|
The Taipan Group�s 247profits e-Dispatch Baltimore, New York, Chicago, Berlin, Bonn, London and Paris September 24-27, 2004
***Are we seeing Reaganomics in action? Tax cut irony� more billionaires than ever� and much more below� ***Four of the biggest, most undervalued and fastest growing stocks in this sector are listed below. They�re already up since we first recommended them. The best part: There�s still plenty of time to buy�
You must act immediately to prepare for the volatile market ahead. Current economic, political and security factors are forming a turbulent market climate that will bring masses of unprepared investors to their knees. But a select few inventors who see it coming - and act accordingly - will prosper. Don�t be left out. View the Full Red Zone Profits Report. ***********************************************
There�s something odd going on in this �terrible� economic environment. Take the state of Maryland, a.k.a. The Land of Pleasant Livin�, as a local brand of brew has it. Just today, the Baltimore Sun (a paper known for reporting political and economic news with the same degree of unbiased impartiality as Dan Rather) sneaked in a smallish article stating that Maryland tax revenues are exceeding expectations by over US$200 million so far this year. A week or two ago, the same paper reported that statewide mortgage defaults are at historic lows. What�s going on? Are we seeing Reaganomics in action? At the same time, Forbes magazine is listing more billionaires: According to the journal, there are now 313 billionaires living in the US, the largest number ever (compare that to the 262 counted last year.) And the rich certainly didn�t get any poorer, either: The combined net worth of the top 400 rose by US$45 billion to reach US$1 trillion for the first time since 2000. Apparently, those accursed Bush tax cuts for the super-rich also enabled Teresa Heinz Kerry, colonial memsahib to and wife of Candidate Kerry, to make it back onto the list of the 400 richest people in America� although compared to her colleagues, she�s a downright Jane Sixpack with only US$750 million to her name. Life can be so unfair!
August orders for all durable goods were valued at US$195.4 billion. Compared to 2003, orders were up a whopping 12.4%. Capital investment in new factories, equipment and software is projected to increase by 9.5% this year - three times as much as the 3.3% gain in 2003. Not bad given the perma-whining you read in the mainstream media.
�Not even a month ago, Christian DeHaemer made us aware of a Gardner Group report stating that the �Chinese broadband market has built up huge momentum during 2003, making it the fastest growing major DSL market� penetration is still relatively low and the carriers are offering their customers some of the cheapest broadband services in the world, down to US$6 per month, to attract users.� �One Chinese mobile phone maker will enter the global top ten by the end of the year. Sales in China will exceed 70 million units in 2004. �Taking that into consideration, Chris recommended a buy on four of the biggest, most undervalued and fastest growing stocks in the sector, believing that US and foreign investors would be the main drivers of these stocks. It�s a good thing, too. Take a look at how these plays have performed in under a month�s time. The best part: There�s still plenty of time to buy. �All were bought on August 27, 2004: CHINA
- US$4.49, now US$5.16 - 15% gain �We see no reason to sell at this point. Hold!�
Today�s tradesports.com standings for the 2004 Presidential Election are: PRESIDENT.GWBUSH2004: 65.7/67.5 (yesterday�s
standing: 67.0/67.4)
Next week, this company will begin a massive 3-million share repurchase program that�ll cause an explosion in short-term shareholder profits. Peter Lynch says it�s how to find �ten-baggers.� Make this play before October 8� For more information, go to the S&P All-Star Report.
AZZ Inc., Ennis Inc., Micron Technology, Rite Aid Corp., Thor Industries Inc., Vail Resorts Inc., Walgreen Co., and Williams Industries are some of the companies releasing earnings.
�I
don�t want to denigrate Kerry, but from a Viacom standpoint, the election
of a Republican administration is a better deal. Because the Republican administration
has stood for many things we believe in, deregulation and so on. The Democrats
are not bad people� But from a Viacom standpoint, we believe the election
of a Republican administration is better for our company.�
*** �For tomorrow, our indicators are giddy as schoolgirls. Look for gains above 1%.� When we�re hot, we�re hot. And when we�re not� well, we really aren�t: The gains our indicators forecast did not materialize. In fact, after a fundamentally bearish day, the Hong Kong Hang Seng closed at 13,066.8, down 213.59 points (1.61%). Still, our indicators by and large appear unbothered, pointing to gains near 1% next week.
No upside materialized for the Nikkei 225. The index closed at 10,895.16, down 124.25 points or 1.13%. Although widely inconclusive, our indicators hint at further losses near 0.7% early in the week.
