Search results matching tag 'JP Morgan'

Mini-Rally Is Reversed.

ChuckButler — Fri, 11 May 2012 17:29:43 GMT

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In This Issue.

* Greeks decide to keep euro.

* U.S. posts Monthly Budget Surplus!

* JP Morgan throws a spanner.

* Eric Sprott talks about manipulation.

And, Now, Today's Pfennig For Your Thoughts!

Mini-Rally Is Reversed.

Good day. And a Happy Friday to one and all! What a quick week! We have a Happy Hour planned tonight, so I can tell right from the starters blocks this morning that it's going to be a Fantastico Friday! Next week I'll be in Las Vegas. not my kind of city, but it is what it is, and I'll be there to speak on two different days, so if you're in the area, drop by, the MoneyShow is free!

Well. that little mini-rally that a handful of currencies saw yesterday, faded overnight, and that handful of currencies are all back to the levels of Wednesday. UGH! The handful, in case you were wondering, included: Aussie dollar (A$), euro, Brazilian real, Norwegian krone, Swedish krona, Singapore dollar (S$), and a couple of others.

Yesterday, we saw the U.S. Trade Deficit widen from $45.4 Billion in March to $51.88 Billion in April. It's not all with China folks. the majority is with OPEC. remember, the price of Oil in April was well over $100 all month!

We also saw the Initial Weekly Jobless Claims, which was flat VS the previous week at 367,000. The Continuing Claims remain a problem, folks. I know I talked yesterday about jobs, etc. and I received a few emails from very disgruntled folks, that have been looking for jobs, and don't believe there are any out there to be found.

That brings me to the thing that I've said since 2008. that a lot of the jobs that were lost were not going to come back. and the jobs that did open up, were going to be completely different, than what the unemployed person was trained to do. I'm not insensitive to this, folks. I just tried to get it out there a few years ago, so that people could begin to make changes.

OK... so, did you see that the Monthly Budget Statement, which had been a deficit each and every month for so long that I had begun to call it the Monthly Budget Deficit, actually stopped the bleeding in April? The Gov't posted a $59.1 Billion surplus in April. WOW! OK. hold on a minute there, Tim. Isn't April the month that all taxes owed are collected? (for the most part any way) the key here is to see where this balance goes the next couple of months. My bet is that it will go right back to the monster deficits that were seen every month prior to April.

Today, we'll see wholesale inflation (PPI) for April, and the U of Michigan Confidence index.

Overnight, we heard that the Greeks were having second thoughts about electing an anti-euro government, and now it appears that the government that will be elected will keep the euro, no questions asked. That's nice of them! Obviously, calmer, smarter heads prevailed here, because I don't believe that the Greeks want to see what life is like for them outside of the euro!

Euro traders are kind of lost between two lovers here. They just can't figure out whether they want Greece to leave a stay. Should I stay or should I go now, If I go there will be trouble, and if I stay it will be double.

The Aussie dollar (A$) had climbed back above $1.01 yesterday, but is right back to Wednesday's level of $1.0050 this morning. losing ½-cent overnight. The other day, I talked about the forecast Aussie Budget Surplus for next year. Well, while that would be great for them should they achieve that surplus, it won't really be known if that's going to be a reality until September.

I also told you a couple of weeks ago, that I thought it was bond buyers of Aussie Gov't Bonds (ACGB's) were behind the resiliency of the A$ in the face of a rate cut. Of course back then, I thought that the Reserve Bank of Australia (RBA) was only going to cut 25 basis points, and the surprised the markets with a 50 basis point rate cut. That severely inhibited the resiliency of the A$...

And I talked about how it is believed that if Australia does achieve a Budget Surplus that the supply of ACGB's would drop by a large margin. So, if that's true, that underpinning that the A$ enjoyed from bond buyers, would be damaged. But, as I told a small group the other day. "Even if the A$ falls to 95-cents, it's still a strong currency, just 10 years ago it was trading around 50-cents."

As far as today's prospects for a Risk On Day go. I think the chance are slim and none, and Slim left town. All the overnight bourses are down, and U.S. stock futures are down. Everyone is running for the hills after a story in the Wall Street Journal hit the streets last night. According to the WSJ report, "J.P. Morgan Chase has taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility" - WSJ

Most of you all know how I would have reacted to this report in "the old days". So, this is your chance to "be like Chuck". and give me your version of what Chuck would have said in the old days. (you don't really have to send it to me, unless you think you have really nailed it!)

I think I'll talk about Silver now (wink, wink). Did you see that China had introduced Silver Futures Contracts that will trade in renminbi / yuan, on the Shanghai Futures Exchange? The contracts will not be allowed to fluctuate more than 7% per day. I have to wonder how the Chinese are going to take seeing the price of Silver brought down in after hours trading.

And did you know that China is now the world's leading producer of Silver? No, it's not Mexico, and no it's not Peru. It's China. And that's good, because China is the world's second leading consumer of Silver behind the U.S.

Have you been following the news on Scotland contemplating leaving the U.K.? That would be a HUGE blow to the U.K., not only prestige wise, but monetarily. Scotland's economy is second in contribution to the U.K. economy, coming behind the Southeast part of England.

The pound sterling, which has defied gravity recently, is beginning to feel the weight of doing a double dip in the recession pool, and everything else that's going on badly there. like this morning they reported that March Construction output was very disappointing, which points to a downward revision to 1st QTR GDP, that already showed that the U.K. economy was going for a double dip.

Gold enjoyed a day in the sun yesterday, but it's raining on the shiny metal again this morning. It seems that we've returned to the days around 2008 and early 2009, where the dollar is rewarded with bad data. Dollar Bugs will tell you that this is how it should be, as the only true safe haven is the U.S. dollar, and Treasuries. I want to hit these dollar bugs over the head with a Gold Bar! Maybe then they would find the true safe haven!

Speaking of Gold. I did some math about a year ago and ran it here, and with all the talk about the U.S. paying off its debts by selling its Gold holdings, I thought it best to pull this back out.

There are 5,046 tons of gold at Fort Knox There are 7,716 tons of gold at Fed NY

Total = 12,762 tons. there are 32,000 ounces in a ton, 12,762 tons x 32,000 = 408,384,000 x $1,590 (price of Gold) = $649,330,560,000

Sorry. but $650 Billion doesn't even pay for the stimulus that was thrown at us a couple of years ago! But. if the price of Gold were to be pushed up to, let's say, $5,000. Then we would be talking about making some inroads to the debt! And if the price were pushed to $10,000, then we're getting somewhere, but. we would still be left with a very large national debt.

