Tuesday, July 22, 2014

Energy XXI (Bermuda) Limited (NASDAQ: EXXI)

Energy XXI (Bermuda) Limited is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico. As of May 15, 2014, the company had proved reserves of 179 MMBOE. It operated or had an interest in 463 gross producing wells on 272,262 net developed acres, including interests in 41 producing fields. Energy XXI (Bermuda) Limited was founded in 2005 and is based in Hamilton, Bermuda.
To review Energy’s stock, please take a look at the 1-year chart of EXXI (Energy XXI, Ltd.) below with my added notations:
1-year chart of EXXI (Energy XXI, Ltd.)
EXXI has been trading primarily sideways for the last 6 months. Over that period of time the stock has formed a very strong resistance area at $24 (red). In addition, the stock has also created a clear level of support at $20 (green). At some point the stock will have to break out of its current consolidation.

The Tale of the Tape: EXXI has levels of support at $20 and resistance at $24. The possible long positions on the stock would be either on a pullback to $20, or on a breakout above $24. The ideal short opportunity would be on a break below $20.
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John Embry – This Is The Most Dangerous Period In 69 Years

kingworldnews.com / July 21, 2014
Today a man who has been involved in the financial markets for 50 years warned this is the most dangerous period in 69 years.  Below is what John Embry, who is business partners with billionaire Eric Sprott, had to say in this fascinating interview.
Embry:  “I honestly believe this is the most dangerous period in my lifetime, particularly from a geopolitical perspective.  This is even more dangerous than the Cuban Missile Crisis.  I remember that crisis like it was yesterday….
Continue reading the John Embry interview below…
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Debunking Some Common Investment Myths

I’m going to need a shower after this week because I really whored myself out to the financial news media for the book.  I continued the media parade on Fox Business yesterday where I talked with David Asman and Liz Claman about some common investment myths.  These segments are always so short, but here are the key points I was trying to make:
  • Most of us don’t have to “beat the market” (the stock market) in the long-run.
  • In fact, most of us have financial goals that don’t require us to perform with the variance of the S&P 500.  Most of us are looking to beat inflation and do so without exposing us to huge amounts of permanent loss risk.  The S&P 500 doesn’t perfectly achieve those goals and so building a portfolio that’s entirely stocks could actually expose you to unforeseen risks and create unnecessary turbulence in your life.
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High Yield Closed-End Funds Trading at a Discount

Most investors have never heard of Central Securities Corp. (NYSE: CET). The investment firm was launched on Oct. 1, 1929, just weeks before an epic stock market crash -- but it survived that era and has made it intact for more than 80 years, albeit in a low-key fashion.

Rather than offer a range of mutual funds, CET offers just one closed-end fund. Yet it's the kind of fund that investors should always seek out: The stated value of its holdings is worth a lot more than the actual trading price.

Said another way, this closed-end fund owns $28.20 a share worth of assets, but trades for less than $24.

CET has a solid portfolio, holding companies such as Intel (Nasdaq: INTC), Citigroup (NYSE: C) and the Bank of New York Mellon (NYSE: BK). The management fee is 0.77%, which is tolerable when you consider the $4-a-share discount to net asset value (NAV).  (more)

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Advanced Energy Industries, Inc. (NASDAQ: AEIS)

Advanced Energy Industries, Inc., together with its subsidiaries, designs, manufactures, sells, and supports power conversion products that transform power into various usable forms. It offers thin-film deposition power conversion systems, including direct current (DC), pulsed DC mid frequency, and radio frequency (RF) power supplies, as well as matching networks, remote plasma sources for reactive gas applications, and RF instrumentation; and thermal instrumentation products that provide temperature measurement solutions for applications in which time-temperature cycles affect material properties, productivity, and yield. The company also provides solar power inverters, which provide a transformer-based or transformerless grid-tie photovoltaic (PV) solution to convert renewable solar power into electrical power, as well as integrated monitoring and performance measurement of PV installations.
To review Advanced Energy’s stock, please take a look at the 1-year chart of AEIS (Advanced Energy Industries, Inc.) below with my added notations:
1-year chart of AEIS (Advanced Energy Industries, Inc.)
During the last few months, AEIS has been consolidating after its severe drop-off. While consolidating, the stock has formed a clear resistance level at $20, and over the entire year the stock has created a $17, 52-week low support. For now, it appears that AEIS is on its way back down to $17.

The Tale of the Tape: AEIS seems to be on its way down to $17 after hitting $20 as resistance again. Long trades could be made at $17, or on a break above $20. Short trades could be entered on AEIS if the stock were to break below $17 or rally back up to $20.
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