Friday, August 31, 2007

Flying Saucer Car

About four months ago, I wrote about a company that makes flying cars. Now that same company, Moller International Inc. (MLER.OB), which is the only publicly traded stock of a company that I know of that is in the flying car business, is planning to offer a flying saucer car in large quantities that will fly about 10 feet off the ground. A great way to avoid traffic jams. Cost of the flying car is expected to be $90,000. Please note my disclaimer below.

Disclaimer: I own shares of stock in this company; however, I don't recommend the purchase, sale, holding or shorting of this stock. This is NOT an investment recommendation, either expressed or implied.

Thursday, August 30, 2007

Top Japanese Stocks that Trade on the NYSE

Some interesting facts about Japan:

1. Japan has over 3,000 islands.
2. It has the second largest economy in the world by nominal GDP.
3. It has the third highest GDP by purchasing power parity.
4. It is the fourth largest exporter in the world.
5. It has the fifth largest defense budget in the world.
6. It is the sixth largest importer in the world.
7. The Tokyo Stock Exchange is the second largest stock exchange in the world.
8. Japan catches more fish than any other country in the world except China.
9. It has the third largest R&D budget in the world.
10. More than half of the industrial robots in the world are in Japan. has come up with a list of Japanese stocks which trade on the New York Stock Exchange. Is the Land of the Rising Sun the Land of the Rising Stocks? Here are a few examples.

Canon Inc. (CAJ), which makes copying machines, printers, and cameras, has a P/E of 25.2, a forward PE of 16.8, and a PEG of 0.86.

Kubota Corp. (KUB) makes and markets farm equipment, construction machinery, engines, pipes and valves. The stock has a P/E of 20.6, a forward PE of 14, and a PEG of 1.59.

Nidec Corp. (NJ) makes and sells motors, machinery, and electronic components. The stock has a P/E of 21.4, a forward PE of 14.9, and a PEG of 0.78.

Nippon Telegraph & Telephone Corp. (NTT) is Japan’s large telecommunications company. The stock has a P/E of 9.8, a forward PE of 10.2, and a PEG of 2.25.

If you want a list of all of the Japanese stocks along with their financial ratios in an Excel spreadsheet format, which you can change, add to, delete from, or sort, go to

Author does not own any of the above.


Tuesday, August 28, 2007

Britney Spears Stock Index

Components of the Britney Spears Stock Index:
SKX - Celebrity endorser for Skechers
RDEN - Curious and Fantasy Perfume - Elizabeth Arden
PEP - Celebrity endorser for Pepsi
DAI - Daimler makes Mercedes Benz cars
VIA - Starred in Crossroads movie Paramount - Viacom
JAKK - Britney Spears Fashion Doll - Play Along Toys, division of Jakks Pacific
SNE - Everytime and Toxic songs - Sony

To track and to see more details on the Britney Spears connection to these stocks, go to, and check out the Britney Spears Stock Portfolio.

This is a price-weighted index, similar to the Dow Jones Industrial Average, for the last three months.
Dividends were excluded.

During the entire time frame, the Britney Spears Index underperformed the Dow, although from the middle of July, the Britney Index was a very close match to the Dow.

Author owns DAI.

By Fred Fuld at

Picture courtesy of the U.S. Navy.

Cocktails Named After Stocks

A bar in London has named several cocktail drinks after five Russian stocks, in order to promote the potential of making money in Russia. It is interesting to note that the alcohol content is adjusted up and down based on the price of the stock, however, the price of the drink will remain fixed.

Weight Loss Stocks

According to a recent study by the Trust for America's Health, 31 states had an increase adult obesity rates, with Mississippi at the top of the list at 30.6% of the population, and no states having any reduction in obesity. Because almost all Americans believe that obesity is a major problem in the United States, it may be worth weighing your options on the following stocks to see if their potential for gain carries any weight.

Weight Watchers International (WTW), which trades on the New York Stock Exchange, is a provider of weight management services, such as exercise, and behavioral techniques, and nutritional products. The stock has a P/E of 22.66 and a PEG of 1.55. It pays a yield of 1.3%.

NutriSystem. (NTRI), which trades on NASDAQ, provides health and weight management products and services, including pre-packaged foods and counseling. The stock has a P/E of 15.93 and a PEG of 0.58.

Herbalife Ltd. (HLF) sells weight management products, nutritional supplements, and personal care products through network marketing. The stock has a P/E of 19.72 and a PEG of 0.98. It pays a yield of 1.0%. Inc. (DIET) is a provider of Internet-based diet, recipe and fitness programs. Earnings have been negative. This is a very low cap and therefore very speculative stock.

Hoffmann–La Roche, which is owned by Roche Holding AG (RHHBY.PK), makes Orlistat, marketed as Xenical, which is an obesity drug that helps to reduce the absorption of fat contained in foods. This is obviously a very small part of their overall business. The stock has a P/E of 20.9 and a yield of 1.56%.

GlaxoSmithKline plc (GSK), based in London, sells the generic form of Orlistat, called Alli, also known as tetrahydrolipstatin. This is one of a very large group of pharmaceutical products that they sell. The stock has a P/E of 13.3 and a PEG of 2.14. It pays a yield of 3.8%.

Abbott Laboratories (ABT) markets Sibutramine, sold as Meridia, an obesity drug that speeds up the metabolism and energy levels and increases serotonin and norepinephrine levels in the brain. This Illinois based company makes numerous pharmaceutical and nutritional products. The stock has a P/E of 40.88 and a PEG of 1.54. It pays a yield of 2.5%.

Author does not own any of the above.

By Fred Fuld at

Monday, August 27, 2007

Dell and their Accounting System just published an article about Dell Inc. (DELL) and the way their accounting works. The title of the article is Five Steps to Cooking the Books (and Getting Away With It).

Stock Hits 52-week High: $19,800 per share

Mechanics Bank (MCHB.OB), a Richmond, California based bank traded at $19,800 per share earlier this month. It is one of the most expensive stocks, lower than the Berkshire Hathaway Inc. (BRK-A) A shares, but higher than the Berkshire Hathaway (BRK-B) B shares. (A list of other high priced shares can be found at

Mechanics Bank has a price to earnings ratio of 14.34, a price sales ratio of 3.21, and a yield of 1.5%.

Author does not own any of the above.

Why You Might Want to Buy this 9 Year Old Laptop

Heritage Auction Galleries is auctioning off a nine year old Toshiba Satellite Pro laptop with a power supply and an external floppy disk drive. Why? This was used to send the first Presidential E-mail, and not just any email, but an email from President Bill Clinton to astronaut John Glenn while he was in space.

Sunday, August 26, 2007

Beverages versus the Dow: Wall Street Chart of the Week

Here is a graph (chart) that compares the Dow Jones Industrial Average over the last ten years with several commonly consumed beverages: orange juice, coffee, beer, and wine. You will notice that coffee (the brown line), beer (the gold line) and orange juice (the orange line), are relatively flat. However, look at the red line for wine. It appears to follow the Dow (or vice versa), with the exception of the 1999/2000 era. (This is obviously a visual observation and not a statistical analysis). Also, check out the volatility of wine.

The data comes from the U.S. Government Bureau of Labor Statistics.
Orange juice is the cost of frozen concentrate, 12 oz. can, per 16 oz. (473.2 ml).
Coffee is the cost of 100%, ground roast, all sizes, per lb. (453.6 gm).
Beer is the cost of all types, all sizes, any origin, per 16 oz. (473.2 ml).
Wine is the cost of both red and white table wine, all sizes, any origin, per 1 liter (33.8 oz).

By Fred Fuld at

Saturday, August 25, 2007

'Taco Bell Purchase of Liberty Bell: Renamed Taco Liberty Bell'

Taco Bell Corp., a subsidiary of Yum! Brands, Inc. (YUM), which trades on the New York Stock Exchange, "purchased the Liberty Bell and renamed it the Taco Liberty Bell" according the the Museum of Hoaxes. This was a hoax from 1996, and number 4 of the top 100 hoaxes.