You see that's the problem with deficit spending. at some point, the numbers become so HUGE that you can't make a difference in total unless you come in with both guns blazing! And then keep those guns blazing! Doing one-off corrections, are only chinks in the armor.

For long time readers. do you remember a few years ago, when I tried to show the knuckleheads at CNBC that the markets were being manipulated in the afterhours trading, and they laughed and told me to take the story to Hollywood? Well. CNBC has come a long way, I guess, for they allowed Eric Sprott to talk freely about manipulation the other day. Of course maybe not that long a way, as I wanted to include the link to the video here, but it's not working. and the folks at CNBC did attempt to ridicule him.. But he would have none of it!

Maybe CNBC will have it fixed later, just Google Eric Sprott at CNBC, and look for the most recent video..

Anyway, Eric Sprott, Ted Butler, and others, including me, have done our best to inform the public of what's going on. Maybe one day, We The People will get the message. and exercise our right to contact our representatives and discuss this with them.

Then There Was This. I saw this on Reuters. "Financial advisers increasingly warn that U.S. Treasury bonds are close to a bubble and suggest that clients look elsewhere for stable and safe returns. Alternatives recommended include investment-grade corporate and emerging-market bonds, master limited partnerships and preferred stocks."

Chuck again. Hmmm. I liked that they had finally come around to noticing the Treasury bubble, but nowhere on their list of alternatives did I see Gold?

To recap. the mini-rally in a handful of currencies yesterday, was wiped out in the overnight markets, and the currencies and Gold are back to Wednesday's levels. The Greeks agree to elect a government that keeps Greece in the euro. The U.S. posted a monthly surplus for the first time a very long time in April, but then tax collections are made in April, one would think that if they can't book a surplus in April, when could they? And JP Morgan has really thrown a spanner in the works for a Risk On Day, with their aftermarket announcement yesterday.

Currencies today 5/11/12. American Style: A$ $1.0040, kiwi .7845, C$ .9950, euro 1.2935, sterling 1.6110, Swiss $ 1.0770, . European Style: rand 8.1150, krone 5.8650, SEK 6.9550, forint 224.20, zloty 3.2815, koruna 19.52, RUB 30.15, yen 80, sing 1.2520, HKD 7.7650, INR 52.64, China 6.31, pesos 13.54, BRL 1.9530, Dollar Index 80.25, Oil $96, 10-year 1.85%, Silver $28.66, and Gold. $1,582.70

That's it for today. Well. Let's see. today we will celebrate two birthdays on the trading desk, Lori/ Gidget and Aaron will see their birthdays this Sunday. So Happy Birthday Gidget & Aaron! Sunday, of course, is Mother's Day. This is a day when I truly miss my mom. and not the mom that was devastated by MS later in life. the mom that would come downstairs and listen to me play the guitar. She loved it when the band got together to play in the basement, and most of all, she was always there for me, and sometimes I didn't deserve to be "there for", but that didn't stop her. So, if your mom is around, give her a great big bear hug, and tell her you love her! OK. time to get this out the door. you've been a lovely audience, thank you for reading the Pfennig. I was here all week, I hope you tried the veal! Talk to you next week from Las Vegas. now go out and have a Fantastico Friday!

Chuck Butler

President

EverBank World Markets

1-800-926-4922

1-314-647-3837

How to Trade this Market

IanWyatt — Thu, 06 Oct 2011 18:19:00 GMT

Stocks rallied put together a very impressive rally out of the hole on Tuesday. After being down over 200 points in the early going, the Dow Industrials rallied in the final hour to close 250 points to the upside.

How many times have stocks been down +1% at 3 pm only to rally and finish in the green? Bespoke Investment Group tells us that since 1985, that type of powerful reversal gas occurred only 10 times. And 8 of them have come since October of 2008.

Interesting times, indeed.

There are likely many reasons for these types of powerful one-way moves. And I'm sure the prevalence of computer-based trading is a major culprit. It seems to me that much of Wall Street now trades in one direction. Everyone is either bearish or bullish at the same time. And that leads to strong moves, but also may create more churning up and down.

In any event, I think we can also conclude that short-covering was a major reason for the strength of the reversal. Stocks were extremely oversold, and valuations were quite compelling. It is for this reason that I told you Monday that a rally was imminent. But now that we've seen some upside, let's not get carried away.

Jason Cimpl, at TradeMaster Daily Stock Alerts, recommended a slew of upside trades on Tuesday. By the time the market closed, his readers were sitting on 7% 8%, and 9% gains.

I've said it before, but no one is better at trading this market than Jason Cimpl. If you want to profiting right away, check him out HERE.

I still believe there is little reason to wade into this market with any conviction until after Greece defaults (of course, I have no problem with short-term profiteering). With any luck, that will happen before Greece actually runs out of money in mid-November. Too bad the EU still doesn't seem to have any sense of urgency. At the very least, the EU needs to throw cash into Euro-banks and fortify those balance sheets. News of this will send stocks higher.

But when you read statements like this... (quoted from Bloomberg):

[German Chancellor Angela Merkel] said that she supports recapitalizing European banks "if there is a joint assessment that the banks aren't adequately capitalized" and finance officials develop "uniform criteria." Germany is ready to discuss possible bank aid at this month's EU summit, she said.

...you are reminded just how dysfunctional the EU is. I mean, the market has clearly stated that Euro-banks are undercapitalized. And Merkel is still suggesting that the EU needs to come with a system for deciding what the market already knows.

U.S. bank stocks have been absolutely creamed over the last couple of months, and prices are so low, they now look attractive. Still, I have reservations. The banks are exposed to Euro-bank debt. Morgan Stanley (NYSE:MS) is the poster-child for this exposure, holding up to $39 billion in exposure to Euro-bank debt.

Of course, Morgan Stanley's exposure is hedged, but how comforting is that? After all, banks were hedged before the housing bubble burst too, but one of the main underwriters of that risk, AIG (NYSE:AIG), couldn't pay. And perhaps the very worst aspect of the bailouts was the cash that went in AIG's front door and right out the back to companies like Goldman Sachs (NYSE:GS).

But the Greek-default as well as Euro-bank situation is just one that's weighing on the U.S. banks. There's also the continued weakness in the U.S. and Operation Twist. The weak economy impairs banks earnings power. And so does Operation Twist, which is pushing long-term yields lower.

