TFN eNews 11/17/2009: The Okies are heading back to the Dust Bowl
Published via e-mail broadcast on November 17, 2009
In today’s TFN eNews:
* A look at ‘Ground Zero’
* Gains in Chinese pharma stocks
* Where’s gold headed?
Dear TFN eNews reader,
More actualities… more slices of life!
Last Friday, I requested you send me a quick “postcard” of how the economic recovery is playing out where you live. Here are some more entries…
TFN eNews reader Dr. Roy D. from Oklahoma City writes: “A recent article in The Sacramento said that things had gotten so bad there that Okies were moving back to Oklahoma City, which has not suffered the economic decline as most cities.”
Diane B. from New York City contributed this:
“I live in New York City — now so-called ‘Ground Zero’ for more than just terrorist attacks. Despite all the hoopla in the news over the bonuses to be paid at Goldman and JP Morgan, I walked home from the subway station all the way east along 86th Street tonight rather than turning down 3rd Avenue (as has been my habit, though for no real apparent reason). There were so many empty store fronts — far more than I have ever seen in the 20-25 years I have been living here — , it looks almost like a ghost town. This is in one of the most affluent neighborhoods in town! Furthermore, it seems like every time I talk to or run into another friend of mine, I find out that they either have been laid off within the past year or so (and are unable to find any work, permanent or otherwise) or, like me, are dealing with substantial salary cuts (35-50-%) even though we were not the ones earning the ‘big money’ during the heady days of the bubble. These are all professionals –– lawyers, actuaries, accountants, in-house corporate finance and marketing professionals, management and other consultants of various ilks — not to mention all of the retail people who have disappeared along with the stores.
“In fact, the only people who seem to be happy these days are MD’s (for all of their paranoia over ‘Obamacare’) and related health care workers, the private equity guys and the bankers at Goldman and J. P. Morgan (and a few others, most of whom were bailed out on everyone else’s tax dollars). So, the landscape where I live, though on average not nearly as bad as it is in many other parts of the country, is in fact becoming increasingly, visibly dichotomous.
“Those who have been profiteering off of the insidious redistribution of wealth that has characterized the past 30 years continue to cannibalize an ever-wider spectrum of our former ‘middle classes.’ They started with the ‘blue collar,’ lower-middle class, then moved on to the pink and white collar middle class and now are moving on to much of the so-called white collar, ‘upper middle class.’ Given the succession of ‘financial crises’ we have now experienced along the way, most recently culminating in the recent meltdown, one really has to wonder when people will finally wake up and smell the coffee.”
There’s more in our mailbag… but feel free to send us your own update of how reality looks like where you live: Email me at support [at] todaysfinancialnews [dot] com!
*** Chinese pharma hopeful Sinobiopharma (OTC:SNBP) has been soaring — gaining over 70% in three trading days. Good news for Hot Stock Confidential members who’ve been holding this stock through its slump. And great news for members of TFN’s high-end service, Penny Stock Confidential, who today bagged 68.4% in just ten trading days!
This is the stuff penny stock legends are made of: Pick up shares in a promising company for a few cents… and walk away with a pocket full of cash a week later!
If you’re one of our steady TFN readers, you’re familiar with this stock. Our Hot Stock Confidential members have been buying it anywhere between 17 cents and 34 cents since this summer. And our venturesome Penny Stock Confidential members picked it up last week between 17 cents and 19 cents a share.
The stock rose on strangely unexciting, informative news… namely, that “23 generic drugs for which the Company has production rights are listed in China’s National Essential Drugs List, which covers pharmaceuticals used to treat up to 80 percent of the most common diseases in China.”
Earnings are great. Net is great. But this hasn’t kept the stock from falling for most of the year.
HSC members will be holding on to our position. PSC members are getting ready to reinvest the gains in another promising penny stock I just dug up.
(Do me a favor and check out what we’re up to with Penny Stock Confidential. We’ve only been available for membership for ten days, and already produced gains of 43% and 68%. Just click here: http://www.todaysfinancialnews.com/PSC/LAUNCH/WPSCKB11.html )
We also closed out the remaining half in HSC’s other “Proxy Stock”, Tianyin Pharmaceutical (AMEX:TPI). We logged gains of 24.7% for TPI… for our 69th double-digit gainer of the year.
*** Gold hit a new record yesterday. The price rose $22.50 to $1,139. Hard money guru Bill Bonner wrote:
“If you bought gold when we first recommended it ten years ago, you are in a very comfortable position. Gold sells for more than four times as much today. But what should you do now? And what if you didn’t go for broke on gold in the early ’00s? Is it too late to get in on the bull market?
“To give you a warning, in the following windy ambulation we come to no conclusion we haven’t come to before.
“We say gold is going to the moon. If we are wrong about when… we will be delighted sooner than expected… self-satisfied… and insufferable for years. If we are right, we may have to wait a long time before saying ‘I told you so’.
“The press has certainly noticed the bull market in gold. How could it not? Most reporters say gold is going up simply because the dollar is going down. In the popular press, we found no other explanation.
“In fact, much of the talk of gold seems to occur within articles about the dollar. We found, for example, that the dollar is at a 15-month low… and, coincidentally, gold has just hit an all-time high.
“There’s something lopsided about this account of things…”
Read on: http://www.todaysfinancialnews.com/gold-and-resources/where-is-the-end-for-gold-10356.html
*** The 3 Best Stocks under $3 to buy Now!
We expect these new recommendations to bring in gains of perhaps 145%… 55%… 67%. Better yet, I think we can take some of those gains before Christmas. But you have to act immediately! http://www.todaysfinancialnews.com/HSC/ridic/EHSCK902.html
*** Quote of the Day:
“Only the wicked Governours of Men dread what is said of them.” —Benjamin Franklin
Recommended Reading:
Natural Gas Prices: “Stealth Buyer” tips his hand
Today’s Top 3 Financial News Stories:
TimesOnline.co.uk – Gun sales shoot up amid America’s fear of rising crime and terrorism “All over America demand for firearms and ammunition is rising amid concerns that rising unemployment, which passed 10 per cent this month, will lead inexorably to higher rates of crime. Fears of terrorism have also helped to lift demand, as have concerns among gun owners that the Obama Administration may introduce restrictions on gun ownership and impose additional taxes.”
Reuters.com — China questions costs of U.S. healthcare reform “Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.”
Bloomberg.com — New York Personal Income Tax Collections Fell 21% Last Year “New York state’s personal income tax collections, its largest source of revenue, fell $4.73 billion, or 21 percent, from a year earlier, according to a report issued today by Comptroller Thomas DiNapoli.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: Bad news from the housing market
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