Something troubling just took place in China… Last month, Chinese officials were caught stockpiling potentially rotten grains into the country’s reserves.  The situation “holds serious implications for global commodity prices” reported The Financial Times. “If the stockpiles include large amounts of unusable grain, China could be forced to increase imports sharply…” You see, in China the government guarantees a minimum price on sales of grain. By fudging the paperwork to say they paid full price, officials were filling their warehouses with rotten, discounted grains and pocketing the change.  China holds nearly 40% of the world’s corn. And if the rumors… Read More

Something troubling just took place in China… Last month, Chinese officials were caught stockpiling potentially rotten grains into the country’s reserves.  The situation “holds serious implications for global commodity prices” reported The Financial Times. “If the stockpiles include large amounts of unusable grain, China could be forced to increase imports sharply…” You see, in China the government guarantees a minimum price on sales of grain. By fudging the paperwork to say they paid full price, officials were filling their warehouses with rotten, discounted grains and pocketing the change.  China holds nearly 40% of the world’s corn. And if the rumors are true Chinese demand for imported grain could skyrocket.  This could be a huge catalyst for one company in particular.  With more than 250 processing plants in over 75 countries, Archer Daniels Midland Co. (NYSE: ADM) is the largest publicly-traded company in a relatively unknown, but vital, portion of the $2 trillion U.S. agribusiness sector: grain trading.  Essentially, these companies buy, process, transport and sell agricultural commodities like corn, wheat, soybeans and cocoa. They then turn these into food products, vegetable oils, livestock feed, chemicals and biofuels, selling the finished products to the industries that require them.  Here’s where ADM… Read More

Dear readers, A team of researchers at EarthRisk Technologies made a shocking discovery. They created an amazing “prediction tool” that can accurately predict the weather up to 40 days out. This same kind of technology is also being used to “predict” future share price movements — with stunning results. BlackRock used a prediction tool to largely avoid the 2008 market crash. Researchers at the University of California used a similar tool to beat the market by 10% over a four-month period. And since creating our own in-house tool in 2013,… Read More

Dear readers, A team of researchers at EarthRisk Technologies made a shocking discovery. They created an amazing “prediction tool” that can accurately predict the weather up to 40 days out. This same kind of technology is also being used to “predict” future share price movements — with stunning results. BlackRock used a prediction tool to largely avoid the 2008 market crash. Researchers at the University of California used a similar tool to beat the market by 10% over a four-month period. And since creating our own in-house tool in 2013, it’s spotted 33 stocks right before they soared up to 242% in 11 months. Check out the fascinating story behind this amazing prediction technology here.  Sincerely, Frank Bermea Publisher, Profitable Trading All major U.S. indices, except for the tech-heavy Nasdaq 100 and Composite, closed in positive territory last week, reversing the previous week’s negative close as the stock market continues its recent pattern of alternating positive and negative weekly closes. This back-and-forth action indicates investor indecision as the market continues to handicap… Read More

#-ad_banner-#For some investors, the current bull market has dubious underpinnings. That’s because “financial engineering,” where firms pour cash into oversized share repurchase and dividend payment programs, are creating an artificial boost to core growth rates. Yet such moves often means sacrificing equipment upgrades, product development and other crucial long-term investments. Sooner or later, firms that underinvest in their businesses risk serious underperformance. That’s why I seek innovators with a demonstrated commitment to research and development. These firms tend to display the solid, consistent organic growth necessary to evolve into an Apple, Inc. (Nasdaq: AAPL) or 3M Co. (NYSE:… Read More