That's why earnings estimates for banks have been cut so sharply in recent weeks.

This situation has led to sharp declines for banks, even those that don't have much Euro-bank exposure, like JP Morgan (NYSE:JPM).

As much as I might like to, I still can't get bullish on this group.

Oil and tech stocks, however, are a different story. These groups have made strong moves off of recent lows.

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With the passing of Steve Jobs yesterday, the world lost one of the most influential entrepreneurs of our time. Steve's creativity allowed him to be a visionary in the world where technology met consumer goods. His uncanny ability to anticipate the future and create revolutionary products that most people couldn't even imagine separated him from everyone else. Steve often said that you should live every day as though it was your last. He certainly lived his life this way, and showed us just how much a single individual is capable of accomplishing.

Steve has left a lasting mark on the world today, and we'll all benefit from his many contributions to in the coming decades. My thoughts go out to Steve's family, friends and colleagues during this time of grieving.

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Is the U.S. Already in Recession?

IanWyatt — Fri, 19 Aug 2011 19:27:00 GMT

Economists are responding to weakening economic data by slashing their U.S. GDP growth estimates. JP Morgan's economists now say growth will top out at 1% in the fourth quarter, and slow to 0.5% in the first quarter of 2012.

Goldman Sachs has already reported there is a 1 in 3 chance the U.S. will slip back into recession.

Investors aren’t waiting around to see if it's recession or just slow growth. They are selling stock and buying safe haven assets like precious metals and Treasury Bonds.

Gold has rallied as much as 24% in a little over a month. And silver has rallied right along with gold, up 24% since July 1.

With silver prices currently over $40 an ounce, you'd probably think I was crazy to suggest that you could buy silver for just $3.90 an ounce...

However, I've got the next best thing: a company that has locked in a 20-year supply of silver -- at $3.90 an ounce. The terms of this deal mean this company will get around 12 million ounces of silver every year. And the price is locked in at $3.90 an ounce even as silver prices continue to rise.

It doesn't matter if production costs escalate or how high silver prices go, this company won't pay a penny more for its silver supply. Most analysts, including those at Wyatt Investment Research, expect silver prices will be higher, much higher and in years to come…

I'm Ian Wyatt, and I've put my own money in this stock as part of Ian Wyatt's $100k Portfolio, where I'm using my own money to show individual investors like you how to turn $100,000 into $1 million. And this $3.90 an ounce silver stock is helping us achieve our goal.

Please keep reading to learn more how this silver company could add substantial profits to your portfolio...

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Twitter, J.P. Morgan, and the Future of Capitalism

CharlesKrakoff — Tue, 01 Mar 2011 19:56:00 GMT

Let me admit my bias right here: I don’t “get” Twitter. This isn’t just because I’m too old. My teenage daughter, Isabel, tells me she thinks it’s pointless and that none of her friends use it. I also don’t see how Twitter will ever make money, though it’s certain that some of the best minds in Silicon Valley are already working on that problem. But this article isn’t about any of that.

Echoing Goldman Sachs’s investment in Facebook in January, which gave that company a notional value of $50 billion (which has subsequently risen to $70 billion in the secondary market), it was announced today that J.P. Morgan’s Digital Growth Fund is in negotiations to buy a 10% stake in Twitter for $450 million. The J.P. Morgan fund, which has raised $1.22 billion of a planned $1.3 billion, also has its eyes on potential investments in Skype, the telephony provider, and in Zygna, a games maker. Any or all of these investments could lead a few years hence either to outsize profits or to people scratching their heads and muttering, “What were they thinking?”

None of this should normally be of any concern to anyone but the shareholders and investors in the target companies and in the banks and funds buying the shares, but there is something not quite normal going on here. In both the Goldman/Facebook and the anticipated J.P. Morgan/Twitter transactions, the purchased shares will be made available only to a tiny handful of very wealthy investors. The J.P. Morgan fund, for example, will have a maximum of 480 investors, which works out to an average investment of $2.7 million each. Although an initial public offering (IPO) for both companies is planned, with Goldman Sachs and J.P. Morgan having the inside track to manage the IPOs and reap the enormous advisory fees and commissions, there is no certainty as to what percentage of these companies will actually be floated, and what proportion will remain in the hands of the banks and their wealthy fund investors. It is possible – even probable – that a majority of the ownership of these companies will remain vested with a very small group of people. Though a secondary market will certainly develop to allow these initial investors to dispose of their shares, it is also likely that activity in this market will consist primarily of private sales to other wealthy insiders.

Let’s not be naïve; wealthy and well-connected investors have always had access to investment opportunities the rest of us don’t even know about, and nothing will change that. But if Twitter- and Facebook-style investment arrangements become more widespread, it could undermine American capitalism, which for the past hundred years has been based on the modern public corporation in which no individual or institution owns more than a few percent of the whole. It’s common nowadays for institutional investors to own well over 50% of big U.S. corporations, but even among these investors ownership is highly diversified. In very few Fortune 500 companies does a single institution or family group own more than five per cent of the outstanding shares or exercise control via a special class of shares (Ford Motor Company, in which the Ford family owns just 6% of the company but controls 40% of the voting shares is one of a very few exceptions). Even Bill Gates owns only seven percent of Microsoft. This model is now under threat.

As regular readers of this blog know, I am a capitalist. Capitalism, especially when it is based on widespread ownership and freely traded shares and debt instruments of large public companies, is the best way mankind has yet found to allocate capital to its most productive use. Anyone who doubts this can look at the legion of countries in which some form of central planning – Marxist, fascist, Peronist, or just plain old dictators and their cronies – has prevailed.

Stock markets – though we now recognize that markets are not perfectly efficient – have been a vital way for companies to raise capital. The link between the stock market and the real economy, in which companies and people produce and sell goods and services, has traditionally been strong. This is vital, since financial markets rest on an uneasy compromise: corporations and their financial advisors can make as much money as they want as long as everyone else has the opportunity to share in that wealth. The public shares in the wealth in a variety of ways, the most important of which is employment income and associated benefits. The public also shares in the wealth by having the opportunity to invest its savings in those same corporations. If this link is broken, public support for capitalism will wane, and the United States could go the way of Argentina.

