seeking growing markets will be hard-pressed to “totally look away and abandon Iran for good.”

Source: http://oilprice.com/Geo-Politics/Middle-East/Growing-Revolutionary-Guard-Spells-Uncertainty-For-Oil-Investors-In-Iran.html

By Fawzia Sheikh for Oilprice.com who offer detailed analysis on Crude oil, Natural Gas, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

Will Air Courier Stocks Start Flying

During the last couple years, the air courier stocks have significantly underperformed the Dow Jones Industrial Average. They have been hit hard by by the high cost of fuel, so maybe there might be a contrarian opportunity with these stocks. Here are the publicly traded air courier stocks.

FedEx Corporation (FDX) is one of the leading air courier and logistics companies in the United States. They also own FedEx Kinkos. The stock has a PE of 15 , and a PEG of 1.44 . The yield is 0.4% .

TNT N.V. (ADR) (TNTTY.PK) is a Dutch based global express and mail delivery services company. They have operations in 65 countries and deliver to over 200 companies. The stock has a PE of 12 .

United Parcel Service, Inc. (UPS) is the largest package delivery company in the world. They have 6.1 million customers in more than 200 countries. The stock has a PE of 174 , and a PEG of 1.49 . The yield is 2.40% .

ABX Holdings, Inc. (ABXA) is a provider of air cargo transportation and related services. The stock has a PE of 8 .

Air T, Inc. (AIRT) is a provider of overnight air cargo services. This is a very low cap stock and should be considered very speculative. The stock has a PE of 7 .

Alpine Air Express, Inc. (APNX.OB) is a provider of air cargo services. This is a very low cap stock and should be considered very speculative. The stock has a PE of 12 .

AirNet Systems, Inc. (ANS) operates a national air transportation network. This is a very low cap stock and should be considered very speculative. The stock has a PE of 8 .

Author owns AIRT.

By Stockerblog.com

Cement Stocks: A Solid Portfolio Foundation?

Did you know that many thousands of years ago,cement was made out of cow dung, along with lime and mud. This cement was called 'daub'. If you are looking for a good infrastructure play, maybe cement stocks could be a solid foundation for you portfolio. All of the following have market caps above $1 billion.

C R H PLC ( CRH ) is an Irish based cement and building materials manufacturer. The stock has a P/E of 10.99 , a PEG of 1.19 , and a yield of 1.10% .

Cemex ( CX ) is a Mexico based cement and construstion materials manufacturer. The stock has a P/E of 9.79 , a PEG of 3.42 , and a yield of 2.60% .

Eagle Materials ( EXP ) is a Texas based manufacturer of cement and gypsum wallboard. The stock has a P/E of 12.23 , and a yield of 2% .

James Hardie Industries ( JHX ) is a Dutch manufacturer of cement products. The stock has a P/E of 17.32 , a PEG of 2.3 , and a yield of 4.70% .

Texas Industries ( TXI ) is a Texas based manufacturer of cement and building materials. The stock has a P/E of 21.75 , a PEG of 1.54 , and a yield of 0.40% .

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Guest Article: What’s Happening with Iraq’s Oil

As multinational military forces have left Iraq, international petroleum companies have eagerly descended - seduced by the long-term potential of vast oil reserves off-limits to foreigners for decades. Yet lingering violence, legal questions and political uncertainty make doing business in this country a gamble.

In the first international oil auction held last June, widely seen as a failure, the Iraqi government awarded a firm contract to only a consortium of British Petroleum and the China National Petroleum Co. to further develop the Rumaila field over 20 years. Iraq recently forged an initial agreement with a group comprising Exxon Mobil and Royal Dutch Shell to develop the West Qurna field, and one with an ENI-led consortium of Occidental Petroleum and Korea Gas for the Zubair oil field.

Under ratified deals, firms stand to gain a mere $2 profit on each barrel added to production because the Iraqi government wants to convey “they're not going to let the oil companies take over,” said Robert Ebel, a senior adviser in the energy and national security program at the Center for Strategic and International Studies (CSIS), a Washington-based think tank.