This just in from Taipan�s resident Editor-at-Large, Martin Denholm: ***Corrective Procedure: Getting a consensus on data as subjective as the housing market is a tough task! In Britain, this is especially true, where you�ve got a plethora of groups chipping in their two cents on the market: Nationwide
Building Society and Halifax Bank. Today, Hometrack added fuel to the argument that the UK housing market is finally slowing, reporting that house prices have fallen 0.3% so far this month. That�s the third straight month of declines. This comes after Nationwide said house prices followed a 2.1% gain in July with a slender 0.1% in August, sending the annual inflation rate down from 20.3% to 18.9%. So today�s evidence would seem to suggest that, while it�s probably a little early to say the boom is over, there�s a definite cooling taking place. This came as home loans rose at the slowest pace in 11 months and the loan approval rate was the slowest since November 2000. Nationwide did reconfirm its forecast for house prices to rise 15% this year. But, quoted in the Independent newspaper, Hometrack�s John Wriglesworth says the boom is �well and truly over,� and that the Bank of England�s five interest rate hikes are �taking their toll on the market.�
In particular, it warned nations like the UK, Australia, Ireland and Spain, where house prices have more than doubled since 1997, that their respective booms have been difficult to justify� and cannot be sustained under such circumstances. In noting the imbalances, the IMF states that while many consumers and economies have enjoyed the benefits of soaring housing markets, they now face the prospect of the bubbles popping, causing a nasty shock. In turn, this could hit not just personal wealth, but also affect the economic health of countries and the overall global economy. In the IMF�s words: �The boom has been associated with a very dynamic housing market and record levels of mortgage debt. The impact of rising interest rates would be significant� but manageable.� It saved its biggest warning for the UK, saying a �significant slowdown� is a distinct possibility within the next 18 months. But, with the Bank of England set to raise interest rates again in November (to 5%), such scaremongering is probably unnecessary. For the US, the IMF said there�s no evidence to suggest a damaging drop in house prices. But we at the Taipan Group have said this for ages! In fact, not only do we think the oft-mentioned �real-estate crash� is a big, fat lie� we believe a new hidden real-estate boom is emerging - and it�s making some people very rich. Discover the government-issued �Secret Certificates� that could make you 10 times your money in 5 years! With that, I�m done for the week. Have a great weekend.
***Get the Urgent Oil Wars Stock Report: Find Out What Stock to Own Now! The greatest financial attack on US investors is underway� Do nothing and you�ll lose everything! Or prepare now and make 850% by next year.
10 FREE issues of Investor�s Business Daily, the daily newspaper for self-directed investors. Every issue of IBD includes stock tables with IBD�s exclusive SmartSelect Ratings, coverage of institutional buying trends and 42 charts of top-rated stocks currently advancing.
=========================================== Keep the e-Dispatch coming to your mailbox! If you enjoy reading the e-Dispatch, help us out by "white-listing" our service... before delivery is interrupted. You can find the details here. A big thanks in advance from your faithful e-Dispatch team. ===========================================
Now made available for e-Dispatch Readers Only! Visit the 247profits e-Dispatch Blog. We update it daily. It just another way for you to access our insights and addictive stock market commentary. To access the blog, visit here.
SPECIAL OFFER: As another 247profits e-Dispatch Membership benefit, you have the opportunity to receive a FREE two-week subscription to Investor's Business Daily. 10 FREE issues of Investor's Business Daily, the daily newspaper for self-directed investors. Every issue of IBD includes stock tables with IBD's exclusive SmartSelect Ratings, coverage of institutional buying trends and 42 charts of top-rated stocks currently advancing.
Copyright © 2004 by Taipan Group LLC. All rights reserved. The Taipan Group's 247profits e-Dispatch is sent daily to a select group of investors who share the courage and foresight to stay ahead of today's markets. The Taipan Group unites the stock-picking talents of several analysts and editors. We publish a variety of monthly print newsletters, weekly and daily trading alerts, and information services. Each of the services is based on individual trading/investment philosophies or vehicles and specific investment approaches. Please note: It's not our intention to send email to anyone who doesn't want it. If you would like to remove yourself from this mailing list, please see the instructions at the bottom of this message. For more about us, and a summary of our editorial policy, please read here and here. Our Members Only service frequently referred to in the e-Dispatch includes a subscription to TAIPAN, the monthly communiqué compiled by our Taipan Think Tank, as well as special reports, rebates on conferences, and related information services. For more information on how to enjoy full Membership Privileges, please visit our home page. The Taipan Group's 247profits e-Dispatch is intended specifically for mature investors with a strong sense of individual responsibility who want to arbitrage different viewpoints to optimize their personal investment strategy. We reserve the right to remove readers we believe do not meet these criteria from our distribution list without prior notice. You are welcome to distribute this message, at your discretion, to others who you believe share the values of the Taipan Group. NOTE TO OUR READERS: Taipan Group LLC or The Taipan Group's 247profits e-Dispatch does not act as an investment advisor or advocate the purchase or sale of any security or investment. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Taipan Group LLC expressly forbids
its writers from having a financial interest in any security that they recommend
to their readers. Furthermore, all other employees and agents of Taipan Group
LLC and its affiliate companies must wait 24 hours before following an initial
recommendation published on the Internet, or 72 hours after a printed publication
is mailed. ******* This email was sent to ******* |
Title: Reaganomics in action