Already, the signs are ominous. In 1961, individual investors accounted for 62% of the total value traded on the NYSE. By 2009, this had fallen to two per cent. Block trades of 10,000 or more shares in a single transaction accounted for only three per cent of the NYSE trading volume in 1961; today they account for around 25% of total U.S. market volume. By itself, this evolution is hardly worrisome; much of it can be attributed to the rise of mutual funds and similar vehicles, which have become the preferred investments of many individual investors and which can offer better risk-adjusted returns than those less sophisticated investors could produce on their own. But accompanying this trend is the rise of high frequency trading, which now accounts for over 70% of all U.S. equity trades. High frequency trading, based on sophisticated computer algorithms, involves holding large positions for a very short time – often fractions of a second – to generate huge returns. Their practitioners argue that they provide liquidity and reduce bid-ask price spreads, which may be true, but the banks and hedge funds employing such strategies are playing with their own capital and that of wealthy investors. Your average individual investor, who may have a portfolio of a couple hundred thousand dollars or less, does not play in this sandbox.

The stock market, which has forever been likened to a casino, has truly come to resemble one, and I am not referring to the two-dollar blackjack tables in Reno. It has become much more like the exclusive, velvet-roped areas where the likes of James Bond and Asian billionaires play baccarat or high stakes poker for millions of dollars.

Felix Salmon, the Reuters financial blogger, writes in an excellent op-ed piece in the New York Times, “The stock market is becoming increasingly irrelevant — a trend that threatens the core principles of American capitalism. These days a healthy stock market doesn’t mean a healthy economy, as a glance at the high unemployment rate or the low labor-market participation rate will show… What’s good for Wall Street isn’t necessarily good for Main Street… the glory days of publicly traded companies dominating the American business landscape may be over. The number of companies listed on the major domestic exchanges peaked in 1997 at more than 7,000, and it has been falling ever since. It’s now down to about 4,000 companies, and given its steep downward trend will surely continue to shrink… Put another way, as the number of initial public offerings steadily declines, the stock market is becoming little more than a place for speculators and algorithms to compete over who can trade his way to the most money.”

Even the NYSE, the one-time flagship of the American capitalist system, is becoming marginalized, as its recent acquisition by Deutsche Börse indicates. According to John Gapper of the Financial Times, in 2005 79 per cent of the volume in NYSE-listed shares was traded on the exchange itself. By March 2010, that figure had fallen to 23 per cent. Gapper writes, “The NYSE has been squeezed out not only by upstart exchanges such as BATS (an electronic trading platform, established in 2005, which now ranks as the third-largest exchange in the United States) but by ‘dark pools’ – private exchanges on which institutions trade with each other in large blocks – and by banks making transactions internally. The two now account for about a third of US equity trading.”

As long as individual investors can invest in the markets and feel that everyone, big or small, is playing by more or less the same rules and that the markets are essential to the income and jobs on which we depend, capitalism will thrive. When that connection is broken, and people come to believe that capitalism is a game rigged in favor of a small elite, it won’t. The alternatives to capitalism, for the most part, are too awful to contemplate, so the markets have to be reformed – soon – for the system to survive.

I'm Giving Away Silver Coins

IanWyatt — Sat, 20 Nov 2010 16:46:00 GMT

"Durango - the Spaniards dream - lies in the heart of the famous Sierra Madre Mountains. Its beautiful climate, ancient forests, graceful plains and above all, its wonderful wealth of gold and silver and copper - together with an abundance of water - have combined to make it a perfect Utopia." - Las Minas de Mexico, J.R. Southworth, 1905

Greed and corruption have a way of following precious metals - and so when silver was found virtually lying on the ground in the Sierra Madre mountains a flood of prospectors headed to the hills of Mexico to seek their fortunes.

At the time when J.R. Southworth wrote 'La Minas de Mexico', a book about mining silver in Mexico's Sierra Madre Occidental, the magic metal was trading for around $40 an ounce.

Decades later, the famous Hunt brothers were exposed for trying to corner the silver market. At that time, silver reached $68 an ounce.

Today, silver is trading for around $25 an ounce and there are still rumors that the silver market is being manipulated. MarketWatch recently reported that suits have been brought against JP Morgan Chase (NYSE: JPM) and HSBC (NYSE: HBC), alleging that these financial institutions have amassed massive short positions on silver futures, and as a result have influenced the price of silver since early 2008.

I guess the more things change, the more they stay the same...

***One thing that has 'remained the same' is that individual investors have made huge profits investing in junior mining companies over the years. Legendary resource investors like Doug Casey and Jim Rogers have literally made fortunes by buying shares of undiscovered and unknown junior explorers - and sitting on those positions for years as they rise by thousands of percentage points.

It's not easy - but it is possible. And you can do it too.

Today is the day to start. I've just finished days of work putting together a special report on three junior silver mining companies. I've done the research, valued their silver reserves, and spoken with company representatives. I also own these stocks in my personal investment account, and I expect to buy more shares in the future in accordance with our company’s trading compliance policy.

***I firmly believe investors can make huge profits investing in silver with these three companies. So to help motivate my readers, I've put together a special offer that you can't refuse.

Through Sunday night I'm giving away a free one ounce American Silver Eagle $1 coin to the first 200 people to sign up here to receive my Special Report: Sierra Madre Silver Profits. This offer is limited to only the first 200 people, so I urge you to take action immediately

I just finished this report last night, and it's now available for you to read. In this report I feature three exciting silver mining companies that all offer tremendous upside potential for precious metal investors.

Each of these companies has silver properties in Mexico's silver belt, the Sierra Madre Occidental.

For 500 years the Sierra Madre region has been known to hold some of the largest silver deposits ever discovered. With the Mexican mining industry bringing in more silver production every month and the price of silver steadily rising, it’s the perfect time to build a position in companies that are mining silver in this region.

These three uniquely positioned, overlooked junior mining companies remain undiscovered, despite the soaring price of silver. And all three companies have near-term catalysts on the horizon that could move their share prices significantly higher.

In this special report, I will tell you exactly what these companies are doing to develop their silver mines and how silver production is helping their stock prices rise.

***Let me tell you a little bit about why investing in Mexican silver miners is such a great opportunity right now...

Silver is often referred to as the Magical Metal because of its unique properties. It's known for being the best conductor of electricity, the best conductor of heat, and the most reflective of all metals. What's more, it's malleable and has anti-bacterial properties.

But there is more to silver than just its commercial and industrial purposes. Like gold, silver is prized as a safe haven asset and as a store of value. Individuals, institutions, and nations buy silver as a hedge against inflation, and to provide financial security in the event of a global currency crisis.

And while physical silver represents a compelling investment right now, I'm most bullish on silver mining companies because of their ability to substantially increase the value of their reserves and profitability as the price of silver rises.

