Harmony Gold (HMY)
Formed in 1950, South Africa's Harmony Gold Mining Company Limited (<a href=http://www.zacks.com/stock/quote/hmY>HMY</a>) conducts underground and surface gold mining. It is also engaged in related activities such as exploration, processing, smelting and refining. Presently, Harmony is the 3rd largest producer of gold in South Africa, producing about 20% of the country's annual gold output and the 5th largest gold producer in the world. <p> Harmony Gold is benefiting from higher gold prices in terms of the South African rand. Going forward however, Harmony is focused on lowering its cost structure, primarily by closure of loss-making shafts and reducing its debt level aggressively. <p> As a result, we rate the shares a Buy with a target of $16.00. The company is also focused on reducing its operating costs through restructuring efforts. As a result, we rate the shares a Buy with a target of $16.00. This is 39.0x our 2009 earnings estimate.Celanese Corp. (CE)
Celanese Corp. (<a href=http://www.zacks.com/stock/quote/ce>CE</a>) is a global hybrid chemical company based in Dallas. The company produces chemical substances and materials. <p> Weak market conditions drove a dramatic decline in overall global demand for many industries which affected Celanese operations. Recessionary trends, coupled with inventory destocking, resulted in sharp volume declines in the Advanced Engineered Materials and the Acetyl Intermediates businesses. <p> The company expects volumes to remain under pressure in 2009, even with the easing of inventory destocking. Thus, we rate the shares a Sell with a target of $9.00.Omnicity Acquires Forepoint Networks
RUSHVILLE, IN--(Marketwire - March 31, 2009) - Omnicity Corp (
Phoenix Interests, Inc. Announces Name Change to NuMobile, Inc. in Conjunction With Roll-Up Strategy to Build Mobile Computing Solution
First Acquisition in Roll-Up Scheduled this Week
Ben Graham style income
"I believe the market has hit bottom, buying opportunities are the best in decades," says J. Royden Ward. The editor of The Cabot Benjamin Graham Value Letter eye two income ETFs.
"iShares $ Invest Grade Corp Bond ETF (NYSE: LQD) seeks investment results that correspond generally to the price and yield performance of a segment of the U.S. investment-grade corporate bond market as defined by the iBoxx $ Liquid Investment-Grade index.
"The fund typically invests at least 95% of assets in investment grade corporate bonds. LQD shares declined sharply during the September/October liquidity crisis, but are now recovering. We forecast further recovery for corporate bonds as the economic picture begins to improve.
"The expense fee of 0.15% is very low. The dividend yield of 6.0% is attractive and dividends are paid monthly. Buy LQD for steady returns.
"SPDR Lehman Municipal Bond ETF (NYSE: TFI) seeks to provide investment results that correspond to the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds and insured bonds.
"The income that TFI provides is exempt from Federal income taxes. The fund tracks the price and yield performance of the Lehman Brothers Municipal Managed Money index.
"Many municipalities, large and small, will experience budget problems in 2009, but bankruptcies are unlikely. The wide gap between 10-year Treasury Notes and Municipal Bonds (2.6% compared to 3.9%) should attract investors to the higher yielding Muni Bonds and ETFs."
Gold: In good company
"If there was ever a better scenario than the present to support rising gold prices, it's hard to imagine what it might be," says Leonard Goodall, editor of No-Load Portfolios. Here's his review.
"Unlike most other metals, gold has limited industrial usees, so its price tends to be based on other factors influencing demand, such as jewlery use and as a hedge against inflation, a falling currency and fearful uncertainty.
"Massive Federal deficits for many years to come, tax increases on the horizon, a global financial system in crisis, a plunging stock market, Treasury bonds in a bubble and falling commodity prices all combine to spread fear among investors.
"Perhaps the best way for an investor to think of gold is as an insurance policy against the potential negative effects arising from the risks we face or may face in the future. As such, a modest holding of gold (10% or less) is probably an appropriate addition to most portfolios.
"Buyers of gold have choices, with coins or bars, ETFs and gold mining stocks being the most popular for the average investor. Psychologically, it's hard to beat the feeling of holding gold in one's hands. However, there are the downsides of security and liquidity.
"Exchange-traded funds are probably a better choice for most investors. The SPDR Gold ETF (NYSE: GLD) provides fractional shares of gold bullion that is held in a London vault.
"If you would rather invest in gold mining company, the Market Vectors Gold Miners (NYSE GDX) invests in the stocks of these companies.
"If you decide to invest in GLD. you will join some other well-known investors. The Wall Street Journal recently reported that Greenlight Capital bought 3.7 million shares in the fourth quarter of 2008.
"In addition, Pequot Capital has about 10% if its $4 billion of assets in the ETF, the University of Notre Dame has $90 million, the Teacher's Retirement System of Texas has $30 million and Winward Invetsment Management has about $232 million in SPDR Gold."
For subscription information, contact Leonard Goodall, 8635 W. Sahara, #420, The Lakes, NV 89117
Cisco (CSCO) eyes consumer entertainment
"Cisco (NASDAQ: CSCO) has increasingly developed a series of technologies more closely tied to end-users -- with a focus on the home entertainment hub," notes Toby Smith.
The editor of ChangeWave Investing explains, "The company understands that the market for consumer electronics products is too big and too important to ignore."
"It is well known that Cisco is the dominant supplier of the switches and routers that enable networks and computers to be linked together.