Kazakhstan Stocks: More than Just Borat

Kazakhstan became famous when the notorious comedian Sacha Baron Cohen came out with his movie ‘Borat’. Here is more accurate information about the country:

1. It is the ninth largest country in the world by area.
2. It ranks 62nd in the world in terms of population.
3. The GDP growth has been in excess of 9% for each of the last five years.
4. It was the first former Soviet republic to repay all of its debt to the International Monetary Fund, seven years before it was due.
5. In 2002, the first country in the Commonwealth of Independent States to receive an investment-grade credit rating.
6. In 2003, they adopted a new tax code, dropping the personal income tax from 30% to 20%. In 2006, they dropped it again to 5% for personal income in the form of dividends and 10% for other personal income.
7. They have approximately 4 billion tons of proven recoverable oil reserves.
8. They just recently introduced bank deposit insurance.
9. It is the sixth-largest producer of grain in the world.
10. Kazakhstan is supposed to be where the apple originated.
11. It has the second largest uranium, chromium, lead, and zinc reserves in the world.
12. It has the fifth largest copper reserves in the world.

The following stocks are very low cap and should be considered extremely speculative.

BMB Munai Inc. (KAZ), which is a Kazakhstan based company that trades on the American Stock Exchange, buys, explores, develops, and produces crude oil and natural gas properties in Kazakhstan. The price to earnings ratio is 30.23 and the price to sales ratio is 9.59.

Transmeridian Exploration Inc. (TMY), is another American Stock Exchange traded company, which, although based in Houston, Texas, has its operations of acquisition, development, and production of oil and natural gas primarily in Kazakhstan. The stock has had negative earnings and a price sales ratio of 7.

Uranium One Inc. (SXRZF.PK), which trades on the Pink Sheets, owns uranium properties all over the world. In April 2007, the Company acquired UrAsia Energy Ltd in Kazakhstan. Although the company has been generating revenues for the past couple years, gross profit, operating income, and net income have been negative.

Cigma Metals Corp. (CGMX.PK) recently signed an agreement with Eureka Mining Plc whereby Cigma would earn up to 90% of the gold and precious metals from the Dostyk project in Kazakhstan. Earnings have been negative.

Kazakhtelecom (KZHXY.PK), also known as Kazakhtelekom, provides telephone services, Internet access, satellite networks, prepaid telephone cards, and wire broadcasting in Kazakhstan. Operating margin was 40.57% and return on average equity was 25.86% for the latest reported period.

The Third Millennium Russia Fund (TMRFX) is an open end fund which primarily invests in Russian companies but also invests in two major Kazakh stocks: Kazakhtelecom and Kazkommertsbank. The fund has been up 34.5% a year for the last five years.

There is an excellent article by Winston Kotzan about Kazakhstan related stocks at, which includes Chevron (CVX) and Exxon Mobil (XOM) and their connections to Kazakhstan.

Author does not own any of the above.

By Fred Fuld at

99 Cents for an iPod: Wall Street Video of the Week

A 99 Cents Only store sold brand new two gig iPods for 99 cents each!!!

College Stocks: 10 Companies to Study

I just dropped my son off at college for the first time and it was an all day event moving him into his college dorm apartment, which involved carrying boxes and suitcases from the parking lot to the building, unpacking clothes, raising the bed [to store more stuff underneath], and setting up the computer and printer. During the process, I checked out what other parents had bought for their sons and daughters. In terms of computers, it boiled down to two choices: either an Apple (AAPL) MacBook laptop or a Dell (DELL) laptop. When it came to printers, the choice was either a Hewlett Packard (HPQ) or a Hewlett Packard; in other words, everyone bought HP printers. Of course, everyone bought Microsoft Office, made by Microsoft (MSFT), whether they had an Apple Macintosh or a PC.

Apple Inc. has a price earnings ratio of 38.21 and a “price earnings to growth” ratio of 1.56. Now that several people have figured out a way to unlock the iPhone, the debate is on about whether this will help or hurt Apple. Dell has a forward P/E of 17.12 and a PEG of 1.74. The credit ratings agency Fitch, kept their debt ratings at A, after the company completed its accounting investigation. Hewlett-Packard has a P/E of 19.44, a PEG of 1.2, and a small yield of 0.7%. The stock just reported a 28.3% increase in quarterly earnings on a 15.90% increase in quarterly revenues, year over year. Microsoft Corporation (MSFT) has a P/E of 20.25, a PEG of 1.42, and a yield of 1.4%.

Buying clothing was another big “off to college” expenditure, and not just any clothing. Some of the popular clothing lines among college students include Under Armour, Inc. (UA), develops and markets microfiber apparel, such as T-shirts, sweats, socks, and baseball caps. The stock has a P/E of 75.01 and a PEG of 2.34. Nike Inc. (NKE), the famous footwear manufacturer, is another recipient of the clothing budget of college students’ parents. The stock has a P/E of 18.50, a PEG of 1.2, and a yield of 1.4%. Many students who enjoy snow boarding, skiing, or surfing, prefer the Quiksilver Inc. (ZQK) brand of clothing. The stock has a P/E of 24.34 and a PEG of 1.51.

A major part of the college move is going to the college bookstore and getting the textbooks. How does $105 for a used, yes heavily used, math book sound? For a full load of classes, $500 per quarter or semester for textbooks is typical, although I’ve heard of students spending much more. One of the beneficiaries of these expenditures is Pearson plc (PSO), the British based publisher of textbooks and related class materials for colleges and universities, which has a P/E of 17.86, a PEG of 1.68, and a decent yield of 4%. Another publisher of textbooks is John Wiley & Sons Inc. (JW-A), which also publishes technical journals, medical journals, and integrated online learning resources for college students. They have a P/E of 23.74, and a yield of 1.1%.

Unless you are a college student or a professor, you have probably never heard of Blackboard Inc. (BBBB), which markets and services online teaching and learning environment software. Students use Blackboard to get the class syllabus, the assignments and homework, the instructor’s PowerPoint presentations, tests, and other online resources. Blackboard also provides discussion boards, group email services, wikis and blogs. Although the stock has an extremely high P/E of 1,447, the forward P/E is 35, and the PEG is 1.9. The company has a huge share of the college and university market.

For a list of all ten of the college stocks in an Excel format which you can sort, add to, delete from, and change, go to

Author owns AAPL and MSFT.

By Fred Fuld at

Friday, August 24, 2007

iPhone Unlocked by Teenager

A New Jersey teenager has found a way to unlock the Apple (AAPL) iPhone so that it can be used with any carrier, such as T-Mobile, subsidiary of Deutsche Telekom (DT), instead of AT&T (T).

Wall Street Quotation of the Week

"If you hear that everybody is buying a certain stock, ask who is selling."

~ James Dines, Investment newsletter writer (1935- )

Wheat Prices at All Time High

Expect higher bread prices, and therefore higher dairy and meat prices, as the cost of feed will go up, due to wheat prices making an all time high.

Teacher on YouTube, Student in Trouble

A student in Finland put a video clip of his teacher singing Karaoke on YouTube, however, he added a caption to the video which said "Karaoke of the mental hospital". The boy received a fine from the Finnish courts. YouTube is owned by Google (GOOG), which trades on NASDAQ.

How to Save Money at the Gas Pump

If you want to save money on gasoline at the pump, this is an email that has been floating around California recently, for what it is worth. I've heard of a couple of these suggestions years ago such as filling up when it is cold outside and keeping your tank full. Hopefully, these ideas will help you out.

I've been in petroleum pipeline business for about 31 years, currently working for the Kinder-Morgan Pipeline here in San Jose, CA. We deliver about 4 million gallons in a 24-hour period from the pipe line; one day it's diesel, the next day it's jet fuel and gasoline. We have 34 storage tanks here with a total capacity of 16,800,000 gallons. Here are some tricks to help you get your money's worth.

1. Fill up your car or truck in the morning when the temperature is still cool. Remember that all service stations have their storage tanks buried below ground; and the colder the ground, the denser the gasoline. When it gets warmer gasoline expands, so if you're filling up in the afternoon or in the evening, what should be a gallon is not exactly a gallon. In the petroleum business, the specific gravity and temperature of the fuel (gasoline, diesel, jet fuel, ethanol and other petroleum products) are significant. Every truckload that we load is temperature-compensated so that the indicated gallonage is actually the amount pumped. A one-degree rise in temperature is a big deal for businesses, but service stations don't have temperature compensation at their pumps.

2. If a tanker truck is filling the station's tank at the time you want to buy gas, do not fill up; most likely dirt and sludge in the tank is being stirred up when gas is being delivered, and you might be transferring that dirt from the bottom of their tank into your car's tank.

3. Fill up when your gas tank is half-full (or half-empty), because the more gas you have in your tank the less air there is and gasoline evaporates rapidly, especially when it's warm. (Gasoline storage tanks have an internal floating 'roof' membrane to act as a barrier between the gas and the atmosphere, thereby minimizing evaporation.)

