Dubai Credit Rattles the Stock Markets
The world stock markets fell on Thursday as Dubai attempted to delay debt payments for six months. The US stock market was closed for the Thanksgiving holiday, but the S&P futures are down considerably. Commodities, especially oil prices, are weakening while the U.S. Dollar and Treasury bonds are starting to rise. Emerging markets are suffering significant losses [...]John Murphy: GLOBAL MARKETS DROP ON DUBAI CONCERNS — STOCKS AND COMMODITIES DROP WHILE THE DOLLAR AND BONDS RALLY — SO FAR, NO SERIOUS CHART DAMAGE HAS BEEN DONE — BUT A MORE CAUTIOUS TONE IS WARRANTED
An attempt by Dubai to delay debt payments for six months has rattled world markets. Most global stock markets fell on Thursday while the U.S. market was closed for the Thanksgiving holiday....Medicines Co. (MDCO)
The Medicines Company's (<a href=http://www.zacks.com/stock/quote/mdco>MDCO</a>) third-quarter loss per share of 6 cents missed the Zacks Consensus Estimate of a loss of 5 cents. Although Angiomax continues to contribute significantly to revenues, we are concerned about the product losing exclusivity in the U.S. in September 2010. <P ALIGN="left"> The entry of generics would be devastating for the company. Therefore, the onus is on management to acquire and develop the next generation of products to drive the top-line. One of those products was expected to be Cangrelor. However, the failure of the phase III CHAMPION program was a significant setback. <P ALIGN="left"> Meanwhile, the Cleviprex sales ramp has also been slow. We recommend avoiding the name until we gain more visibility on the Angiomax patent situation, the Cleviprex ramp and the future of Cangrelor and Oritavancin.CPFL Energia (CPL)
We are maintaining our Outperform rating on CPFL Energia (<a href=http://www.zacks.com/stock/quote/cpl>CPL</a>). The company posted in-line results for the third quarter of 2009, despite non-recurring items. <p> The company's outlook for the medium-term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though there is the still-difficult business environment around the world. <p> Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive, mainly considering the noncyclical nature of the company.Happy Thanksgiving!
Happy Thanksgiving to all our readers and to all of our participating newsletter advisors.
We will return with new articles
on Monday, November 30th.
Arthur Hill: FINANCE SECTOR REMAINS A DRAG – BIG BANKS UNDER PRESSURE (JPM, GS, WFC, C, BAC) – EURO HITS A NEW HIGH FOR THE YEAR – GOLD ACCELERATES HIGHER – TIPS MOVING STEP-FOR-STEP WITH GOLD
[[http://stockcharts.com/members/videos/|Link for today’s video.]]While the S&P 500 moved higher the last two weeks, the **Financials SPDR (XLF)** has remained range bound and **continues to...Organic Products International Announces Letter of Intent to Acquire Two Eco-Friendly Companies in Related Industry
TAMPA, FL--(Marketwire - November 25, 2009) - Transfer Technology International (
Details of the terms and conditions specific to these acquisitions are not being disclosed at this time. Xtermite, Inc. is a registered Pest Control Operator (PCO) in the state of California that has successfully serviced over 15,000 homes in the San Diego area over the past 11 years utilizing eco-friendly orange treatments for dry-wood termite eradication. XT-2000, Inc. is also a California-based corporation that actually founded the EPA registered XT-2000 Orange Oil Plus product used to treat dry-wood termites. Over 100,000 homes have been succes
Expert eyes Brazil’s small caps
"Brazil is one of the hottest markets on the planet," says international expert Nicholas Vardy. In his The Global Bull Market Alert, he looks to a small cap-focused exchange-traded fund.
"We are betting on Brazil by buying the Market Vectors Brazil Small-Cap ETF (NYSE: BRF).
"Brazil is the flavor of the month in emerging markets. The country recently won the right to host the Olympics in 2016. This will raise its profile much like the Beijing Olympics did for China.
"Investors are pouring in. Its currency, the real, has gained 50% against the U.S. dollar since December. The economy is firing on all cylinders, posting an 8%-10% growth in Q3. Overall, Brazil’s economy will grow by 5% in 2010.
"With the market already up 76.9% in local currency terms this year, betting on Brazil today is clearly a momentum play. That's also why I am recommending a small cap ETF, which has outperformed its large cap ETF counterpart this year.
"Brazil's biggest enemy is likely to be its own hubris -- getting too cocky for its own good.
"But before it does, I'm betting the market has further to go. After all, it went up almost 6-fold in dollar terms during its last bull run starting in 2003."
Adens: Resource favorites
"Resources are one of the best sectors for buy & hold investors," say Mary Anne and Pamela Aden. In The Aden Forecast they eye BHP Billiton (NYSE: BHP) and Freeport McMoran (NYSE: FCX).
"The stock market is on the rise, hitting new bull market highs. Stocks are looking good and that goes for nearly all of the world stock markets. They’re bullish and poised to rise much further.
