Maguire Properties (MPG): the Perfect Cash for Clunker Stock
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Your Daily Profit

 

September 24, 2009

 

*****Maguire Keeps on Going: Thanks to Ben and Tim

*****When will Interest Rates Rise?

*****$50 Coupon

 

Fellow Investor,

 

The stock I introduced you to last Wednesday, the beaten down REIT Maguire Properties (NYSE:MPG), has been going great guns. It closed at $1.33 that day. Today, it’s trading around $2.30 after touching a high over $3 yesterday.


I brought Maguire into our conversation because it is a great example of how the Cash for Clunker Stock Rally is working. The government is underwriting risk in the stock market. And we know, as do institutional investors, that the Fed and Treasury are working to prevent systemic failures. They are currently targeting commercial real estate as a potential problem sector. And if they succeed in supporting this sector, companies like Maguire will move higher in valuation.

 

*****If you bought any Maguire Properties stock on my recommendation, I’d love to hear about it. Drop me a line at [email protected].

 

*****Stocks reversed and closed in the red yesterday after the FOMC’s interest rate decision. No surprise that interest rates will remain low. But for how long?

 

The Fed is trying to reassure investors that rates will stay low for a long time, and that risk in the markets will be underwritten by stimulus spending and guarantees. But, at the same time, as the economy improves, investors know that interest rates must rise and stimulus spending must end.

 

That, to me, is the biggest threat to the Cash for Clunker Stock Rally. So when we see economic data like this morning’s surprise drop in new unemployment claims, it’s a stark reminder that interest rates (and the U.S. dollar) will rise at some point in the future.

 

*****I’m not surprised that we’re seeing a little red for stocks. Prices shouldn’t go straight up. In fact, I’d be more concerned if we saw nothing but green. I still believe we see Dow 10,500 this year, so the current weakness will present a buying opportunity sometime soon.

 

Third quarter earnings season is right around the corner. Alcoa (NYSE:AA) kicks things off on October 7. I suspect investors are adjusting prices for earnings now, which will set the stage for something of a relief rally when earnings begin. We’ll see…

 

*****I’d like to thank Daily Profit readers again for your support for my book The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks. It’s doing great so far, and you’ve been a big part of that success.

 

Don’t forget – when you purchase your copy, you’ll also get a coupon good for $50 off an annual subscription to SmallCapInvestor PRO or any of my other advisory services.

 

With this $50 coupon, it’s like getting 3 months of the top-performing SmallCapInvestor PRO for free. Helping you make money is the best “thank you” I can think of.

 

You can get your copy of my book at Amazon.com by clicking here now . And you can get your $50 coupon HERE.

 

Until tomorrow,

 

Ian Wyatt

Editor

Daily Profit

 

P.S. Natural gas prices look to have bottomed early last week and are headed higher as we go into the cold season for North America. TradeMaster’s Jason Cimpl released his four top natural gas place to subscribers last week and the gains are already coming in. If you’re interested in getting detailed research on our four natural gas plays and testing out TradeMaster CLICK HERE.

 





Posted 09-24-2009 12:23 PM by Ian Wyatt
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