The operator of each 20-year service contract, which may be extended for five years, “will still make a rate of return in the double digits,” said Ruba Husari, founder and editor of the Web site Iraqoilforum.com, via e-mail from Baghdad . The country’s proven oil reserves were last estimated at 115 billion barrels. These massive reservoirs, and the low costs linked to such an uncomplicated operation, essentially make it “easy oil” for firms, Husari said.

Iraq will boast some six million to 10 million barrels a day over the next several years, analysts tell Oilprice.com. This scenario illustrates why oil companies perhaps are now more willing than last summer to gain an initial foothold in the industry on the government’s strict terms and thus build a long-lasting relationship that may lead to a production-sharing contract “for some discovered-but-yet-undeveloped oil field,” Ebel said. “It’s a hopeful assumption; I don’t know how realistic it is.”

Yet as companies salivate over Iraq ’s potential, legal and political issues are still problematic to doing business. The war-ravaged country's “weak and ill-defined legal structures,” and uncertain moves by the next government slated to be elected in January, may result in canceled service contracts, warned David Bender, an analyst in the Middle East practice of the Eurasia Group’s Washington office.

Through conversations with oil firms, Bender has gleaned that Iraq is probably not “quite at the point in which legal details are the most important aspect” and is focused instead on the larger political process. As a result, he said, members of a newly elected government, influenced by their own interest groups and “power politics,” may annul contracts despite the associated penalties.

Finalizing a long-awaited hydrocarbon law governing the oil industry will be a top priority of the next government, said Mishkat al-Moumin, an adjunct scholar at the Washington-based Middle East Institute and Iraq ’s environment minister from 2004 to 2005. Ideally, the legislation will outline investing in new oil fields, establishing a council to manage petroleum issues and offering a mechanism allocating oil revenues, she added.

The absence of an agreement to share oil revenues with the northern Kurdistan Regional Government continues to plague Baghdad , which never recognized as legal the Kurds’ independent oil deals with smaller companies. “If you get an oil law in place, will the Kurds accept that oil law or will they say . . . ‘You’re not giving us enough share of the income that you get from our oil,” questioned Ebel, the CSIS analyst.

Although it is too early to measure the internal impact of opening up the oil industry, in five years oil money will likely flow down to ordinary Iraqis, al-Moumin predicted. The Iraqi government is now debating whether to distribute checks to citizens allocating their fair share or to broadly invest in infrastructure and services, she said.

As the central government and international companies gear up for a second oil field auction pegged for Dec. 11 to 12, Eurasia Group’s Bender expects firms this time to be undeterred by initially meager profits, and increasingly tempted by what may become “the most lucrative, exciting oil market in the world.”

This article was written by Fawzia Sheikh of OilPrice.com who focus on Fossil Fuels, Alternative Energy, Metals, Oil Prices and Geopolitics. To find out more visit their website at: http://www.oilprice.com

Will Airline Stocks Fly High?

Have you benn on a plane flight recently? I've been on several plane flights over the last year and one thing I have noticed is that the plane is always full. Always! Not one extra seat available. And this is on a few different airlines, Delta (DAL), KLM Royal Dutch Airlines (KLMR), and JetBlue (JBLU). I remember years ago, taking flights on PSA with only eight people on the plane. There were almost as many airline staff workers (pilots and flight attendants) as there were passengers.

Now airlines have their act together, and are able to fill every seat. Any empty seat is less revenue, and if they can fill those seats, even at very discounted prices, it's additional revenue. When you consider all the flights of an airline in a day, and multiply those flights times 365 days, the revenue can add up.

With the merger of the American Airlines holding company, AMR (AAMRQ) and US Airways (LCC), it will mean less competition. And of course with crude oil dropping in price to $88 per barrel from over $105 a barrel a year ago, fuel costs for the airlines have been kept in check.

So what's an investor to do who is looking for a high flyer? According to the free list of airline stocks at WallStreetNewsNetwork.com, there are over 25 airlines to choose from, with a half dozen paying dividends.

