This morning we walked away from the Salesforce.com August 140 put option as the stock was acting quite well. In its place, we added a margined position in contract driller Nabors Industries (NBR), which can be purchased at its current price. Gold prices have pulled in lately, but the metal is a tightly wound spring that has the potential to leap significantly higher in the coming months. The gold shares, meanwhile, have priced in a steep retreat in the metal. From the contrary prospective, we like that sentiment; we’re holding the Market Vectors Gold Miners (GDX) September 57 call option, Gabriel Resources (GBU.TO, GBRRF), and our latest addition, NovaGold Resources (NG). All three are buys at their current prices. Agriculture-related stocks have continued to act well in the past week, including Mosaic (MOS). Our Mosaic (MOS) September 80 call option remains a hold, however. EMC Corp. (EMC) looks to have put in a bottom and we remain optimistic the stock will trade at new highs shortly. Unfortunately, we’re starting to run out of time with our EMC (EMC) July 29 call option. Hold. We’re still carrying two short positions. The JC Penny Company (JCP) November 34 put option is a buy for new clients, as is the Direxion Daily Financial Bear 3X Shares (FAZ) ETF. Read More
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Analyst Articles
Buy Nabors Industries (NBR) on margin. Read More
Sell to close the Salesforce.com (CRM) August 140 put option at the market. Read More
India’s government has decided on a structural framework for a USD11 billion infrastructure debt fund aimed at revamping the country’s infrastructure. The fund will either be set up as a trust or a company. If it is established as a trust, the fund will function as a mutual fund and… Read More
Updates on past recommendations and how they've fared... Read More
Movies and drillers plus our regular Checkup... Read More
Two top investing experts tell us what to buy now and why... Read More
Buy NovaGold Resources (NG) at the market price. Read More
The markets have finally snapped the longest losing streaks for the S&P 500 and the Dow since 2001 on optimism that the Greek debt situation will be somehow be favorably resolved. The Greek government is facing a no-confidence vote today that is likely to determine whether it will default. Read More
Last week, the OECD and the United Nations released a joint report that concluded food prices will remain higher in the next decade than in the past 10 years. The reasons: slower agricultural production and higher demand. Global agricultural production is projected to grow by 1.7 percent annually through 2020, compared to 2.6 percent in the previous decade. By 2020, an estimated 13 percent of global coarse grain production, 15 percent of vegetable oil production and 30 percent of sugar cane production will be used for biofuel production, induced by higher oil prices. In real terms, the report projects the average 2011-2020 cereal prices up to 20 percent higher, livestock prices up to 30 percent higher. Agricultural stocks, including Mosaic (MOS), keep gaining ground. Our position in the Mosaic (MOS) September 80 call option has benefited. It remains a hold, however. Also a hold is the EMC (EMC) July 29 call option, which is now a front month contract. Gold has been climbing higher in the last few trading sessions and the gold shares have started moving as well; the Market Vectors Gold Miners (GDX) September 57 call option remains a buy for new subscribers at its current price. We also rate as a buy Gabriel Resources (GBU.TO, GBRRF) shares. Last week, we added one more position to our list of trades. The JC Penny Company (JCP) November 34 put option was added to benefit from what we believed was a market’s overreaction on the news of ex-Apple executive appointment at the company. The option can still be bought for new subscribers at its current price. Read More