Category: General

Why Investing In Chinese Stocks Can Leave Investors Vulnerable To Risk

Posted on by The INO.com Team

Something about the deal smelled fishy.

China Marine Food Group Ltd., a Chinese company then on the New York Stock Exchange, spent $27 million in January 2010 to acquire a firm whose main asset was "algae-based drink know-how." The weird thing: Three months earlier, the beverage formula had been valued below $8,800.

But when the U.S. Securities and Exchange Commission tried to review the deal, it got nowhere. The company's Chinese accounting firm refused to provide documents. And the SEC has been stymied since.

And China Marine? Its share price topped $8 in 2010. It's now around 12 cents.

The case represents a cautionary tale for investors eager to invest in Chinese companies on American exchanges. Chinese companies like Alibaba Group Holding Limited (NYSE:BABA), whose initial public offering this year set a record high, operate under lax standards compared with other stocks on U.S. exchanges. That means higher risks for investors. Continue reading "Why Investing In Chinese Stocks Can Leave Investors Vulnerable To Risk" →

Rocks to Riches with Thomas Schuster

Posted on by admin

The Gold Report: Thomas, the price of gold sank in October even as the stock market was rebounding. Can gold also rebound?

Thomas Schuster: Gold will rebound, it always has and always will. The mining market is almost violently cyclic. Deep lows are followed by spectacular highs. The tough question is when will the gold price rebound happen? There are a lot of nay-saying precious metal bears in the market right now. Many forecasters are predicting that gold will continue to trade within a narrow range around $1,1001,225/ounce ($1,1001,225/oz) over the next few years.

"Integra Gold Corp.'s project looks very promising."

But the fact is, on a global scale, we are not replacing reserves as fast as we're mining them. That simple fact supports only one outcome: higher prices. A recent report on gold production by SNL Metals Mining observes that when we look at the amount of potential future production from major discoveries made over the last 15 years, we could only replace, at best, 50% of gold produced during that same period. The report also points out that the average time to bring a newly discovered mine into production has been significantly increasing. For mines that went into production between 1985 and 1995, the average wait was eight years from discovery to production. For mines that went into production between 2006 and 2013, the average wait is 18 years.

There are many reasons for this more details are needed in feasibility work-ups, there are more stringent social and environmental standards, and more demanding permitting processes. Many of these mines are of lower grade. They are more remote, and require lots of capital for developing infrastructure and processing capacities. The capital market is poor at the moment; it is difficult to raise money and it takes more time to move into production than it did before.

TGR: Why was gold so high previously and what happened to the price, in your opinion? Why was it so high, and why did it fall so far? Continue reading "Rocks to Riches with Thomas Schuster" →

How Midterm Elections Could Lead To 17.5% Returns In Less Than A Year

Posted on by admin

By: Christian Hudspeth of Street Authority

The most recent election was a good night for Republicans, but possibly even better for investors.

That's not necessarily because Republican wins lead to better stock returns, but because historically the market performs better in the year following midterm elections.

In fact, there's a 66% chance that the market will post positive gains for 2014, according to research by StockTradersAlmanac.com.

Looking at stock market movements from every midterm election from 1970 to 2010, their research found that 66% of the time the stock market ended higher from election day to year's end.

And for all midterms since 1970, the stock market gained an average of 2.1% from election day to the end of year. You can see for yourself in the table below:

If a 2.1% gain possibility over the next two months doesn't sound groundbreaking, then this might.

Holding stocks for a full year after a midterm has historically been very profitable, according to research by Chief Equity Strategist Sam Stovall of SP Capital IQ. Continue reading "How Midterm Elections Could Lead To 17.5% Returns In Less Than A Year" →

Sector Analysis Can Help Your Trading

Posted on by The INO.com Team

Today, I'm going to be looking at nine individual sectors and analyzing each one. I am going show you a quick and easy way to tell which sectors are trending and which ones are stuck in a trading range.

I will also be looking at the top three stocks in each of those sectors that are trending to the upside.

The sectors I will be analyzing are as follows: Continue reading "Sector Analysis Can Help Your Trading" →

Under Armour, Inc. (NYSE:UA) Gives A Compression Buy

Posted on by The INO.com Team

I was scanning through the Trade Triangles list this morning to see what was new and exciting when I discovered that Under Armour Inc. (NYSE:UA) had flashed a weekly buy signal to the upside.

Business Profile
Under Armour, Inc. (NYSE:UA), together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth worldwide.

What I was looking for in this scan was weekly Trade Triangles that matched their monthly Trade Triangles. I wanted both the weekly and monthly Trade Triangles in the same direction and color. I have to admit, there were not many that match this criteria.

I found two more, but they were on the downside. These two stocks are in strong downtrends and look to be headed to the basement. Continue reading "Under Armour, Inc. (NYSE:UA) Gives A Compression Buy" →