4. If you look at the trigger you'll see that it has three delivery settings: slow, medium and high. When you're filling up do not squeeze the trigger of the nozzle to the high setting. You should be pumping at the slow setting, thereby minimizing vapors created while you are pumping. Hoses at the pump are corrugated; the corrugations act as a return path for vapor recovery from gas that already has been metered. If you are pumping at the high setting, the agitated gasoline contains more vapor, which is being sucked back into the underground tank, so you're getting less gas for your money.

Hope this will help ease your 'pain at the pump'.

The Dog Ate My Vick Cards on eBay

Some Michael Vick trading cards, that have been chewed up by dogs, have appeared for sale on eBay (EBAY), which trades on NASDAQ.\. Michael Vick is the Atlanta Falcons quarterback who is accused of being involved in dogfighting. Bidding got up over $450 for the group of cards.

Tuesday, August 21, 2007

Hungry for Hungary Stocks?

Some interesting facts about Hungary:

1. It is one of the newest member countries of the European Union.
2. Over 80% of GDP comes from the private sector.
3. One third of all foreign direct investment going into Central Europe goes to Hungary.
4. Hungarian debt is rated BBB+.
5. It is ranked 39th in GDP per capita.
6. It is ranked 35th in the world in terms of the Human Development Index.

Here are some Hungarian stocks which might be worth sampling.

Gedeon Richter Ltd. (GEDRF.PK) is a Budapest based company which develops, manufactures, and sells pharmaceutical products in the areas of female healthcare, the central nervous system and the cardiovascular and gastrointestinal areas. Their operating margin is 15.78% and their return on average equity is 14.37%.

Magyar Telekom Plc. (MTA) provides telecommunication services to residential and business customers in Hungary, Macedonia, and Montenegro. The stock, which trades on the New York Stock Exchange, has a P/E of 13.12, and a yield of 8.12%. They have paid dividends annually for the last ten years.

MOL Magyar Olaj-es Gazipari (MGYOY.PK) is a Budapest based integrated oil and natural gas company. Their operating margin is 14.51% and their return on average equity is 10.42%.

OTP Bank (OTPBF.PK) is a Budapest based bank which provides retail, corporate and private banking services. Their operating margin is a healthy 36.49% and their return on average equity is 25.01%.
Hungarian Telephone and Cable Corp. (HTC) Although a Seattle based American Stock Exchange traded company, their operations are in Hungary. They own and operate local landline telephone networks in Hungary. Quarterly revenues were up 8.1% for their latest reported quarter, but earnings have been negative.

Hungarian Broadcasting Co. (HBCO.PK) is a television and radio broadcaster operating in Central and Eastern Europe. It is a very low cap, very speculative stock with negative earnings per share of $3.33.

Author does not own any of the above.

By Fred Fuld at

Monday, August 20, 2007

Recent Sky High Auction Prices

The strength of the auction market continues, no matter what is being sold. Here are a few examples:

$3,000,000 for a car

$450 for an apple pie

$110,000 for a lighthouse

$1,000 for the paw print of a polar bear

$2,800 for Hitler's champagne (which may be poisoned)

If you want to get in on the auction action, you still have a chance to bid on Soprano's stripperpoles.

The Computer Support Video

Anyone who has ever worked in computer support, or who has ever helped a friend or relative who has minimal experience with computers, should check out this video on YouTube.

YouTube is subsidiary of Google (GOOG), by the way, which trades on NASDAQ.

Sunday, August 19, 2007

iPod Involved in Insider Trading Scandal

Executives at Inventec Appliances Corp. (IVAPF.PK), are accused of insider trading of their company's stock. Inventec is the Taiwan company that manufactured many of the iPods, but Apple Inc. (AAPL) decided to switch its orders to other Chinese factories, and the executives were accused of taking advantage of that information by selling the stock before disclosing it to the public.

Wine Therapy at Health Spa

Although many people go to health spas because of drinking problems, the Ukraine has a health spa that specializes in the use of seven different wine cocktails. The cocktail treatment, which sometimes includes vodka, is prescribed three times a day.

First Fat Macs, Now Fat iPods? Wall Street Rumor of the Week

According to the latest rumors at Gizmodo, the new Apple (AAPL) iPod will be a fat iPod with a wider case and the screen, which can play videos, will take up the upper half.

Bikini MP3 Keyboard

An MP3 keyboard built in to a bikini top was presented at the Solution and Contents Exhibition of Korea in Seoul this summer. Let's hope these bikinis are waterproof.

Saturday, August 18, 2007

Country Western Hedge Fund Song: Wall Street Music Video of the Week has come up with this great country western music video about hedge funds. Even if you don't like country music, you might enjoy this one. The song is called H-E-D-G-E.

Univeral Billboard on Actor's Home

This is probably the ultimate in advertising! Universal Studios has placed a huge 50 foot high billboard for The Bourne Ultimatum on the side of the Manhattan coop where Matt Damon lives, who is the star of the Bourne trilogy of movies. The Bourne Ultimatum has grossed more than any other movie with an August opening for an opening weekend.

Universal is a subsidiary of NBC Universal which is jointly owned by General Electric (GE) and Vivendi SA (VIVEF.PK).

Discount Rate & Stock Market: Any Connection?

If you think that the Federal Reserve Board's lowering of the discount rate by 50 basis points last week has any effect on the stock market or if the discount rate has ever had any effect, check out this chart [graph] which shows the Dow Jones Industrial Average versus the Discount Rate.

Here are a few other interesting charts:

Inflation Numbers

Stocks versus Steaks

Gas at the Pump

Number of U.S Farms

By Fred Fuld at

Top Stock Symbol Searches on Search Engines

This is a list of the Dow Jones Industrial Average stocks sorted in order of stock symbol searches according to Overture. Obviously, some of the search numbers will be meaningless from a financial standpoint, such as for Caterpillar (CAT). It is also uncertain whether someone who types in the symbol for International Business Machines (IBM) is looking for info on the company or the stock. Whereas, a search for MSFT is most likely a search for the Microsoft (MSFT) stock and INTC is a search for Intel (INTC) stock.

AT&T INC. (T) 211,493
ALCOA INC (AA) 118,799
GEN MOTORS (GM) 76,260
BOEING CO (BA) 44,393
DU PONT (DD) 35,092
INTEL CP (INTC) 26,481
3M COMPANY (MMM) 13,630

By Fred Fuld at

Ship Two Washers for $1,000,000: Talk About a High Profit Business

The U.S Government paid $998,798.38 to C&D Distributors of Lexington, South Carolina to have two washers shipped to the Middle East, according to a news report. The washers are not the washing machine type of washers, they are the little nuts and bolts type of washers, the kind that could be put in a small envelope and sent for 90 cents for first class international air mail. Obviously, the government is going after the company to get back the overcharges.

$2,100 for a Ham

For only $160 per pound, you can get a 2006 Alba Quercus Reserve ham from Spain. This gourmet ham will be available in 2008.

Friday, August 17, 2007

$2.3 million for Steve McQueen's Car: The Continuing Hot Auction Market

A few months ago, I discussed the various auction companies such as Sotheby's (BID). Sotheby's recently increased their dividend by 50%. For the last several months, I have continued to describe how the auction market has remained hot, no matter what the stock market is doing. For example, there is the $2 million for John Lennon's eyeglasses. There was the $2.3 million for a two inch chair. There was also $312,000 for Jerry Garcia's guitar.

This is a perfect example. Christie's recently sold a Ferrari that had been owned by the famous actor, Steve McQueen. It sold for $2.3 million, almost twice the high estimate.

Hong Kong Stocks: Financial Center of the World

Some interesting facts about Hong Kong:

1. It is one of the two special administrative regions of the People's Republic of China, the other being Macau.
2. It was a dependent territory of the United Kingdom from 1842 to 1997.
3. It has the third highest population density in the world.
4. It is ranked 6th in terms of GDP per capital, higher than the UK, France, Germany, Italy, and Japan.
5. It is ranked 22nd in term of the Human Development Index.
6. It has the highest concentration of corporate headquarters in Asia.
7. It is the wealthiest urban center in China.
8. Milton Friedman called Hong Kong a prime example of laissez-faire capitalism in practice.
9. According to the Index of Economic Freedom, they were ranked the world's freest economy for 13 years in a row.
10. It is the world's eleventh largest trading territory in the world.
11. The total value of imports and exports exceed its gross domestic product.
12. It has more consulates than any other city in the world.
13. The Hong Kong Stock Exchange is the fifth largest in the world.
14. It had more money raised through initial public offerings last year than any other place in the world except London.
15. It is the third-best financial center in the world according to the Global Financial Centres Index.
16. Over 90 percent of its gross domestic product comes from services.
17. It is one of the Four Asian Tigers.

