August 25, 2008
2, Issue #30
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2. Profiting with Biotechs
3. URS Corp. (URS)
5. Investor Trivia -- +127.8%
Gains and 11.9% Yields
6. Featured Topic --
Warming Relations with China are Heating Up Taiwan's Market
7. Free Investing
reading this email? View
Top Stock Picks
of the Market's Best Downside Hedges
-- and Most Explosive
Healthcare analyst Marc Lichtenfeld
discusses why the biotechs are going
to keep on outperforming.
Read More. . .
the Country's Infrastructure -- and
Infrastructure spending chugs along,
even in a slow economy -- which is
just one the many reasons to like
Read More. . .
Why would a CEO
voluntarily sell valuable assets at bargain basement
prices? Why would a CEO do anything to "cause" investors
to dump his company's stock ...artificially? Answer: to
avoid jail time and huge fines. Fortunately, Horacio
Marquez has found a way to use one CEO's fear of Sarb-Ox
penalties to increase your money 7 times this year.
It was a tale of two halves this
past week, with the Dow Jones Industrial Average logging its sharpest two-day decline in
months early on, but then rebounding the next several days in a
rally that gained steam heading into the weekend.
Once again, lingering jitters in
the financial sector were the culprit for falling stock prices.
Specifically, traders are becoming increasingly alarmed that a
government bailout might be needed to keep mortgage giants Fannie
Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) afloat, in which case
stockholders might be left holding nothing.
Meanwhile, inflation continues
to rear its ugly head and is moving beyond merely uncomfortable
readings to those that might require some coercive action from the
Fed. Earlier this month, we discovered that prices at the consumer
level spiked +0.8% in July and are running at their fastest pace in
more than 17 years. And now, the Labor Department is reporting that
wholesale prices have sprinted +9.8% over the past year
last seen in 1981 when the Fed was trying to rein in the extreme
inflation of the late 1970's.
Of course, rising energy costs
deserves some of the blame, along with upticks for food and
beverages (milk prices rose +5% last month and beef prices jumped
+7.4%). However, even after stripping out those categories, core
inflation was still up +0.7% for the month, more than triple what
economists were forecasting.
All of that, along with weak
housing start figures, drove the Dow Industrials down more than 300
points by Wednesday.
Fortunately, the market
recovered just in time to salvage the week thanks to a nice rally on
Friday. Talk of a possible Korean buyout of embattled broker Lehman
Brothers (NYSE: LEH) gave stocks a boost. And Fed Captain Ben
Bernanke calmed some nerves by claiming that a strengthening dollar
and falling commodity prices should help ease inflationary pressures
later in the year.
For the week, the Dow
Industrials ended near the unchanged mark and the S&P 500 posted
a modest loss of -0.5%.
According to Morningstar, biotech has been one of the best
performing industries over the last three months. And
TopStockAnalysts Digest is pleased to have Marc Lichtenfeld, Smart
Profit Reports Senior Analyst and Healthcare Specialist, on board to
give us his insight on this exciting sector.
And although gasoline prices have tumbled more than 30 days in a row, many
consumers remain in belt-tightening mode and have pared back some
purchases in an attempt to stretch their dollars. However,
deep-pocketed agencies of the Federal government have shown no such
restraint and are likely to remain profligate spenders. In fact, one
new report shows that the U.S. is staring at a massive $1.6 trillion
bill to repair roads, bridges and other critical infrastructure. And
Market Advisor editor Paul Tracy explains below, all of this
could spell booming business for URS Corp. (NYSE: URS,
-- Nathan Slaughter
The Wall Street elite
aren't happy with me. Why? Because I just revealed every
detail on the "secret" investment strategy they never
wanted you to know about.
Even better, I figured out a way to exploit profits to
the max. And a discreet circle of investors are set make
a series of plays for gains of up to 9,100% over the
next 12 months.
This might seem like a bold claim, but in a minute you
will discover that it's possible...
To use this simple and proven wealth-building strategy
month after month,
check this out.
One of the Market's
Best Downside Hedges -- and Most Explosive Profit-Producers
By Marc Lichtenfeld, Senior Analyst,
Xcelerated Profits Report &
Smart Profits Report
I'm bullish on the biotech sector.
From groundbreaking new drugs and medical treatments -- to a
massive amount of repeat business that can dish some handsome
profits to investors, no matter what the rest of the market or
economy is doing (this is one of the best recession-proof
sectors) -- to a big wave of mergers and acquisitions, small-cap
biotech and healthcare stocks offer the greatest opportunities
in the market, in my opinion.
Rarely do investors have the opportunity to turn a few thousand
dollars into tens or hundreds of thousands of dollars.
Heck, you can even make millions, as early investors did on
Amgen (Nasdaq: AMGN). If you'd invested $5,000 in Amgen two
years after it went public, you'd have had your million dollars
13 1/2 years later, for a compounded annual growth rate
of nearly 50%. Even if your time horizon was shorter, you could
still have obtained a 300% gain in two years.
