Monday, March 11, 2013

EXCLUSIVE: David VS Goliath – Shocking Claims Against Barrick Gold

Chilean miner Jorge Lopehandia joins us, along with Bullion Bulls Canada’s Jeff Nielson, to cover Lopehandia’s shocking claims against Barrick Gold Corporation, the world’s largest gold producer. Jorge alleges that Barrick Gold used unethical and potentially illegal actions in the attempt to strip control of Jorge’s Chilean mine claims at Pascua Lama in Chile.

The allegations, if true, could not only end Barrick’s quest for gold on the Pascua Lama property (one of the largest gold reserves on earth), it could bankrupt Barrick altogether, and potentially help release the price of gold from the clutches of the precious metals price fixing cartel. Jorge claims that Barrick, in cahoots with criminal bank HSBC, has sold millions of ounces of Pascua Lama gold into the market, while to date, never having mined a single ounce of gold from the property.

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Guess?, Inc. (NYSE: GES)

Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of contemporary apparel and accessories for men, women, and children that reflect the American lifestyle and European fashion sensibilities. The company's clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, knitwear, and intimate apparel. Guess?, Inc. also grants licenses to manufacture and distribute a range of products that complement its apparel lines, including eyewear, watches, handbags, footwear, kids' and infants' apparel, leather apparel, swimwear, fragrance, jewelry, and other fashion accessories. The company markets its products under various trademarks, including GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO, and Gc. It sells products through retail, wholesale, e-commerce, and licensing distribution channels.
Please take a look at the 1 yr. chart of GES (Guess?, Inc.) that I have shown below with my added notations:
1 yr. chart of GES (Guess?, Inc.) GES has formed a nice up-trending channel over the last (4) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to a channel, I always tell my students that any (3) points can start the channel, but it's the 4th test and beyond that confirm it. You can see that GES has multiple test points between the channel resistance (red) and channel support (blue). Following the GES channel can provide you with both long and short trading opportunities.
The Tale of the Tape: GES has formed a common chart pattern know as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which at this point seems to be around $27. Short trades could be entered at channel resistance OR if GES were to break below the channel support.
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A Stock With Potential Triple-Digit Returns

Last year, Americans purchased over 4 billion light bulbs, according to the U.S. department of Energy. With recent legislative changes ensuring future use of more energy-efficient lighting solutions, IMS Research expects sales of LED bulbs will become a $10 billion market by 2015.

According to the New York Times, about 33 million LED light bulbs were sold in 2012. Within about four years, purchases will likely increase 1,000%, to more than 370 million LED bulbs!

While many LED manufactures are benefiting from this lighting boom, one public company in particular is profiting -- international LED and semiconductor manufacturer, CREE (Nasdaq: CREE).

CREE boasts an outstanding fundamental outlook and is backed by highly bullish technicals. This year alone, the stock already increased about 45%! But, as I explain below, the technicals point to much further growth potential ahead.

Helping drive the stock is recent news CREE developed what management terms a "game-changing" LED bulb. This bulb, which fits into any standard lighting receptacle, is designed to last up to 25,000 hours -- that's 25 times longer than a traditional incandescent bulb! In fact, CREE is so confident in its technology, the bulb comes with a ten-year warranty.

Up till now, LED bulbs have been expensive. But, CREE's new light bulb -- sold exclusively at Home Depot (NYSE: HD) -- will go for just under $10. Best yet, the bulb is expected generate 84% more energy savings than a traditional light bulb. And, unlike many current compact fluorescent bulbs, there won't be any lag-time when the light is turned on. Instead, it will illuminate instantly. The color is also said to be soft and warm, which until now, has been difficult to achieve through LED lighting.

From a technical perspective, shareholders certainly appear bright-eyed.
At the beginning of 2013, the stock traded just over $30. In less than three months, it has jumped over $20 and shows no signs of slowing down. Shares currently appear to be bullishly emerging out of a multi-year basing pattern.  (more)
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Warren Buffett on Risk, Optimism, and Ketchup

Warren Buffett released his latest annual letter to Berkshire Hathaway (NYSE: BRK-B  ) shareholders on Friday. You can read the whole thing here, but I pulled out some of the best quotes below.

On performance: "For the ninth time in 48 years, Berkshire's percentage increase in book value was less than the S&P's percentage gain (a calculation that includes dividends as well as price appreciation). In eight of those nine years, it should be noted, the S&P had a gain of 15% or more. We do better when the wind is in our face. To date, we've never had a five-year period of underperformance, having managed 43 times to surpass the S&P over such a stretch."

