TFN eNews 09/03/2009: Gold and silver soar… plus, gainers #53, #54, #55 of the year!
Published via e-mail broadcast on September 3, 2009
In today’s TFN eNews:
* Three double-digit gainers at 50%!
* TFN Grapevine Stocks: Where are they now?
* Gold’s soaring… but our silver stocks are doing even better
Dear TFN Reader,
We had a spontaneous outburst of exuberance this morning.
TFN’s Laura Cadden was celebrating the stellar jump of her two Hot Stock Confidential picks Vical (NASDAQ:VICL) and Curis (NASDAQ:CRIS).
VICL hit new record highs when it announced it had received a new U.S. patent covering its Vaxfectin-formulated DNA vaccines for seasonal and pandemic influenza. (They’re currently developing vaccines for both avian swine flu.) Laura’s pick of CRIS moved 20% after the company announced that GDC-0449, an experimental cancer medicine developed by Genentech and Curis, actually works in shrinking tumors by targeting the gene-associated “hedgehog” pathway.
It was a relief: “I thought I’d die yesterday when the stocks went down,” Laura admitted.
The reason for her unease: We had actively decided not to implement a stop loss when shares went past the 30% gain we had forecast. Last week, when we were itching to take what now looks like “modest” profits on these stocks, we decided to throw caution to the wind and told you to “Cool your heels on Vical“.
It paid off nicely. HSC Member Michael M. emailed us: “Continuing the subject of volatile stock prices (VICL in particular ), I would like to suggest a more descriptive term than ’stop loss’. I will now call it the ‘Threshold of Pain’. Congratulations first to you for your selection of this stock and to all of us who endured the pain for the 40% + gain!!!!! On to the next one and THANK YOU!!”
Of course, we now faced the same problem, just at a higher price: Sell now? Establish a stop loss? Or hold on for more gains, without safety net?
“If you put a stop loss in, it’ll hit it,” said TFN stock oracle Andrew Snyder.
It’s a good quandary to have: To sell and bank gains over 40%… or hold on for more. We decided that in this situation, the best option was to have our cake and eat it, too: Bank the gains on half of each position in question—and let the rest ride:
Laura sent out an email alert to our HSC friends instructing to:
“* Sell half your shares of Curis Inc. (NASDAQ:CRIS) for around 50% gains
“* Sell half your shares of Tianyin Pharmaceutical Co. Inc. (AMEX:TPI) for around 53% gains
“* Sell half your shares of Vical Inc. (NASDAQ:VICL) for around 50% gains
“And hold on to the other half for what we hope will be even greater gains!”
Here’s what another HSC Member, Matthew W., had to say about that: “It’s great to be back. I signed for the year, the info you lot provide is worth a heap, and that’s not including the picks.”
But Laura isn’t one to leave good enough alone. For today’s HSC Alert, she analyzed 5 stocks suggested by our members. The competition is on: Our members are a sharp bunch… what if they do better than our editors?
(By the way, TPI was one of our “Proxy Stocks”… check out if you agree with our line of argument.)
*** TFN Reader Grapevine maven Charles D. issued an affirmation on his pick of MedLink International Inc. (OTC:MLKNA): “I believe this stock is way undervalued and expect $5.00 short term and $10.00 longer term.”
After a 40% gain to 60 cents today, we have room on the top!
His other pick AnywhereMD Inc. (PINK:ANWM) also had gains today. At just 12%, they looked modest indeed.Give it another week and we may hit a penny in share price.
Quepasa Corporation (OTC:QPSA) currently is trending down. We’ll try to get an update together for you tomorrow.
*** Gold’s been going up, knocking at the $1,000-an-ounce gate. Why exactly I can’t tell you… its principal bullish engine, inflation, being virtually non-existent in today’s deflationary market.
That leaves the fear of reckless U.S. Congress wrecking the dollar with huge new debt loads… and of an Administration that seems dead-set on crippling U.S. economic competitiveness for decades to come.
Valid fears, indeed, fueled by every redistributionist sound byte slopping out of Washington.
Silver, too, has been gaining steadily. Our Hot Stock Confidential silver mining play Coeur d’Alene Mines Corp. (NYSE: CDE) is up 23%, Silver Wheaton (NYSE:SLW) is up 18%, and — after a horrendous 40%-drop from our May recommendation — Hecla Mining Company (NYSE:HL) has clawed back to a gain over 2%.
(HSC Members who used the dip to buy, as we kept recommending in our weekly updates, have almost doubled their money since May.)
We think there’s plenty more short-term potential. But despite my bullish long-term view on silver, the high volatility in the precious metals markets makes me inclined to take profits in the double-digit range, rather than hang on for the heftier triple-digit gains I foresee in the long term.
*** “I have come to the realization that your service is the best of the lot.”
It may take 55 double-digit gainers to convince some people that Hot Stock Confidential is probably the best stock-picking service on the market right now.
Join our tight-knit group of profit-takers today!
Quote of the Day:
“There is something revolting about the government subsidizing the destruction of useful things. It reminds me of the New Deal policy of killing piglets and pouring milk down sewers to keep food prices from falling. Leave it to politicians to think we can prosper by obliterating wealth.”
– John Stossel, Creators.com
Recommended Reading:
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The Top Alternative Energy Stocks Under $6
The Top Swine Flu Vaccine Stocks under $20
The 3 Best Chinese Stocks Under $5!
Today’s Top 3 Financial News Stories:
Bloomberg.com – Putin Orders State Banks to Support Mechel’s Elga Development “Prime Minister Vladimir Putin told state-controlled banks to buy 10 billion rubles ($315 million) of Mechel bonds this year to help develop the deposit of coal used for steelmaking, Alexander Tolkach, the Moscow-based company’s head of investor relations, said by phone today. Mechel depositary receipts rose as much as 22 percent in New York trading.”
WashingtonExaminer.com — Health care reform means more power for the IRS “Under the Democrats’ health care proposals, the already powerful — and already feared — IRS would wield even more power and extend its reach even farther into the lives of ordinary Americans, and the presidentially-appointed head of the new health care bureaucracy would have access to confidential IRS information about millions of individual taxpayers.”
Google.com – Stocks edge higher after jobs data, retail sales “The modest gains follow a Labor Department report that the number of people filing for unemployment claims fell last week by 4,000 to 570,000. The market had been expecting a bigger drop.”
Cordially yours,
J. Christoph Amberger Executive Publisher, TodaysFinancialNews.com
Next Article: News about Quepasa.com (QPSA)
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