TFN eNews 08/12/2009: Best copper and timber pennystocks right now?
Published via e-mail broadcast on August 12, 2009
In today’s TFN eNews:
* Bullish on Chinese pharma
* The short-term curse of long-term promise
* Best copper and timber pennies?
Dear TFN Reader,
There are times in which medium-term benefits outweigh short-term needs.
For General Motors (NYSE:GRM) this really wasn’t one of those moments. Yesterday, it went public claiming that the electric Chevrolet Volt could get 230 mpg in city driving.
Since we all know that electric energy is clean… after all, it comes straight from a white plastic outlet in your garage… this seemed like a publicity home run. (Even if the numbers still need to be confirmed.)
But GM is a crippled entity, starving for revenues even as the government has jettisoned all the “negative” appendages from its corporate structure, pumped it full of taxpayer money, and anointed new management. GM not only needs revenues now. It needed the yesterday! Not a year from now when a bimbo in a sequined dress will release the first batch of the $40,000 vehicle to the salivating public.
They remind me of a bad software salesman, who paints veritable fata morganas of functionalities that will come with “next year’s upgrade”.
To me, the prospect, there’s just one reasonable action to take in a situation like this: Not spend a nickel now but make do with the old clunker for another year. Until the new and improved product is ready. Or until something better comes along.
*** TFN eNews reader Scott J. wrote in: “How about diggin’ up a few good copper and timber penny companies? Or is this too soon to get into things that may reign after the UN Climate Change Conference in December? Been looking, but it’s tough to determine the good ones. Many choices seem to have to based purely on the charts. Help!”
I’d like to pass this question on to our TFN Grapevine tipsters. After all, you guys have come up with some spectacular picks in the past!
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.
*** “If you’ve been paying attention, you already know copper prices reached their highest prices since last October early Monday,” writes TFN’s resident guru Andrew Snyder in his TFN lead article: “Buyers had to shell out $6,258 for a metric ton of the vital base metal.
“While it’s disappointing to see prices slipping again, it’s really no surprise. The commodities markets have often moved in lockstep with the global equities market. And with mixed economic data pouring out of Beijing, I’m amazed prices aren’t down even further!
“Now, all criticism aside, China’s economy is one of the quickest expanding on the planet. Yesterday, Goldman Sachs (NYSE:GS) made the not-so-bold move of increasing its GDP expectations for the country from an annual rate of 8.5% to 9.4%.
“Many investors are starting to wonder if it is time for Beijing to begin unwinding its recent stimulus measures. No matter what the government does in the next few months, there’s no debating China is the engine of the world’s commodity demand. Its desire to expand is the lifeline keeping the sector afloat.
“And with virtually no chance of a major disruption in its role, China is making the commodity and mining sector a fine investment.
“I’ve recommended several options plays for TFN Strategic Trader subscribers, there are plenty of investors looking for a plain-vanilla sort of way to play the situation. And anytime we need simple, the ETF market is there…”
What does Andy recommend? Find out in his article…
*** Despite Shanghai’s steep decline today, two of the Chinese pharma “proxy stocks” in the Hot Stock Confidential portfolio are now up over 20%… in less than 3 weeks. (You undoubtedly will remember me bragging about American Oriental Biopharma (NYSE:AOB), which put 20% gains into our pockets last week.
But while I’m usually the cautious kind — eager to lock in double-digit gains via our patented “wealth preservation stop loss” — I don’t feel compelled to do anything of the kind right now. My expectations on these cheap, cheap Chinese drug manufacturers are immense: In fact, I consider holding them for up to two years… for possible gains of over 1,000%.
Maybe there will be opportunities to take short-term profits in periods of extended volatility… but then only to get right back in, as close to the bottom as humanly possible.
Right now, all our proxy stocks are still in our recommended buying range. Let me try to convince you to buy them today.
Quote of the Day:
“But who would have thought that the sober, deliberative Barack Obama would have nothing to propose but vague and slippery promises — or that he would so easily cede the leadership clout of the executive branch to a chaotic, rapacious, solipsistic Congress? “
– Camille Paglia, Salon.com
*** “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.
With 43 double-digit gainers, HSC members have a lot to smile about? How about you?
Recommended Reading:
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 – U.S. Trade Gap Widens Less Than Forecast on Exports “The gap increased 4 percent to $27 billion from $26 billion in May, which was the lowest level in almost a decade, Commerce Department figures showed today in Washington. Exports gained 2 percent, helped by stronger demand for goods such as semiconductors and aircraft engines, while imports rose 2.3 percent, led by a higher cost for oil.”
FT.com — Subdued recovery in global oil demand “The International Energy Agency said on Wednesday [that] (…) next year’s expected recovery in global oil demand growth would be subdued at just 1.6 per cent, or 1.3m barrels a day, in 2010.”
WSJ.com — Economists Call for Bernanke to Stay, Say Recession Is Over “The majority of the economists The Wall Street Journal surveyed during the past few days said the recession that began in December 2007 is now over. Battling the downturn defined most of Mr. Bernanke’s term, which began in early 2006 and expires in January, and economists say his handling of the crisis has earned him four more years as Fed chief.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: Big Ben moves the market
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