Thursday, September 4, 2014

No junior gold stock is a "sure thing"... but these could be the next best stocks you'll find

From The Gold Report: 
Keith Phillips, a managing director and head of Cowen & Company’s Mining Investment Banking Group, says strong companies with solid balance sheets are on the hunt for precious metals development projects or small producers trading at steep discounts. In this interview with The Gold Report, Phillips explains that these juniors represent unprecedented value for acquirers with longer-term goals, and he tracks some potential M&A prey.
The Gold Report: Canada’s Financial Post reports that as of July 30, 2014, there have been 41 mining deals worth a combined CA$7.1 billion (CA$7.1B) in 2014. The total value of the deals reached CA$9.3B in 2013. Do you believe that total will be eclipsed before 2015?  (more)

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Homebuilder Stocks Getting Hit Again Despite Higher Dow DJUSHB / By David Kranzler / September 3, 2014
[note:  the DJUSHB Dow Jones Home Construction Index has hit a new low on the day since I posted this report - it's down almost well over 2%  nearly 3%  now]
Despite what seems to be an inexorably rising stock market, the homebuilder stocks continue their negative divergence from the direction of the general market.   In fact, the homebuilder stocks dropped over 1% at today’s market open despite another unexplained “pop” in the S&P 500.
The message of the market is unmistakable:   the housing sector is tanking (click to enlarge).
This is despite the fact that 30-yr mortgage rates have come down to their lowest level in a year.  That fact that buyers are disappearing is reflected in today’s mortgage purchase applications report from the Mortgage Bankers Association which showed another 2% drop in applications files vs. the previous week and a 12% plunge from a year ago.
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Why the Bull Market in Bonds Will Continue: Pam and Mary Anne Aden

This week, two of the most influential and well known investment analysts, Pam and Mary Anne Aden, join S&A Investor Radio.
They are editors of the 31-year old newsletter The Aden Forecast, one of the most successful investment publications in the world.
Today they share with listeners how they have made huge returns investing in the bond market over the past four years and explain why they are still bullish on bonds...
Do they believe this bear market is coming to an end?
Will interest rates move higher?
Listen as Pam and Mary Anne answer these questions as well as break down the gold markets.
And you won't want to miss this...
Frank reveals his favorite dividend stock in his educational segment. (more)
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Energy Transfer Equity LP (NYSE: ETE)

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the Unites States. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates approximately 7,800 miles of natural gas transportation pipelines and 3 natural gas storage facilities located in the state of Texas; and approximately 12,800 miles of interstate natural gas pipeline.
Take a look at the 1-year chart of Energy Transfer (NYSE: ETE) below with my added notations:
1-year chart of Energy Transfer (NYSE: ETE)
ETE has been trending higher for the last 12 months, and since the beginning of 2014 the stock has formed a clear trendline of support (green). However, over the last 2 months the stock had formed at 52-week high resistance at $60 (blue). At some point ETE was going to have to break one of those two levels, and yesterday the stock broke to a new high.

The Tale of the Tape: ETE broke though its $60 resistance, which was also a new 52-week high. A long trade could be made on a pullback down to the $60 level with a stop placed below that level. A break back below the $60 level should lead to a fall down to the trendline support.
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Bull / Bear Ratio in Stocks

As FBN notes,
Sentiment has reached an extreme as  Bears according to Investors Intelligence fell to the lowest level since 1987. The markets persistent grind higher is a constant pain for any bear. The few that remain are the classic perma-bears and adjusting for them we are near rock bottom for bears. The history of Sentiment reminds us that it’s more dangerous to have an evaporation of bears compared to a plethora of bulls.
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How to Profit from the California Crisis

Back in antiquity and halfway around the world, the superpowers of the ancient world consistently fell to one foe.
The Tang Dynasty ruled from 618 A.D. to 907 A.D., during what is widely considered a Golden Age in Chinese history.
But the beginning of the end came in 873 A.D., when an illegal salt trader organized starving peasants and started a decade-long war following a disaster. By 880, he had seized the capital and throne.
By studying stalagmites, a joint Chinese and American team found a significant decrease in deposits correlated to the beginning of the end of a Golden Age in Chinese history. (more)

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