The following Hong Kong stocks trade either on the New York Stock Exchange or NASDAQ. Some of these companies are very large and some are very small and speculative.

Melco PBL Entertainment (Macau) LTD. (MPEL) operates six Mocha Club casinos, and has two projects under development, the Crown Macau Hotel Casino and the City of Dreams casino. The forward P/E is 143.50 and an extremely high PEG of 163.50.

Asia Satellite Telecommunications Holdings Ltd. (SAT) provides broadcasting, telecommunications, Internet, and multimedia satellite transponder services to customers in Asia, the Middle East, Europe, and Australia. This New York Stock Exchange traded company has a P/E of 12.74 and pays a decent yield of 3.7%.

China Netcom Group Corp. Hong Kong Ltd. (CN) provides broadband communications and landline telecommunications services in China. This New York Stock Exchange stock, which is actually based in Beijing, has a P/E ratio of 9.4. The stock has been paying an annual dividend for the last three years.

City Telecom HK Ltd. (CTEL) provides telecommunications, Internet and pay television services throughout Hong Kong. This NASDAQ traded company has generated negative earnings but pays a yield of 2.2%.

CNOOC Ltd. (CEO) explores and produces crude oil and natural gas in China. They own four offshore oil fields in the China seas. This $44 billion company by market cap, which trades on the New York Stock Exchange, has a P/E of 10.7, and a yield of 3.3%.

Corgi International Ltd. (CRGI) develops and sells collectible toys, gifts, and other products, including licensed toys for Batman, Disney Classics, Harry Potter, James Bond, Lord of the Rings, Pirates of the Caribbean, and Superman. This extremely low cap NASDAQ stock has generated negative earnings and should be considered extremely speculative.

Grand Toys International Ltd. (GRIN) develops, manufactures, and sells toy and toy-related products, party goods, stationary, and accessories. around the world. This NASDAQ traded company is very low cap and should be considered very speculative. The company has been generating negative earnings.

Hutchison Telecommunications International Ltd. (HTX) provides mobile and land line telecommunications services in Hong Kong, Macau, India, Israel, Thailand, Indonesia, Vietnam, Sri Lanka, and Ghana. This New York Stock Exchange stock has an extremely high P/E of 260.43.

APT Satellite Holdings Ltd. (ATS) provides broadcasting and telecommunications satellite services to China and Asia. This stock, which has been generating negative earnings, has a very low market cap and is therefore extremely speculative, in spite of the fact that it trades on the New York Stock Exchange.

ASAT Holdings Ltd. (ASTT) designs and sells semiconductors. This NASDAQ stock, which has been generating negative earnings, has a very low market cap and is therefore extremely speculative.

Author does not own any of the above.

By Fred Fuld at

Thursday, August 16, 2007

Top 350 Monthly Dividend Stocks

There are over 350 stocks which pay their dividends monthly. Conservative investors love these investments for several reasons: they get their return of capital back faster, they can compound faster, the income coincides with their monthly expenses, they are more liquid than individual corporate or municipal bonds, there is no minimum investment allowing them greater diversification, and there is the potential for capital appreciation for some of these stocks. To get a downloadable list of all the monthly dividend stocks that you can open in Excel which you can sort, add to, delete from, or change, go to

There are some caveats you should be aware of. For purposes of this article, it is assumed that exchange traded funds [ETF’s], real estate investment trusts [REIT’s], and Canadian oil income royalty trusts are considered stocks. Dividends are always subject to change and reduction, including changes in payment schedules from monthly to quarterly. The principal can also drop, by even more than the amount of the income received. The information on these stocks was gathered over the past couple weeks, so obviously some yields have changed during that time frame. Some of these stocks are extremely speculative, and high yield does not mean safe. The Canadian royalty trusts have special tax issues that you should be aware of, especially if you are planning on putting them in a retirement plan. A Canadian law which goes into effect in 2011 can affect the price and income of the Canadian stocks.

Remember, these are monthly dividend stocks, in case you are wondering why your quarterly dividend stock does not appear on the list. I’ve extracted the top eight from the list, including the highest yielding from various categories, such as tax-free, real estate oriented, and Canadian royalty trusts.

At the top of the list, in terms of yield, and probably in terms of risk, is the RMK Strategic Income Fund (RSF), which yields 24.9%. This is a closed end fund which is extremely speculative due to its portfolio holdings which include home equity loans, commercial loans, franchise loans, equipment leases, manufactured housing, common stocks, collateralized debt obligations, certificate-backed obligations, and collateralized mortgage obligations. The company has been paying 14 cents per month for the last nine months, down from 15 cents per month last year. I personally don’t think the dividend is sustainable.

Pengrowth Energy Trust (PGH) is the highest yielding monthly Canadian oil royalty income trust, with a yield of 16.2%. They own and operate interests in oil and natural gas properties in Canada. They have increased their monthly dividend for the last two months and the dividend is the highest it has ever been in the last three years. The price earnings ratio, for what it is worth, is 13.6.

The highest yielding monthly growth and income fund is Boulder Growth & Income Fund Inc. (BIF), which yields 14.1%. This CEF invests in common stocks in both the U.S. and outside the U.S., warrants, corporate bonds, treasury bills, and repurchase agreements. It was founded in 1972 and is co-managed by Boulder Investment Advisers and Stewart Investment Advisers.

Neuberger Berman Real Estate Securities Income Fund Inc. (NRO) is the highest yielding monthly real estate CEF, as opposed to a REIT. The fund, with yields 13.6%, invests in real estate investment trusts and other real estate stocks. They have paid their dividend monthly since their inception in 2003 and recently raised their dividend in May of this year.

The highest yielding American royalty trust is Mesa Royalty Trust (MTR), with a yield of 13.2%. Mesa, which is based in Austin, Texas, owns oil and gas royalty interests in Kansas; New Mexico, Colorado, and Wyoming. The have been paying monthly dividends since 1988.

The top yielding monthly bond CEF is the New America High Income Fund Inc. (HYB), which yields 12.8%. Their portfolio holds below investment grade corporate bonds. They have paid monthly dividends since April 1988.

The highest yielding convertible fund is the Calamos Convertible Opportunities & Income Fund (CHI), which generates a yield of 11.7%. They invest in convertible bonds and regular bonds of all ratings. They have paid their monthly dividends since August 2002.

BlackRock Municipal Income Trust (BFK) is the highest yielding municipal bond CEF, with a 6.8% yield. It invests at least 80% of its portfolio in municipal bonds that are investment-grade quality and up to 20% in lower grade munis. It has paid monthly dividends since September of 2001.

Author does not own any of the above.

By Fred Fuld at

Pet Stocks: 9 Best Ways to Make Money from Animals

Is this the dog days of summer? Dogs and cats and other pets are big business and are big consumers of food, toys, medical care, and numerous other pet items. In a previous article back in February, I wrote about stocks that catered mostly to dogs. I also had previously written about the DOG ETF [exchange traded fund] which has absolutely nothing to to with animals. Here are nine stocks in no particular order which cater to various types of pets that you might want to sink your teeth into. Hopefully, you won't be barking up the wrong tree. All of these have market caps over $250 million.

Petsmart Inc. (PETM) is a Phoenix company that is one of the few publicly traded companies that seems to offer everything for dogs and other pets. In addition to selling toys, food, and other products, they also offer services such as grooming, baths, toenail trimming, and tooth brushing, training and boarding at their Pet Hotels, through their website and their stores. The stock has a price to earnings ratio of 16.5, a price earnings to growth of 1.08, and even generates a small yield of 0.4 percent.

Patterson Companies Inc. (PDCO) distributes lab supplies, paper goods, needles and syringes, gauze and wound dressings, sutures, latex gloves, orthopedic, and casting products; pharmaceuticals, including anesthetics, antibiotics, injectibles, ointments, and diagnostics to veterinarians. The P/E is 24.41, and the PEG is 1.34.

MWI Veterinary Supply, Inc. (MWIV) distributes pharmaceuticals, vaccines, diagnostics, capital equipment, supplies, veterinary pet food, and nutritional products to veterinarians. The P/E is 27.35 and the PEG is 1.78.

