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AndrewBaker

AndrewBaker
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  • Wall Street Breakfast: China Stocks Tumble Most Since 2009 [View article]
    European stocks fell for a second day, and Chinese stocks tumbled the most since August 2009 ... and look at how gold has jumped back above 1200 per ounce. The recovery, whilst coming IMHO, has not gained enough converts yet to be one without corrections. Stock buyers can do well to consider mining stocks when this happens. They are a geared play on gold, and when other stocks fall whilst gold rises, the gold miners particularly do well. You need to keep an eye on it, but the Market Vectors gold miners ETF (GDX) can pay good short term returns if bought now.

    Disclosure: long GDX.
    Dec 9, 2014. 08:35 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Apple Heads To Trial Over iTunes Update [View article]
    Chinese markets are going to be a major factor in a general worldwide economic recovery. It's good that the Chinese authorities are doing things to drive their economy forward, because it will have a knock-on effect and help all economies. To paraphrase an old expression: if China sneezes, we all catch a cold.
    Dec 2, 2014. 07:02 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: Crude Continues Decline Following OPEC Decision [View article]
    Fracking for hydrocarbons and working of oil/tar sands will keep the price of conventional oil down for a long long time. Better and more profitable means of fracking and working of oil sands make them more competitive, and even cheaper than using petroleum and its derivatives. Natural gas particularly will compete with petroleum in various areas, as just one example.

    Oil will be hard pressed to get back to $80, let alone $100, any time soon.
    Nov 28, 2014. 08:17 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: China Stocks Surge After Rate Cut [View article]
    'A slump in oil prices and Western sanctions are biting at Russia's economy.'

    This is one area from which to stay well away. Currently Apple (AAPL) alone is bigger than the entire Russian stock market, plus has enough value on top to buy every Russian person an iPhone6+. This is because whilst the Russian market has suffered of late, Apple has powered away. Such a sobering statistic does not bode well for Russian stocks right now. And with the oil price destined to go not much higher than $80 in the foreseeable future, IMHO, that's another drag on their economy.

    BRIC was good in the past; but now my choice of emerging and 'new' country economies does not include direct investment in any of the four. Rather buy businesses that trade with them and do well outside of this connection as well.
    Nov 24, 2014. 08:29 AM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: European Stocks Rise As Draghi Readies QE [View article]
    The composite news of Europe's asset purchases, China's rate drop and more news about banks being watched and having been fined billions in total, are all indicators, to me anyway, that there are several things happening that signal a global recovery, despite any slight hitches due to political tension or small wars, official or otherwise, in various places. Only Japan seems set to continue suffering, which they've done for over 20 years now, so maybe they like it, lol.

    For me, I'm stock picking what I know about, and using mutual funds or ETF for what I'm not that au fait with, and providing it's an area either geographically or sectorally where I want to invest. An example of each, that I like at the moment, are BTI (on NYSE) and GDX (on the Amex).

    Good luck to all: pick 'em right, and there's some good upside coming along, IMHO.
    Nov 21, 2014. 07:06 AM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Abe Delays Sales Tax Hike [View article]
    Reynolds American is planning to introduce a new cigarette:

    Do note that British American Tobacco (trading on the NYSE with ticker BTI) has a 42% ownership of Reynolds, and itself is very much into non-burning nicotine replacements for standard cigarettes, so it may be a better bet to buy BTI rather than Reynolds, as then you'll get all the Reynolds' goodies plus British American's too.

    (Co-incidence that I only recently posted a couple of comments regarding British American's interest in cigarette alternatives, and now look see what's occurring, lol.)

    For chartists/technical analysts, look at the chart: this one is motoring!

    Disclosure: Long British American tobacco.
    Nov 18, 2014. 09:16 AM | Likes Like |Link to Comment
  • Why Would You Ever Buy The 10-Year Treasury? Buy These Stocks Instead [View article]
    Why would anyone buy any government stock right now? They will all increase in yield soon, with the commensurate drop in capital price, so buying now will guarantee a loss in the future. Buy high yielding stocks, of which there are so many in so many different countries, so only tax considerations are there to be concerned about when considering from where to get your good income.

