TFN eNews 06/24/2009: “Did you miss me?”
Published via e-mail broadcast on June 25, 2009
published via email on June 24, 2009
In this edition of the TFN eNews:
* Where they don’t even take VISA * Compound gains of 712.5% — not bad for a $79-a-quarter service, if I say so myself! * Will this Canadian oiler be the next take-over target? Dear TFN Reader,
Just in case you, too, should be planning a trip to Europe this summer, I’ve got one word for you:
Cash.
Take plenty. And forget about a wallet. If you plan to stay for a few days, think shopping bags of cash. Small denominations, ideally.
The Klofrauen don’t like to make change! It’s probably part of a vast European conspiracy to keep out American tourists. Sure, there are stores and of course hotels that take credit cards. But if those were few and far between twenty years ago, there seems to be even less now. The only plastic many stores and restaurants accept is a Euro Checque (EC) debit card. Which, of course, few Americans carr
But the convenience of paying for meals and tourist chachkis is one thing. The prices are quite another. Hence the shopping bags: The European Central Bank still poses as the bulwark against inflation.
And sure, when I looked at the various restaurant menus in Germany over the past week, I didn’t notice any change since, say, 2001: TheSchweinshaxe near my brother’s house in Berlin-Lichtenrade was still 12.00. My daughter’s strawberry ice cream cup at the Café Kranzler on Kurfürstendamm was 8.95. And the non-alcoholic Weizenbier in the beergarden near Alexanderplatz was 6.7
Only it wasn’t Deutsche Mark, like in 2001, but euros — which were exchaged on a 2:1 rate back in 2002. Which means that average prices for things tourists imbibe, eat, or pass the time with have experienced inflation of over 100% in just under nine years.
Not too shabby: Even the dollar-euro conversion rate is the least of your troubles! In fact, my week in Berlin reminded me of a recent trip to New York: Top dollar for a general feeling of mediocrity of purchase.
So if you’re heading out to Europe in the next couple of weeks, think Big Apple and pack accordingly.
Cash, preferably.
*** Warren Buffett must not be tuned into the White House media machine: “Everything that I see about the economy is that we’ve had no bounce,” he said today. But despite his view that the U.S. economy would be in the dumps well into next year, Buffett still considers the stock market attractive “over the next 10 years” — especially when compared to alternatives like US Treasury bonds.
We couldn’t agree more. So far, our TFN premium service, Hot Stock Confidential, has taken double-digit gains (and better!) on 34 stocks this year… for average gains of 16.2%. (Put up with me for my “Marketer Minute,” will ya: That’s “cumulative” gains of 712.5%… including the 10 stocks and options we lost money on.)
Like Buffett, we like to focus on smallish companies with good products, solid management, and enormous potential for gains… even in this crazy market. And we plan to make the market pay for another 10 years of solid profit
Can we count you in? Say, for the next three months? (Here’s a link to learn more!)
*** A while ago, Baghdad announced that it intends to auction off oil contracts to foreign oil companies. 120 heavy hitters are vying to resuscitate production at six developed oilfield
And they’re just itching to pay. Thanks to war, terror, and the UN embargo of Saddamite Iraq, the country’s oil reserves remain comparatively untapped. So far, just about 20 of Iraq’s 80 known oil fields have been developed. Reserves are estimated at more than 43 billion barrels.
One of our long-term favorites in the Iraqi oil game is Heritage Oil Corporation (TSE:HOC), an independent oil and gas exploration and production company pumping oil and natural gas in Africa, the Middle East, Russia, Asia — and Iraqi Kurdistan. After making hundreds of investors very rich (and generating thousands of new subscription for various financial newsletters), they’re currently trading for less than $10. Now, China’s Sinopec just made a $7.22 billion takeover bid for the international oil and gas exploration company Addax Petroleum (PINK:ADXTF)… which also has interests in Iraq.
The stock promptly gained almost 10% today. Sinopec is offering C$52.80, or $46.12, per share for the remaining common shares of Addax. This may happen. Or not. But it’s an indication that our old friend Heritage may become the target of an adventurous suitor as well. I’d say the price is right at current levels to eke a 20 or 30% gain out of this stock in the next six months!
Quote of the Day:
“For the next two years, deflationary pressure is going to be dominant.” — Nouriel Roubini, MoneyNews
Recommended Reading
“Right out of the used-car sales book” “Obama tattles on China” “Gold and Resources: 3 “Stealth Stocks” that could turn $2,500 into $25,000″
Today’s Top 3 Financial News Headlines
Yahoo Finance – May new home sales dip 0.6 percent “New U.S. home sales fell slightly last month, another sign that the housing market’s recovery is likely to be gradual and prolonged. The Commerce Department said Wednesday that sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Sales were down nearly 33 percent from May last year.”
Bloomberg.com – U.S. Durable Goods Orders Unexpectedly Jumped in May “Orders for American-made durable goods unexpectedly jumped in May, adding to signs that the economic slump is easing.”
Wallstreet Journal – ECB Injects $662 Billion into Banking System “The European Central Bank pumped a record €442 billion ($662 billion) into euro-zone money markets Wednesday in its first-ever offer of one-year funds as it continues battling the Continent’s deep recession.”
Cordially yours,
J. Christoph Amberger Executive Publisher, TodaysFinancialNews.com
Next Article: TFN eNews 06/25/2009: “The most-ignored vital news of the week”
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