TFN eNews 10/15/2009: Top silver plays
Published via e-mail broadcast on October 15, 2009
In today’s TFN eNews:
* Government option
* Silver champions
* Three plays on the weak greenback
Dear TFN eNews reader,
You may only need a driver’s license to buy a gun, a birth certificate to obtain a U.S. passport, and a credit card to rent an apartment. But opening a P.O. Box requires two official modes of identification. And not just any. Both have to have your picture and a current address on them. Your driver’s license alone is not enough. Neither is a stack of credit cards, membership cards, and insurance cards.
That’s what I found out at my second visit to the Main Post Office in downtown Baltimore today. Yesterday afternoon, pressed for time due to a fencing class I had to give, I abandoned my first attempt after spending 20 minutes waiting in line. I’m glad I did… considering the line in front of me was still a dozen people strong and moved with the speed of a snail’s digestive tract.
Spoiled by dealing with our post office in the suburbs and the small, Indian-run mail drop around the corner, I was struck by how much I had not been missing watching government workers in action. I felt transferred back to the East German visa office in West Berlin, where grouchy bearbaiters in dark brown polyester sports jackets allowed or disallowed your schemes to visit grandma in the Socialist workers’ and farmers’ paradise.
Back in the good old days of the Cold War.
My brush with government-issued reality has changed my world view. I now not only support government-run healthcare. I think it needs to be mandated for everyone voting in favor of it.
I know this opens me up to accusations of social Darwinism. (After all, only the healthy or strong will survive the surly peristaltics of government-approved processes.)
But I’m willing to live with that!
*** With one of our longer-term Hot Stock Confidential plays, Silver Wheaton Corp. (NYSE:SLW), I had asked our TFN eNews readers about their views on silver-related equity plays.
TFN eNews reader Henry C., wrote “I love SLW. Have owned it at 20 and at 4. Bullish on silver, even more than gold. The S&G ratio is still way out of proportion. I still believe in regression to the mean. Terrific management and policy of income production. No dividends, but they are using the funds for growth. Fine, I look to MPLs and Energy TR for income. I get income on the non-dividend assets with covered calls and selling puts. SLW is a great stock for that. High beta in today’s market.
“If my covered calls are exercised, I’m protected by the calls I have purchased. Of course, stop losses must be in place. Nobody is always right in predicting the vagaries of the market. Especially those manipulated by the boyz. If Ted Butlers recommendations to the CFTC bear fruition, limiting it to 1500 contracts per trader will result in massive short covering in both metals and limit manipulation in the future. It cannot get worse, only better.”
TFN eNews reader Gene G. wrote in: “I have done right smart this year with Coeur d’Alene (NYSE:CDE) and Hecla Mining (NYSE:HL). I sold CDE and HL last month and bought Mag Silver Corp (AMEX:MVG) and SLW. CDE is on my re-buy list if it gets reasonable again. I continue to hold one other silver stock. And while I may take profits on SLW and MVG, I will hold on to that one unless the world falls apart.”
(Hot Stock Confidential readers, too, are sitting on 52% and 39% gains taken on CDE and HL, respectively.)
Coincidentally, reader Michael H. had similar feelings about Gene’s “mystery” silver stock– which has a strong Chinese tie-in: “It’s all about China these days. Bought in July @ $2.68. Already up over 50%, way more room to run as silver will approach historic level of $100.00 an ounce within the next year. Don’t sell SLW. Bought that at 7.50. Booyah. Silver Silver Silver.”
Independent of Gene and Michael’s suggestion, Hot Stock Confidential editor Laura Cadden issued a recommendation for this particular silver company in today’s Hot Stock Pick of the Week: “If you look at its share price over the past five years, you can see just how undervalued it is. Then there’s the fact that this is a dividend stock — always a nice bonus!
“If you haven’t yet had enough of silver, I recommend you pick up shares under $5.50 and hold on for 20% gains!”
(Find out what stock they’re talking about by becoming a member of Hot Stock Confidential: http://www.todaysfinancialnews.com/HSC/ridic/WHSCK904.html
*** “Talk about ‘irrational exuberance,’” wrote TFN’s stock guru Andrew Snyder today. “Now that the Dow has clipped the magical 10,000 mark, all sorts of investors are ready to get back in the game.
“All across the morning news were quotes from local waitresses, dry cleaners, and retirees expressing their newfound interest in the equities market now that it has ‘recovered’: ‘I can finally start investing again,’ I heard one underinformed investor proclaim.
“Better late than never, I suppose.
“Their renewed interest will only help those of us that have ridden the markets all the way from their horrific March lows. But the question remains if a Dow 10,000 is indeed worth celebrating?
“My answer is a hardy ‘no!’. The equities market has rallied over the last few weeks in great part due to the weakening American dollar. The nation’s exporters are drooling over the increased revenue potential as the value of their overseas payments increases come conversion time.
“Since March, the value of the dollar versus the euro has fallen by more than 15%. That means an exporter that earned a dollar for every ‘unit’ of European sales in March, now has $1.15 in the bank. The weaker the dollar gets, the higher that earnings figure will climb.
“That’s okay to some extent. But if the dollar gets significantly weaker, the ensuing economic trouble will far outweigh the benefits of increased earnings for exporters. In the meantime, investors are wise to take advantage of the increased profit potential of domestic exporters…”
Need some names and ticker symbols. Find all you need right here: http://www.todaysfinancialnews.com/international-investing/three-picks-for-a-weak-dollar-10184.html
*** “Ridiculous” stock picking strategy generates 67 double-digit winners in the first 9 1/2 months of 2009!
Find out how! http://www.todaysfinancialnews.com/HSC/ridic/WHSCK903.html
*** Quote of the Day:
“Liberalism, particularly in economics, usually is protected by a bodyguard of pessimism. When government intervention and spending fails to yield the predicted results, month after month and year after year, the left sells the notion that these are tough times and that we need to lower our expectations.”
– Dick Morris, Newsmax.com
Recommended Reading:Three picks for a weak dollar
Q4 Update: TFN Complete Guide to Stem Cell Stocks under $10
The 3 Best Stocks under $3 to Buy NOW!
Today’s Top 3 Financial News Stories:
CNNMoney.com – Foreclosures: ‘Worst three months of all time’ “Despite concerted government-led and lender-supported efforts to prevent foreclosures, the number of filings hit a record high in the third quarter.”
Bloomberg.com — U.S. Stocks Fluctuate as Energy Advance Offsets Financial Slump “U.S. stocks fluctuated as energy producers gained after oil rallied to the highest price in a year, while Citigroup Inc. and Goldman Sachs Group Inc. led banks lower on earnings that disappointed some investors.”
Chinavestor.com — China shares continue to rise in Asia “China shares climbed in Hong Kong and Shanghai, fueled by the DJIA breaking through the 10,000 level and by strong profit growth of Chinese brokerages. The latest IPO in Shanghai, China International Travel Service Corp., attracted large amount of funds rising 43% the first day of trading. Another positive development from China is the fast pace of residential property price increase, another sign of robust economic activity in China. Home prices rose the fastest this year in September while the number of residential properties sold jumped 74% from a year ago.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
P. S. *** Special Offer: Northeastern University’s Master of Science in Finance: fully online, 16 months, AACSB accredited.
Visit http://onlinemsf.neu.edu/finance-online
Next Article: Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next?
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