Canyon Gate Medical Group Acquires Sparks Family Medicine, Ltd.
Sparks Family Medicine Marks First Canyon Gate Location in Summerlin
Canyon Gate Medical Group Acquires Sparks Family Medicine, Ltd.
Sparks Family Medicine Marks First Canyon Gate Location in Summerlin
Canyon Gate Medical Group Acquires Sparks Family Medicine, Ltd.
Sparks Family Medicine Marks First Canyon Gate Location in Summerlin
Zoom to Acquire TCB Digital
Definitive Agreement Also Anticipates Spinoff of Zoom's Current Business and Operations
TIPs, munis & corporates: ETFs for income
"The markets are littered with compelling buying opportunities that may be the best we see in a generation," says Keith Fitz-Gerald.
In The Money Map Report, he looks at a trio of income ETFs -- one focused on Treasury inflation protected securities, one invested in muni bonds, and one that buys high yield corporates.
"We are holding three positions in our portfolio which we believe can be bought with new money. First, we suggest iShares Lehman TIPS Bond ETF (NYSE: TIP). The 10 year TIPS' yield is 2.23% versus 2.40% for 10 year Treasuries.
"This means that the so-called break even rate between the two is a measly 0.17% annually (2.40% - 2.23% = 0.17%). Spreads are normally more than 2% points.
"Where this matters is that if inflation averages just 3% a year for the next ten years, TIPS stand to return 5.25% (2.25% + 3% inflation = 5.25%) making them a far better investment choice than regular treasuries of similar maturity as long as inflation is not less than -0.17%.
"And the odds that inflation dropping that low for such an extended period of time are not very likely given the surreal amount of cash Team Bernanke is dropping from their helicopter lately.
"Nuveen Quality Income Muni Fund (NYSE: NQU) invests in Federally backed municipal bonds. Under 'normal'market conditions, yields on munis and treasuries are about the same once you take tax consequences into consideration.
"Lately, muni yields are much higher. In fact, NQU offers a juicy 6.40% yield, which makes Treasuries pale in comparison.
"Admittedly, there is the possibility that some munis could fail in a recession, but everything we know from history suggests this risk is being overblown right now particularly with Uncle Sam acting as a risk taker of last resort.
"We also believe that iShares iBoxx $ Liquid High-Yield Bond Fund (NYSE: HYG) could appreciate significantly. As earnings deteriorate further, the Fed is getting ready for the financial equivalent of a shootout at the OK Corral.
"At the same time, it continues to assume the role of risk taker of last resort, which could dramatically lower the default risks presently priced into high yield corporate debt.
"There are no guarantees, of course, but at the present time spreads remain so far out of whack that even the smallest of 'mean reversions' could translate into big gains.
"If we’re right and the Fed is successful with the biggest financial gamble in its history, spreads between high yield debt and US treasuries may narrow considerably in the months ahead, which means gains for iShares iBoxx $ Liquid High-Yield Bond Fund.
"The ETF is also paying a healthy 12.03% monthly which means we’re also going to achieve a solid month income that helps us build up an even thicker layer of financial armor to stave off financial headaches that will cause others to reach for the aspirin bottle."
Merk Hard Currency (MERKX): Diversify out of dollars
"The Congressional Budget Office upped its 2009 fiscal year deficit forecast to $1.2 trillion; add in the stimulus plan, and the deficit could be above $2 trillion," says Tony Sagami.
The editor of The Asia Stock Alert says, "As a result, we believe that the U.S. dollar is in big, big trouble. To protect your portfolio -- or even profit from the falling dollar -- buy Merk Hard Currency Fund (MERKX)."
"For a long time, we have depended on the confidence and generosity of foreigners, especially the Chinese and Saudi Arabians, to fund our deficit spending lifestyle. Those days, however, are coming to a close.
"With the Federal Reserve Bank cutting its short-term interest rate target to range from 0% to 0.25%, I doubt you’ll see overseas investors lining up to buy our next-to-nothing yielding bonds.
"The U.S. is, unfortunately, a country in trouble and headed for a painful currency devaluation. Inflation is lurking around the corner.
"I never trust the data on inflation, because government statisticians are always manipulating the numbers. Instead, I pay attention to what the big money is doing with their money.
