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Eating and Browsing
02/17/2006 12:00 am EST
Two of the very best in the financial advisory world have turned their eyes to India. Louis Navellier looks at an Internet search engine, Rediff.com. Meanwhile, Elliott Gue likes Nestle and Bunge, as Indians adopt a more "western-like" diet. Here are their reviews.
"The growing middle class in India is starting to demand the same types of goods and services that we have here in the West," says Elliott Gue, editor of The Energy Strategist and contributing editor to Personal Finance. "In fact, one of the first things that changes when a country becomes wealthier is that their diets starts to converge and become more ‘western-like’ as they consume more prepared and prepackaged foods. One prime beneficiary is Nestle (NSRGY Other OTC), which is already selling its brands in India.
"Another diet related trend seen when countries develop more of a consumer class is the increased use of oils and other fats. One company to look at is Bunge (BG NYSE), a US company that processes soybeans into oil. About a year ago, they bought the largest oil seller within India. India now consumes more oil per capita than a lot of the other emerging markets, and this is growing rapidly. That’s an interesting ‘back door’ play on the change in Indian diets."
Adds Louis Navellier, editor of Global Growth, "Among our latest new buy recommendations is Rediff.com India Ltd. (REDF NASDAQ), an Indian communications company. It operates an Internet portal that provides news, weather, sports, and entertainment information. It also offers an e-commerce marketplace, e-mail, chat rooms, and wireless services. With offerings in several Indian languages, it also offers a version of its site for Indians living abroad. And it owns India Abroad , a weekly newspaper for the Indian-American community.
"The stock has been the most heavily traded Indian ADR on the NYSE in recent weeks. There is no doubt that after the successful stock offering of China's Baidu.com, some of that excitement rubbed off on Rediff.com. The company recently reported quarterly earnings of $1.19 per share, compared with a $1.18 loss in the same quarter one year earlier. Rediff.com also reported sales up 47% to $5 million during the same period. The stock is very volatile, but recently it pulled back, making it a good near-term buy for aggressive investors."
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