Let's take a look at Alaska Air Group (ALK), which provides flights to the western United States, Canada, and Mexico. The stock trades at 13.7 times trailing earnings and 9.5 times forward earnings. Revenues for the latest quarter at year end were up 8.4%, however earnings dropped 31.3%. The company's next earnings announcement is scheduled for April 25. The company carries over a billion dollars in debt, but it does have $1.25 billion in cash.

The Latin American airline company, Copa Holdings SA (CPA), is doing well. Based out of Panama City, Panama, it flies to 64 destinations in 29 countries in North America, Central America, South America, and the Caribbean. The stock has a trailing price-to-earnings ratio of 16.4 and a forward PE of 10.9. Revenues were up by a strong 19.4%, but earnings dropped for the latest quarter by 17%. Next announcement is May 6. This is one of the few companies that pays a dividend with a Certificate of Deposit beating yield of 1.9%.

Southwest Airlines (LUV) is another dividend payer, with a small yield of 0.3%. The stock trades at 23.8 times current earnings and 11.1 times forward earnings. Next earnings announcement is April 25.

To see a complete list of all the major and regional airline stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns JBLU.

By Stockerblog.com

Highest Yielding Semi-Annual Dividend Payers

Who would want to look for a stock that only pays twice a year? I recently wrote articles about stocks that pay monthly, and the highest yielding stocks that pay quarterly. There may be a few reasons. Maybe an investor owns some corporate or municipal bonds, but wants some income coming in, plus growth potential, during the months that no bond income is coming in. Also, an investor may prefer to receive fewer larger checks as opposed to receiving smaller checks more often.

One thing that is interesting to note is that nine out of the top ten semi-annual dividend stocks are foreign companies, which have ADR's that trade in the United States on the New York Stock Exchange.

CPFL Energia S.A. [ADR] ( CPL ) is a Brazilian based generator and distributor of electricity. It has paid dividends since 2005. The stock has a PE of 12 and a PEG of 0.78 . The stock pays a yield of 7.41% .

Ruby Tuesday, Inc. ( RT ) is a casual dining restaurant operator. It has paid dividends since 1990. The stock has a PE of 12 and a PEG of 0.91 . The stock pays a yield of 6.17% .

Allied Irish Banks, plc. [ADR] ( AIB ) is a Dublin, Ireland based banking, investment banking, and asset management services company. Dividends have been paid since 2002. The stock has a PE of 6 and a PEG of 0.34 . The stock pays a yield of 7.46% .

Pearson PLC [ADR] ( PSO ) is a publisher of textbooks and testing and software services. It has been paying dividends since 2001. The stock has a PE of 18 and a PEG of 2.00 . The stock pays a yield of 6.01% .

Westpac Banking Corporation [ADR] ( WBK ) is an Australian based banking and financial services company. It has paid dividends since 1989. The stock has a PE of 11 and a PEG of 1.28 . The stock pays a yield of 5.14% .

Barclays PLC [ADR] ( BCS ) is in the business of banking, credit cards, investment banking, wealth management, and investment management services. It has paid semi-annual dividends since 1087. The stock has a PE of 7 and a PEG of 0.56 . The stock pays a yield of 10.17% .

Tomkins plc [ADR] ( TKS ) is in the business of engineering and manufacturing transmission products, fluid power products, axles and wheels, frames, trailers, automotive accessories, and grease guns. It has paid dividends since 1992. The stock has a PE of 9 and a PEG of 1.71 . The stock pays a yield of 9.40% .

ING Groep N.V. [ADR] ( ING ) is the Dutch based banking, investments, life insurance, and retirement services company. Dividends have been paid since 1997. The stock has a PE of 6 and a PEG of 0.95 . The stock pays a yield of 6.74% .

Lloyds TSB Group plc [ADR] ( LYG ) is the large British banking company. It has paid dividends since 2002. The stock has a PE of 8 and a PEG of 1.31 . The stock pays a yield of 8.45% .

Bank of Ireland [ADR] ( IRE ) is an Irish based provider of banking and financial services. The stock has a PE of 5 and a PEG of 0.28 . The stock pays a yield of 5.03% .

By the way, if you are looking for tax free dividends, check out Top Tax Exempt Dividend Stocks.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com