"The last Treasury auction of $8 billion in inflation-indexed notes drew the highest demand in nine years. Even though the yield on the Treasury Inflation Protected Securities, or TIPS, was a crummy 2.245%, the bid-to-cover ratio (a measurement of demand) hit 2.48 — the highest since January 2000.
"This tells me that the big money crowd is expecting inflation to pick up along with government spending. And nobody wants to hold the debt of a country that is experiencing rapid inflation.
"Meanwhile, we believe that the Fed wants to drive the dollar lower. The Fed didn’t reduce the target for its fed funds to range from 0% to 0.25% because it is worried about inflation. It chopped rates because they are scared to death of deflation.
"Further, foreign governments now need to keep their money at home to fund their own stimulus programs. That need, plus the measly yields on Treasury debt, is combination that will drive the greenback lower. China and Saudi Arabia are already diversifying out of U.S. dollar holdings.
"MERKX is a way to add some non-dollar-denominated investments to your portfolio. It is similar to a money market fund in that it keeps the average maturity of ]its holdings to less than 90 days and invests primarily in top-quality government debt. Its similarities with money funds end there, though.
"Instead of investing in U.S. government debt, MERKX invests in the debt of foreign countries. Not just any old country — only those of sound, established countries that follow a sound economic, fiscal and monetary policy, such as the Switzerland. The fund does not invest in any emerging market debt.
"Therefore, this $250 million fund, launched in 2005, is a pure play on 'hard' currencies and even includes a small amount of gold in its portfolio. What you end up with is a liquid portfolio of short duration, high credit quality, non-U.S. government debt of countries that pursue sound monetary policies.
"The fund is managed by Axel Merk, who founded Merk Investments AG in Switzerland in 1994. I'd add that the fund has a coveted Five-Star rating from Morningstar.
"If you share my pessimism for the U.S. economy and dollar, the Merk Hard Currency Fund is one that you’ll want to own. The minimum investment is $2,500 or $1,000 for retirement accounts, such as IRAs. This no-load fund also doesn’t have any redemption fees or minimum holding periods."
Barnes & Noble (BKS): Big money bets on bookseller
"Last spring, CEO Leonard Riggio of Barnes & Noble (NYSE: BKS) purchased almost $50 million-worth of his company’s stock between $27-29.50; today, it languishes on the remainder table at $17.56," says Mark Skousen.
In his top notch speciality service, High Income Alert, the advisor says, "Now, a billionaire has also taken a stake." Here's the advisor's update.
"Barnes & Noble is a worthy addition to our model portfolio. Trading well below the level that the CEO purchased shares, we consider the stock a bargain.
"Barnes & Noble owns the nation’s largest chain of bookstores, with 800 stores in 50 states. It also owns one of the Web’s most-visited Web sites, bn.com. Between its stores and Web site, Barnes and Noble sells more than 300 million books a year.
"Of course, profit margins in bookselling are thin and the competition is intense, especially in the bestseller category. But bestsellers account for only 3% of Barnes & Nobles sales. Every day, the company fulfills an average of 4,000 customer service requests. It takes more than 8 million special orders a year.
"Barnes & Noble also is the nation’s second-largest coffeehouse and a leading book publisher. Its Barnes & Noble Classics, for example, sold more than 500,000 units in its first year of publication.
"Five years ago, it also acquired Sterling Publishing, a leading publisher of books for enthusiasts (including cooking, home design, health and how-to.)
"Retailing is going through a tough time right now. But consumers are more likely to give up buying diamond earrings, boats and expensive fitness equipment than books, DVDs and CDs.
"Meanwhile, the stock is almost ridiculously cheap, selling at just 9 times earnings and less than 20% of sales. Plus, the stock is yielding 5.6% at these levels.
"This has attracted the attention of Yucaipa Cos, a private equity firm controlled by billionaire Ron Burkle. Two weeks ago he announced he had acquired an 8.3% stake in the company, saying he believes it is 'undervalued.'
"I agree and believe we should follow in Burkle and Riggio’s footsteps. We recommending buying the shares at market, and placing a protective stop at $14.50. If you prefer to play this one more aggressively, try the April $20 calls."