Thursday, May 28, 2015

The Best Stocks to Invest in Alcohol: BUD, BF.A, BF.B

How could you possibly go wrong investing in booze? Talk about a product with a following!
A lot of investors don't want to touch so-called "sin stocks," like those of companies that make alcoholic beverages. To be clear, that's OK: If you've got strong feelings about the beer, wine, and spirits businesses, there are equally great investments to be found elsewhere.
But if the business of beneficially fermented or distilled beverages doesn't push your bad-ethics button -- or if, like this humble Fool, you might enjoy a well-made cocktail now and then -- and you like companies with big moats, strong brands, great cash flows, and dividends, then I encourage you to read on. (more)

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IG Interview: More downside to come before oil heads back to $60

Looking at the key factors moving the oil price, including Iran, shale and OPEC, and explaining why I think Brent will go back down to the mid $50s and then back to $60 next year.
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Canadian Mine Analysis Podcast with David Morgan

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Advisor Perspectives S&P 500 Snapshot: A Recovery From Most of Yesterday's Selloff

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May 27th, 2015

On a day of light economic news, the S&P 500 managed to recover most of its -1.03% post-Memorial Day selloff. The index surged at the opening bell, vacillated at the 30 minute mark and then rose at a slower but steady pace to the final hour. At its 1.05% intraday high eight minutes before the final bell, the index was fractionally above Friday's close. But some last minute selling trimmed the closing gain to 0.92%, the best performance in eight sessions and only 0.12% below Friday's close.
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Illinois Tool Works Inc. (NYSE: ITW)

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Test & Measurement and Electronics segment provides equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Food Equipment segment offers commercial food equipment and related services. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, janitorial and hygiene products, and fluids and polymers for auto aftermarket maintenance and appearance. The Welding segment produces arc welding equipment, consumables, and accessories for various industrial and commercial applications. The Construction Products segment produces construction fastening systems and truss products. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company distributes its products directly to industrial manufacturers, as well as through independent distributors.
Take a look at the 1-year chart of Illinois (NYSE: ITW) below with the added notations:
1-year chart of Illinois (NYSE: ITW)
ITW rallied in October and November, traded sideways for two months, and then rallied to new highs again. In addition, over the lat 6 months the $96 price level (blue) has become very important to the stock. Not only was $96 a key resistance in December, as well as support in March and April, but that level has also been a recent resistance in the beginning of May.

The Tale of the Tape: ITW has a key level at $96. A trader could enter a long position on a pullback down to $96 with a stop placed under the level. However, if the stock were to break back below $96, a short trade could be made instead.
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