Filed under: Apple Inc (AAPL)

Continue reading Bloggingstockcast: Apple passes $200, what next?

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Filed under: Workspace, Technology, Israel

According to a report by Basex Inc. the pressure put on us by technology to respond immediately to emails, text messages, and IMs cost the US economy around $650 billion in 2006. They say that the human brain is not hardwired for paying attention to several things at once or for handling constant interruptions, and due to this there is lost productivity. Sounds nutty to me. Email, text-messaging, and IM’ing save tremendous amounts of time and travel. For a businessman these tools save tremendous amounts of money. Having questions answered in a split second brings much more efficiency to a business, and to the world.

Is it better if I go grocery shopping and I get an SMS message to pick up another gallon of milk, or would these researchers say I should go home and then have my wife tell me to go out again and pick up the milk? That doesn’t sound too efficient, does it? I was literally on a conference call, that just ended, which took much longer than expected. Lucky for me, I was on mute the whole time, and via email, I was able to take care of about 45 minutes worth of work, all while on the call. That doesn’t sound to me like a cost to society.

The whole point of technology is to free us up to be more efficient, to have more time to do other things. How can this possibly cost society $650 billion.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/27/07

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Filed under: International markets, Analyst reports, Bad news

According to a leading re-insurer, disaster losses for insurers nearly doubled in the past year to reach almost $30 billion globally. The main culprits for the massive increase were calamitous winter storms in Europe, flooding in Britain and wildfires in the U.S.

Taking into account weather change, Munich Re anticipates an increased number of catastrophes in coming years and warns, “We should not be misled by the absence of mega-catastrophes in 2007,” as “climate change is already taking effect” and “more such extremes are to be expected in the future.”

The world’s second-largest re-insurer estimates that losses to insurers from natural disasters jumped up to $75 billion this year. During 2006, losses from natural disasters totaled only $50 billion, while 2005 figures climbed up to $220 billion due primarily to Hurricane Katrina’s ravaging of New Orleans.

Continue reading Losses from natural disasters double in 2007

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Filed under: Duke Energy (DUK), Top Picks 2007, Chasing Value, Stocks to Buy

This was a close call for me, but in the end I decided I would only include one power company on my stock list for 2008, and this was not it. I recommended Duke Energy Corporation (NYSE: DUK) last year and wrote about the company numerous times.

Duke pays a handsome dividend yield of 4.29%, and will likely see some growth next year as investors look for stability. This year it was relatively flat. That might be good enough if the market ends in turmoil next year, but I expect it to trade below the Dow Industrials even if it trades ahead of the Standard & Poor’s 500 Index.

If you are just starting out and building a new portfolio for the long term, Duke Energy is definitely a good conservative beginning. It would be in my top 20 picks, but it just got crowded out of my list of eight. DUK had a closing price of $20.56 Wednesday.

To find potential opportunities and verify my track record, read Chasing Value or Serious Money.

DISCLOSURE: We own shares of DUK in several portfolios. We bought in between $18 - $19 a share for a long term hold.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.

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Filed under: Commodities, Agriculture, Stocks to Buy

For or against them, bioengineered crops are here to stay and are likely to continue to play a pivotal role in economic development in emerging markets. A company destined to remain a force in this space is Monsanto (NYSE: MON).

Monsanto’s biotechnology is helping farmers grow more crops, and the bio effort may one day totally displace chemical-product herbicides. In sum, most likely it’s bio in, agrochemicals out, long-term.

Analysts like MON’s large seed portfolio and superior performance in corn, soybean, cotton and wheat. Food demand in the developing world alone adds value to these operations, but as most realize, selected crops may play a sizable role in energy in the decade ahead, if crude oil remains at near-record levels and other alternatives do not emerge.

Continue reading Buy Monsanto at $115? Only for the bold

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Filed under: Teva Pharm Indus ADR (TEVA), Stocks to Buy, Israel

The pharmaceutical sector, due to its complexity, is not for the novice investor. Further, not every pharmaceutical company represents a defensive pick. But one that meets the bar, due to its niche, is Teva Pharmaceutical.

Teva Pharmaceutical Industries Ltd. (ADR) (Nasdaq: TEVA), via an assertive product development program and acquisition schedule, has achieved a leadership position in the global generic segment.

Through a U.S. subsidiary Teva makes generic versions of brand-name antibiotics, heart drugs, and heartburn medications, among other drugs. The company boasts a 150-drug portfolio, including generics for blockbusters Prozac and Mevacor.