"BHP Billiton is a good example of a company you can buy and forget about because it has its hands in every part of this area.
"It’s the largest mining company in the world, from iron ore, to uranium, to copper… you name it. If it has to do with building, BHP probably produces it.
"BHP Billiton believes demand for minerals is on the verge of unprecedented growth as China and India drive consumption.
"Its first quarter iron ore production, for example, reached a record with a rebound in global steel demand. It’s estimated that an iron ore deficit will continue through 2012, which is probably why BHP is buying more iron ore companies.
"BHP is our favorite resource company, together with Freeport McMoran, a copper company. Looking at copper on a technical basis, you can see its upside is wide open.
"In spite of copper’s super 101% rise this year, its leading indicator is still basing in a very low area, the lowest this decade.
"This means that copper could surge much higher in the months ahead. Copper continues to move in a solid multi-year upchannel. It’s strong above $2.85 but once it reaches a record high, above the 2006 high, it could soar.
"Overall, we believe that a commodity boom will thrive as shortages for raw materials grow and demand continues to boom. We want you to stay invested and take advantage of the ongoing rises in these sectors."
Turnaround expert: 8 stocks below 1999 highs
"We all know that, despite the big run-up recently, many stocks are still below their highs of a year or two ago," obesrves turnaround expert George Putnam.
In The Turnaround Letter, he suggests, "But what about some of the biggest, best known and best managed companies that are trading below where they were ten years ago? That’s pretty tempting." Here, he looks at 8 stocks that still trade below their 1999 highs.
"Sure, late 1999 was the last gasp of the Internet bubble, and so that explains some of the tech names. But our list includes retail, beverage, entertainment, drug and other low-tech businesses.
"We can’t tell you exactly what is going to propel these stocks back to their former heights – if it were obvious, Wall Street would be all over these stocks and they wouldn’t still be in the doldrums – but we think many of them could be poised to rebound.
"Moreover, a number of them have generous dividends, so that you get paid while you wait.
"Alcoa (NYSE: AA), as one of the world’s largest suppliers of aluminum, has faced substantial headwinds during the economic downturn. A slide in revenues began in the third quarter of 2007, but in the most recent quarter, the company returned to profitability.
"In addition to improving cyclical trends (such as better supply/inventory balances), Alcoa is benefiting from growing demand out of China. To be sure, the company will profit most from a broad-based economic recovery. But at current prices, there appears to be sufficient value to await the upturn.
"Coca-Cola (NYSE: KO) is perhaps the most widely recognized brand name worldwide. Some may think the fizz has gone out of the brand, but Coke’s steps in non-carbonated beverages, such as, Dasani water, Powerade sports drinks and Minute Maid juices are paying off.
"And even the core Coke product still has good potential in China and other international markets.
"Disney (NYSE: DIS) is the consummate consumer discretionary company, including not only its resorts, movies and consumer products, but also its media outlets ESPN and ABC, which depend on consumer-focused advertising.
"Everyone is still wringing their hands about the prospects for consumer spending, but for patient investors Disney is a well managed company with strong brands and unmatched assets.
"Home Depot (NYSE: HD) pioneered the concept of home improvement superstores, and the stock rode a wave of popularity to P/E multiples in the 60s and 70s around the turn of the century.
"More recently, the company stumbled as it tried to fend off competition from Lowes and others. However, under CEO Frank Blake, who took over in 2007, the company seems to be getting back on track.
"Intel (NASDAQ: INTC) is the world’s largest maker of semiconductors. Despite strong competition, Intel has found a way to remain the technology leader in chips used from PCs and high- end servers to wireless communications and graphics.
"The whole sector has been weak for several years, but when the demand for tech products begins to pick up again, Intel will be one of the primary beneficiaries.
"Microsoft (NASDAQ: MSFT) may seem like a stodgy behemoth these days, but it is taking a number of steps to restore profit growth. The company is aggressively cutting costs at the same time as it is unveiling its latest operating system, Windows 7.
"In addition, it has opened its first retail store and is showing increased willingness to enter into strategic partnerships with others such as Yahoo and Nokia. We wouldn’t bet against Goliath in this battle.
"Pfizer (NYSE: PFE) just completed a $68 billion acquisition of Wyeth, a merger that will significantly expand Pfizer’s reach, both in terms of existing product offerings and new drug pipeline.
"Management expects $4 billion in synergy savings, and that is on top of a general $2 billion cost-reduction program already underway.
"While the entire healthcare sector has been weak as investors worry about what the politicians in Washington are up to, we believe that Pfizer is well positioned for sustained growth.
"Wal-Mart (NYSE: WMT) is the world’s largest retailer. Once you get to a certain size, your growth rate inevitably has to slow. But Wal-Mart has been diligent about focusing on new categories of merchandise where it quickly becomes a market leader, such as groceries, toys and electronics.
"While the stock has gone nowhere for ten years, the financial results have continued to improve – essentially growing into the stock price. While Wal-Mart may never again be a growth stock, it now looks like a very attractive value play."