from King World News:
Peter Schiff continues: Read More @ KingWorldNews.com
Wednesday, October 12, 2011
Peter Schiff: Lots of Upside Left in the Gold Bull Market
4 Canadian Value Stocks : CNI, LULU, POT, SLW
by J. Royden Ward, editor Benjamin Graham Value Letter, 
We believe many outstanding buying opportunities exist among undervalued Canadian stocks. We believe the following four offer excellent appreciation potential during the next six to 12 month.
Canada is an excellent place to invest right now because the economy is growing, banks are solid and the national debt is under control.
Canadian banks were not allowed to sell risky loans or buy unsafe investments. The housing market in Canada remains solid, economic growth continues to climb, and the nation’s debt remains low.
Canadian National Railway (CNI) operates Canada’s largest railroad system covering Canada from east to west and the central U.S. south to the Gulf of Mexico.
Canadian National is the most efficient rail operator in North America with high profits and low costs.
The company hauls a wide variety of goods including forest products, intermodal shipping containers, farm products, petroleum and chemicals.
It’s $1.7 billion capital improvement program to expand port facilities, add track, and purchase freight cars and fuel-efficient locomotives will help EPS to roll along at a good clip.
CNI currently trades at just 12.1 times forward 12-month earnings per share, with a dividend yield of 2.0%. CNI is a solid long term investment.
Lululemon Athletica (LULU), founded in 1998 in Vancouver, British Columbia, makes long-lasting athletic clothing for running, dancing, practicing yoga and other active endeavors.
The company sells women’s pants, shorts, tops and jackets in 138 company-owned and four franchised stores in Canada, the U.S., Australia and Hong Kong.
The company will likely increase sales and earnings by 19% during the next 12 months. The stock, as measured by P/E, is expensive at 38.6 times our forward EPS estimate of 1.26, but far less than its 50.0 times EPS of a few months ago.
Potash Corp. of Saskatchewan (POT) is a leading producer of potash, nitrogen and phosphate fertilizers.
Critical demand for food in places like China and Africa will require more and more fertilizer to maximize crop production.
The company is spending $7.5 billion to enlarge its facilities, which will increase its fertilizer production more than 50% by 2015.
Larger global grain crops are boosting fertilizer demand, evidenced by Potash’s sales rise of 54% and EPS jump of 85% during the past 12-month period.
We expect strong sales and EPS growth in 2011 and 2012 as well. POT shares sell at a reasonable 11.3 times forward 12-month EPS.
Silver Wheaton (SLW), based in British Columbia, purchases silver from mines in Greece, Mexico, Peru and Sweden.
The company does not own or operate any silver mines, but purchases silver produced as a by-product of gold mining companies.
Silver Wheaton pays less than $4.00 per ounce of silver from gold miners such as Barrick Gold. Its contracts are immensely profitable and will produce rapid revenue and earnings growth well into the future.
The price of silver has dropped significantly during the past several weeks, but we expect higher prices in 2012. The recent decline in the stock price offers an excellent buying opportunity.
FREE ebook: Over A Barrel How The Coming Oil Crisis Will Destroy Life in America As We Know It
Over A Barrel
How The Coming Oil Crisis Will Destroy Life in America As We Know It
Download eBook (.pdf)
Download audio here www.offthegridnews.com/otgN451/OverAbarrel.mp3
Jay Taylor: Turning Hard Times Into Good Times
10/11/2011: Are We on the Precipice of a Greater Depression?
Foreign Central Banks Selling US Treasuries at Unprecendented Levels
Two weeks ago I began to report to subscribers of the Wall Street Examiner Professional Edition Fed Report that foreign central banks (FCBs) had begun to engage in unprecedented levels of disgorgement of their massive holdings of US Treasury and Agency paper. Prior to this year, the FCBs had typically absorbed the equivalent of 25% of new US Treasury issuance month in and month out. That was effectively a subsidy of US financial markets. It lowered long term interest rates artificially and injected cash into the US markets and banking system. Then about a year ago the FCBs began to slack off in their buying. In reality, that is what necessitated the Fed's program of Quantitative Easing. The Fed had to step in and fill the demand gap left by the FCBs gradually reducing their rate of purchases. Had the Fed not acted when it did, long term Treasury yields would have started to rise and along with them mortgage rates and other long term rates, something that the US economy and the US Government simply could not afford.
When the negative unintended consequences of the Fed's QE money printing, primarily skyrocketing commodity prices, exploded in Bernanke's face, he was forced to discontinue the program and allow the Treasury market to fend for itself. The Fed had convinced itself through its self-congratulatory in-house research, that there would be more than enough demand for Treasuries for the market to stand on its own without the Fed propping it up.
Ironically, the US bond market was rescued by the European sovereign debt and bank meltdown, so it appeared for a while that Dr. Bernankenstein might be right and his monster experiment would be vivified on its own. The European panic triggered massive capital flight that ended up, where else, flooding into the US, mostly into purchases of Treasuries. Not only could the monster walk on its own, it could actually fly! Once again the Treasury market benefited from an unusual subsidy, this one driven by fear. Bond prices flew into the stratosphere with yields sinking to record lows. (more)
Subscribe to:
Posts (Atom)