The three companies I'm recommending today represent an excellent way for investors to profit from higher silver prices because all three of these companies have operations in the resource rich Sierra Madre Mountains in Mexico.

We're going to invest in silver mining companies because they have leverage to the upside as silver prices rise. However, each of these companies represents a compelling investment even if silver prices retreat to $18 per ounce. Regardless of whether silver is at $18, $20, $30, or more, these three companies are well positioned to bank profits.

· The first company has an exciting prospect with a vast silver reserve that it plans to bring to production through a joint venture with one of the best silver production companies in the business.

· The second company is already in production, and is increasing profitability as it expands silver production.

· And the third company is an exploration stage company with reserves that not only include silver, but gold, and copper as well. This company has teamed up with one of the best in the business to bring its properties closer to development stage.

All of these companies are compelling investments for different reasons. By investing in all three stocks, investors can capitalize on the Sierra Madre silver opportunity.

***Remember, this report was just published last night so few people have seen it yet. And because these are micro-cap companies, I'm only sending the report out to the first 200 people that sign up for a trial subscription to Small Cap Investor PRO.

To get started making money with these three exciting junior exploration companies, click this link and I'll rush you my Special Report: Sierra Madre Silver Profits.

The first 200 people to sign up will get the report, as well as a free American Silver Eagle coin, valued at approximately $32.

I believe this is a very exciting small cap opportunity, and hope you enjoy reading my report as much as I enjoyed writing it.

Collision Course With Dow 10,500 Won't Be a Straight Line

IanWyatt — Wed, 14 Oct 2009 16:47:00 GMT

Normal 0 MicrosoftInternetExplorer4

Your Daily Profit

October, 14 2009

*****Intel and JP Morgan

*****Dow 10,500

*****How to Make Triple the Gains on Gold

Fellow Investor,

Intel (Nasdaq:INTC) reported excellent earnings last night, as I expected. The chip-maker beat on revenues and earnings per share. The stock is up close to 3% in the early going. That’s because Intel’s results weren’t exactly a surprise. During its mid-quarter update, Intel said the quarter was looking good. And the stock ran from $19 to $20.50 over the last few days. And as of press time it’s at $21.00.

Intel’s earnings are especially important because the company beat revenue expectations. As we know, investors want to see revenue growth. Costs have been cut, and if the economy is truly turning around, sales should grow.

*****JP Morgan (NYSE:JPM) destroyed expectations, posting $0.82 in per share earnings when analysts were expecting $0.52. Investment banking was the biggest contributor to JP Morgan’s result. But I’m impressed by the gains the company made in bond trading. Revenues for fixed income went form $800 million last year to $5 billion this year.

Banks have to find new ways to make money, and JP Morgan is doing it.

Another part of JP Morgan’s quarter illustrates how the Cash for Clunker Stock Rally is working. Stock underwriting revenue for JP Morgan rose 31 percent to $681 million, and bond underwriting fees rose 19 percent to $593 million.

In other words, JP Morgan took in over a billion in revenue helping other companies raise cash by selling stock or bonds. When money is cheap, there’s more of it available.

*****The Dow Industrials is on a collision course with 10,000. And I think we will see 10,500 before the year is out. But there will be a dip to buy sometime soon. The Dow’s not simply going to run through 10,000 on its way higher.

Big round numbers tend to stand out as resistance points. And there aren’t any numbers more round than 10,000. Look for a move above 10,000 soon, and then a reversal.

*****The U.S. Dollar is hitting 14 month lows and gold is hitting record highs at $1,070. Gold prices finally broke through $1,000 an ounce on October 6. Gold is up 7% since. But the mining stocks in the Global Commodity Investing portfolio are up 13%, 19%, and 23%.

That’s because profits for gold mining companies rise exponentially compared to the price of gold. As you can see, in one case, we’re seeing a stock move 3X the price of gold. THAT’S how you make money when gold starts to run. And if gold continues on to $1,200 an ounce or higher (which is likely) Global Commodity Investing members will clean up. Find out how you can join us HERE.

Until tomorrow,

Ian Wyatt

Editor

Daily Profit

Feds Say NO To CIT...

ChuckButler — Thu, 16 Jul 2009 14:40:18 GMT

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In This Issue..

* Currencies have strong day...
* What are the qualifications?
* JP Morgan posts 36% increase in earnings...
* RBA attempts to keep A$'s in check...

And Now... Today's Pfennig!

Feds Say NO To CIT...

Good day... And a Tub Thumpin' Thursday to you! The first day this week that I've gotten up and to work at my normal time. I hit the wall yesterday afternoon, went home, watched about 10 minutes of the Wizard of Oz (my all-time fave movie) with granddaughter Delaney Grace, and then went to sleep! Crazy, I know, but when you hit the wall, you hit the wall!

Yesterday was a strong day in the currencies. I wrote yesterday about how the euro was inching toward 1.41, but the level had been a tough row to hoe, with the euro giving back ground each time it went higher than 1.41... And... That was the case yesterday! The euro did trade higher than 1.41. It was 1.4120 when I left the office! But, as I turn on the screens this morning, the single unit has fallen below the 1.41 figure...

I think we'll probably see a day when the Risk Aversion campers come back out to play, given the news on CIT... The lender, CIT, was told that they would NOT receive any Federal assistance... (I guess they didn't have any ex-Goldman Sachs employees at CIT!) This news has pushed stock futures down this morning, and the "risk" of yet another bankruptcy that could shake the market is on the table. You know me... I would prefer that the Gov't was not involved in all this, so on one hand, I'm not sorry that CIT will not get assistance... On the other hand though, it really raises the question as to just what are the qualifications to receiving federal funds? Because Lehman Brothers, (Goldman's biggest competitor at the time) didn't qualify... But AIG did... Of course AIG owed Goldman a ton of money.. Maybe that's the qualification! Oh, I'm not going to get started on all this, I'm sure there are all kinds of stories going around for you all to read that would keep me out of the hot seat with the legal beagles!

So... If the Risk Aversion campers come back out to play today, that means we could see pressure on the currencies once again... Unless... Yes, unless we saw a break of the link with stocks and currencies... And then traders and investors would look at the fact that the "green shoots" are nothing but dandelions, and the U.S. fundamentals are rotten, which will cause more deficit spending, more dollar printing, more monetizing debt, and all the other things that should, fundamentally speaking, weigh heavily on the dollar!