#-ad_banner-#For some investors, the current bull market has dubious underpinnings. That’s because “financial engineering,” where firms pour cash into oversized share repurchase and dividend payment programs, are creating an artificial boost to core growth rates. Yet such moves often means sacrificing equipment upgrades, product development and other crucial long-term investments. Sooner or later, firms that underinvest in their businesses risk serious underperformance. That’s why I seek innovators with a demonstrated commitment to research and development. These firms tend to display the solid, consistent organic growth necessary to evolve into an Apple, Inc. (Nasdaq: AAPL) or 3M Co. (NYSE: MMM). Along with these stalwarts, one of my favorite firms using R&D to generate strong organic growth is Autoliv, Inc. (NYSE: ALV), a mid-size auto safety products maker with annual sales of $9.1 billion. Autoliv doesn’t neglect dividends and share repurchases, but keeps such efforts in check. At this firm, innovation is a top priority, which has been rewarded by investors with a nearly 100% gain during the past three years, far outpacing the S&P 500’s roughly 50% gain. Founded more than six decades ago, Sweden’s Autoliv is the leading provider of “passive” auto safety products… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers,… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers, they can “flip the switch” from dividend reinvestment and live off of their income stream at any time. But let’s face it, not everyone gets $200,000 thrown in their laps. Take Matthew Michaels, for example. #-ad_banner-#Matt is a young father who works at StreetAuthority. He doesn’t have thousands of dollars to invest at the moment. But even so, he and his wife recently began using the Daily Paycheck strategy to build a portfolio for their two young daughters’ future. That’s the beauty of my strategy: anyone can take… Read More

There is one simple rule about earnings season: have plenty of cash on hand. That’s because a few dozen stocks will fall sharply on tepid results or cautious forward outlooks and real bargains can emerge. Of course, many stocks that have been punished deserve to stay in the penalty box for quite some time. Their near-term problems are unlikely to dissipate any time soon. So you need to dig deep to find the rare diamonds in the rough that have been unfairly punished. When the dust settles on earnings season, these are precisely the kinds of stocks that value investors… Read More

There is one simple rule about earnings season: have plenty of cash on hand. That’s because a few dozen stocks will fall sharply on tepid results or cautious forward outlooks and real bargains can emerge. Of course, many stocks that have been punished deserve to stay in the penalty box for quite some time. Their near-term problems are unlikely to dissipate any time soon. So you need to dig deep to find the rare diamonds in the rough that have been unfairly punished. When the dust settles on earnings season, these are precisely the kinds of stocks that value investors will seek out. I’ve looked at a few dozen earnings season casualties and have found two of them that appear poised to claw back recent losses. SUPERVALU, Inc. (NYSE: SVU) This operator of several grocery chains was in deep distress just a few years ago. Yet a series of asset sales managed to trim the company’s debt load from around $7.6 billion in fiscal (February) 2010 to a recent $2.7 billion. And the company has managed to generate profits in each of the last two fiscal years, after generating losses in the prior three years. Cost cuts and better… Read More

Landing a triple-digit winner is like hitting a hole-in-one. It doesn’t happen often, but it’s just as satisfying each time it happens. However, there’s an often overlooked subsection of the market that can lead to these types of gains — but you have to understand where to look, what to look for and the dangers involved. #-ad_banner-#When shares of data storage firm OCZ Technology Group, Inc. (Nasdaq: OCZ) slipped below $2 back in 2012, short sellers began to circle like sharks. The company was burning through cash at an unsustainable rate, and at the time, I noted that OCZ had… Read More

Landing a triple-digit winner is like hitting a hole-in-one. It doesn’t happen often, but it’s just as satisfying each time it happens. However, there’s an often overlooked subsection of the market that can lead to these types of gains — but you have to understand where to look, what to look for and the dangers involved. #-ad_banner-#When shares of data storage firm OCZ Technology Group, Inc. (Nasdaq: OCZ) slipped below $2 back in 2012, short sellers began to circle like sharks. The company was burning through cash at an unsustainable rate, and at the time, I noted that OCZ had “a very short window to stop the bleeding.” By late 2013, the company declared bankruptcy. Simply put, whenever you see a stock slip below the $3 mark, you may want to take a quick look at the balance sheet and cash flow statement. Falling levels of cash and persistently negative cash flow can often put a company out of business. So, what are the best companies to invest in the stock market? When I looked at biofuels provider Gevo, Inc. (Nasdaq: GEVO) back in 2012, I wrote that the company required serial capital infusions to stay afloat. At the time,… Read More

I make a ton of currency swaps in my line of work. It goes with the territory. But lately it’s been a harrowing experience. Many currencies around the world have been a mess for the last few months. The value of the British pound, for example, has dropped 13% against the dollar since July 2014. #-ad_banner-#At the same time, the Canadian dollar has plummeted 15% against its American counterpart. And the Colombian peso — another currency I’m frequently buying — is down an astounding 28% over the same period. I’ll admit… Read More

