Some stocks are like elite athletes. They may come with some extraneous baggage, but they still warrant a sizeable investment because they perform at such a high level.   #-ad_banner-#Perhaps the best example of this: Monsanto Co. (NYSE: MON), the well-known agricultural biotechnology firm that has sparked a lot of controversy thanks to its aggressive marketing tactics in the agricultural sector.   It all started about 20 years ago when Monsanto introduced the first genetically modified or GMO seed, an herbicide-resistant soybean that enabled farmers to spray weed killers without damaging their soybean crop. Since then, Monsanto has gotten… Read More

  Some stocks are like elite athletes. They may come with some extraneous baggage, but they still warrant a sizeable investment because they perform at such a high level.   #-ad_banner-#Perhaps the best example of this: Monsanto Co. (NYSE: MON), the well-known agricultural biotechnology firm that has sparked a lot of controversy thanks to its aggressive marketing tactics in the agricultural sector.   It all started about 20 years ago when Monsanto introduced the first genetically modified or GMO seed, an herbicide-resistant soybean that enabled farmers to spray weed killers without damaging their soybean crop. Since then, Monsanto has gotten a lot of bad press and been involved in numerous lawsuits related to its genetically modified seeds, herbicides and pesticides.   That’s the baggage. But the fact remains that Monsanto’s products remain extremely popular with farmers. Otherwise, it wouldn’t be generating industry-leading sales and profits or delivering impressive stock returns. Consider the company’s performance over the past few years.   Monsanto Financial Performance 2011-2014   2011 2012 2013 2014 Growth Rate Revenue (in billions) $11.8  $13.5  $14.9  $15.9 10.5% Net income (in billions) $1.6  $2.1 $2.5  $2.7 19.1% Earnings per share  $2.96  $3.79 $4.60  $5.22 20.8% Dividends per… Read More

Frankly, I’m a news junkie. I’m the guy in the office that people come to for explanations on what’s going on in the Middle East, or how the latest political buzz may affect markets. One practice I’ve become accustomed to in my daily stroll through the news is to question everything. It helps me remember the details and often leads to solid investments. Apple, Inc.’s (Nasdaq: AAPL) recent announcement of a nearly $850 million investment in solar energy is a perfect example. Apple has partnered with First Solar, Inc. (NYSE: FSLR) to build a solar farm that will generate 280… Read More

Frankly, I’m a news junkie. I’m the guy in the office that people come to for explanations on what’s going on in the Middle East, or how the latest political buzz may affect markets. One practice I’ve become accustomed to in my daily stroll through the news is to question everything. It helps me remember the details and often leads to solid investments. Apple, Inc.’s (Nasdaq: AAPL) recent announcement of a nearly $850 million investment in solar energy is a perfect example. Apple has partnered with First Solar, Inc. (NYSE: FSLR) to build a solar farm that will generate 280 megawatts, or MW, of electricity — 130 MW of which will fuel all of Apple’s California operations, the other 150 MW will be sold back to a utility company. To give you context, 280 MW is enough electricity to power more than 70,000 homes, according to the Solar Energy Industries Association. My first line of questioning is why solar and why now? Apple had stated its goal for a number of years: to power all of its facilities using renewable energy. So, this new project is a natural progression toward that mission. But the answer to “why now” lies in… Read More

When interest rates bottomed last month, bonds and several interest rate sensitive sectors of the stock market started to fall.  #-ad_banner-#​I was looking for a substantial correction in the utilities sector, and it appears to be well on its way to completing one. But some stocks in the group fell harder than others and may already be ripe for the picking.  My favorite right now is Atlanta-based Southern Company (NYSE: SO). This utility company generates electricity through coal, nuclear, oil and gas, and hydro resources and distributes it in the states of… Read More

When interest rates bottomed last month, bonds and several interest rate sensitive sectors of the stock market started to fall.  #-ad_banner-#​I was looking for a substantial correction in the utilities sector, and it appears to be well on its way to completing one. But some stocks in the group fell harder than others and may already be ripe for the picking.  My favorite right now is Atlanta-based Southern Company (NYSE: SO). This utility company generates electricity through coal, nuclear, oil and gas, and hydro resources and distributes it in the states of Alabama, Georgia, Florida and Mississippi. Since peaking at $53.16 in late January as investors sought the relative safety of utilities, the stock has fallen 14% in less than three weeks’ time. That is a very large move for a member of a normally staid sector, but it is good news for investors looking to buy now.  I have been waiting for the utility sector as a whole to retrace 50% of its rather sharp rally that began in August.  SO has already completed a 61.8% Fibonacci retracement… Read More

  Steel stocks have fallen deeply out of favor with the group losing about 25% of its value over the past year, according to Morningstar. The industry’s biggest players, U.S. Steel Corp. (NYSE: X) and ArcelorMittal (NYSE: MT) have fallen 60% or more from their cyclical peaks.   For bargain hunters, a decline of this magnitude might be seen as an opportunity to hunt for deep values. You can’t blame investors for such a reaction.   We saw a similar pullback in energy stocks in recent months, yet many key energy stocks and ETFs have now made rapid rebounds from… Read More

