Among our positions, we closed out the (QCOM) January 55 call option last Thursday for an 11 percent gain after the stock jumped on a favorable earnings report. That leaves us holding mostly precious metals plays. Gold is once again challenging the $1,800 an ounce mark, and the case for $2,000 gold remains robust. For instance, Chinese imports of gold from Hong Kong (which is considered a good proxy for the country’s overall overseas buying), in September represented nearly half of the gold the nation bought in all of 2010. We also learned the other day that the Chinese government will inject more than 1 trillion yuan ($158.2 billion) of treasury deposits into various government departments. Much of this is expected to be moved into the country’s banks in what will be de facto credit easing. If the Chinese economy picks up steam, look for more gold buying by consumers there. We’re long the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) and have more aggressive positions via NovaGold Resources (NG), Gabriel Resources (GBU.TO, GBRRF) and Market Vectors Gold Miners (GDX) ETF. Each of these are rated buys at their current prices. Read More
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Hong Kong property transactions fell 14 percent month over month in October and 53 percent year over year, according to data from the city’s Land Registry. The total amount of transactions came in at 5,675, of which 4,643 transactions were in the residential property sector. Residential property transactions declined 3.7… Read More
Sell to close the Qualcomm (QCOM) January 55 call option at the market. Read More
Volume 8, Issue 44 Read More
This morning we added the Lululemon Athletica (LULU) January 55 put option. It’s a vulnerable stock in its own right and will selloff sharply if stocks continue to slide. Use a limit order set at $6.70 if you have not purchased the option already. We closed out two positions since out last update. Manitowoc (MTW) handed us a healthy 10 percent gain in just two days when investors reacted positively to the company’s earnings report. We followed that up by cashing out of the Halliburton (HAL) January 38 call option, which yielded a 12 percent return in 15 days. Qualcomm (QCOM) is set to report its tomorrow. The company likely had a bang-up quarter and should offer good guidance for the current quarter as well. The Qualcomm (QCOM) January 55 call option is a buy at its current price. Gold stocks are in retreat along with the rest of the market today. And they may fall further should stocks continue to pull back. Still, the metals and their proxies, the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV), offer safe haven in these uncertain times. And the mining shares, including NovaGold Resources (NG), Gabriel Resources (GBU.TO, GBRRF) and Market Vectors Gold Miners (GDX) ETF, offer solid return potential for the months ahead. All are rated buys at their current prices. Read More
Buy to open the Lululemon Athletica (LULU) January 55 put option using a limit order set at $6.70. Read More
China’s banks posted strong third-quarter profit growth, despite investor concerns that these banks may face a wave of non-performing loans. Industrial and Commercial Bank of China (ICBC), China’s largest bank in terms of assets, said net profit rose 28 percent year over year in the third quarter. Bank of… Read More
Sell to close the Haliburton (HAL) January 38 call option at the market. Read More
Sell Manitowoc (MTW) stock at the market price. Read More
Stocks are in retreat this morning, but the sentiment has been overwhelmingly positive of late. Investors have returned to stocks on encouraging signs that Europe will put up sufficient cash to bring about an end to its sovereign debt crisis and recapitalize its banks. Read More