Continue reading For Teva Pharmaceutical, generic is designer chic

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Filed under: Industry, General Motors (GM)

Is General Motors (NYSE: GM) really getting its mojo back? GM execs spare no expense talking about how the 2008 Chevy Malibu is a better alternative to Honda (NYSE: HMC)’s new Accord and the Toyota (NYSE: TM) Camry. Is it really, or is this the same old GM line about how the American automaker is now making “world-class cars” that can compete line-for-line with the competitors? Specifically, Japanese competitors?

GM’s re-tooling of processes, manufacturing and design-to-manufacture reflected in the new Malibu may be enough to put it head-to-head against a perennial, reliable best seller like the Honda Accord, but in the minds of American consumers, style and dependability still are not synonymous with GM cars, regardless of the marketing-speak of the hour from Detroit. How can GM really convince customers that its offerings are really world-class and not the same unreliable junk that came out of GM’s designs and manufacturing centers just six to seven years ago?

That’s the challenge, and it will take more than confident talk like, “The cars and trucks GM has introduced over the last three model years or so stand alongside the best the company did in the 1950s and ’60s when GM was the peak of styling and innovation,” which came from analyst Joe Phillippi. That may be true, but it may take a generation of consumers being impressed by GM’s re-emergence as a highly reliable auto manufacturer before the world realizes that Phillippi’s statement is true.

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Filed under: Newsletters, Stocks to Buy, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

“If China is Asia’s ultimate growth story, the Philippines qualifies as the region’s biggest turnaround story,” says John Christy, editor of The Forbes International Investment Report.

“Long plagued by political instability and disastrous economic policies, the Philippines is finally getting its act together under President Gloria Macapagal-Arroyo. Economists expect GDP growth of nearly 7% this year and foreign investment capital is pouring into the country.

“My favorite stock for 2008 is Philippines Long Distance Telecom (NYSE: PHI), which is an easy way for US investors to get a piece of the action. It is the leading provider of wireless telecom services in the Philippines, with nearly a 60% market share.

“But wireless penetration rates in the Philippines are among the lowest in Asia, suggesting considerable room for future growth before the market becomes saturated. And broadband services in the Philippines are still in their infancy.

“PHI is currently trading at 13 times estimated 2008 earnings and roughly 7 times earnings before interest taxes depreciation and amortization (EBITDA). That makes PHI one of the cheapest names in the emerging markets telecom universe. Investors in PHI also enjoy a dividend yield of more than 5% as an added bonus.”

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Filed under: Google (GOOG), Apple Inc (AAPL)

Investors should consider selling Apple Inc. (NASDAQ: AAPL) shares and using the profits to buy Google Inc. (NASDAQ: GOOG). The reason is that Apple’s current price reflects more of its growth potential than does Google’s.

This is the idea that occurred to me this afternoon while CNBC’s Erin Burnett interviewed me about whether to sell Apple stock. As I posted this morning, I am very impressed with Apple’s success with its retail stores. I am also wowed by the popularity of its iPod and iPhones — not to mention the growing market penetration of its Macs. Moreover, as I mentioned to Erin, despite some 85 new services, Google is essentially a one service company.

So why should investors consider selling Apple and buying Google? In a word, valuation. Having risen 144% in the last year, Apple trades at a Price/Earnings to Growth (PEG) ratio of 1.8 — on a P/E of 50.6 and earnings growth of 28% to $6.45 in the Fiscal Year Ending September 2009. By contrast, Google — which his increased 55% in the last year — trades at a PEG of 1.5 — with a P/E of 55.6 on earnings forecast to grow 36% in 2008.

Continue reading Should you sell Apple and buy Google?

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Filed under: International markets, Forecasts, Other issues, Federal Reserve

The new year should experience a sight not seen in currency markets for several years — a rally by the U.S. dollar — currency traders and economists told BloggingStocks on Thursday.

The euro, which traded Thursday at $1.4620, is up about 13% vs. the dollar this year, and about 21% since January 2006. The British pound, which traded Thursday at about $1.9930, is up about 2% vs. the dollar this year, and 11% since January 2006.

Independent currency trader Michael Murphy told BloggingStocks on Thursday that the market fundamentals “do not justify a dollar at these levels,” and that the dollar has been oversold in the currency markets, particularly against the euro and the pound.

“U.S. economic fundamentals have been weak the past several years, as they relate to the dollar, but the market has compounded this by speculative shorts, pushing the dollar down. But the economic fundamentals are improving, so when the these speculative shorts unwind, the dollar will rebound in 2008,” Murphy said. “The U.S. trade deficit’s decline will be a big factor in the dollar’s rise in 2008.”

Murphy added that he expects the dollar to improve to $1.30 vs. the euro and $1.85 vs. the pound by the end of 2008.

Continue reading Experts see mild dollar rally in 2008 if economy holds up

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