  Steel stocks have fallen deeply out of favor with the group losing about 25% of its value over the past year, according to Morningstar. The industry’s biggest players, U.S. Steel Corp. (NYSE: X) and ArcelorMittal (NYSE: MT) have fallen 60% or more from their cyclical peaks.   For bargain hunters, a decline of this magnitude might be seen as an opportunity to hunt for deep values. You can’t blame investors for such a reaction.   We saw a similar pullback in energy stocks in recent months, yet many key energy stocks and ETFs have now made rapid rebounds from their recent lows. For example, the Energy Select Sector SPDR (NYSE: XLE), an ETF that provides broad exposure to energy stocks, has spiked almost 9% already after apparently hitting bottom a month ago.   However, I’m not so keen on a similar rebound in steel stocks or ETFs.   Steel and oil are subject to distinct economic variables. Many experts believe that energy prices will regain much of their lost value by next year, albeit with a high degree of near-term volatility. #-ad_banner-#However, there are a number of reasons why the steel industry could be a perilous value… Read More

As Executive Editor of StreetAuthority, I get to have a front-row seat to the analysis made by some of the brightest financial minds in the country. #-ad_banner-#After doing this for many years, it usually takes a lot for something to really stand out and grab my attention. That’s why when I noticed that one of our most conservative analysts recently make a big, bold contrarian call involving the energy sector and a stock currently yielding 14%, I took notice. If he’s right, it could easily become one of the most profitable calls any of… Read More

As Executive Editor of StreetAuthority, I get to have a front-row seat to the analysis made by some of the brightest financial minds in the country. #-ad_banner-#After doing this for many years, it usually takes a lot for something to really stand out and grab my attention. That’s why when I noticed that one of our most conservative analysts recently make a big, bold contrarian call involving the energy sector and a stock currently yielding 14%, I took notice. If he’s right, it could easily become one of the most profitable calls any of our analysts make this year — including myself. Let me explain… Many of you are probably familiar with Nathan Slaughter. As Chief Investment Strategist of our premium newsletter, Total Yield, Nathan is all about two things: dividends and buybacks. It’s this quest to find investments that deliver shareholder value that normally lead him to be one of our most conservative analysts. In fact, Nathan has warned his subscribers in the past about chasing after high yields that may seem too good to be true. After all, what good is a stock… Read More

Last month was an eventful one for me. #-ad_banner-#I climbed hundred-foot waterfalls, traversed century-old bridges, and navigated rotten planks hanging over raging whitewater rapids. All of this is par for the course in the mineral exploration business, which is what I was doing recently in the eastern mountain ranges of Colombia. Over the course of my travels, I kept getting asked the same question. “Dave, where are gold prices headed?” “Up,” I answered. I say that confidently because I’ve become more and… Read More

Last month was an eventful one for me. #-ad_banner-#I climbed hundred-foot waterfalls, traversed century-old bridges, and navigated rotten planks hanging over raging whitewater rapids. All of this is par for the course in the mineral exploration business, which is what I was doing recently in the eastern mountain ranges of Colombia. Over the course of my travels, I kept getting asked the same question. “Dave, where are gold prices headed?” “Up,” I answered. I say that confidently because I’ve become more and more convinced that the rebound in gold is inevitable. Already this year gold has rallied almost 10%, and this could be just the beginning. In a recent issue of my premium resource advisory, Scarcity & Real Wealth, I laid out four themes that I’ve been watching closely to give me clues as to what’s next for gold. If I’m right, then it means it could kick off a serious gold rally. Today, I’d like to touch on each of these and explain why they should be of interest to investors right now. Read More

With oil now below $50 a barrel and still in search of a bottom, talk of an energy sector rebound may seem awfully premature. However, sharp gains in the price of “black gold” may not be all that far off. A Reuters poll of 30 economists, conducted at the end of December, puts Brent crude back at $74 per barrel sometime this year (from a current $49) and at around $80 a barrel in 2016. #-ad_banner-#Oil tycoon T. Boone Pickens expects an even greater rebound to $100 a barrel in 12-to-18 months as current low prices stimulate demand and weaker… Read More

With oil now below $50 a barrel and still in search of a bottom, talk of an energy sector rebound may seem awfully premature. However, sharp gains in the price of “black gold” may not be all that far off. A Reuters poll of 30 economists, conducted at the end of December, puts Brent crude back at $74 per barrel sometime this year (from a current $49) and at around $80 a barrel in 2016. #-ad_banner-#Oil tycoon T. Boone Pickens expects an even greater rebound to $100 a barrel in 12-to-18 months as current low prices stimulate demand and weaker prices force U.S. shale producers to decrease output. Legendary oil trader and hedge fund manager Andrew John Hall recently predicted $150 oil within five years. As he sees it, the current supply glut won’t last because the U.S. shale boom is set to fizzle out much sooner than expected, with production markedly declining after a 2016 peak. Even some of the more modest near-term price forecasts still represent significant upside for oil. Analysts at Citigroup, for example, project Brent crude will average $63 this year and $70 in 2016. A logical conclusion: Despite current weakness, oil is way oversold and… Read More

