TFN eNews 08/25/2009: Could this tiny miner become a “most important global player”
Published via e-mail broadcast on August 25, 2009
In today’s TFN eNews:
* A whopper of a budget shortfall
* Buy this proxy stock at a 40% discount?
* New TFN Reader Grapevine pick
Dear TFN Reader,
Occasionally, even Washington insiders have to look at the numbers. Or at least a set of numbers that is close to their initial optimistic projections.
Accordingly, the White House gave us a glimpse of the money they don’t have for next year’s spending.
That shortfall is quite a doozy: The U.S. budget deficit is estimated to come in at $1.5 trillion next year.
If you though the Bush Administration went overboard running up debt, I have bad news for you: The Obama budget would add twice as much debt as President Bush over the same number of years. And that’s based on rather upbeat economic assumptions… like unemployment of only 10%. And Obamacare expenses that magically get covered by kindly fairy godmothers.
“Washington is spending this country towards its demise,” TFN’s stock guru Andrew Snyder groaned this morning. “What does the government have up its sleeves this time? While the president is on vacation, playing golf with shady business connections, the White House put out a report detailing how the economy is much worse off than it originally anticipated.
“Of course, Wall Street shrugs it off, virtually saying, ‘Washington was wrong? What else is new?’
“Most intriguing — or alarming! — is the White House’s latest deficit predictions. Instead of the $7 trillion estimate predicted in May, our executive branch is now expecting a gap of $9 trillion.
“Turns out higher tax rates really do decrease overall tax revenues! With a cost of $2 trillion, it was an expensive lesson to learn for the rookie administration, especially as it tries to prove the benefits of a trillion-dollar healthcare overhaul.
“When news like this hits the Street, it’s vital to remember that the Obama administration never does anything unless it has positive political ramifications. You can bet the spinsters are going to turn today’s ‘dire’ figures into a public-relations campaign for even more fiscal stimulus and government spending.
“That’s horrible news if you’re a taxpayer or an American creditor. But fantastic news for those companies already bloated from suckling on the raw teats of the American taxpayer: After all, not every stimulus-fueled company is forced to deal with the short-term gyrations created by a drive-by government.
“Two companies that are in no jeopardy of giving back their recent stimulus-fueled gains are Oshkosh (NYSE:OSK) and Rentech (AMEX:RTK)…”
What about those two? Finish reading right here!
*** On August 5, I posted a garish prediction regarding three Chinese drug companies.
(See 3 Tiny Stocks Stand to Inherit a $330 BILLION Industry.)
Two of the stocks I recommended to Hot Stock Confidential members are currently up 24% and 43%, respectively. (Even better, despite these gains, they’re still in our buying range!)
Only one of them did what some of our Whack-a-Mole stocks occasionally do. It went underground! And it’s waiting to pop its head up.
There’s o ne thing about our HSC members I’ve noticed: They’re on top of their portfolios! They even remind us here at TFN headquarters when it’s time to pass on some vital news to our readership.
This one’s thanks to Shannon Z.:
“I would reduce your buy-in price now that the stock is currently sitting at $0.56. HSC has it at Buy up to $1.25. The SPNG 10Q will be released in the next few days, so expect that one to explode when the sales everyone has been rumoring about are realized. Just a heads up and thanks for looking into this for me!”
You’ve heard it… there’s still time to get into this play.
This particular company is a specialty pharma company that specializes in manufacturing and distribution.
Due to its established markets in United States, China, Korea, Taiwan, it’s a prime “proxy” candidate. Despite its recent drop, I still give it an upside of 125% by April 2010, and a realistic shot at closing in on $8 per share by early 2012!
This link is a short-cut to finding out what stock I’m talking about… if you’re interested at all:
*** And one more TFN Reader Grapevine Pick from penny stock maven Charles D.:
“After a discussion today with Stock Charter Group (SCG), I believe that Czech Republic Resource Corp. (PINK:CZHC) is looking to make big changes in the direction of the company and those changes should make the share price on this one fly.
“CZHC is a low-float stock and I think this is a ‘bottom fishing’ opportunity. There are only 2.84 million shares outstanding! CZHC wants to ‘become the most important global player in the Central European energy and valuable resources market.’
“Czech Republic is an investment and project management corporation using worldwide sources and experts for exploitation of valuable resources. It has highly experienced management, local sources for exploration, mining and is exploiting global business activities. The business concept is based on current oil and gas leases as well as numerous mines and resource opportunities in Central Europe.
“The company is operating worldwide on several projects. The focus of the projects is on oil and gas production and mining and separation of mineral fuels and metallic ores. I have personally begun accumulating shares in CZHC with a target of just over $1.00.”
The stock was up over 50% today… and goes for $.109 a share. With an average volume of just over 13,000 shares, this is a true penny stock — with all the appropriate volatility and accompanying risk!
Quote of the Day:
“President Obama’s decision to allow the Justice Department to investigate and possibly prosecute CIA personnel, and his decision to remove authority for interrogation from the CIA to the White House, serves as a reminder, if any were needed, of why so many Americans have doubts about this Administration’s ability to be responsible for our nations security.”
– Dick Cheney, WeeklyStandard.com
*** 47 double-digit gainers for HSC Members this year.
“I have only been a member for a couple of weeks now but you need to know, I am thoroughly impressed! I’ve been tracking the performance of your ‘picks’ before I make the leap of faith to buy and I am confident with your research and track record. I also love the fact that you are on top of the market and let us know when it is time to consider selling. You are exactly what I have been looking for and I am more than pleased to have my quarterly subscription renewed automatically.” HSC Member V.W., Aug. 25, 2009
Recommended Reading:
Two companies taking advantage of the growing deficit
The Top Swine Flu Vaccine Stocks under $20
The 3 Best Chinese Stocks Under $5!
4 Top Energy Stocks You Need to Own
The TFN Complete Guide to Biotech Penny Stocks
Today’s Top 3 Financial News Stories:
MoneyNews.com – Rosenberg: Stock Market Ahead Of Itself “Rosenberg points out the market is ahead of the economy because real GDP, bank lending, corporate profits and employment are trying to make cycle lows and the manufacturing is off the low but still below 50.”
Bloomberg.com — Obama Increases 2010 Deficit Forecast 19% to $1.50 Trillion “U.S. unemployment will surge to 10 percent this year and the budget deficit will widen to $1.5 trillion next year, reflecting a ‘deeper recession’ than previously expected, White House budget chief Peter Orszag said.”
Bloomberg.com – Gold Futures Decline as Dollar Rebounds; Silver Prices Gain “An economic rebound may buoy prices of silver, which has more industrial uses than gold. Silver futures for December delivery rose 3.2 cents, or 0.2 percent, to $14.231 an ounce. The metal has gained 26 percent this year, while gold is up 6.7 percent.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: General Maritime: Ready to catch up with the market?
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