I make a ton of currency swaps in my line of work. It goes with the territory. But lately it’s been a harrowing experience. Many currencies around the world have been a mess for the last few months. The value of the British pound, for example, has dropped 13% against the dollar since July 2014. #-ad_banner-#At the same time, the Canadian dollar has plummeted 15% against its American counterpart. And the Colombian peso — another currency I’m frequently buying — is down an astounding 28% over the same period. I’ll admit it’s been quite a hassle lately. I almost ran out of pesos in the Colombian countryside recently because of it. But what has me really worried is how these “currency wars” are starting to effect businesses and stocks valuations around the world. Let me show you what I mean. A few months ago, in my premium advisory Top 10 Stocks, I discussed how the massive and often-unprecedented fluctuations in currency rates have been crushing profits and lowering the valuations of many of the world’s most well-known and established companies. I showed how over the… Read More

Wall Street tends to take a binary view of even well-seasoned companies: Love ’em or hate ’em. Right now, the Street is overreacting to some snags at one of the world’s leading financial services firms, American Express Co. (NYSE: AXP).  In 2015, American Express is the Dow Jones Industrial Average’s worst performer, falling more than 16%.    Shares have weakened due to the company’s susceptibility to the strong dollar. Like other large multinationals, AXP generates substantial profits in foreign currencies. With the greenback at an 11-year high, those profits lose significant value when exchanged back to dollars. The market reacted… Read More

Wall Street tends to take a binary view of even well-seasoned companies: Love ’em or hate ’em. Right now, the Street is overreacting to some snags at one of the world’s leading financial services firms, American Express Co. (NYSE: AXP).  In 2015, American Express is the Dow Jones Industrial Average’s worst performer, falling more than 16%.    Shares have weakened due to the company’s susceptibility to the strong dollar. Like other large multinationals, AXP generates substantial profits in foreign currencies. With the greenback at an 11-year high, those profits lose significant value when exchanged back to dollars. The market reacted very harshly to an announcement in February regarding the loss of an exclusive 16-year co-branding agreement with Costco Wholesale Corp. (Nasdaq: COST), a relationship that accounts for 10% of all American Express cards in use.  American Express decided to walk away from the agreement, which ends next April, because the two companies couldn’t negotiate a mutually satisfactory fee arrangement. Costco plans to replace AXP with Citigroup, Inc. (NYSE: C) and Visa, Inc. (NYSE: V). The recent loss of a similar, though much smaller, relationship with budget airliner JetBlue Airways Corp. (Nasdaq: JBLU) hasn’t helped investor sentiment either. Adding insult, American… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to establish a position in the field of robo-advising, also known as “automated investment services.” Before weighing in on which firm has built the best mousetrap and if the entire concept holds real appeal, it helps to understand what robo-advisers are and are not. Robo-advisers ask clients to fill out a quick survey that identifies an investor’s goals. They then create ideal low-cost portfolios that hold a basket of diversified exchange-traded funds. Total fees often end up at less than 1% of assets under management, compared to fees of 1%-to-2% of assets under management offered by traditional financial advisors. (Robo-adviser upfront… Read More

Four years after it topped at $1,900 per ounce, gold has been languishing in a range closer to $1,200. With interest rates low and most measures registering no inflation, gold seemed to be a dead asset. Its role as a hedge was dismissed by almost everyone except for the gold sellers on TV. Sentiment naturally turned very bearish, and that is when contrarian ears perk up. #-ad_banner-# Monday and Tuesday were unusually bullish days for… Read More

Four years after it topped at $1,900 per ounce, gold has been languishing in a range closer to $1,200. With interest rates low and most measures registering no inflation, gold seemed to be a dead asset. Its role as a hedge was dismissed by almost everyone except for the gold sellers on TV. Sentiment naturally turned very bearish, and that is when contrarian ears perk up. #-ad_banner-# Monday and Tuesday were unusually bullish days for the metal. However, the patterns on gold charts remain choppy-but-flat trading ranges. When viewed with a long-term eye, the trend is officially still to the downside.  That is why it seems people have gotten blindsided by recent strength in select gold mining stocks, especially since it is not sector-wide. Only the largest by market capitalization are racking up big gains, far outstripping the performance of popular gold mining indices and exchange-traded funds.  My favorite right now is Barrick Gold (NYSE: ABX). This Toronto-based, international miner looks ready to break out from a double-bottom pattern that has been… Read More