Early last month I stepped off a plane coming back from Colombia and found that energy markets were in a panic. The trigger was OPEC, which announced on November 27 that its member nations would not consider cutting oil output. The result was an 8.4% drop in West Texas Intermediate crude prices the following day. This energy selloff shouldn’t be news to any of our StreetAuthority Daily readers. In fact, just a couple of weeks ago, I told you about three ways to profit from cheap oil. And even if you didn’t read that issue, I’m sure you’ve noticed how… Read More

Early last month I stepped off a plane coming back from Colombia and found that energy markets were in a panic. The trigger was OPEC, which announced on November 27 that its member nations would not consider cutting oil output. The result was an 8.4% drop in West Texas Intermediate crude prices the following day. This energy selloff shouldn’t be news to any of our StreetAuthority Daily readers. In fact, just a couple of weeks ago, I told you about three ways to profit from cheap oil. And even if you didn’t read that issue, I’m sure you’ve noticed how cheap prices have been at the gas pump. #-ad_banner-#Many observers were expecting a production cut from OPEC. They reasoned that with oil prices having dropped from over $100 per barrel to near $70 preceding the announcement, the world’s largest producers would make a strong move to protect their profits. Plenty were caught off guard when OPEC did not cut protection, hence the steep drop in oil prices following the announcement. There are a number of reasons for OPEC’s surprise move. One of the largest reasons being cited in the mainstream financial press is competition. OPEC has been feeling the heat… Read More

Crude oil prices are at three-year lows, falling more than 20% since late June on weak demand from China and abundant supply from U.S. shale production. A strong U.S. dollar and Saudi Arabia’s price cuts for crude exported to the United States have deepened the decline. Analysts don’t see prices rebounding any time soon. The International Energy Agency (IEA) in its latest forecast cut its 2014 and 2015 estimates for oil demand growth, saying prices would be pressured by over-supply. The selloff in some oil and gas stocks could continue until prices establish a base over the next year or… Read More

Crude oil prices are at three-year lows, falling more than 20% since late June on weak demand from China and abundant supply from U.S. shale production. A strong U.S. dollar and Saudi Arabia’s price cuts for crude exported to the United States have deepened the decline. Analysts don’t see prices rebounding any time soon. The International Energy Agency (IEA) in its latest forecast cut its 2014 and 2015 estimates for oil demand growth, saying prices would be pressured by over-supply. The selloff in some oil and gas stocks could continue until prices establish a base over the next year or two. What’s an investor in Canadian stocks to do when energy stocks, such as Enerplus, account for roughly 25% of the TSX Composite Index? Not to worry. There’s a silver lining. Oil prices lost more than 20% since September 2013, while the S&P 500 gained almost 20% and the S&P/TSX rallied 13%. The inverse correlation is not coincidental. Low fuel prices help jolt the economy by serving as a tax cut to businesses and individual consumers. For example, the recent decline in gasoline prices from an average $3.68 a gallon to around $3.00 a gallon is estimated by motor club… Read More

Back in September, we told you about one of the most “hated” commodities on earth and how recent bullish developments could send prices soaring. In short, we explained how the aftermath of the Fukushima nuclear meltdown in March 2011 led the Japanese government to immediately shut down its remaining nuclear power plants, with countries like Germany also threatening to follow suit. #-ad_banner-#Uranium prices plunged 50% as a result. At the time, it might have looked like the beginning of the end for atomic energy, but this wasn’t the case. In fact, it has actually had no impact whatsoever on uranium… Read More

Back in September, we told you about one of the most “hated” commodities on earth and how recent bullish developments could send prices soaring. In short, we explained how the aftermath of the Fukushima nuclear meltdown in March 2011 led the Japanese government to immediately shut down its remaining nuclear power plants, with countries like Germany also threatening to follow suit. #-ad_banner-#Uranium prices plunged 50% as a result. At the time, it might have looked like the beginning of the end for atomic energy, but this wasn’t the case. In fact, it has actually had no impact whatsoever on uranium demand. That’s because as Dave Forest, Chief Investment Strategist for Scarcity & Real Wealth, pointed out, Japanese uranium buyers have continued to accept delivery, opting to stockpile the material rather than end their supply agreements. That’s because Japan simply has no other alternative but to use nuclear. It has historically supplied 30% of Japan’s energy, and the country would have to import an unfathomable amount of oil or gas to make up for the shortfall. Japanese policymakers are slowly beginning to realize this, and now, things are beginning to trend up for uranium… In our original writeup, my colleague Jimmy… Read More