Bayer AG (BAY) produces many types of products and pharmaceuticals, but it also has a pet health division which makes Advantage flea control and K9 Advantix flea, tick, and mosquito control. The P/E is 10.58 and the yield is 1.5%.

VCA Antech Inc. (WOOF) provides veterinary services and animal diagnostic testing services and products. The P/E is 30.58 and the PEG is 1.76.

Animal Health International, Inc. (AHII) sells about 35,000 animal health products. The forward P/E is 15.8 and a PEG of 1.51.

Henry Schein Inc. (HSIC) is primarily in the dental products business but also distributes animal health products and practice-management software systems for dental and medical practitioners and animal health clinics. The P/E is 28.13 and the PEG is 1.34.

PetMed Express Inc. (PETS) markets prescription and non-prescription pet medications and other health products for animals. The P/E is 21.71, and the PEG is 1.21.

Central Garden & Pet Co. (CENT) sells edible bones, premium edible and non-edible chews, premium dog and cat food, leashes, collars, toys, pet carriers, grooming supplies, and other pet accessories. The P/E is 22.79 and the PEG is 1.53.

Author owns BAY.

By Fred Fuld at

Picture courtesy of the White House.

The iPhone Music Video: Wall Street Video of the Week

This is the Wall Street Video of the Week. If you haven't seen the iPhone Music Video created by David Pogue of The New York Times, you should check it out. The iPhone is made by Apple Inc. (AAPL) which trades on NASDAQ.

No Payment Mortgages Ended by MD Atty Genl

The Maryland attorney general put an end to an investment/mortgage scheme whereby home borrowers would turn over a portion of the loan to an investment company to invest in various things such as ATM machines and credit card readers, and the returns would be used to pay off the mortgages.

Wednesday, August 15, 2007

Wall Street Quote of the Week

"Never invest in anything that eats or needs repainting."

~ Billy Rose (1899-1966) Composer and entrepreneur

Hedge Fund Index Down for July

The RBC Hedge 250 Index was down slightly for the month of July, with a year to date return of 6.82%.

Corporate Gibberish Generator

Are you the CEO of a tech company that is planning to go public? Check out the Corporate Gibberish Generator, which gives you lots of great verbiage (gibberish) that you can put in your prospectus.

Stocks versus Gas versus Steak

Here are the charts of the week. First, the S&P 500 versus the price per gallon of unleaded gasoline at the pump over the last ten years.

Second, the S&P 500 versus USDA Choice Sirloin Steak per pound.

By Fred Fuld at

Tuesday, August 14, 2007

$12,000 Tax Bill Paid in Coins

A Muncie, Indiana man who was upset with his property tax bill, paid his tax with $12,656.07 in coins and one dollar bills. It took an hour and a quarter for the tax office to count up all the money.

$311,491 to get a Passport

The State Department is now denying passports to parents who are behind on their child support payments, under the Passport Denial Program. The collected $311,491 in back child-support payments from just one man, and over $22 million has been collect this year from the program.

Long Term Healthcare for Your Portfolio

According to the Census Bureau, the number of Americans over the age of 65 increased by 8.3% over the last six years, and based on their projections, there will be 19,570,000 more Americans over 65 in the next 13 years. One of the consequences of the aging population is the increasing need for long term care. Here are some stocks which are primarily involved in the long term health care industry worth an examination. All have market caps over $300 million.

Sun Healthcare Group, Inc. (SUNH) is a California based company is a provider of long-term, sub-acute, and specialty healthcare services The stock has a P/E of 15.99 and a PEG of 1.05.

Kindred Healthcare, Inc. (KND) is a Kentucky based company which operates long-term acute care hospitals that provide outpatient services, nursing care, and long term care. The stock has a P/E of f 15.72 and a PEG of 1.49.

Skilled Healthcare Group, Inc. (SKH) is a California based company operates long term care facilities and provides post acute care services. The stock has a P/E of f 16.01 and a PEG of 1.21.

National HealthCare Corporation (NHC) is a Tennessee based company which operates long-term health care centers, assisted living centers, and independent living centers. The stock has a P/E of 16.75 The company pays a yield of 1.60%.

Odyssey HealthCare, Inc. (ODSY) is a Texas based company which provides hospice care services. The stock has a P/E of 20.33 and a PEG of 1.61.

Sunrise Senior Living, Inc. (SRZ) is a Virginia based company provides independent and assisted living services to seniors. The stock has a P/E of 22.37 and a PEG of 2.01.

Manor Care, Inc. (HCR) is a Ohio based company which provides skilled nursing care, assisted living care, post-acute medical and rehabilitation care, hospice care, and home health care. The stock has a P/E of 28.01 and a PEG of 1.57 The company pays a yield of 1.10%.

Assisted Living Concepts, Inc. (ALC) is a Milwaukee based company which operates over 200 assisted living residences for seniors. The stock has a P/E of 43.62 and a PEG of 1.71.

Brookdale Senior Living, Inc. (BKD) is a Chicago based company which operates independent living facilities, assisted living facilities, retirement centers, and continuing care retirement communities. The stock has been generating negative earnings, but pays a yield of 5.10%.

Emeritus Corporation (ESC) is a Seattle based company which owns and operates assisted living, and Alzheimer's and dementia care residential communities for senior citizens. The stock has been generating negative earnings.

Author does not own any of the above.

By Fred Fuld at

Picture courtesy of the White House.

WV Online Investment Fraud Game

The West Virginia Auditors Office has developed an online computer game which involves the detection of investment fraud. The game is designed primarily for teenagers but anyone can play it. It is being released today by the North American Securities Administrators Association.

The Spinning Circular House

This is the real estate picture of the week, with a circular building near the top of Mt. Helix in La Mesa, near San Diego. You may have to move around the Bird's Eye View picture to see the structure.

Monday, August 13, 2007

The Really BIG Problem with (Real Estate) Short Sales

Financial authors don't seem to be mentioning this problem and economists don't seem to be building this issue into their projections. First, let's describe what a 'short sale' is, not a stock market short sale (which is totally unrelated) but real estate short sales. A real estate short sale is when a homeowner, who is unable to make the payments on their house, put their house up for sale at a price below the amount of the mortgage, with the agreement of the mortgage company or bank that holds the mortgage.

The advantage to the homeowner is that no mortgage payments have to be made while it is listed, they get to live in the house tax-free, and a foreclosure doesn't show up on their credit report. The advantage to the bank is that they don't have to foreclose, they don't have to maintain the house , and they don't have to get into the business of reselling the home. They also don't get stuck with an illiquid asset that hurts their balance sheet.

But here is the timebomb. All homeowners who sell their property under a short sale are subject to paying tax on the amount forgiven. Escrow companies will send out 1099 forms, so the IRS will be fully aware of the homeowner's tax obligation. Sorry, the Homeowners Exemption on Gains doesn't apply. Here is what it says at the House of Representatives Ways and Means web site, which has the Statement of National Association of Realtors.

The news reports have not mentioned the tax problem that sellers in short sales and foreclosures will face if lenders forgive (i.e., do not require payment on) some or all of a mortgage debt at the time of disposition. These sellers just might get a visit from the IRS.

Current Law. Any lender that forgives debt is required to provide a Form 1099 information report to the borrower and to the IRS stating the amount of the forgiven debt. The Form 1099 is required in any circumstance when a debt is forgiven, whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of a debt.

I know someone who is going through a short sale now at $160,000 below the outstanding mortgage. I'm sure he doesn't know about the tax consequences. At a 28% Federal tax bracket plus the high state bracket (for California), he may owe in excess of $50,000. This is for someone who can't afford a $3800 per month mortgage. What is he going to do about the tax? What are all the thousands and thousands of short sellers going to do? What is the IRS going to do? If they issue a lot of liens, the short sellers won't be buying any houses, cars, or any other confiscatable assets for a long, long time.

Free Etch-A-Sketch

Want a free Etch-A-Sketch? It requires Flash in order for it to work. The real Etch-A-Sketch is made by Ohio Art Co. (OART.PK), an extremely low market cap stock.

Diebold Deletes Negative Info from Wikipedia

Diebold (DBD), the voting machine and ATM manufacturer which trades on the New York Stock Exchange, was discovered to have deleted information critical of the company, relating to their e-voting machines, according to Wikipedia Scanner, a software which traces back all Wikipedia changes to their IP addresses and then cross-references to who controls those addresses. Someone at Diebold also deleted information about the CEO's involvement in fundraising for President Bush.

