TFN eNews 8/13/2009: Brace yourself for some really great news!
Today's Financial News - Posted August 13, 2009
In today’s TFN eNews:
* 20.5% gains in the bag for this refiner!
* TFN readers suggest this copper mining penny stock
* News on MedLink
Dear TFN Reader,
She did it again. TFN’s Diva of Dollars Laura Cadden took a look at rising oil prices, stagnating gasoline demand, and recent revenues numbers and decided that it was time to take action:
“On July 8, I recommended you take advantage of a dip in the share price for the refiner-plus Sunoco, Inc. (NYSE:SUN). I felt sure we’d make 20% gains within 3 months. If you got in under $22, you’re up over 20% in just over a month.
“If the price of crude continues to rise, that could mean hard times for Sunoco so let’s lock in these gains. Set a 20% wealth protection stop-loss for SUN at $26.05.”
A little later, our stop loss was triggered. Sunoco rang up 20.5% gains in just 26 days for readers of Hot Stock Confidential. That’s double-digit gainer number 44 so far this year… and only 2 of these winning plays brought us less than 20%.
I’ve been trying to shake down my publisher colleagues here in Baltimore to find out how their portfolios are doing. Just for some perspective. But they’ve become strangely evasive — “have to check on that” — when I ask how their stick picks are doing for their readers.
I never hear back for them… except indirectly, when their marketing guys tell us we can’t run advertisements for Hot Stock Confidential to their customers.
But those 20% are nothing compared to what I expect to generate for HSC readers on our three dirt-cheap Chinese pharma stocks over the next couple of months: We only recommended them, what, less than 3 weeks ago, and three of them are up 40%, 21%, and 37%, respectively. (And they’re still well in our buying range! Find out what to buy right here!)
And of top of them, there’s another 6 HSC stock picks with gains between 12-19%.
*** Brace yourself for some really great news.
According to Bloomberg.com, the euro-region economy “barely contracted in the second quarter”.
European GDP fell by “only” 0.1%. Germany and France “unexpectedly returned to growth, suggesting Europe’s worst recession since World War II is coming to an end.”
I don’t know what growth of 0.3% suggests. I’ve seen margins of error that were more impressive than that. But technically, I guess you can say that any positive growth in a quarter ends a recession. Technically speaking.
What it doesn’t do is create real growth. You see, Germany is no stranger to GDP growth of 0.3-0.8%. In fact, that’s what passed for economic success back in the 1990s. When the redistribution-happy junta around former crypto-Communist and today Gazprom pipeline chairman Gerhard Schröder considered their policies successful when unemployment dipped below 13%.
If you think this is the beginning of a recovery — in the sense that lost ground will actually be recovered — don’t count on it yet. We could be in for a protracted period of near-zero growth. Not just in Europe… but especially in the United States, where the influx of deficit spending will work its own numbers magic on the GDP numbers before long.
***What are the best copper mining and timber penny stocks you can think off — and, for simplicity’s sake, let’s stay on the North American markets! Let us know at support [at] todaysfinancialnews [dot] com.
*** Speaking of penny shares: Our TFN Grapevine tipster Charles D. thought that he’d send us a quick update on MedLink International Inc. (OTC:MLKNA) as it sold off late in yesterday’s session:
“I spoke to the company and all is just fine. In fact, the attitude there was that things are more than fine. I got the impression that they wish they could have put out News today to reassure investors but could not do so. As I have said in the past, my feeling is that they are going through a news-release-process with the organization(s) they are working with and that news will soon come.
“However, they were quite specific in that there is nothing going on at the company that would suggest any reason for selling. It is my opinion that someone just wanted out, needed the money for something, and sold their shares. In my opinion, they will be sorry because I truly believe this one is going to $10+ over this next year. Frankly, I am dismayed that we have not seen any news out of MedLink already. (I expected it in July.)
“But that’s the way it goes… after all, you build a business one brick at a time. I personally am very confident in MLKNA and its future.”
*** “Coal may be a dirty, four-letter word in Washington, but outside the Beltway, the fossil fuel is one of the most important energy sources on the planet. Billions of dollars are at stake as coal’s popularity and demand waxes and wanes with a volatile global economy.
“But no matter what the short-term macroeconomic situation, there’s no denying the world’s utter addiction to coal. China especially knows that this tangible asset is much more important to its future than any fiat currency. A currency’s demand can vanish with just one vote or swing of a leader’s pen. But a fuel source that powers continents is going to be around for decades.
“This planet will be burning coal until we scraped the very last ounce of the stuff from the earth’s crust, whether the Prius drivers like it or not.
“With that notion in mind, it’s not surprising China has made some bold moves in the past few weeks: After a troubled bid with Rio Tinto (NYSE:RTP), Beijing officially arrested four of the Australian company’s employees earlier this week, accusing them of stealing state secrets. It is proof that China is not taking its imported coal dependence lightly…”
What does Andy recommend? Find out in his article…
Quote of the Day:
“There was no such hand-wringing over the decline of civil debate, during, say, election 2004, when cadres of organized demonstrators carrying swastika-adorned pictures of George W. Bush routinely swarmed about, and packed rallies. There was also that other ‘breakdown of our media culture,’ that will dwarf all else as a cause for embarrassment, the town-hall coverage included, for the foreseeable future. That would be, of course, the undisguised worshipful reporting of the candidacy of Barack Obama.”
– Dorothy Rabinowitz, WSJ.com
*** We just took the 44th double-digit gainer for HSC members this year.
Let me ask you: How’s that other newsletter of yours treating you?
“I’m a small-time investor, but you guys are giving me big-time smile. Keep up the good work, and thanks.” — HSC Member Ramon V.
Recommended Reading:
Commodity fever: The buying spree continues
New Special Report: 4 Top Energy Stocks You Need to Own
The TFN Complete Guide to Biotech Penny Stocks
The TFN Complete Guide to Natural Gas Stocks
Today’s Top 3 Financial News Stories:
Bloomberg.com – Euro-Area Economy Contracted 0.1% in Second Quarter “Gross domestic product fell 0.1 percent from the first quarter, when it plunged 2.5 percent, the most since the euro- area data were first compiled in 1995, the European Union’s statistics office in Luxembourg said today. Economists had estimated GDP declined 0.5 percent in the three months through June, the median of 32 forecasts in a Bloomberg survey showed.”
Kansas.com — Cash for Clunkers has mixed effect on local used-car sales “The biggest issues, used-car dealers said, are not directly tied to the economy. Their concerns are with the ‘unintended consequences’ of the Car Allowance Rebate System, or CARS — commonly known as Cash for Clunkers — and an increase in the prices they are paying for used cars at auction.”
WSJ.com — Cap-and-Trade’s Unlikely Critics: Its Creators “Europe has embraced cap-and-trade rules. Emissions initially rose there because industries were given more permits than they needed, and regulators have since tightened the caps. Meanwhile China, India and other developing markets are reluctant to go along, fearing limits would curb their growth. If they don’t participate, there is little assurance that global carbon emissions will slow much even if the U.S. goes forward with its own plan. And even if everyone signs up, Mr. Crocker says, it isn’t clear the limits will be properly enforced across nations and industries.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
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