All of the currencies, except yen, are off their highs of yesterday this morning. With Risk Aversion back on the table, Japanese yen is rallying again... This going back and forth from one day to the next is really beginning to give me rash! I'm tired of it! I'm also tired of writing about it!

OK, did you see the results of the FOMC's meeting minutes yesterday? In case you didn't, the minutes read like a book from the fiction section of the book store... The Fed revised up growth for the rest of this year and next year. Although the Fed raised their growth forecast... they raised the expected ranges for the unemployment rate through the forecast. So... What I took from the minutes is that the Fed doesn't believe the unemployment problem will begin to seriously reverse itself until 2011...

So... I just don't know where the growth will come from... And yes, I'm very well aware of the fact that labor is a lagging factor of growth... But with 1 in 5 people unemployed, I don't see where the growth will come from... Do you?

Oh... And U.S. Foreclosure filings hit a record in the first half of 2009... More than 1.5 Million properties received a default or auction notice or were seized by banks in the first 6 months of this year... That's a 15% increase from 2008's first half... One in 84 U.S. Households received a filing... But the Fed see's growth? Maybe if this data was showing a bottom... But from what I see, it is much like house prices still searching for a bottom...

Speaking of the Fed.. I read this in the Wall Street Journal...

"More than 175 prominent economists are warning that "the independence of U.S. monetary policy is at risk" because of attacks on the Fed. They are urging Congress and the president to "avoid compromising [the U.S. central bank's] ability to manage monetary policy as it sees fit" and to refrain from politicizing its decisions on emergency loans to financial institutions.

The move to publicly defend the Fed's role reflects growing unease among academic economists, former Fed officials and some investors that the vehemence of the criticism from Congress of the Fed's handling of the financial crisis suggests a readiness in Congress to weaken the freedom the Fed has to move interest rates as it see fits."

Hmmm... I would like a list of those 175 prominent economists so I can give them a piece of my mind! While the Fed is "supposed" to be independent, its mere existence is questionable at best! Why not let the markets decide what interest rates should be? Again, though, I won't get into all this deeper, because, it would take over the entire letter for weeks! I just thought I would throw it out there and see what it hit...

Ok... Remember last week when I told you how June is normally a "good month" for the Budget Statement here in the U.S.? Well... For the first time since 1991, June was a deficit for the Budget! The Budget Deficit was $94.3 Billion in June! OUCH! Hey! Don't we normally see quarterly tax returns to keep the Budget Balance from turning to a deficit in June? Why yes, Chuck, we do... Or... DID! Not this year, folks... And probably not next year either! Tax receipts fell 17% (year on year) in June... And for all of you keeping score at home... For the year so far... Revenues are down 17.9%, and expenditures are up 20.5%... Not a good formula, eh?

Have you seen the results of the first set of earnings reports this week? Goldman and now JP Morgan reported some nice earnings... That's nice, eh? I say that with my own style of facetious tone!

I'll say this... You can scrap what I wrote about earlier that the Risk Aversion campers will come out to play today because of the CIT verdict... That's because JP Morgan just announced a 36% increase in 2nd QTR earnings! And you should have seen the currencies turn from red to green! The euro is back above 1.41... See how fickle these traders are? They can turn on you in a NY minute!

The JP Morgan earnings will have to hold fort on the markets forgetting about CIT, until more earnings announcements come out... So far, the "banks" have surprised me on their earnings...

I really do think that if we could put all this back and forth behind us the euro would move 3 to 4% higher, and then wait to see what happens then... But, that's a BIG IF...

Today, we'll see the Weekly Initial Jobless Claims, which really dropped last week... I had the thought when I saw the figure drop last week that maybe we've saturated the layoffs... In other words, maybe, Corporations are getting pretty close to not being able to cut any more jobs... It's a thought...

We'll also see the color of the TIC's data (Treasury International Capital) or... What used to be called the Net foreign Purchases report... The TIC's data will be May's print, and is expected to remain quite low, thus not covering the required amount of purchases to finance the Current Account Deficit... Which means, the financing gets shoved to next month... We keep shoving this all down the road... Just like everything else... We'll let someone else deal with it in the future... That's so sad! My friend, Bill Bonner, talks about this, in the award winning movie, I.O.U.S.A. Bonner recalls that Thomas Jefferson called it "immoral for one generation to load up the next generation with debt."

But, we go on about our lives each day, without worry about what we are doing to future generations... Again... I had better stop there before I go off on a tangent so long you could grow a beard while reading! HA!

I received an email yesterday responding to my discussing the increase in taxes on the wealthy... Just like I said in the Pfennig yesterday, where you stand on this all depends on what pain you'll receive... I did see that in most states, the taxes would go above 50% to pay for the health care...

And then there was this... I see where the Reserve Bank of Australia (RBA) sold A-dollars
(A$) in June... Hmmm... I said a few weeks ago that I didn't think the RBA was selling A$'s to keep a lid on the currency, but merely evening out the flows... But now, the June total was A$1.9 Billion of its own currency, sold...

I've now changed my mind on this... I believe the RBA is attempting to keep the A$ around 80-cents, given the global recession and everything else going on the financial markets, the RBA probably sees a real problem with a soaring A$ at this point. While I never like a Central Bank selling their own currency... I can't say that I blame the RBA here... They have one of the best stories going around regarding a currency, and if left untouched by the RBA, the currency could be soaring right now, which would in normal times be OK with the RBA, but in current times, is not OK with the RBA... So...

Until the markets decide they want to push the envelope with the RBA on keeping the A$ around 80-cents... That's where it will remain... But... Should the markets decide to push the envelope and test the RBA's mettle, then 80-cents will be left in the rear view mirror... Unfortunately, and I've talked about this before, today's currency traders don't have the cajones to fight Central Banks any more...

Currencies today 7/16/09: A$ .8015, kiwi .6460, C$ .8940, euro 1.4115, sterling 1.6450, Swiss .9325, rand 8.10, krone 6.3675, SEK 7.7770, forint 193.50, zloty 3.0350, koruna 18.3420, yen 93.90, sing 1.4510, HKD 7.75, INR 48.70, China 6.8311, pesos 13.57, BRL 1.9330, dollar index 79.38, Oil $60.95, 10-year 3.59%, Silver $13.27, and Gold... $939.50

That's it for today... And for me, for 2 weeks! Yes, I'll be gone, first to Vancouver, and then when I return, I'll be heading down the road on vacation with my family. Before I got sick two years ago, the Butler family would pack up our camper and head to Southwest Missouri for a vacation. My kids love camping! So, it's a week of relaxation for me. No cell phones, no laptops, no communication, as we are very deep in the Ozark Mountains! This will be the first time since I got sick two years ago, that we'll attempt camping again... Chris will be kind enough to take the conn on the Pfennig for me. I will send updates from Vancouver, but not from vacation... Speaking of Vancouver, getting there, and getting out are awful things to have to go through, but while I'm in Vancouver, it's an awesome city! Ok... Back to getting this out on time! YAHOO! It's time to make this a Tub Thumpin' Thursday!