    As I have said elsewhere, British American Tobacco (BTI), which trades on NYSE, yields higher than treasuries/gilts/bunds... ... and has a rising dividend which carries the stock price with it. It also is involved in alternatives to cigarettes, so even as smokers quit, BTI gains from these alternative nicotine products that so many more are using now. Nicotine is more reliable than any governments' promise, lol.
    Nov 18, 2014. 05:56 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Nikkei Dives As Japan Slips Into Recession [View article]
    Japan has once again disappointed after showing some promise in recent times. I won't ignore Pacific and Far East/Eastern markets, but now I will only buy mutuals/collective funds in those regions that exclude Japanese holdings: it has disappointed too much for too long, and whilst it is a large market, it is not one that one cannot do without. And an alternative is to buy businesses based in other countries and regions and that trade profitably with Japan, thus picking up on any upside, whilst minimizing the downside of Japanese investment.
    Nov 17, 2014. 07:09 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: France, Germany Report Slight Growth In Q3 [View article]
    Virgin America's initial public offering ... is likely to mark the start of the slide in the company's fortunes. Rushing to market as soon as any profit has been achieved suggests that someone very much wants to get out while they can. ;)
    Nov 14, 2014. 07:09 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: France, Germany Report Slight Growth In Q3 [View article]
    Now is the time to look at buying European stocks: the bottom has been reached and is well formed, so the likelihood is slanted to the upside going forward.
    Nov 14, 2014. 07:07 AM | Likes Like |Link to Comment
  • Qualcomm's (QCOM) CEO Steve Mollenkopf on Q4 2014 Results - Earnings Call Transcript [View article]
    The price just got way too far ahead of itself: whilst NASDAQ has its PEG at 1.1 over the next 12 months, going just a little further ahead, it jumps to 2.7, based on their estimates of a 5% rise in earnings per share. Good company further out, but needs to get back to a more realistic price first, IMHO.
    Nov 6, 2014. 10:24 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Tesla Jumps After Beating Expectations [View article]
    European stocks fell for the third time in four days & Tesla +5.8% premarket after beating earnings estimates:

    Two interesting articles that permit the demonstration of a valid and important investment maxim, namely buying low and selling high. Europe will come good again; it will just take longer than in the US. And Tesla may be doing well, but at current prices, it is just so overvalued, and will fall back at some point. So ... does one sell Europe and buy Tesla, or sell Tesla and buy Europe?

    The successful people on here already know the answer, so I don't need to give it. Do I ...?
    Nov 6, 2014. 07:41 AM | 2 Likes Like |Link to Comment
  • Be Greedy When Others Are Fearful: Gold Miners Primed For Strong Returns [View article]
    Hey, gold will come back - it always does - and gold miners will be a geared play on that. In round numbers, anything over $1000 per ounce starts to make profits for the miners: so, if at $1140 an ounce, they make $140 profit; then at $1280 an ounce, their profits double to $280. Simplistic, but serves to show the gearing effect of buying the miners as opposed to the yellow metal itself.

    As a general tactic of buying on the dips now anyway, buying the miners on the dips should prove very rewarding over the next year plus; IMHO. And they're definitely in a big dip right now!
    Nov 5, 2014. 08:28 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: BHP Billiton To Export Condensate Without Permit [View article]
    U.S. stock index futures climbed with the dollar:

    Regardless of political persuasion, the Republicans will have their candidate in the White House next election, and business will continue its recovery and growth. Now is the time to buy the good stocks, especially on any dips - and there will be some - to see great returns over the next five years or so.
    Nov 5, 2014. 08:08 AM | 3 Likes Like |Link to Comment
  • Wall Street Breakfast: European Shares Slip After EU Commission Cuts Forecasts [View article]
    European shares gave up early gains is an interesting heading, and whilst I agree that European stock markets will grow more slowly than the US has done and is doing, they will slowly but surely head north too as the world economy recovers.

    One very interesting play available here though is regarding the upcoming Swiss vote to compulsorily hold gold as part of its national assets. The Swiss were the last to come off of the gold standard, and this proposal goes part way to re-establishing it. People generally, and Europeans in particular, are tired of poor political leadership and do not trust the fiat currencies that are used in the countries lead by such poor politicians. Many efforts have been made by politicians and their lackey banking friends and supporters to reduce the worth of gold in favor of this unreliable fiat money; but gold has been a store of wealth for millennia, and will continue to be so. So, especially at the low price it is now, buying gold - and gold miners, for a geared play on this precious metal - will, IMHO, be a shrewd move right now.

    It will take a few months, giving opportunity to buy in more than one trance at a low price, and then the rewards will come, as inflation once more takes off and the value of fiat currencies gets debased yet again, to suit political ends, not to the benefit of the general populations.
    Nov 4, 2014. 08:25 AM | 1 Like Like |Link to Comment
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