Wednesday, April 30, 2008

Is Al Gore also the inventor of Green Investing?

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You all remember that Al Gore invented the internet, don't you? Well, now Al Gore is getting into green investing with a huge fund called "Climate Solutions Fund." The fund and investment vehicle, which has been headed up by Al Gore has raised about $683 million to fund "early-stage environmental companies" and leverage its capital toward the green movement. Can you imagine what kind of influence it could start having on companies to go green or greener? This fund will be the biggest "green fund" in the investment market.

So, he couldn't be president. I think he is very happy with that now. He probably will be able to have more influence and make a hell-of-a-lot more money being GREEN!

Tuesday, April 29, 2008

Are Biofuels the Problem?

Energy prices are going through the roof and as I wrote the other day that prices may go to $10 a gallon, the emphasis has been on alternate energy solutions. This has created opportunities for alternate energy companies to cash in on the hype and demand. Biofuels have filled this new demand and has also created a growing (no pun intended) problem. Since biofuels is grown on farms and creates ethanol, this has caused a problem on the world food supply. Recently, US Secretary of State Condoleezza Rice spoke on the increasing world food prices.

Since the all the rules of acquisition are all about profits and gaining as much as possible, can you fault farmers in taking the initiative to gain as much of it as possible? Here are some biofuel stocks that I am looking at currently and really see if some profits can be made.
ADM
BG
BP
CAG
CVX
MON
PEIX
RDS.B

One little wrinkle in the whole genetically modified seeds that is the largest component of ethanol, is that the UN has created a task force on world food prices. This may cause a problem with the worlds largest genetically modifying engineering of biofuels company, ADM. They have already halted construction of 2 plants for creating biofuels.

What do you? You want to help the environment but do not want to pay the price? It is cause and effect theory.

Monday, April 28, 2008

Can you afford $10 a gallon????

What is your personal threshold of pain at the pump? A recent article states that we could see $200 a barrel and consumers will see $10 a gallon of gas at the pumps because of increases in the oil prices. OPEC says it is due to the lower dollar price. What do you think? I would like to think that there would be some major drilling in Alaska or other places in the nation before that happens. Here is an idea, you can use your tax stimulus check from the government to pay for your gas fill ups!

Renewable energy legislation will be pushed through and stocks like FSLR. So, start putting in those solar panels now or buying carbon offset!!!

Gene Therapy gives Sight

I don't think Genentech (DNA) was involved in this fellow getting his sight back but they are the first that come to mind when reading the article.

Worldwide Water Woes


Clean water it is becoming even more difficult to obtain throughout the world due to growing population and poor stewardship of current resources. Read through this long, long, article and see if you don't want to purchase the Water Resource exchange-traded fund (PHO). Maybe I will become a moisture farmer like those on Tatooine.

Robotics Improving Heart Surgury

Check out this article it really sounds like something right out of Star Trek. I was trying to track down the company who manufactures the robotics but no luck so far. Here are a few penny stocks it could be but neither of them are very impressive right now: Cell Robotics International Inc. (CRII), Apogee Robotics, Inc. (APRB), and Innova Robotics & Automa (INRA). Please comment if you know the maker.

SWEET! Oomox Trader found the right stock it is Intuitive Surgical ISRG.

Friday, April 25, 2008

Nuclear Power the ONLY Real Alternative

In light of the food shortages caused in part by alternative foods, nuclear power is becoming the only real feasible alternative energy source. Currently wind and solar can't create the capacity needed, once again bringing us back to Nuclear Energy. Even the founder of Greenpeace believes it's time to assimilate it as an alternative. The exchange-traded fund for Nuclear Power is NLR, which gives you a way to profit.

Numerous States Already Feeling Recession

The AP is reporting 23 states are struggling with lower tax revenues due to the recession.

Wednesday, April 23, 2008

ETF Watchlist

If you are looking for diversification here are some ETFs that I like.
Basic Materials XLB - Broke out last week and is retesting
Consumer Staples XLP - Still trending sideways but is showing relative strength, historically a very strong industry group during a recession
Energy XLE - Broke resistance about a month back and is finally pulling back some, buy on the bounce
Utilities XLU - Low interest rates drives investors to the markets looking for high dividend yields

Tuesday, April 22, 2008

Are they Vulcan ships?

I don't know if they are Vulcan ships or night but some very interesting lights have been seen in the Phoenix night sky recently. Here a more pictures and a video. It might be easily explained away as sky laterns from a wedding yet more of the same were found in Florida.

Food Shortage Hits Home

The world wide food shortage is hitting the San Fransisco treat.

Friday, April 18, 2008

Good Earnings or a Sham?

80% of companies have met or beaten earnings estimates so far this quarter. Before we get too excited about this number let's remember that most of these are readjusted earnings. It's like setting a goal to lose 20 lbs and months later you are celebrating the fact you only put on 5. We are not out of the woods yet and the Fed needs to still address the inflation issue.

Consulting: If you can't be part of the solution, there is good money in prolonging the problem.

The business services industry group has been performing well because of the economy. Many of these companies specialize in helping companies become more efficient and profitable. A bad economy is good news for many of these firms as they will be called upon for consulting insights and help. Others simply serve businesses in the day-to-day functions and were outperforming the markets in 2001 and 2002. All of them are uptrending or within a basing pattern.

