Given risk-on and risk-off mood swings, the best forex barometer may be the euro as the stops at 1.1...
Global Briefs: A Six-Pack of Picks
11/28/2003 12:00 am EST
Finally, in our special global report, we offer a six-pack of picks, covering a South African platinum miner, the China commodity boom, and a group of Asian funds. We also offer a bet on the falling US dollar, an island-based retailer, and an Irish pharmaceutical firm.
"One small exploration company that has piqued our interest is Anooraq Resources Corp. (ARQRF OTC BB), which is developing platinum deposits in South Africa," says Ian Wyatt, editor of The Growth Report . " The case for Anooraq is fairly simple: supply remains low, with strong demand for both jewelry and the auto industry (catalytic converters). We feel that a story that has this kind of flavor could really get investors excited. While clearly speculative in nature, we are initiating coverage of Anooraq with an initial target of C$4.00 (roughly US$3.06)."
"If you're selling the China commodities rally right now, you'll be leaving a heap of money on the table," says Thom Calandra, in CBS MarketWatch. "The financial press are worried that China's booming demand will lead to a bubble. Don't believe it. The melt-up in metals prices will benefit commodities investors for a very long time. US Global Investors' Global Resources (PSPFX ) is focused on China, funds chief Frank Holmes tells me. The resources fund is off the charts, up 70% this year. Oh, and folks, it's got a lot of room left."
"The falling US dollar and the rise in gold have given the Prudent Global Income Fund (PSAFX ) a shot in the arm in recent weeks," says Doug Fabian, editor of Successful Investing. "The greenback was down nearly 2% against the euro this week for the second week in a row, while the price of gold continues to knock on the door of $400 an ounce. The mainstream financial press has yet to really recognize the bull market in gold. If it starts to make headlines, we will be positioned to ride the wave on the back of the Prudent Global Income."
The latest featured "pick of the week" from Kevin Kennedy, editor of The Coolcat Report, is Cost-U-Less (CULS NASDAQ). "The company builds its business through delivering high-quality US and local goods, progressive merchandising practices, sophisticated distribution capabilities and superior customer service, primarily to island markets. The firm operates 11 medium-sized warehouse club-style stores in the Caribbean and Pacific region, including the Hawaiian Islands, Guam, American Samoa, and Republic of Fiji."
"Elan Pharmaceuticals (ELN NYSE) has stumbled hard since we first recommended the stock for our model portfolio," says Jamie Dlugosch, editor of The Rational Investor. "Nonetheless, we remain positive about the outlook for the Ireland-based company. Accounting shenanigans have had their toll on ELN, but we are hopeful the worst is behind the company. Recently, S&P increased ELN's credit rating to B-. We maintain our belief that ELN is undervalued given the vast potential in the biotech sector. Buy up to $8 for a target price of $16 per share."
"I especially like the Asian stocks," says Dennis Slothower, editor of StealthStocks. "They have had a big move already and they can be volatile, but in my opinion they are likely heading higher for the balance of the year. Asian funds are growing at a far faster clip than the US funds. From an international perspective this is the area of the strongest growth. I continue to recommend the Greater China Fund (GCH NYSE), JF China Region Fund (JFC NYSE), and the Templeton Dragon Fund (TDF NYSE)."
Finally, for all of those astute readers who have made it through this special report, I would urge you to plan ahead and consider attending the first World Money Show, next February 2-5, in Orlando. For more detailed information please click on the banner in the left hand column of this Digest (just below the index).
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