TFN eNews 12/16/2009: These three stocks will soar as gold continues to rise
Published via e-mail broadcast on December 16, 2009
* Top precious metals stocks
* The coming building boom
* Will IPO mania come back to the NYSE?
Dear TFN eNews reader,
Gold futures reversed a week-long trend today. They climbed more than 1% today. At issue is the opportunity cost of owning gold:
As long as holding cash earns next to nothing, gold’s speculative upside obscures the fact that it, too, pays no dividend or interest. Throw in the righteous and well-justified fear that the Obama administration will whittle down the value of the greenback by ratcheting up inflation, and you have a solid case for buying gold and precious metals.
This isn’t about to change. Journalists, pundits and nattering nabobs may be pointing at a possible hike in interest rates. But despite a substantial uptick in manufacturer prices, I’m telling you now that the Federal Reserve will hold interest rates where they are. Near zero.
Which doesn’t mean that gold is a surefire bet: It is driven by speculation. Much like real-estate — another “surefire” store of value — still was three short years ago. Unfortunately, we all know how well the real estate agents are doing these days.
(Mine just sent me a Christmas card assuring me that NOW! is the best time to buy a first home… what with tax credits and all. Pity… I bought my last first home 15 years ago.)
But volatility in combination with bullish bubble updraft provides excellent opportunities! Us pullbacks in price just like we had over the last 10 days to get into short-term positions in both options — and select precious metal stocks.
Our own Laura Cadden took it upon herself to upload a special report to the TFN home page. Her Top Precious Metal Stocks provides you with three free recommendations on how to play the metals markets. Read it right here!
http://www.todaysfinancialnews.com/gold-and-resources/top-precious-metal-stocks-10531.html
*** Please don’t forget to check out our other free report, The Next Crude.
I’ve mentioned it over the past couple of days. Here’s it in a nutshell. In November, the Shanghai city government approved changes to the local building code. It now provides very detailed guidelines to ring in a new era of North American-style wood frame construction.
This is huge news — especially for select Canadian companies already supplying high-grade lumber to the Chinese.
The coming two-weeks, with their typical Christmas-induced lull in trading, will present some excellent buying opportunity for these companies. Let me tell you why… http://www.todaysfinancialnews.com/HSC/timber/EHSCKC13.html
*** Will a new IPO boom take off next year?
I remember I was laughing at a colleague last year who launched an IPO trading service around August of 2008, under an incredibly mawkish pen name. I laughed because the timing — after a quarter of virtually no new IPO’s — seemed so completely out of touch.
Now NYSE Euronext, owner of the New York stock exchange, expects initial public offerings by Chinese companies to rise fourfold next year.
I’m inclined to agree. With the balance sheets of investment banks stabilizing, bonuses flowing, and real estate remaining an unappealing way of risking your money, I think investment banking is a natural recipient of idle billions. So far, it looks like there are as many as 20 Chinese companies who’d seek a listing on the New York Stock Exchange.
There were only five this year.
Back in the old Taipan day, we used this kind of event to play what we called the IPO Backdoor strategy. We’d buy shares of companies ready to list in Shanghai either in London, Hong Kong, or the U.S. exchanges.
Depending on the success of the first two or three new emissions, we may be playing this game again: Buy Hong Kong- or European-listed shares of those companies right before they go public in the United States.
***One of the largest cities in the world just changed its building code. The resulting boom will send demand for this recession-starved commodity soaring — ad these stocks through the roof!
3 undervalued stocks could generate gains of 200% or even 300%… for early investors with guts and foresight! Learn more here…
http://www.todaysfinancialnews.com/HSC/timber/EHSCKC15.html
*** Quote of the Day:
“Congress makes life worse every time it meets, and green hysteria sucks so many good things from the country.” — John Stossel, Creators.com
Recommended Reading:
I can’t believe this is not bigger news
Today’s Top 3 Financial News Stories:
MoneyNews.com – Inflation Group: Invest in Silver Now! “Silver will be the best investment during the next ten years, says the National Inflation Association, an organization that looks for ways to prosper when inflation rises. Currencies will weaken during the coming decade and while gold, which rises amid a weakening dollar, remains largely in bank vaults, 95 percent of the world’s silver is consumed by industries in amounts so small that it cannot be recycled and therefore, re-introduced into the market.”
FT.com — US consumer prices rise in November “Rising energy costs pushed US consumer prices higher in November, but most other industries saw prices flat or falling, signaling that inflation fears might be unwarranted.”
Bloomberg.com — Stocks, Oil Advance as Dollar Weakens Before Fed Sets Policy “U.S. and European stocks rose on speculation the Federal Reserve will say it plans to hold its benchmark interest rate at a record low for an extended period to sustain the global economic recovery. Oil and metals rallied as the dollar fell.”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
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