"Recently, Cisco made its most consumer-oriented acquisition by picking up privately held Pure Digital Technologies, the maker of the popular and simple-to-use Flip video camcorder.
"Cisco will pay $590 million for Pure Digital, a price that falls into the low-end range of CSCO's previous acquisitions.
"Pure Digital has sold more than two million of its Flip mini-camcorders, priced at about $130 to $230, in two years.
"The camcorders have software to easily organize and edit videos and post them on Web sites such as YouTube or MySpace. And this acquisition is not the first consumer-focused acquisition for Cisco.
"In 2003 the company purchased Linksys (a router maker for home networking), in 2005 it acquired Scientific Atlanta (one of the leaders in set-top TV boxes) and in 2007 CSCO got WebEx, a maker of Web conferencing systems.
"When you add up all of these technologies it spells 'home entertainment hub'. Cisco knows that the increasing activity on the internet translates into larger sales of its networking devices.
"The goal is the ability to share any content on any device -- and it's a goal that both Apple and Sony are also pursuing.
"The day is fast approaching when most homes will link computer, TV, stereo, game console, smart phone and camcorder -- and Cisco intends to be a (if not 'the') primary integrator of this home entertainment and communications hub.
"Cisco's shares have rallied 23% since its multi-year low several weeks ago. We continue to recommend that investors accumulate CSCO on stock price pullbacks."
Leveraged ETFs for trading gains
"Investors should not become overconfident; bear market rallies have caught investors off-guard in the past and this may be more of the same," cautions Glenn Rogers.
And while the contributing editor to Internet Wealth Builder believe we may be seeing only a bear market rally, he suggests, "For aggressive investors, leveraged ETFs offer great short-term profit potential."
"Even though the major indexes have posted some decent gains, I have the nagging feeling that we are witnessing a classic bear market rally.
"We've seen them before and sometimes they can occur several times during the course of a prolonged bear market and continue for several weeks.
"For example, during the tech bust of 2000-2002, the Dow dropped from around 11,800 to the 9,000 range, rebounded to over 11,000, plunged again to about 8,000 in late 2001, rallied again to the 10,500 range, and then crashed in September-October 2002 in what proved to be the final capitulation.
"This feels like a rerun of 2000-2002 (but worse) so if you are going to participate in the markets you will have to be very nimble. It is likely there will be more pain ahead but if past pullbacks are any guide if you have stayed in on the way down then you need to continue to invest on the way back up.
"The sectors that are most likely to recover first are likely to be the financials, materials, and energy, probably in that order. I've talked about them before but the easiest way to play them on the way up is through exchange-traded funds (ETFs).
"For aggressive investors, leveraged ETFs offer great short-term profit potential but you need to watch them carefully because they are very volatile. There are now leveraged ETFs that run at three times the underlying value of the stocks they hold.
"One example is the Direxion Financial Bull 3X ETF (NYSE: FAS). It came out last November and opened at $32.68 but has since fallen as low as $2.32. The shares are now in a buy range for active traders -- but beware of the volatility.
"If you like energy at these levels (and I do), look at the Direxion Energy Bull 3X ETF (NYSE: ERX). It has rallied from its low of $16.23 but is still more than 60% off its high of $62.63.
"Note that neither of these are formal recommendations. Because of their volatility and the need for constant monitoring, they are only suitable for very active traders. But if you fall into that group, take a look at them.
"My view is that although this is a scary market, there are great profit opportunities for those with the stomach (and the cash) to handle the risk.
"That said, the one traditional investing maxim I still like is dollar cost averaging. Keep buying a little each month and over time you'll be closer to being right than if you didn't participate at all."
Cisco (CSC) eyes consumer entertainment
"Cisco (NASDAQ: CSCO) has increasingly developed a series of technologies more closely tied to end-users -- with a focus on the home entertainment hub," notes Toby Smith.
The editor of ChangeWave Investing explains, "The company understands that the market for consumer electronics products is too big and too important to ignore."
"It is well known that Cisco is the dominant supplier of the switches and routers that enable networks and computers to be linked together.
"Recently, Cisco made its most consumer-oriented acquisition by picking up privately held Pure Digital Technologies, the maker of the popular and simple-to-use Flip video camcorder.
"Cisco will pay $590 million for Pure Digital, a price that falls into the low-end range of CSCO's previous acquisitions.
"Pure Digital has sold more than two million of its Flip mini-camcorders, priced at about $130 to $230, in two years.
"The camcorders have software to easily organize and edit videos and post them on Web sites such as YouTube or MySpace. And this acquisition is not the first consumer-focused acquisition for Cisco.
"In 2003 the company purchased Linksys (a router maker for home networking), in 2005 it acquired Scientific Atlanta (one of the leaders in set-top TV boxes) and in 2007 CSCO got WebEx, a maker of Web conferencing systems.
"When you add up all of these technologies it spells 'home entertainment hub'. Cisco knows that the increasing activity on the internet translates into larger sales of its networking devices.
"The goal is the ability to share any content on any device -- and it's a goal that both Apple and Sony are also pursuing.
"The day is fast approaching when most homes will link computer, TV, stereo, game console, smart phone and camcorder -- and Cisco intends to be a (if not 'the') primary integrator of this home entertainment and communications hub.
"Cisco's shares have rallied 23% since its multi-year low several weeks ago. We continue to recommend that investors accumulate CSCO on stock price pullbacks."