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Nicholas Pardini
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Nicholas Pardini is the managing partner of the equity long/short hedge fund Nomadic Capital Partners. The fund specializes in commodities, emerging market consumer equities, and equities in the the global technology sector. His research and live trade updates are also found on his investment... More
My company:
Nomadic Capital Partners
My blog:
The Pardini Report
My book:
The Definitive Guide to Emerging Market Currencies
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  • Release Of New And Improved Pardini Report

    Dear Followers on Seeking Alpha,

    It's been a while since I last updated you on things, but we have been very busy with restructuring the Pardini Report in a manner that makes it more suitable to the needs of our subscribers and investors. With the cooperation of StrikePoint Media, we have put together a new version of the Pardini Report which includes an improved overall presentation of content, more targeted research by individual asset classes, and more detailed statistics on the portfolio's performance and trade history. Returns have started off strongly, with outperformance of all comparable benchmarks such as the S&P 500, the Barclay Hedge Hedge Fund Managers index, the CTA index, and the emerging markets index.

    This week's analysis will cover our update on the S&P 500, the best stocks to buy in the pork processing industry (which will benefit from record high lean hogs futures prices), and if it's the right time to buy Russian stocks.

    Try a 14 day free trial today to see more of what we have to offer and use our research to improve your returns! We also for a limited time are offering a free copy of my book the Definitive Guide to Emerging Market Currencies to new subscribers, and the Resource Guide to Making Money in Financial Markets just for trying the trial offer.

    Due to the work on the Pardini Report, our public appearances have been limited, but I did recently write a new column on Seeking Alpha about the buying opportunity in Chinese oil major CNOOC (CEO). Also I have conducted interviews with media outlets that will release the content in early April, so we will keep you updated.

    Overall market conditions remain overextended, overvalued, and over bullish in the West and relatively cheap in emerging markets and commodities sectors. Our trade is to pair these sides of the market against each other through selective securities on each side. Unless, the US dollar breaks out of its 79-81 range on the dollar index or real wages and savings grow in the US in a meaningful way, we expect this stagflation trend to continue to hold.

    For those interested in our premium services beyond the Pardini Report, check out our long/short fund(accredited investors only) and other investment services Nomadic has to offer.

    Have a good week,

    -Nick Pardini

    Disclosure: I am short SPY.

    Additional disclosure: Long SEB

    Mar 20 2:00 PM | Link | Comment!
  • Definitive Guide To Emerging Market Currencies Now Available

    (click to enlarge)

    I am excited to announce that my newest book, The Definitive Guide to Emerging Market Currencies, is now available for sale in both print and ebook edition on Amazon. For those looking to invest in emerging market currencies, this book is great starting point that highlights the key differences in trading emerging market currencies versus major currency pairs. In addition, I provide fundamental outlooks for the most traded and free flowing currencies within the emerging economies to provide economic context to how these currencies currently perform along with historical drivers.

    Print Edition

    Kindle Version

    Ebook Version (other formats)

    About The Definitive Guide to Emerging Market Currencies:

    With central banks around the world devaluing major currencies such as the US dollar, Japanese Yen, and the euro, opportunities for higher returns are available through investing in emerging market currencies. Investing in exotic currencies such as the Chinese renminbi or Brazilian real may seem complicated, but with the help of this book we make it more accessible to investors of all sizes.

    The Definitive Guide to Emerging Market Currencies covers the macroeconomic underpinnings foreign currency markets, the fundamental factors that define the future strengthening of currencies in emerging markets, and how to trade these currencies. The book also goes into detail on the economic fundamentals of every significantly liquid emerging market currency along with an investing outlook for each one.

    For those looking to make money trading emerging market FOREX, or are just curious about emerging market currencies, this book is the best place to start. Even stock market investors benefit from learning about these FOREX markets because currency fluctuations have a huge impact on investors' total returns in any foreign country.

    Apr 03 10:50 AM | Link | Comment!
  • Shooting Reaction Creates Buying Opportunity For Gun Stocks

    12/27/2012

    The shooting at Sandy Hook Elementary School in Newton, Connecticut was an unfortunate American tragedy. Public relations issues have motivated mutual funds to sell off shares in gun manufacturing companies in the name of social responsibility. As a result both Smith and Wesson (SWHC) and Strum Ruger (RGR) sold off over 30% the next week for no fundamental reason. Therefore, I recommend buying gun stocks due to now cheap valuations and stronger fundamentals after the shooting will provide excellent returns.

    Valuations and the recent economic performance of Smith and Wesson and Ruger imply that both stocks are cheap. SHWC trades with a P/E Ratio of 9 and a PEG ratio of at a very low 0.41. Even with this recent sell off, the company's debt/equity ratio has fallen 50% in 2012 to 0.27 and profitability has increased from a loss to 11.68% over the same period of time. Return on invested capital is also extremely strong for Smith and Wesson at 30.68%.

    Strum Ruger trades at a higher P/E than Smith and Wesson, but it has a much stronger financial position. Ruger has no debt, and a strong current ratio at 3.18. In addition to this Ruger's return on invested capital is higher at 36% and pays out a high dividend yield of 3.02%.

    The school shooting contrary to popular opinion is bullish for gun stocks. Even though advocates of gun control have spoken loudly and prominently in the aftermath the shooting, new federal gun control legislation is unlikely. However, the fear of public safety and future gun control legislation amongst the general public have caused gun sales to surge in the month of December. The re-election of President Obama also triggered increased gun sales similar to the reaction to his first election in 2008.

    Due to anxieties over an adverse economic climate, increased gun control laws, and potentially a higher degree of civil unrest and violent crime, I recommend gun sales will stay elevated heading into 2013. Ethics driven selling have put major gun producing companies at excellent valuations. Overall, the combination of these factors make it an excellent time to buy gun stocks. When comparing Smith and Wesson versus Ruger, I believe Ruger is the better buy due to a high dividend yield and an overall stronger financial position.

    Disclosure: I am long RGR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: RGR, SWHC, long-ideas
    Dec 27 4:55 PM | Link | 1 Comment
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