ADP - Automatic Data Processing
ERES - Eresearch Tech
FCN - FTI Consulting
GPN - Global Payments
HEW - Hewitt Associates Inc
HIL - Hill International
IBM - International Business Machines
IT - Gartner Inc.
MA - Mastercard
MAN - Manpower
MCHX - Marchex Inc
NCI - Navigant Consulting
PAYX - Paychex Inc
PRAA - Portfolio Recovery Accociates
VVI - Viad Corp
WW - Watson Wyatt Worldwide
WXS - Wright Express Corp

Wednesday, April 16, 2008

Hedge your Shopping List

Assuming you're not one of those people who work for the Fed who believe that food and energy don't count as inflation, you have probably noticed the rise in food costs. The world is seeing inflation from a rise in demand for human consumption and energy alternatives. You can actually profit from this phenomenon by investing the DBA Agricultural exchange traded commodity fund.

Tuesday, April 15, 2008

Value and Dividend Watchlist

This is a list of stocks I like that are fundamentally strong, low valuations, great dividend income, and are uptrending or within a basing pattern.

Symbol - PE Ratio - Div Yield

AZN - 11 - 6.79%

TOT - 8.5 - 4.00%

BDK - 8.5 - 2.54%

COP - 11 - 2.36%

TCK - 12 - 2.19%

MT - 11 - 1.80%

SAFM - 9 - 1.44%

Thursday, April 10, 2008

Oo-mox Watchlist

As an investor, I would consider myself more as a currency trader but I also trade in the equities market. Trends and pattern breakouts is what I look for in the markets and they are all over the place. As you get better and with practice, you will start seeing them in your sleep. (Yeah h0ney, I swear I don't see a double bottom when you where that dress....)

My current watch list is made up of several different stocks and some currencies. I am looking at mostly with a technical analysis view on each position. As time goes on, I will follow these stocks and bring some more and take some away. Tell me what your thoughts are going forward.

URBN















The first is Urban Outfitters Inc. (URBN). Currently, URBN is bouncing off of a long term channel and has a 5 point move possibility. There is also a long term resistance at $33 and if it breaks, then we could see the stock breaking and hitting $37. I will definitely be watching this stock.

AGU















My next stock that I am watching is AGRUM Inc (AGU). I love this type of set up because it is setting up to be a ascending triangle. If this pans out and breaks the tested resistance of $75, we could see a $20 move from the break of $75 area. It may test the resistance again and break down to the diagonal support and then break. We will see, wont we!!!

EUR/USD
















Now, I thin the best one yet because our good old greenback is not doing so well and may have some breaking down still in its future, at lest into summer. Therefore, I think this pair will run through 1.5900. This pair is setting up a nice ascending triangle and with a potential 600 pip move before it gets too extended. With the financial s companies still looking for handouts from the government and lending to retail clients dried up like a tight sphincter, and still more write offs still not taken, we will see some more weakness in the dollar. Watch this one carefully.

Tuesday, April 8, 2008

Liquidity Translation

The Fed continues to open up liquidity through the Fed window and lower interest rates but what has it done for the banks? The banks are able to work their day to day functions but they haven't opened up their own lending windows.

Thursday, April 3, 2008

The Cure for High Oil Prices

Can more regulation and more taxes somehow bring down oil prices? What in the heck are they thinking in Washington. Commodities and stocks work in long-term 18 year cycles. That is what happened in the 1900s, 1930s, 1970s, and today. It isn't government conspiracy or Bush and his big oil friends who want to drill in Anwar it is demand from China and India coupled with a weak dollar. This is the price we pay when 3rd world countries progress and our Monetary policy makers lack backbone. Rejoice in the wealth being built in these countries and realize eventually, supply will meet demand through new wells, efficiency gains, and alternatives. It is not an over night fix so be ready to endure high inflation for quite some time. There are plenty of ways to profit from this commodity boom so become educated. Read the not so well written but sufficient book "Hot Commodities" by investing legend Jim Rogers!

Interesting side note, the week of Black Thursday just before the Great Depression, congress was holding hearings on how to tax the railroads for their "windfall profits". You gotta love government. I bet if you looked back in 1999 when oil was trading around $11 a barrel congress was looking for a way to subsidize the oil companies to keep them afloat. Sometimes you get the bull like these oil guys are now, sometimes you get the horn like they did in 1999 and couldn't stay in business.

Tuesday, April 1, 2008

No Foolin I'm Bullish

Despite all my rantings on the economy and how I think the government is making things worse I am bullish for April. Seasonally speaking the market cycle is bullish this month. Last months break down in commodities on the DBA and the DBC along with weakness in Gold (GLD) and Oil (USO) tell me there is a window of relief from out of control commodity bulls. Even though Australia didn't cut rates last night we are seeing the dollar strengthen against most all other currencies, FXA, FXC, FXE, etc. Dollar strength tends to lead the stock market.

Don't get get me wrong, I am long-term bearish still. I think we will see the CNBC and BTV start marking the end of the credit crisis, calling Bernanke a hero, but the rally will be a sucker's rally. We have another $300 billion in losses coming for our countries financial institutions, we will see interest rate hikes later in the year when the Fed is forced to address inflation, and the rest of the world is now feeling out financial pain. Play the bullishiness while it last but use stops and position sizing!