The recent decline in the stock market has provided investors with several opportunities in commodity-related stocks. The recent decline was mainly due to heavy selling by hedge funds and the decline in consumption of these commodities from China. The fundamental long-term outlook for these companies remains solid and this should turn out to be a major buying opportunity for many of these companies. Through most of the 2007 and the first half of 2008, commodity stocks were on fire. However, over the last two months, many of these stocks have lost 50% or more of their gains. Some of the best commodity-related stocks that are now cheap according to their Price Earnings Multiple are Freeport McMoran Copper and Gold (FCX), Nucor Corporation (NUE), Bucyrus International (BUCY), and Arch Coal (ACI).
Monthly Archives: September 2008
Is there another Great Depression on the horizon, or is it upon us as I write? That seems to be the question. More than a few Wall Street giants have gone belly-up in this time of, to put it lightly, unfavorable conditions. In the past couple of days, the biggest news to hit Wall Street is that of the demise of behemoths such as IndyMac, AIG, Lehman Brothers, Fannie Mae, Freddie Mac Bear Stearns, and don’t forget the buy out of Merrill Lynch by Bank of America (BAC).
The signs of the increasingly warming world are becoming clearer, whether global warming is something to become alarmed over or whether it is here to stay is still questionable. In an environment of global warming there will be companies taking advantage of the warming environment to produce profits. Listed below are a few to consider.
The next line in that famous baseball song goes “Buy me some peanuts and cracker jack.” These days investing in baseball are even more popular than peanuts, if certainly not more profitable. Baseball is big business and there are some big league company names investing and partnering with Major League Baseball (MLB) to increase their bottom lines.
The energy sector has never been more volatile and exciting than it is today. Recently oil prices dropped from $145 to around $100 a barrel. But, the roller coaster is just beginning. Many analysts predict that prices will rise and fall many times in the next couple of decades. As we seek to find alternative fuels and energy sources, there’s still a lot of money to be made on oil. With stock options as insurance against loss, you can trade these exciting stocks and increase your portfolio. To limit damage from a dramatic decrease, stock investors can purchase put stock options, a married put is an example of a put option position. As the price of a stock investing position decreases, a put option‘s value increases, limiting a loss for the underlying stock. Additionally, investors can hedge their stock positions with covered calls. A covered call investing position can provide monthly income as well as provide downside protection for a stock investment. Whether you invest in companies who refine oil, drill for oil or who extract bitumen from oil sands, you can potentially make lots of cash from oil and also hedge or protect the investments with stock options.
With high gasoline prices, consumers are looking for ways to save money on fuel. There are many ways to accomplish this goal: drive less, take public transportation, telecommute, or buy a more fuel-efficient vehicle. Considering our driving habits, driving substantially less doesn’t seem likely, and for people who aren’t in a densely populated area, public transportation isn’t a possibility. This leaves the average consumer with one possibility: buy a more fuel efficient and less expensive vehicle. For many, their transportation of choice is a motorcycle.
Nothing excites Americans more than NFL football. Nothing excites the NFL more than profits. Isn’t it about time you profit from the NFL?
Look to score a touchdown with these football related investments.
In 2007, President George W. Bush developed a plan that would reduce gasoline usage by over 20% in the next ten years, and with both major presidential candidates making alternative energy a priority in the upcoming election; electric cars may be commonplace on our nation’s highways in the near future.
What does this mean for investors? As the number of electric powered cars increase, expect utility companies to get in on the action. Companies that operate as an electric utility and a renewable energy company offer investors a “two for one” opportunity.