Chuck Butler
President
EverBank World Markets
1-800-926-4922
1-314-647-3837

Meredith Whitney Upgrades Goldman While Geithner Assures Arabs Our Money is Good

IanWyatt — Mon, 13 Jul 2009 14:40:00 GMT

Normal 0 MicrosoftInternetExplorer4

Your Daily Profit

July 13, 2009

*****Strong Dollar Propaganda

*****Earnings and Economic Data

*****Blueprint for Profits

Fellow Investor,

A few weeks ago, Treasury Secretary Geithner had to go to China to assure our largest creditor that their investment in the U.S. dollar was safe. Now he’s off to Saudi Arabia and United Arab Emirates for another round of “strong dollar” propaganda.

Of course, it’s not an easy task to convince foreign governments that the U.S. wants a strong dollar when interest rates are at zero and we’re selling tens of billions in Treasury bills virtually every week. You may recall Geithner’s assurances elicited laughter from a group of Chinese college students when he made the strong dollar pledge there.

If college students know the score, you can bet everyone else does, too. But Treasury auctions have been met with plenty of demand, and that’s a good thing.

*****Fed Chief Bernanke is expected to reveal to Congress just how he plans to reverse his stimulative monetary policy next week. The Fed has expanded the money supply by about $1 trillion, cut rates to zero and doubled the assets on its balance sheet.

In normal times, this would be highly inflationary. But these aren’t normal times. Were it not for the Fed’s action, the U.S. economy would be broken even more than it already is.

Now, normal times will return. And how the Fed plans to reel in liquidity when the economy starts to grow again is critical. The potential for runaway inflation is real, and the Fed will have to be just as diligent at fighting inflation as it was fighting deflation.

*****Goldman Sachs (NYSE:GS) received an upgrade from the very same banking analyst that predicted collapse of mortgage-backed securities, Meredith Whitney.

Upgrading Goldman is easy. The bank is practically a subsidiary of the U.S. government. But the timing is interesting, given that Goldman reports earnings before the bell tomorrow.

And speaking of earnings, this is a big week for some important companies. In addition to Goldman, we get Intel (Nasdaq:INTC) after the bell tomorrow. Thursday, we’ll hear from JP Morgan (NYSE:JPM), Google (Nasdaq:GOOG) and IBM (NYSE:IBM). Then Friday, we get General Electric (NYSE:GE), Bank of America (NYSE:BAC).

Tech and financials – the anchors for the U.S. economy will be reporting this week. Investors will be watching these early earnings reports closely. Much of the rally of the past few months can be attributed to investors’ faith in companies meeting Q2 earnings, even if expectations were substantially lowered. Any bad news from these bellwether companies and the market could turn. We’ll be watching closely.

*****As if earnings weren’t enough, there’s a full slate of economic data coming out this week, too. Tuesday, it’s the Producer Price Index (PPI) along with retail sales and business inventories.

Wednesday, we get the Consumer Price Index (CPI), the Empire Manufacturing Survey from New York state, capacity utilization, industrial production, crude inventories and the minutes from the last FOMC meeting.

Thursday, it’s initial unemployment claims and the Philadelphia Fed.

And finally, on Friday, we get building permits and housing starts for June.

Whew! That’s going to be a lot of data to review.

*****On January 15, my Top Stock Insights advisory service released its Predictions 2009 special issue. This issue was our blueprint for profits with mid- and large-cap stocks as we headed into the new year.

In that issue, I outlined the case for oil, gold, commodities and biotech/healthcare stocks. And we took 51% profits on an oil stock, 25% on a gold stock, another 25% on a commodity stock and we’re still holding three biotech/healthcare double-digit winners in the portfolio.

In other words, our expectations for the year led my readers to some nice gains this year, and there’s more to come...

Now, I’m all set to release an update to that special Predictions issue that will get us through the rest of this year with more solid gains. It comes out on Wednesday, and if you’d like to get my blueprint for profits for the rest of 2009, please click here. Or go to topstockinsights.com.

*****Also, if you missed TradeMaster Daily Stock Alerts technical analyst Jason Cimpl’s weekly video chart analysis, here’s that link again.

*****As always, send me your comments, your questions and your jokes to editorial@247investor.com.

Ian Wyatt

Editor

Daily Profit

Russia Joins China in Push for New Global Currency to Replace the Dollar

IanWyatt — Wed, 03 Jun 2009 13:39:00 GMT

Normal 0 MicrosoftInternetExplorer4

Your Daily Profit

June 3, 2009

*****Global Currency

*****When Big Money Plays Defense

Fellow Investor,

Russia is grumbling. Seems they are not happy that rising debt, slow growth and record Treasury bond sales are dragging the U.S. dollar down. In fact, Russian president Medvedev is calling for some kind of global currency to replace the U.S dollar as the world’s reserve currency. (Sound familiar? Like he’s taking a page from the Chinese?)

In an interview with CNBC on Monday he said, “We need some kind of universal means of payment, which could create the basis of a future international financial system…”

Of course, this is a horrible idea. As one analyst put it, “It took decades for the euro to be established. I can only imagine how long it would take for the BRIC countries to put together a currency.”

*****It’s an investing truism that the financials always lead the stock market. Recall that it was bullish comments from Citigroup that kicked off this rally back in early march. And I’m sure nobody needs reminding that it was the financials that kicked off the worst bear market in 80 years.

When the S&P 500 and the Nasdaq blew through their 200-day moving averages on Monday, the financials were out in front. But today, even though the major indices finished with slight gains, many financials finished in the red.

American Express (NYSE:AXP) dropped nearly 5%. JP Morgan (NYSE:JPM) lost 4.46%. Wells Fargo (NYSE:WFC) lost 4% and Citigroup (NYSE:C) lost 4.88%.