Google No Longer Selling or Renting Videos

Google (GOOG), which trades on NASDAQ, has decided to shut down its video service. According to a report by the BBC, money spent on videos from Google would not be refunded, but would be given Google Checkout credits.

Playboy is Going After Women (as customers)

Playboy Enterprises (PLA), the publisher of the famous men's magazine, has decided to go after women as customers in order to increase company revenues, through its licensing division, with t-shirts, lingerie and other items.

You Think the Market Was Crazy Last Week? Just Wait.

If you think the stock market was volatile last week, just watch what is going to happen this week. The market should be just as choppy if not way more choppy. Don't forget what Friday is.

Hint: Option Expiration Day

Baby Stocks

The press has been reporting that actress Denise Richards wants ex-husband Charlie Sheen to father her next baby, according to Sheen. There were rumors circulating in the news that Angelina Jolie may be pregnant with Brad Pitt's baby. TV actress Jill Hennessy of Crossing Jordan is six months pregnant with her second child. Actress Helena Bonham Carter, who starred in Harry Potter, is pregnant with her second child. Actress Samantha Morton, the Minority Report star, is pregnant with her second child. Actress Sara Gilbert, who starred on the 'Roseanne' TV show, just gave birth to a baby girl. Spice Girl Emma Bunton just had a baby. Actress Jennifer Garner recently had a baby. Is having a baby the 'in thing' now?

Is there a way to play the Baby Sector? Here is a list of several companies which generate revenues from babies to some degree.

Target (TGT) is the fifth largest retailer in the United States, the fifth largest retailer of music, and the largest seller of gift cards. For babies, it sells toys, clothing, health products and bedding. The stock has a price earnings to growth ratio of 19 and a PEG of 1.17, with a yield of 0.9%.

Wal-Mart (WMT) is the largest toy seller in the world, and is the largest private sector employer in the world. It controls approximately 45% of the retail toy business in the United States. It also sells numerous products for babies. The stock has a P/E of 16.7 and a PEG of 1.17, with a yield of 1.9%.

Mattel's (MAT) is the world's largest toy company based on revenues. Their Fischer Price division makes Babygear Products, including baby monitors, booster seats, bouncers, car seats, high chairs, play yards, strollers, baby swings, tubs, and potties. It also sells various Disney (DIS) Winnie the Pooh products, and various Sesame Street products. The stock has a P/E of 16.5 and a PEG of 1.48, with a yield of 2.9%.

Kimberly-Clark Corporation (KMB) is the manufacturer and distributor of Huggies disposable diaper, along with other paper products, such a Cottonelle toilet paper and Kleenex tissues. The stock has a P/E of 18.24 and a PEG of 2.14, with a yield of 3.1%.

Procter & Gamble Co. (PG) sells Pampers, the most popular brand of disposable diaper in the world, Dreft, a popular brand of baby laundry detergent, Luvs, a budget brand of disposable diapers, along with numerous other personal care products. The stock has a P/E of 21.13 and a PEG of 1.61, with a yield of 2.2%.

Nestlé (NSRGY.PK), the Swiss company, owns Gerber Products Company, a major producer of baby food. They also are the largest producer of baby formula in the world, as the manufacturer of Good Start.

Bristol-Myers Squibb (BMY) is one of the Top 100 companies for working mothers according to Working Mother Media. Their division, Mead Johnson, manufactures Enfamil baby formulas and Tri-Vi-Sol and ConvaTec infant vitamin supplements. BMY also makes numerous other pharmaceuticals and health care products. The stock has a P/E of 35.58 and a PEG of 1.46, with a yield of 4%.

Abbott Laboratories (ABT) division, Ross Pediatrics, makes Similac-LF (lactose free), Similac Advance, Isomil Advance and NeoSure Advance infant formulas. Abbott also makes numerous other health care products and pharmaceuticals. The stock has a P/E of 43.35 and a PEG of 1.63, with a yield of 2.4%.

Wyeth (WYE) makes Prevenar, the first and only pneumococcal conjugate vaccine for infants and one of Wyeth's top revenue producers. It also has various brands of infant formulas, along with various types of pharmaceutical products. The stock has a P/E of 14.23 and a PEG of 1.9, with a yield of 2.1%.

Johnson & Johnson (JNJ) is well known for its JOHNSON'S Baby products division. J&J owns the website and the website. They also make AVEENO Baby wash and cream, Johnson's Baby Bath, Baby Wash, and Baby Bar, NO MORE RASH™ Diaper Rash Cream, Johnson's Baby Lotion, Baby Oil, Baby Powder, and Baby Shampoo. They even make a Baby Cologne! The stock has a P/E of 17.02 and a PEG of 1.98, with a yield of 2.7%.

Author owns MAT and PG.

By Fred Fuld at

Picture courtesy U.S. Government CDC.

Sunday, August 12, 2007

Wall Street Quote of the Week

"Be bullish in a bull market, but don't be either a bull or a bear all the time."

~ Joseph D. Goodman, the first Forbes columnist

For more famous stock market quotations, check out

Microsoft House: Wall Street Picture of the Week

Have you seen the Microsoft House yet? Everyone talks about the Apple fans, or should I say fanatics. Microsoft (MSFT), which trades on NASDAQ, has their fans also.

An Investment in a Lunatic Asylum?

On August 29, the state of West Virginia will be selling off the unoccupied Lunatic Asylum West of the Alleghenies, which was built prior to the Civil War. The property includes over 300 acres, and will be sold at auction. Predictions for the Rest of the Year

1. The residential real estate market will get far worse, and not just due to the sub-prime mortgage problem. Many middle class borrowers that have loans which started out with teaser rates are also suffering. The home inventory (the number of houses on the market) is huge and the number of sales have tanked in most of the major real estate area of the United States.

2. Politicians will probably pass laws to severely limit the number of sub-prime mortgages in the future, eliminating no-equity loans, 125% loan to value loans, low teaser rate loans, etc. This will drive a stake through the heart of the real estate market, destroying the potential for the working class to buy starter homes, eliminating the move-up real estate market. It will also eliminate the possibility of sub-prime borrowers to refinance.

3. Many “real estate investors” who have never invested in real estate before are now talking about finding bargains in the real estate market. That means that the real estate market is far from the bottom. These “investors” will get burned, making the market worse and adding fodder to the press about the real estate mess. Never try to catch a falling boulder.

4. The Federal Reserve Board will eventually lower rates but it will do almost nothing to help the real estate or mortgage market.

5. A few major hedge funds will go under, and at least one major investment firm will experience severe problems causing either its collapse or a forced takeover. The government will do a lot of saber rattling about more regulation of hedge funds but will do nothing about more regulation (and should do nothing about more regulation) because they will realize that it was primarily the wealthy that lost money in them. The press will really play this up, trying to find reasons for passing blame on the wealthy for investing in such funds in the first place, saying that the wealthy deserve what they got, and insinuating blame for most the other economic problems.

6. More mortgage companies will declare bankruptcy and at least one major homebuilder will go under.

7. The stocks of investment brokers and investment banks will stagnate, at least for the next couple months, and probably for the rest of the year.

8. The bank stocks will also languish despite their high yields.

9. The Good News: Many stocks which have nothing to do with mortgages or real estate with be significantly higher by year end, making all time highs. The yields on stocks will have gotten so high and financial ratios (price to earnings, price to sales, and price earnings to growth) will have gotten so low, that astute investors will take advantage of these bargains. When these stocks start to rise, you will read in the press that it is a temporary bounce, a short squeeze or just a short term rise before a bigger fall. But it won’t be any of these; it will be a real bull market in these stocks. The press will all but ignore this good news, as most of the headlines about financial topics will be about people losing their homes, mortgage companies going under, and hedge funds collapsing.

10. Seven stocks which should be much higher by year end, which I am not recommending but suggesting for further research, are:

Lafarge SA (LR) at 39.19, is a France based company which sells construction materials

URS Corp. (URS) at 50.24, provides engineering and technical design services

Pepsico (PEP) at 67.95, manufactures Pepsi, Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist and many other beverages

Kimberly-Clark (KMB) at 68.21, makes and sells health and hygiene products, such as Kleenix, Kotex, Depend, Cottonelle, and Viva towels

Johnson & Johnson (JNJ) at 61.15, makes health care products including Band-Aids, Neutrogena, Splenda, Tylenol, Listerine, and Sudafed

UIL Holdings (UIL), at 30.78, a utility in the southwestern part of the state of Connecticut

Anheuser-Busch Companies (BUD) at 48.73, the large brewer

Author does not own any of the above.

