Markets the world over had a scare last week when Dubai World, the Persian Gulf-based real estate outfit that is presumably backed by the emirate of Dubai sought to defer payment on its debt for six months. Read More
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This morning we closed out the Barrick Gold January 37.50 call (ABX + AU) for a gain of 196 percent in less than two months. We rolled that position into the Barrick Gold April 48 call option (ABX + DR) for more leverage. The option is a buy up… Read More
Sell to close your Barrick Gold January 37.50 call option (ABX + AU) at the money. Buy to open the Barrick Gold April 48 call (ABX + DR). Pay no more than $4.10 per contract. Read More
Bagging profits should be a simple lay-up for the bulls during this holiday shortened trading week. Microscopic short-term interest rates, with 3-month Treasury bills now yielding a scant 0.045 percent, and continued softness in the U.S. Read More
The Barrick Gold (ABX) January 37.50 call option (ABX + AU) is a hold as the option is well in the money at this time. The Agnico-Eagle Mines January 65 call option (AEM + AM) is a buy up to $3.30. Gabriel Resources (GBU.TO, GBRFF), our long-term gold equity is a buy for new clients at the current price. Transocean (RIG) has pulled back in price and is tracking the price of oil fairly closely. The implied volatility on our Transocean January 95 call option (RIG + AS) has come down as well, further hurting our position. We still rate it a buy for new clients at its current price, however. Amylin Pharmaceuticals (AMLN) is getting a boost today compliments of a brokerage upgrade. We think the stock is worth far more than it’s selling for today and we’ll realize a higher price before expiration of our Amylin January 12.50 call option (AQM + AV). The option is a buy on a dip to $1.15 per contract. Williams Sonoma (WSM) produced better-than-expected quarterly results last week, but the company’s revised guidance for the fourth quarter merely brought it in line with Wall Street forecasts. The stock wasn’t able to gain much traction on the news and in light of what we’re seeing in the economy we’re willing to hold our short sale for a while longer. New clients can sell the stock short here. Read More
Investors’ appetite for risk just keeps getting stronger. Unfortunately, that’s not necessarily a good thing. And while this trend may continue through the upcoming holiday season, the risk of a major setback remains quite high. Read More
Our Barrick Gold (ABX) January 37.50 call option (ABX + AU) is surrendering some of its gain today, but we’ll continue to hold. The Agnico-Eagle Mines January 65 call option (AEM + AM) is a buy up to $3.30. Gabriel Resources (GBU.TO, GBRFF), has been the big winner in the past week. The stock has soared on word that the company has done a private placement with an investor with extensive dealings in Romania and who has excellent connections there to help move Gabriel’s Rosia Montana project toward production. This is a long-term position of ours and we still recommend the shares for purchase. Our long trade in the energy patch, the Transocean January 95 call option (RIG + AS), is a buy at its current price. We’ve long seen Amylin Pharmaceuticals (AMLN) as a takeover candidate, although that wasn’t what prompted our recommendation of the Amylin Pharmaceuticals January 12.50 call option (AQM + AV). Eli Lilly has been seen the logical suitor because of the close ties between the two and Lilly’s position in diabetes treatments. This week, speculation has turned to Merck as a possible buyer after company’s CEO said (without naming names) that he is interested in acquiring a biotech outfit of Amylin’s size and he likes the diabetes space. Our option is a buy on a dip to $1.15 per contract. Read More
As is the case leading up to every Olympiad, the amount of economic activity the 2010 Vancouver and Whistler Winter Olympic Games will generate has been one of the two central questions ever since a bid was first proposed, the other, of course, being the question of how much they’ll cost Canadian taxpayers. Read More
One thing’s for sure about this business, there’s never a dull moment in the markets. No sooner did it look like equities were breaking down than they staged a big turnaround last week. Together with yesterday’s trading they managed to recover much of the ground they lost in the prior few weeks. Read More
We’re holding three gold positions right now. The Barrick Gold (ABX) January 37.50 call option (ABX + AU) has moved up sharply and is rated a hold at this time. The Agnico-Eagle Mines January 65 call option (AEM + AM) is still out of the money and can be considered a buy. Likewise, our Gabriel Resources (GBU.TO, GBRFF),which is a long-term gold play is a buy its current price. The late-season Hurricane Ida has caused an evacuation of personnel from oil and gas assets in the Gulf of Mexico and pushed crude oil above $80 a barrel. That has been good new for oil-related stocks, including Transocean (RIG). We don’t see a lasting impact from Ida for Transocean, but the move suggests the stock is now headed for the mid $90s and likely higher. Our Transocean January 95 call option (RIG + AS) is a buy at its current price. Eli Lilly’s CEO said the other day that he favors mergers in the $1 billion to $2 billion range rather than larger deals. Its partner, Amylin Pharmaceuticals (AMLN), coincidentally falls into that category. Our recommendation of Amylin wasn’t predicated on a takeover, but such an announcement wouldn’t be the least bit surprising, especially from Lilly, which is an important stake in diabetes drugs. Another major driver for the stock would be FDA approval for an extended-release version of Byetta, which could come before year’s end. The Amylin Pharmaceuticals January 12.50 call option (AQM + AV) is a buy for new clients at the current price. Read More