TFN eNews 11/13/2009: How are things in your neck of the woods?
Published via e-mail broadcast on November 13, 2009
In today’s TFN eNews:
* Economic slice of life
* Natural gas update
* Bunny for sale?
Dear TFN eNews reader,
Our German sister publication Traders Daily today featured an “on-site” snapshot of the global recovery by member Hermann H.., who reported from Hong Kong:
“I had to go to China on short notice. To obtain an entry visa, I traveled via Hong Kong. Simply book Holiday Inn Golden Mile they’ll take care of it. On your way from the airport, you have to pass the harbor docks. They were empty. There were no ships waiting, either. Nothing! I was here five years ago and all the docks were occupied and the port chock-full of waiting ships.”
Not much of a recovery here, it would seem. My own perspective is a bit tainted by the fact that I haven’t had time to travel recently. Plus, the gloomy November rain reminds me of Berlin in the 1970’s. Not a chipper place, as I recall. Here’s how it looks in Baltimore:
“Interstate-bound traffic going north on Charles Street seems densely packed. Could all those people be returning home from stimulus jobs? Could I’ve been wrong about the effectiveness of government intervention? But there’s another store closed to my left… another ‘For Rent’ sign in another. Then: A large, yellow-blinking arrow chokes traffic into a narrow lane between a small Central American road crew and a beer truck. Stimulus dollars at work. Three cars per traffic light sequence. More empty stores beyond…”
Our TFN eNews has readers in over 50 countries all over the world. And I’d like to get your personal input: How are things shaping up in your neck of the woods?
Write me a paragraph or two about how the recovery is progressing — or not — and email me at support [at] todaysfinancialnews [dot] com! I’ll share your experience in next week’s issues!
*** The downward action in the U.S. natural gas industry continues hot and furious. If you were watching the action yesterday, you were likely to break a sweat.
The biggest mover, Cheniere Energy (AMEX:LNG), was strictly south-bound. This liquefied natural gas (LNG) importer’s shares dropped by over 10%. This caused the put options held by the members of TFN’s options service, TFN Strategic Trader, to surge in value. As I write, they’re up almost 80%!
The contracts on TST’s second short play on gas are now up a whopping 400%. ” As the underlying ETF bounces against all-time lows,” writes options guru Andrew Snyder, “We are in a critical period: If we breach the $8.94 level, get ready for another big move. I’m watching the situation closely and am ready to pull the trigger and lock in some of these mega-gains as soon as we have reached optimal levels. We are not quite there yet, so continue to hold.”
Since it’s Friday, Andrew used the opportunity to enter a new position. This one takes advantage of falling natural gas and energy prices, but it’s not a direct play on natural gas. The options are based on a $6 billion power producer from Jersey:
“After a set of mediocre earnings figures last month, shares of the company are well off their recent highs. But the trend will not last, especially if natural gas prices continue to fall. You see, this company has 10,495 Megawatts of gas-fired generation capacity. That means the cheaper gas goes (its chief input), the higher the company’s margins end up being. Even better, all signs indicate that the nation’s demand for energy has already bottomed and is on its way back up.
“By purchasing this particular set of the company’s calls, we can profit as share price rises in anticipation of a stronger bottom line in the near future.”
Read up on Andrew’s original assessment of the natural gas market right here: http://www.todaysfinancialnews.com/TST/GAS/ETSTKA04.html
*** For the past two years, I’ve been writing titillating stories about an impending IPO of Penthouse magazine’s corporate mother ship. While people like to read about it, nothing ever materialized. Video may have killed the radio star, but streaming video sure took out the nudie mag!
But there’s equally chipper news out these days. Investors are clamoring over news that Playboy Enterprises (NYSE:PLA) has a new suitor. It raises the question is Playboy worth more in pieces than as a whole…
Hugh Heffner’s beloved brand and his nearly eight million shares of the company may have a new suitor. Iconix Brands (NASDAQ:ICON) reportedly has been ogling the aging empire. (”Eyes up here, buddy!”)
The news sent shares of Playboy up by over 25% almost instantly.
Hef’s enterprise could come under new management. But small slivers of his company could be sliced away from the pie. Because, let’s face it, Playboy isn’t what it used to be. These days, if you subscribe to the magazine, you’re really doing it for the articles.
The Internet porn industry has drastically changed the company’s business strategy.
Fortunately, Heffner managed to create an iconic brand over the years. The bunny logo and what it represents is instantly recognizable almost anywhere in the world. That’s something any company would be willing to pay big bucks for. Just who?
Read on: http://www.todaysfinancialnews.com/us-stocks-and-markets/playboy-is-the-bunny-for-sale-10331.html
****** If you want to make the highest gains, you have to play the smallest stocks! We’ve identified 12 tiny stocks with “Moon Shot” potential!
Read on… http://www.todaysfinancialnews.com/PSC/LAUNCH/WPSCKB08.html
*** Quote of the Day:
“The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.” —ascribed to Thomas Jefferson
Recommended Reading:
Playboy: Is the bunny for sale?
Natural Gas Prices: “Stealth Buyer” tips his hand
Today’s Top 3 Financial News Stories:
Telegraph.co.uk – Europe’s recession officially ends as Britain lags behind “Europe’s worst recession since World War II is over, figures showed today, leaving UK companies hoping that a recovery on the continent will help drag Britain from the downturn”
ContrarianProfits.com — How to play the dangerous dollar “Today, reports are flowing from Washington that show Obama may have plans to use up to $210 billion in TARP money to lower the nation’s ever-increasing deficit. It is creative accounting at best and a $210 billion bribe at worst. (…) It’s like taking out a loan to pay off your mortgage.”
Bloomberg.com — Yuan “Straitjacket” Risks Inflating China Bubbles “China is facing the biggest challenge to its currency policy since the start of the global recession as economists warn the peg to the dollar risks causing an asset bubble.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: Postcards from the “Recovery”: Is the USPO k.o.?
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down