Economics

   This Week’s Data

   Other

    Current unemployment in historical perspective (graphs):
    http://www.ritholtz.com/blog/2009/11/even-more-unemployment-charts/

    The latest from John Mauldin (long):
    http://www.ritholtz.com/blog/2009/11/the-glide-path-option/

    This is a must read article on the problems that the Fed is having planning its ‘exit’ strategy:
    http://www.zerohedge.com/article/reverse-repo-failure-confirmation-primary-dealers-want-exemption-tier-one-capital-requiremen

    Federal Reserve credit from the All American Investor (graph):
    http://allamericaninvestor.blogspot.com/2009/11/reserve-bank-credit-graph-securities.html

    Another problem with Obamacare (short):
    http://mjperry.blogspot.com/2009/11/why-obamacare-wont-work-it-will-be.html

    The paradox of deleveraging (medium):
    http://econompicdata.blogspot.com/2009/11/paradox-of-deleveraging.html

    This is long but it is the must read piece into today’s Call:
    http://www.zerohedge.com/article/here-there-be-big-nymbers-sic

Politics

  Domestic

  International War Against Radical Islam

The Market
    
    Technical

    More on gold:
    http://www.smartmoney.com/investing/economy/300000-in-the-palm-of-my-hand/

    A look at the S&P performance the last time unemployment reached 10% (graph):
    http://bespokeinvest.typepad.com/bespoke/2009/11/unemployment-above-10.html

    Monday Morning Chartology

    Notice developing head and shoulders--which may be blown up by a strong day today.

 


 

 


   Fundamental
   
    Headlines

    The G20 meeting this week end produced about the same results as the FOMC meeting last week, i.e. more mealy mouth gab about stimulating growth, nothing about the dollar (underwriting its value).  The result: dollar down big, gold up big.  Nobosy in authority seems to get it, least of all Bernanke and Geithner.
   
           Subscriber Alert

    As a result, our Portfolios are putting about 1-1 1/2% of their cash back to work in foreign ETF’s: Ishares MSCI Australia (EWA), SPDR S&P Bric 40 (BIK), and Wisdom Tree Emerging Markets (DEM). 
   
    Update on third quarter earnings ‘beat’ rate:
    http://bespokeinvest.typepad.com/bespoke/2009/11/another-dip-in-the-earnings-beat-rate.html

    News on Stocks in Our Portfolios

    Positive comments on Nu Skin Enterprises from Zacks (High Yield Portfolio):

    Nu Skin Enterprises (NUS - Snapshot Report) recently posted record results for the third quarter. Earnings per share of 41 cents topped the previous year’s 26 cents and matched the Zacks Consensus Estimate. Revenue was a record $334.2 million, an increase of 8% year-over-year. 

Company Description

Nu Skin Enterprises is a $1 billion direct selling company that markets and distributes premium quality personal care, nutrition and technology products through a global network of more than 750,000 active independent distributors and preferred customers. The company operates three core brands, Nu Skin, Pharmanex, and Big Planet.

The Nu Skin brand has a line of more than 100 premium skin treatment and other personal care products. With a team of more than 100 in-house scientists, Pharmanex uses a pharmaceutical approach that is setting the standard for the dietary supplement industry. Big Planet brings the benefits of technology to everyone with innovative products like Maxvault, a line of products that provide the easiest way to preserve, organize, share, and enjoy your photos and home movies.

Nu Skin Enterprises operates in 48 international markets across the Americas, the Asia Pacific region and Europe, with more than 75 percent of revenue coming from Asia.

A Record Quarter and Bullish Forecasts

The company recently posted record results for the third quarter. Earnings per share of 41 cents topped the previous year’s 26 cents and matched the Zacks Consensus Estimate. Revenue was a record $334.2 million, an increase of 8% year-over-year.

Nu Skin boosted its annual earnings guidance to $1.38 to $1.40 per share. The company sees fourth-quarter earnings coming in 32 to 34 cents per share.

Analysts polled by Zacks are calling for 2009 earnings of $1.41 per share, a penny higher than last week and above last month’s $1.28.

For the fourth quarter, the Zacks Consensus Estimate of 36 cents per share is up a penny from last week and 5 cents above last month’s projection.

Outstanding Fundamentals

Nu Skin’s return on equity (ROE) of 25% dwarfs the industry average of 6%. The company’s net profit margin of 6% tops the industry average of 3%. Nu Skin pays an industry –leading dividend yield of 2%.