Stock Ideas 
Stock Ideas Investors Daily Edge American Spring, Indian Steel
Stock Ideas Investors Daily Edge American Spring, Indian Steel 
Market Watch
|
By Charles Delvalle In last week’s article, I told you that if you were bold, you would buy into the USD/JPY to take advantage of recent dollar strength. Well, I hope you took advantage of that, because you would have made some decent money. On Friday, the USD/JPY was around 116.912. Today, the USD/JPY is at 117.696. |
|
| More... |
Most Popular
Login Form
| American Spring, Indian Steel |
| Saturday, 19 April 2008 | ||||||||
|
By Andy Carpenter Today, I am going to start running the first of the many opinion pieces you sent in last week. There’s more below on the mechanics of that and how you too can get into the game. In fact, I nearly decided to skip the writin’ part myself this week and leave the heavy lifting to your contributions, because you guys are smart and I have caught a bad case of Spring Fever. Chances are you have it too. As I write this (Thursday afternoon), with the exception of a small swath of the US Midwest, we here on our side of the equator are under the influence of glorious spring weather. Here in Boston, we may hit 70 degrees for the first time in something like 175 days. But I won’t brag too much, because I am sure IDE readers under the equator are grooving on some spectacular autumn weather. Still, in lieu of bagging it altogether this week, I’ll be rolling down the windows for today’s ride. I have spent most of the day, as I do a couple times week, running through a spreadsheet of my projected valuations for about 200 companies that trade on the Hong Kong Stock Exchange. And before you get the idea that I am going to use that as a sleazy no-value-to-you entry point to talk about my newsletter, let me dissuade you of that idea, immediately. Like you, I quickly tire of email gabbers who offer nothing more than lame ideas that somehow are shoehorned to fit their high-dollar newsletter’s point of view. I read one recently – all the way through – that was making some truly ridiculous points about the power of micro-cap investing. And sure enough, after making it appear as if the Pink Sheets were a secret market stocked with nothing but profit whales, the author closed by referring me to a penny-stock service. One, I assumed that has done what no one else has – found a way to make billons of dollars off of the Pink Sheet garbage pile… and if I don’t subscribe today I’ll die a penniless wretch… hey, maybe I have a future as a copy writer.
WARNING: SHAMELESS SHILL AHEAD – Of course, that’s what I really like about IDE. Yes, missives from Charles, Lynn, Rusty, Andy Gordon, and Rick contain advertising but – and it’s a big BUT – 99% of the time you’ll not find a self-serving word among that crowd. You get free stuff… actual professional market insights… with an absolute minimum of hassle. So anyway, back to my spreadsheet. I was digging though my HKEx forward valuations, which you can buy for a zillion dollars because it’s only stocked with whales, and I started noodling around steel company valuations. A warm breeze was wafting through my office windows and next thing you know I was naked with daisies in my hair romping on the front lawn singing, “When the moooooon is in the seventh house and Jupiter aligns with Mars… Leeettttt the sunshine, Leeettttt the sunshine in, the sunshine in.” Whoops. I mean the next thing you know I was looking at the global steel industry as a whole. I found something interesting that pertains to the Indian steel industry. It looks to me as if Indian steel stocks are headed toward some very attractive gains after suffering a pretty stiff correction during the past three or four months. The best I can figure, most of that dive was due to misplaced fears of weak earnings caused by robust raw-commodity prices. And, while costs are an issue, I think Tata Steel and Steal Authority of India (SAIL) are due for a nice bounce… 15% to 20% over the short term. In fact, they may even be sweet long-term value plays considering that they trade at about a 35% discount to their global peers. On top of that, it looks like India’s government is set to step in and regulate prices… but in favor of state-owned SAIL. That means, at a minimum, jacked up prices could help all Indian steel outfits with second- and third-quarter earnings. This, at worst, should create a solid short- to medium-term low-risk/high-reward scenario for investors. Now, as promised, a word about the Saturday IDE opinion challenge, which is a very simple concept. Since we’re more relaxed here on the weekend, I thought it would be a great place for you to share your opinions… but, not in the usual two-line “hey a**hole,” way, but in the longer sign-your-work way. So, we’re opening up the spigot for your opinions… as long as they are decently well-thought and not more than 350 words long you’re in… I’ve got about 12 queued now… and as I said last week, don’t worry if you’re punctuation and grammar shy – I got people (me) to give you a hand up there. So, pen your opinion, paste it into the reply tab down below, and I’ll work my way through them and publish one to two a week, at minimum. Easy! See you next week. I’ll be the one with the big smile and the sunburn. Now, let’s turn things over to Bob then Kevin, both of whom show you just how easy it is to make a good, engaging argument… I am hearing footsteps. Lock and load. Andy P.S. To let me know what you thought of today's article, send an e-mail to: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Hold Some Feet to the Fire Over Weak Dollar By Bob Walters I can’t understand why some knowledgeable, aggressive, fiscally responsible politician or investigative journalist, or investment advisor has not been questioning this administration’s policy on the weak U.S. Dollar. It doesn’t take a Ph.D. in economics to realize that since the price of oil is tied to the dollar, a weaker dollar results in a higher price for oil. Oil or anything produced from oil is going to cost more the weaker the dollar becomes. Since the diesel fuel that the trucks use to deliver our food and everyday needs to the retail stores has more than doubled in the past year, it’s no wonder that the prices we have to pay have jumped by 20 to 40% in just the past year. This administration has stated many times that they are for a strong dollar, all the while doing absolutely nothing to correct the downward slide of the dollar. Likewise, it does not take an overly brilliant person to realize that this country is bankrupt and just continues borrowing to fund the wars in Iraq and Afghanistan. This, in my opinion, is the main reason that the dollar continues to lose value. As long as the dollar has nothing backing it except the “good will and promises” of the U.S. Government, it is not going to be worth more than the paper it is printed on. Why has the media been silent on asking our Presidential candidates what their plans are for restoring value to the dollar? I am not too concerned whether a candidate has an “emotional” moment or attends a church that had a radical pastor. I am concerned about losing everything that I have in my IRA and savings accounts should the dollar suffer a total collapse. Let’s start by making the candidates come up with a plan to restore value to the dollar and by holding the administration’s feet to the fire until they change course and start taking actions that will strengthen the U.S. dollar. The Greenanke Problem By Kevin Callahan I shall take you up on your challenge to pen a few words about my peeves! While it may be true that NEW HOME STARTS are down, in fact, further than they have been for many years, why are Home Depot and Lowe’s stocks so far down in the crapper? It only stands to reason that if America isn't building (and buying) new homes then they sure are fixing up the ones they presently live in! And where does the "weekend warrior" buy his supplies? Those two big boxes! The more I'm around the market the further convinced I am that it has everything to do with perception! Bernanke says that home sales are off and the two largest home improvement warehouses in the world start to tank. I'm in the remodeling field and I can honestly say that my crew has more work now than five years ago. People are still fixing up their homes. So why the low numbers on Depot and Lowe’s? Greenspan and Bernanke wouldn't know which end of the hammer to hold, so why place so much weight on their opinion? Thanks for the opportunity to let me vent. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
This investment news is brought to you by Investor's Daily Edge. Investor's Daily Edge is a free daily investment newsletter that is delivered by email before the market opens. It's published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you'll receive practical strategies for protecting your portfolio and multiplying your money. You'll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor's Daily Edge .
|
||||||||
| < Prev | Next > |
|---|