By Fred Fuld at

Saturday, August 11, 2007

Egypt Stocks: More than Pyramids

Some interesting facts about Egypt:

1. It is ranked 29th in terms of GDP.
2. It has extensive coal, oil, and natural gas reserves.
3. It’s primary industries are agriculture, media, petroleum exports, and tourism.
4. It is the third-largest recipient of U. S. foreign aid.
5. It was rated as one of the top countries in the world undertaking economic reforms by the IMF.
6. In 2005 it decreased corporate taxes from 40% to 20%.
7. It is supposedly the highest earner of Foreign Direct Investment on the African continent in 2007.
8. It is the country with the highest population in the Middle East.

Here are some Egyptian stocks worth checking out.

Commercial International Bank (CMGGF.PK) is a bank holding company in Egypt with 74 branches. Net profit for the latest quarter was 56.39%, operating margin of 61.91%, and return on average equity of 44.96%.

EFG Hermes GDR (EFGZF.PK) is in the business of investment banking, private equity, asset management and investment brokerage, and the manage two funds, the Jordan Hi-Tech Venture Fund Limited, which invests in the information technology sector in Jordan, and the Middle East Technology Fund. Net profit margin for the latest reported quarter was 58.27%, operating margin of 68.62%, and a return on average equity of 13.17%.

El Ezz Steel Rebars (ALZJF.PK) manufactures and markets steel, ceramics, sanitary ware, and pipes. Operating margin for the latest reported quarter is 21.84% and a return on average equity of 37.45%.

Orascom Construction GDR (ORSDF.PK) is in the business of manufacturing and marketing building materials, and in construction contracting, operating in 20 countries. Operating margin was up only 0.46% and return on average equity was down slightly.

Orascom Telecom SAE (ORSTF.PK) is an international mobile communications operating in Algeria, Pakistan, Egypt, Tunisia, Iraq, Bangladesh and Zimbabwe. Operating margin for the latest reported quarter was 18.32% and the return on average equity was 33.31%.

Suez Cement (SUZXF.PK) is a manufacturer and marketer of gray and white cement. Operating margin for the latest quarter increased by 36.63% and the return on average equity was 17.85%.

Telecom Egypt (TEGPY.PK) provides retail and wholesale landline telecommunication services. It has an operating margin of 25.40% and a return on average equity of 6.26%.

Author does not own any of the above.

By Fred Fuld at

Worldwide Spam Increases 30% in One Day: Stock Spam

According to an article in InformationWeek, researchers have discovered that worldwide spam increased by 30% IN ONE DAY, all due to a pump and dump stock spam for just one stock. The spammer are using attached pdg files to send their message. [I've been getting a ton of spam with attached pdf's. I thought it was a new way of spreading a virus and someone had found a way to create an executable in an Adobe pdf file.] Sophos, the anti-spam software company, has said that stock spam accounts for 25% of all spam.

Time to Invest in a Jail?

An Illinois county may be putting up an old jail for auction. This 1911 jail building will be sold if the Illinois Historical Preservation Society doesn't want it. A real estate investor could buy it and maybe convert it to a micro-apartment building, or even better, an exotic vacation getaway for the rich and famous.

Friday, August 10, 2007

Speculate on Housing Prices, Yahoo Microsoft Merger or the CPI: Only $100

There is a commodities exchange called the HedgeStreet Exchange, which issues binary contracts for currencies, gold, silver, the federal funds rate, the CPI, housing prices (for Chicago, Los Angeles, Miami, New York, San Diego, San Francisco, Boston, Denver, Las Vegas, and Washington DC), crude oil, natural gas, various mergers (e.g. Yahoo / Microsoft), Wal-Mart (WMT) earnings, Bebe (BEBE) earnings, and Wal-Mart revenues.

I spoke to one of the executives of the firm at the San Francisco Money Show a couple weeks ago who said that they are in the process of adding several new types of contracts. By the way, a binary contract means all-or-none at the end of the contract, however, the contract can be traded before expiration.

As an example, suppose you want to speculate that Wal-Mart's earnings (which are coming out on August 14), are going to be above 76 cents per share. Currently the $100 contract for the Wa-Mart EPS > $.76 is listed at 50 bid and 58 asked. If you place an order at the asked price of $58 [you can place limit orders below the asked price also] and the stock reports earnings above $.76, you would receive $100 in return. If not, you would receive nothing. If the contract increases in price during the next couple days, to $75 for example, you can also just sell the contract. The other option is buying the stock, tying up a lot more money and hoping that the stock would go up if it reports earnings above $.76. But with, your losses are limited to $100 per contract.

I decided to give the exchange a try. The instructions and explanations were very easy to understand and setting up an account was easier than any other account I've set up online. I've already opened three real estate positions, and I'm ahead on two of them. This morning [afternoon Eastern time], I sold a contract on the price of crude oil closing under a certain price at 2:30 pm EST today at 48. So basically, I had to put up $52, my maximum potential loss. Oil closed under the limit price and I therefore received $100 in return. Remember, I sold the contract [like shorting a stock], I didn't buy it. So my return for the hour was 92%. Not bad for a days work.

Hedgestreet is regulated by the Commodity Futures Trading Commission. The commission is one dollar per contract. If you are interested in speculating or hedging in small amounts, or predicting earnings per share on stocks, you should check them out.

By Fred Fuld at

Thursday, August 09, 2007

Fashion Model Hangs Up on Phone Co. She Represents

Dora, the German supermodel who is the poster spokeswoman for Deutsche Telekom (DT), the largest telecommunications company in Germany which trades on the New York Stock Exchange, has waited three months to get phone service at her apartment. She has threatened to switch to another phone service provider.

Disclosure: I own shares in DT.

Get a Free Jim Cramer Mad Money Sound Board

Do you like hearing all the sounds on Jim Cramer's Mad Money TV show (house of pain, house of pleasure, don't buy, buzzer, etc.) Do you like his sound board? Would you like one for yourself? Just go to the Mad Money website. Don't forget to turn your sound on (mute off) and turn up the volume!

Need Extra Money? Play Computer Games

If you like to play computer games and you like money, this may be for you. is going to be offering a service where computer game players chip in a fee, and the winners get the money that was collected. They claim it is not gambling.

Where to Get Real Estate Cheap!

One of the best places to look for very inexpensive real state is on eBay (EBAY). Right now there is a Pennsylvania house listed for sale with a starting bid of $100 and the current bid is at $500 (at the time this is being written). This isn't a down payment auction; the bidders are bidding on the entire purchase price of the house. Such a deal!

Ten Largest Stock Exchanges

Here are the ten largest stock exchanges by market capitalization, and information about their ownership:

1. NYSE Euronext (NYX)
2. Tokyo Stock Exchange - privately held
4. London Stock Exchange (LDNXF.PK)
5. Hong Kong Stock Exchange - owned by a public traded holding company
6. Toronto Stock Exchange - owned by TSX Group (TSXPF.PK)
7. Frankfurt Stock Exchange - owned by Deutsche Börse (DBOEF.PK)
8. Shanghai Stock Exchange - non-profit
9. Madrid Stock Exchange - managed by Sociedad Rectora de la Bolsa de Valores de Madrid
10. Australian Securities Exchange - public, traded in Australia

Author owns NYX.

By Fred Fuld at

Picture courtesy of the U.S. EPA.

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

Wednesday, August 08, 2007

I Can't Believe This: No Wonder So Many Bad Mortgages

There is a website, and I'm not going to tell you what it is since I don't want to promote their services, that will provide Employment Verification for you for a nominal fee, even if you are unemployed, even if you have never held a job in your life. What they do is provide you with a paycheck stub for $55 and provide telephone verification for only $25, in order to prove that you are employed. It is assumed that the users of this service will use the pay stubs to help them to buy a house, rent an apartment, or qualify for a car loan.

This is the first time I've seen a site like this (I really haven't been looking for such a site; I just read about it in the Financial Times), but if this is one of many similar sites, then no wonder there are so many real estate, mortgage, and loan problems.

The way the site is written, what they provide appears to be technically legal, although I'm not entirely certain since I'm not an attorney. What the end user does with this might be another story. The company is based in California, of course.

OK, if you really want to see this site, you will need to work for it. Go to, and in the search box, type Subprime Investigators Culprits in the search box, click Go, and the first article should be the one you want. When you click on the title of the article, the website address appears in the first paragraph.