On Berkshire's future leaders: "Todd Combs and Ted Weschler, our new investment managers, have proved to be smart, models of integrity, helpful to Berkshire in many ways beyond portfolio management, and a perfect cultural fit. We hit the jackpot with these two. In 2012 each outperformed the S&P 500 by double-digit margins. They left me in the dust as well. ...Todd and Ted are young and will be around to manage Berkshire's massive portfolio long after Charlie and I have left the scene. You can rest easy when they take over."  (more)

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Amgen, Inc. (NASDAQ: AMGN)

Amgen Inc., a biotechnology medicines company, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Its principal products include Neulasta and NEUPOGEN to stimulate the production of neutrophils, which is type of white blood cell that helps the body fight infections; Enbrel, an inhibitor of tumor necrosis factor that plays a role in the body's response to inflammatory diseases; and Aranesp and EPOGEN erythropoiesis-stimulating agents, which stimulate the production of red blood cells. The company also markets other products comprising Sensipar/Mimpara, a small molecule calcimimetic that lowers serum calcium levels; Vectibix, a monoclonal antibody that binds specifically to the epidermal growth factor receptor; and Nplate, a thrombopoietin (TPO) receptor agonist that mimics endogenous TPO, the primary driver of platelet production, as well as offers Prolia and XGEVA denosumab, which are human monoclonal antibodies that specifically targets RANKL, an essential regulator of osteoclasts. In addition, it provides product candidates in mid- to late-stage development in various therapeutic areas, such as oncology, hematology, inflammation, bone health, nephrology, cardiovascular, and general medicine, which includes neuroscience.
To review Amgen's stock, please take a look at the 1-year chart of AMGN (Amgen, Inc.) below with my added notations:
1-year chart of AMGN (Amgen, Inc.) AMGN has been trading mostly sideways over the last (5) months while stalling at a clear $90 resistance level (navy). A break through this level would be a 52-week high and should mean higher prices overall for the stock. As you can see from the chart above, AMGN did exactly that earlier this week.
The Tale of the Tape: AMGN has broken out through its $90 resistance level. A long trade could be made on a pullback down to that level. A break back below $90 would negate the forecast for a move higher.
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How to Profit From the Booming Housing Market

The housing market is hot, and so are the stocks tied to its fortunes. In 2012, homebuilder stocks were all the rage, as evidenced by the 60%-plus rise in the SPDR Homebuilder (NYSE: XHB), an exchange-traded fund (ETF) which holds the biggest homebuilders in the nation, such as DR Horton (NYSE: DHI), KB Home (NYSE: KBH) and PulteGroup (NYSE: PHM). So far this year, XHB is up over 9.7%, which is slightly better than the 8.3% rally we've seen in the S&P 500 Index.
This year, there's a different kind of housing stock getting all of the love from profit-seeking traders. These stocks don't build homes, nor do they sell supplies to renovate your existing home the way retailers Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) do.
These stocks are all about information and mouse clicks, and they just may be the best stocks to play the strong housing rebound.
Just how strong is that rebound? Well, consider the recently released statistics from the Mortgage Bankers Association on the increase in new mortgage applications. The industry group reported that mortgage applications rose a seasonally adjusted 14.8% for the week ending March 1, a monster move that bodes well for continued upside in the housing market.
So, which two stocks are seeing the biggest boost in the housing space, and which are likely to continue to be great trading vehicles going forward? Here are my favorites...

Trulia (NYSE: TRLA)
This company provides housing information to prospective homebuyers via the Internet and through what has proven to be a huge growth market, its mobile-applications. Trulia's data-rich website enables real estate agents to list homes, and perhaps more importantly, it helps homebuyers find the home that fits their criteria. Data such as location, price, features, etc. can be found with just a couple of mouse clicks.
As the housing market continues to recover, stocks like Trulia are likely to keep seeing big gains. So far this year, TRLA shares have spiked an incredible 73%! I suspect that these gains are just the beginning for TRLA.
Recommended Trade Setup:
-- Buy TRLA at the market
-- Set initial stop-loss at $27.45
-- Set initial price target at $37.30, for a potential 25% gain over the next three months

Zillow (NASDAQ: Z)
Another fantastic company facilitating and providing information to homebuyers, home sellers and real estate professionals is Zillow. Like Trulia, the company's website and mobile applications provide all kinds of data on the housing sector. Homes for sale, prices, features, homes recently sold, and a host of other important information can be gleaned at Zillow. Consumers also can find out about mortgage rates, connect with lenders, and find out all sorts of interesting local information.
Zillow shares also have seen a massive spike so far in 2013, with the stock soaring 77% in the young year. Like TRLA, I think Z has a lot more upside for traders looking to ride the next wave of the housing recovery.

Recommended Trade Setup:

-- Buy Z at the market
-- Set initial stop-loss at $45.40 
-- Set initial price target at $61.68, for a potential 25% gain over the next three months
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US Weekly Economic Calendar

time (et) report period Actual CONSENSUS
MONDAY, march 11
  None scheduled        
7:30 am  NFIB small business index  Feb.   --  88.9
2 pm Federal budget Feb.   -- -$232 bln
8:30 am  Retail sales Feb   0.7%  0.1%
8:30 am Retail sales ex-autos Feb.   0.7%  0.2%
8:30 am Import price index Feb.   0.4%  0.6%
10 am  Inventories Jan.   0.5%  0.1%
8:30 am  Weekly jobless claims  3-9
350,000 340,000
8:30 am  Producer price index Feb.   0.8%  0.2%
8:30 am Core PPI Feb.   0.2%  0.2%
8:30 am  Current account deficit Q4   --  -$108 bln 
8:30 am  Consumer price index Feb.
0.6%  0.0%
8:30 am Core CPI Feb.   0.2%  0.3%
8:30 am  Empire state index March   10.0  10.0
9:15 am Industrial production Feb.   0.5%  -0.1%
9:55 am Consumer sentiment March   78.3 77.6 
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