By the end of Monday’s trading, investors began to question whether China will really follow through with plans to boost its currency. Earlier in the day, we opined that change is coming, albeit more slowly than many would like. Even after the dust settled and many China-related stocks gave back their gains, shares of metals makers – especially aluminum producers – held onto sharp advances. Both Alcoa (NYSE: AA) and Century Aluminum (Nasdaq: CENX) rose more than +10% on intra-day basis on Monday,… Read More

By the end of Monday’s trading, investors began to question whether China will really follow through with plans to boost its currency. Earlier in the day, we opined that change is coming, albeit more slowly than many would like. Even after the dust settled and many China-related stocks gave back their gains, shares of metals makers – especially aluminum producers – held onto sharp advances. Both Alcoa (NYSE: AA) and Century Aluminum (Nasdaq: CENX) rose more than +10% on intra-day basis on Monday, and were holding most of those gains in Tuesday trading. For both of these firms, investors need to brace for some short-term pain but real long-term gains. A Tough Start to Earnings Season Alcoa, which always kicks off earnings season, will likely set a somber tone. Analysts have been lowering their second-quarter profit forecast from $0.28 to $0.16 during the past few weeks, and that still looks too high. Spot pricing for aluminum has been… Read More

If you read my article from late last week, you know about my family farm in Kansas. And you’ll also remember that I work out of the StreetAuthority offices in Austin, Texas. So what do those two places have to do with today’s investment idea? One word:… Read More

Put that cork back in the champagne bottle. As the dust has settled, it’s increasingly clear that China’s bold actions this weekend regarding its currency may be less bold than it seems. Clearly, the Chinese yuan will get stronger and the U.S. dollar will get weaker, but it will take several years — or longer — for any real positive benefits to be felt. Nevertheless, you can identify the long-term winners and losers from a stronger Chinese currency. Watching Paint Dry The Chinese government announced over the weekend… Read More

Put that cork back in the champagne bottle. As the dust has settled, it’s increasingly clear that China’s bold actions this weekend regarding its currency may be less bold than it seems. Clearly, the Chinese yuan will get stronger and the U.S. dollar will get weaker, but it will take several years — or longer — for any real positive benefits to be felt. Nevertheless, you can identify the long-term winners and losers from a stronger Chinese currency. Watching Paint Dry The Chinese government announced over the weekend that it would loosen the fixed rate at which dollars and the yuan can be exchanged, responding to increasing pressure from lawmakers in the United States and elsewhere. That led to a quick +0.4% gain in Monday trading for the yuan. And that’s all you should expect for the near-term. From time to time, the Chinese government will slightly loosen the band further, and the currency will make another quick +0.4% to +0.5% move. But we may not see more than a handful of those moves each year. Translation: it may be several years before the yuan gains +10% from… Read More

After surging to a new all-time high of $1,258.58 an ounce on Friday, the yellow metal certainly could come under pressure from profit-taking or some other yet unknown exogenous event. However, for lots and lots of reasons, I like gold in this market. Here’s why: To begin… Read More

The oil industry is in the midst of dealing with one of the largest spills in history. The consequences could be dire for firms focused on offshore drilling, with a current six-month moratorium on drilling in the United States and a slew of new regulations and safety procedures being prepared… Read More

With the market oscillating between down and flat for the year, an old friend of mine, Tom, asked the other day why I was so chipper about the market. He had just received his 401(k) statement and was very disappointed. “I’m up,” I told him. “I’m way… Read More

I apologize for the brevity of today’s article, but I have a long drive ahead of me. Most of you probably think I’m just a research fanatic that locks himself in the office for hours on end… well, you’re right. But fact is, I grew up on… Read More

If you read about the markets — whether from papers like The Wall Street Journal, publishers like StreetAuthority, or even blogs like 247WallSt.com — I think you’ll start to notice how much press is devoted to China. It’s for good reason. China, especially… Read More

More than a century ago, governments in the United States and Europe decided to pave over dirt roads. They knew that many citizens would soon be driving automobiles and would soon sour on bumpy, rutted dirt paths. Now, a similar move is afoot. A wide range of incentives are being enacted to enable a smooth transition to the age of the electric car. Luckily for patient investors, the companies that stand to benefit from the coming e-car revolution have already fallen out of favor, and their share prices stand near all-time lows. Putting the Pieces in Place… Read More

More than a century ago, governments in the United States and Europe decided to pave over dirt roads. They knew that many citizens would soon be driving automobiles and would soon sour on bumpy, rutted dirt paths. Now, a similar move is afoot. A wide range of incentives are being enacted to enable a smooth transition to the age of the electric car. Luckily for patient investors, the companies that stand to benefit from the coming e-car revolution have already fallen out of favor, and their share prices stand near all-time lows. Putting the Pieces in Place A number of auto makers have announced plans to sell electric and hybrid cars and trucks that utilize lithium-ion batteries. Toyota’s (NYSE: TM) popular Prius uses older heavier battery packs, but many of the planned cars will have driving ranges of less than 100 miles. So consumers will need access to frequent and convenient recharging stations. The U.S. House and the Senate have released separate bills that would provide millions of dollars to a handful of select cities that install a network of charging stations. The regions chosen will likely be the first ones to see robust… Read More

I doubt you’ve ever heard of Rockhopper Exploration. Rockhopper is a small U.K.-based oil company. But what’s unique about its business is that the company is a major player in the drilling around the Falkland Islands. You likely remember the Falkland Islands as the… Read More