Usually I’m quick to dismiss stocks that have gone up by a figure of 4 in just the last year, but this one looks special.
Cal-Maine Foods produces namely eggs and egg products, from shell eggs to low carb and organic varieties. The company is posting record profits as the price for commodities and food related products, even eggs, soars to new highs. Read more…
The last week in the market has told us a lot. Investors are no longer responding to credit issues by the Federal Reserve and the rapid pullback shows us that a lot of people want out. The next few months ahead look pretty rough, especially considering the technical indicators on the Dow. Read more…
Investment firms borrowed over $270 Billion dollars from the Federal Reserve last week for an average of just under $33 Billion per day. The Federal Reserve has practically opened its doors to banks who need the cash to calm liquidity concerns. The first week of the new program prompted about $100 Billion in loans, an amount that has nearly tripled over the course of one week. Banks raised their borrowing by nearly 7-fold as they trade worthless assets for more cash. The Federal Reserve now allows banks to use mortgage backed securities and other assets as collateral for new loans, even if the value of the collateral is much lower than its stated value. Read more…
Durable goods orders were down 1.7% last month. Ouch. Durable goods are things like appliances, your stove, your washer dryer etc. This might be due to great weather stateside, but I doubt that people still hang their laundry on clotheslines. Read more…
Ford Motors has been going down the tubes only to benefit Tata motors, the equivalent of Toyota to developing nations. The American automakers struggle with Unions and pension plans has forced Ford to sell the Jaguar brand and Land Rover to Tata motors for just $2.3 Billion, less than half the $5.2 Billion that Ford paid for both brands. Read more…
Two very key news announcements were made today. The Bear Stearns buyout by JP Morgan has a new pricetag of $10 per share and the Sirus XM merger will be completed. Read more…
The recent pullback in commodities such as gold, silver and oil really hurt the industries share prices. Gold stocks were down the most just this last week after metals prices lost more than 10%. Silver was down from its highs to 16.85 an ounce, which I believe to be the cheapest we’re going to see for a long while. Read more…
The $155 Billion economic stimulus package checks will start coming out in full swing starting in May. It’s time to prepare for record quarterly earnings this year, more specifically this quarter. The industries most likely to benefit are those that are associated with financing and down payments. It is likely that automobile manufacturers, home improvement stores and large appliance vendors will do particularly well. Read more…
Unfortunately due to the laws regarding capital gains, it is likely that many people will be paying capital gains on holdings that have lost money this year. Mutual funds are taxed on each individual position rather than the fund as a whole, so even if you lost money with a fund you can still be taxed. This hurts when you’ve watched funds drop in the last two months of 2007 and the first 3 of 2008. Read more…
After its sharp run up from $7 per share since January, there is still a lot of potential in this high price gold and silver mining company. I took the time to analyze the 2006 annual reports and found that Gammon is a great investment even as the stock nears $10 and the company is just now turning profitable. Read more…
JP Morgan and the Federal Reserve acted in a buyout to prop up Bear Stearns falling investment bank investments. Bear Sterns was disproportionally hit by the credit crunch, causing it to nearly go bankrupt. An agreement between JP Morgan and the Federal Reserve to buy up the banks assets and protect its clients and borrowers. Read more…
The yield on TIPS or Treasury-Inflation Protected Securities has gone negative. Investors are driving the yields down on TIPS, and are now accepting a lower rate than traditional Treasuries, hoping to profit heavily when adjusted for inflation. Read more…
So much has happened at General Motors in just the last few years. Kirk Kerkorian, a billionaire investor bought in heavily then sold out just a year later for his casinos. They’ve been sued numerous times for safety of vehicles. Employees have been fighting for their pensions. Now, 200000 sedans have been recalled for risk of fire. General Motors went as far to say that the car should not be parked in a garage until it has been checked. Read more…
The quick run up 150 points to start was a nice sight, but as soon as investors caught wind, they were already dumping into the upside. This should be enough proof that investors are ready to flee the market and come back later when times are better. Investors just aren’t buying the economic stimulus package, the $200 Billion in loans, or the rate cuts as a viable way to stimulate the economy. Read more…
The FED acted in what appears to be pure desperation. $200 Billion will spent by the Federal Reserve to buy up bad mortgage debt and mortgage backed securities. The move was scene to be putting more money in the banks that are suffering from a collapse in the housing market. Read more…
China is experiencing the same rate of inflation the United States is seeing due to its currency and its near peg to the US Dollar. Food and energy prices have gone up the at the fastest rate in the last 12 years. The consumer price index rose 8.7% since just last February. Read more…
While the markets are worried about job losses and government data, I’m looking at a cheap investment in future job growth in Monster.com. The stock is well off its $60 high just a couple years ago, and I expect that better numbers could send it back to the top. Read more…
Chances are you have noticed the very similar charts in each blog posts. In this post I’ll outline where the best online resources can be found for investment data. Read more…
2008 has been rough. The recent losses in the Dow have prompted me to take a step back and look at future support. Unfortunately, or fortunately whichever side you play, the Dow now sits on a critical support level. Read more…
In times of economic worry, look no further than the cheapest department store for all of your daily necessities. In a lackluster investing climate, it might be good to stay close to the bottom. Big Lots provides all the protection you need from a faltering economy and its stock price doesn’t look too bad. Read more…
The VIX is an index rarely mentioned in ordinary day to day news. The VIX represents volatility, or how quickly prices change in anything from stocks to commodities. The index is published by the Chicago Board Options Exchange to give a good idea of how stable the markets are in contrast to other time periods. Read more…
Commodity prices have been soaring all around, but the recent movement in wheat prices is really shaking the market. Since the beginning of the year, Wheat has nearly doubled to its highs in the twenties. A weak dollar, demand for ethanol and emerging markets around the world are putting the strain on natural resources. Read more…
