Long regarded as the world’s growth engine the U.S. economy is currently experiencing a rough patch. This was highlighted by first quarter GDP of 1.3% down from an annualized rate of 2.5% in fourth quarter 2006. Anticipating the slow down, Wall Street analysts lowered first quarter S&P 500 earnings from 8.7% in January to 3.3% by the first of April. However, after all is said and done it appears as though Wall Street’s concerns were for naught. Earnings will be closer to 9%, better than the historic average. How could this be?
Mining Merger Mania: Say It Three Times Fast
I was shocked last week when I read a report from Merrill Lynch stating that BHP Billiton could possibly be a target of a private equity bid. BHP Billiton is the largest mining company in the world. I have always envisioned it as the acquirer not the acquiree. However, with so much money at stake – anything is possible.
According to Forbes, “China is moving at a pace that amounts to building a city the size of Houston every month. There are more sky cranes in the city of Shanghai alone than in the rest of the world. They are pouring a lot of concrete, stringing a lot of wire, plumbing a lot of pipe and pounding a lot of nails.†China is not alone in its thirst for industrialization. “India’s year-on-year growth rate could well hit double figures at some point in 2007, and the country may even grow faster than China for at least one quarter,†per the Economist. In BHP’s most recent half-year report, it reported revenue of $22 billion an increase of 22% over 2006. Supplying resources to the emerging markets is clearly a high-stakes game.
Continue reading “Mining Merger Mania: Say It Three Times Fast”
Echelon Corporation an Infrastructure Play
If the consolidation in the base-metals continues at its furious pace – I will need to look to other areas to fill-out the Big Build-Out portfolio. ELON looks like a potential fit. I will keep my eye on it. Continue reading “Echelon Corporation an Infrastructure Play”
Top China Stocks
Interesting article. Reinforces many of the points that I have made on these pages.
Source: The Street dot Com
by: Jim Jubak
China’s national economic plans have been reduced to a shambles, which is great news for investors in energy, materials and capital equipment. At least for a while. I’d say we have 12 to 18 months of relatively clear sailing before the bills come due, as they always do.
My advice: Rejoice for a moment and then add to share positions in companies likely to benefit from the shambles. In this column, I’ll give you 10 stocks that fit that profile. And watch like a hawk in 2008 for signs either that the Chinese economy is reaching a boiling point or that the Chinese government is ready to get serious about turning down the flame under the pot.
Capitalizing On Global Growth
The latest revelation on CNBC is that overseas growth can offset a slowing U.S. economy enabling the big U.S. multi-national companies to continue generating outstanding earnings. Talking head after talking head have parroted this theme for the last week and a half. Well, it is nice to be ahead of a trend for a change. Over the past three years, this has been the predominant theme of stocks in my portfolios. However, I haven’t limited myself to U.S. companies.Â