Financial Author Criticizes his own Books

According to an article he wrote for the Financial Times, the noted author, James Altucher, who also writes for, wrote negative book reviews about the three books he authored:

Trade Like a Hedge Fund: 20 Successful Uncorrelated Strategies & Techniques to Winning Profits

Trade Like Warren Buffett

SuperCash: The New Hedge Fund Capitalism

I've already read Trade Like a Hedge Fund and really enjoyed it. I got several good ideas from it [one of which I used a couple days ago - quite profitable I should add]. Now after reading this self-skewering review, I really want to go to Amazon and buy the other two.

Infrastructure Stocks: A Strong Foundation for your Portfolio

The very sad tragedy of the Minneapolis bridge collapsing was a wake-up call to state and local governments that many roads, bridges, and tunnels are in dire need of repair. There are many ways to invest in the infrastructure sector, from the cement producers, to the construction contractors, to the engineering and design consultants. For purposes of this article, infrastructure refers to 'hard' infrastructure, such as airports, bridges and power plants, as opposed to 'soft' infrastructure such as telecommunications and Internet bandwidth. Here is a large cross-section of several of the 'hard' infrastructure companies:

AECOM Technology Corporation (ACM) is a Los Angeles, California based company which provides architecture, engineering, construction management, project management, asset management, and environmental consulting services to governments and industry. Their P/E is 27.97 and their PEG is 1.12.

Cemex (CX), which is a Mexican company, produces and markets cement, ready-mix concrete, aggregates, and other construction materials for the construction industry. The stock carries a P/E of 11.9, a PEG of 3.82, and a yield of 2.4%.

Chicago Bridge and Iron (CBI), which is not based in Chicago, but in the Netherlands of all places, provides engineering, procurement, and construction services to the oil and gas, water, metals, and mining industries around the world. The stock has a P/E of 27.55, a PEG of 1.68, and a yield of 0.4%.

Fluor (FLR) is in the business of providing engineering, procurement, and construction and maintenance services around the world. The stock has a P/E of 40.31, a PEG of 1.73, and a yield of 0.7%.

Foster Wheeler (FWLT) provides engineering and construction services to the power plant, power generation, and oil and gas industries. The company has a P/E of 20.09 and a PEG of 1.5.

Granite Construction (GVA) is a California based heavy civil construction contractor which is working on the Woodrow Wilson Bridge in Alexandria, Virginia. . The P/E is 27.8, the PEG is 1.7, and the yield is 0.7%.

Jacobs Engineering Group, Inc. (JEC) provides engineering, architectural, technical, professional, and construction services to industrial and governmental organizations. The P/E is 30.6 and the PEG is 1.49.

Lafarge SA (LR) is a France based company which sells construction materials all over the world, including cement, aggregates, concrete, and gypsum. The stock has a P/E of 12.33 and a yield of 1.8%.

McDermott (MDR) has a government operations division which provides many services to various U.S. Government-owned facilities, including uranium processing, environmental site restoration services, utility and industrial power generation systems, and boilers. They also engineer offshore drilling and production facilities. The stock has a P/E of 21.94 and a PEG of 1.26.

Meadow Valley (MVCO), a Phoenix, Arizona based company involved in heavy construction. They also make and sell ready-mix concrete, sand, and gravel products. The stock has a P/E of 16.46 and a P/S of 0.35. It appears that no analysts cover this company.

Michael Baker Corporation (BKR), founded in Pennsylvania in 1940, provides engineering services, design-build services, construction management, consulting, planning, surveying, mapping, geographic information systems, and architectural services to both governments and the private sector. The stock has a P/E of 25.55 and a P/S of 0.49.

Perini Corporation (PCR) is a Massachusetts based company which provides general contracting, construction management, and design-build services to both the public and private sectors. The P/E is 24.63 and the PEG is 1.51.

Tetra Tech Inc. (TTEK) provides consulting, engineering, and technical services in the area of civil infrastructure. The P/E is 26.6 and the PEG is 2.04.

URS Corp. (URS) provides engineering and technical design services to federal, state, and local government agencies, along with private industry. The P/E is 20.97 and the PEG is 1.35.

Willdan Group (WLDN) is an Anaheim, California based company, located down the street from Disneyland. It provides civil engineering, building and safety, and geotechnical engineering services to small and medium size governmental agencies. The stock has a P/E of 10.04 and a price sales ratio of 0.89.

To download a list of all these infrastructure stocks and their financials in an Excel format which you can then sort, add to, or adjust, go to

Author does not own any of the above.

By Fred Fuld at

Picture courtesy of FEMA.

Time to Buy Coffee Stocks: Coffee Prevents Memory Loss (in Women)

French scientists have discovered that drinking three or more cups of coffee per day reduces memory loss in women over the age of 65. According to the report in the Neurology Journal, coffee may also help reduce the occurrence of dementia.

Entrepreneurial Business of the Week: Panda Dung

A perfect gift for your friends and relatives: bookmarks, picture frames, and Olympic-themed statues made from panda poop. The Chengdu Giant Panda Breeding Base in China came up with this idea to generate additional income and to eliminate the cost of getting rid of the animal dung. They claim that the products are odor free.

Tuesday, August 07, 2007

NYSE India Stocks: The Taj Mahal of Investments?

Many investors consider India to be the most secure of the three Asian BRIC countries, safer than Russia or China [Brazil is the fourth BRIC country]. Since the New York Stock Exchange has very strict requirements for being listed, investors often look towards NYSE stocks especially when investing in the company of a foreign country.

Some interesting facts about India:
1. It has the third largest economy in the world measured by purchasing power parity.
2. It has the tenth largest economy in the world in US dollar exchange-rate terms.
3. It is is the second fastest growing major economy in the world [9.4% GDP growth rate].
4. Services make up over 60% of their GDP.
5. The inflation rate is 5.3%.
6. It has the fourth-largest reserves in the world of coal.
7. It has the world's largest reserves of thorium, a slightly radioactive metal which has been considered an alternative nuclear fuel to uranium.
8. Its oil reserves provide 25% of the country's demand.
9. It ranks second worldwide in farm output.
10. It ranks fourteenth worldwide in factory output.
11. Its IT industry accounts for only about 1% of the total GDP.
12. In 2005, India liberalised its foreign direct investments policy to allow up to a 100% foreign investment stake in India based ventures.

Here are some Indian stocks worth looking into, all of which trade on the New York Stock Exchange and most pay dividends.

HDFC Bank Ltd. (HDB) is a Mumbai based bank which provides retail banking, wholesale banking, and treasury services. The stock has a P/E of 29.43 and a yield of 0.6%.

ICICI Bank Ltd. (IBN) is an India based bank holding company which provides commercial banking, investment banking, and insurance services. The stock has a P/E of 26.5 and a yield of 1.1%.

Mahanagar Telephone Nigam Ltd. (MTE) provides telecommunications services in Delhi and Mumbai. The stock has a P/E of 13.9 and a yield of 4.3%. The PEG is 1.96.

Patni Computer Systems Ltd. (PTI) is in the business of information technology consulting and software development. The stock has a P/E of 10.57 and a yield of 0.6%. The PEG is 0.69.

Are you ready for this one? Dr. Reddy's Laboratories Ltd. (RDY) is a pharmnaceutical company which researches, develops and markets drugs for the treatment of cancer, cardiovascular disorders, bacterial infection, and metabolic disorders. The stock has a P/E of 10.26 and a P/S of 1.63. It does not pay dividends.

Satyam Computer Services Ltd. (SAY) is in the business of information technology services and business process outsourcing services. They have a P/E of 27.14, a PEG of 0.93, and a yield of 0.6%.

Sterlite Industries India Ltd. (SLT) is a major producer of copper in India. They have a low P/E of 6.82. Earnings for the latest quarter were up 30% year over year on a revenue increase of 33%.

Tata Motors Ltd. (TTM) is a manufacturer of passenger and commercial vehicles. The P/E is 11.8 and it generates a yield of 2.3%.

Videsh Sanchar Nigam Ltd. (VSL) provides voice, data, and value-added services to companies around the world. The stock has a very high P/E of 426, a PEG of 2.75, and a yield of 1%.

Wipro Ltd. (WIT) is in the business of offering information technology services and products, and business process outsourcing services. The stock has a P/E of 26.44, a PEG of 1.07, and a yield of 0.9%.

WNS Holdings Ltd. (WNS) provides outsourcing services including data, voice, and analytical services, reservation, customer service, Web support, revenue accounting, audit and recovery, financial services processing, and many other services. The stock has a P/E of 35.57 and a PEG of 0.93.

Author does not own any of the above.

By Fred Fuld at