Bank of America (NYSE:BAC) is about the only major financial stock to finish in the green, and that was a 1.7% gain. In fact, the Financials SPDR (AMEX:XLF) failed to make a new recovery high along with the Nasdaq and S&P 500.

So what gives? Why have the financials underperformed, and why were they weak today?

*****One clue comes from the Healthcare Select SPDR (AMEX:XLV). As you may know, healthcare stocks are considered defensive stocks. That’s because their revenues are seen as being stable as healthcare is a necessary, as opposed to discretionary, expense.

In difficult markets, institutional investors will park their money in healthcare stocks as a way to maintain exposure, but lower risk.

If we compare the Healthcare SPDR XLV to the Financial SPDR XLF, we see an interesting divergence starting on May 8. Healthcare has been trending up since that date. And the Financial SPDR has been trending down. To me, this looks like sector rotation.

It appears that institutional investors are moving money out of aggressive financial investments and into defensive healthcare stocks. When the institutional investors start playing defense, individual investors should pay attention.

*****Technical analyst for TradeMaster Daily Stock Alerts, Jason Cimpl, thinks the rally has about another week before we start seeing some downside. And for good measure, he recommended that his readers take their 29% profits on Fushi Copperweld (Nasdaq:FSIN). This trade took less than 3 weeks. Nice job, Jason.

Jason is still holding the two stocks you may have learned about from the TradeMaster video I included in yesterday’s Daily Profit. In case you entered either trade, you should know that Jason has recommended a stop loss for FXI at $35.15 and UNG at $12.60. If you missed the video, you can check it out HERE.

*****As you know, Wednesday is usually Newsletter Advisors Weekly. In the spirit of summer I’m giving my friends in the investment advisory world a break this week, so there won’t be any interview today. If it’s sunny and nice where you are, be sure to get out and enjoy the weather; before you know it, the dog days of summer will be upon us.

Feel free to write and share your thoughts and comments: editorial@247investor.com. I’ll talk to you tomorrow.

Ian Wyatt

Editor

Daily Profit

Nationalization = Communism?

IanWyatt — Tue, 03 Mar 2009 18:51:00 GMT

*****Lending Profits

*****Nationalization = Communism?

*****Recovery Portfolio

Fellow Investor,

It is a strange sight to see the Dow Industrials trading at 6,700. That's still a level from 1997. And it still indicates that people don't want to own stocks. At this point, it seems to be as much about available capital for investment as a willingness to invest.

Valuations are low, the Dow is trading with a p/e of around 20. But that's still not as low as it's been during past recessions.

Still, it might be helpful to add some flavor to the current p/e ratio of the Dow. Consider that Citigroup and Bank of America don't have earnings. Neither do Ford, GM, Alcoa. It's safe to say that earnings at JP Morgan, American Express, Goldman Sachs and GE are hanging by a thread.

Obviously, any earnings associated with lending are seriously impaired, at best. But it's also obvious that at some point, earnings from lending will return. And the p/e for the Dow and other indices will drop substantially.

It's how long it will take to see a resurgence of lending earnings that's the question.

*****We've got a showdown of economic heavyweights brewing between PIMCO's Bill Gross and NYU economics professor Nouriel Roubini. Roubini is the champion of nationalization of zombie banks. Gross is in favor if continued bailouts from the government.

The difference in opinion is fundamental. Gross is an investor. He prefers to see any solutions maintain current equity structures. It's also no coincidence that Gross and Co. are advising the government on its handling of Bank of America.

Roubini is an economist. His perspective is not driven by any sympathy to current shareholders. He wants to see the economy moving again. And in his opinion, nationalization of zombie banks is the quickest means to that end.

To the "let 'em fail" crowd, nationalization should be your preferred solution. Nationalization removes current management, wipes out shareholders and puts the banks back in the hands of stronger private ownership. Zombie banks would likely be in government hands for a matter of a few days - just long enough to strip out the impaired assets. I guarantee there's no shortage of private equity groups eager to buy a healthy bank with a strong brand name.

*****I'm starting to suspect that CEOs like Bank of America's Ken Lewis would make pretty savvy politicians. It seems to me some of these execs have done a terrific job of inflaming the populist association of nationalization with communism.

By invoking the evils of nationalization, we now feel that sinking another $30 billion into AIG and $25 billion into Citigroup is a better alternative. And maybe it is.

I also got to thinking that maybe it was all Paulson's fault. That it was a mistake to bring the Wall Street perspective on deal-making into the government's financial dealings with failing companies. Taking preferred stock and warrants in exchange for loans isn't exactly laissez-faire capitalism.

Unless it's acceptable for the government to think of itself as a capitalist entity, with taxpayers for shareholders.

As the lender of last resort in broken capital market, maybe Americans would feel better if the government had kept its nose out of business and simply handed over the cash. Somehow, I doubt it.

I think, as taxpayers, we want to be compensated for the risk we believe we are assuming in bailing out AIG and Citigroup.

***** When the government lent Chrysler $1.3 billion in 1979, it received 14.4 million warrants for Chrysler stock in exchange. So Paulson had precedent on his side.

And it's reported that Chrysler asked for the warrants back in 1983, but the adverse reaction from American taxpayers caused Chrysler to withdraw its request.

But through his calculated use of the "n" word - nationalization - Lewis has made sure that he won't be taking any Iacocca-like $1 dollar a year salary. Lewis destroyed billions in shareholder value, but he's still getting his.

I should probably apologize for continuing to bring up the nationalization thing. I don't advocate it is the only way out of this financial mess, even though I do think banks are holding onto impaired assets and delaying the recovery process because they think prices will eventually recover.

Besides, Obama and Geithner have made it pretty clear that they want the banks in private hands. Of course, that's what Bush and Paulson said about Fannie Mae and Freddie Mac, too.

*****Finally, with the recent sell off, I simply have to think it's a good idea to dip a toe in the stock market pool. Yesterday I mentioned a few stocks that we like at Daily Profit: Graham Cop (AMEX:GHM), CardioNet (Nasdaq:BEAT), SXC Health Solutions (Nasdaq:SXCI) and Emergent BioSolutions (NYSE:EBS).

*****The next Recovery Portfolio video conference is coming up on March 10, 2009 at 6 pm Eastern time (with on-demand viewing for investors in central, mountain, and pacific time zones). Given the recent stock market declines, we thought it would be timely to update out outlook for 2009 and give you the latest on where we see opportunity. You can register at the following link:

http://www.recoveryportfolio.tv

Best Regards,

Ian Wyatt
Editor
Daily Profit