These are exactly the kind of profits that I aim for when I go
hunting for small-caps. But just how do you find the most
profitable opportunities while also lowering risk?
"Show Me The Money"
Read the business section of the newspaper. Log onto some
financial websites. Flip on the TV to the business channels.
You'll probably get some decent investment information somewhere
along the way. After all, there are countless analysts,
economists, and commentators only too happy to tell you which
sectors and industries are hot/cold and poised for an
upturn/downturn. And that's great. But it's only part the story. It's like going to a
football game, but only staying until halftime.
As the saying goes, "Show me the money."
Alas, that's where it gets a bit tougher. Picking the right
companies that have the potential to hand you some handsome
gains. Sadly, a lot of commentators call it a day without
getting to this part.
I'm going to take you a bit further today. I'm going to show you
which sector I believe is poised for some big gains over the
next few years and show you the specific research methodology I
use to pick the best stocks from this sector.
More Biotech Buyouts In The Pipeline
The biotech buyout buzz continues to get louder. Bristol-Myers
Squibb (NYSE: BMY) is just one of several companies getting
It just offered $4.5 billion to buy ImClone Systems (Nasdaq:
IMCL) -- its partner firm on cancer drug Erbitux.
The reason for the buyout boost is two-fold:
Many "Big Pharma" firms have very sparse drug pipelines.
The patents on their lucrative drugs are now expiring - and
without the exclusivity, they're open to more generic
But buyers are in a strong position at the moment. Healthcare is
a traditionally recession-proof sector; folks will always need
medical treatment and drugs, regardless of what the economy is
And given that the economy enjoyed several strong years of
growth, many also boast a hefty cash hoard. That, coupled with
the weak dollar, puts them in an advantageous position.
In addition to Bristol-Myers' proposed buyout of ImClone, Swiss
giant Roche offered $43.7 billion a few weeks ago to acquire 44%
of biotech heavyweight Genentech (NYSE: DNA) -- an offer that Genentech said
"substantially undervalues" the firm.
But the buyout buzz surrounding the biotech sector at the moment
is likely to mean companies paying hefty premiums to acquire the
objects of their affection.
With piddly pipelines and expiring exclusivity, Big Pharma is on
For example, earlier this year, GlaxoSmithKline (NYSE: GSK)
acquired Sirtris Pharmaceuticals (Nasdaq: SIRT) -- and paid 80%
more than Sirtris' closing price.
That's a serious premium to pay. But it's not even the highest.
In late May, Intercell paid a whopping 126% premium to acquire
Iomai (Nasdaq: IOMI).
With Big Pharma firms desperate to shore up their sagging
pipelines and protect themselves from expiring patents, they're
paying up big-time.
With regard to Bristol-Myers, the firm has even indicated that
it's shifting its focus from pharma towards the biotech area. I
recommended the firm to Xcelerated Profits Report readers on
June 20th -- and we're up about +11% so far.
Note: Because this article is fairly extensive,
we could not include it in its entirety in today's newsletter. You
can find the remainder of this article on our web site. Please
this link to continue reading this article.
In a country that has more
cell phones than people, this company is the nation's
leading cell phone provider (CPP). It enjoyed total
returns of +40% last year, and with the country's
population growth and increasing demand for data service
plans this company still has excellent growth potential.
But the best part is that
it pays 75% of its annual net income to you every three
months -- in cash.
Learn More in the Full Report.
Country's Infrastructure -- and Your Profits
by Paul Tracy, Editor --
URS Corporation (NYSE: URS, $45.83) performs
engineering and construction work both for the private sector and
for federal, state, local and foreign governments. In any given
quarter, 30-40% of URS' revenues come from the federal government --
projects include constructing various facilities and basic service
functions such as equipment maintenance. In addition, URS offers
flight services and training for the Department of Defense, along
with hazardous and nuclear waste management for the Department of
That trend plays right into the hands
of URS. And even if the U.S.
economy slows down further, federal spending dollars should keep
Outside the federal market, URS is a key player in several key
infrastructure businesses. The company designs and builds roads,
public transport networks, airports, ports and water and wastewater
facilities. Much of the basic infrastructure in the U.S. is aging
and will need to be replaced in coming years. For example, after the
tragic collapse of a key interstate highway bridge in Minnesota last
year, the government determined that as many as one-quarter of U.S.
bridges are "structurally deficient" and need repair or replacement.
And given high fuel prices, mass transit systems are reporting
record passenger volumes. Many local systems are scheduled for
expansion and upgrades to handle these rising volumes.
Finally, URS is a key player in the oil, natural gas and electric
power markets. The company builds or assists in the building and
maintenance of both fossil fuel and nuclear power plants. That
includes retrofitting older coal-fired plants to comply with the
newest emissions regulations. Strong growth in demand for power
globally, and particularly in the developing world, should continue
to support growth in this segment.
And in the oil and gas sector, URS builds refineries, liquefied
natural gas (LNG) facilities, pipelines and even facilities for
extracting and processing oil sands. With global energy prices
soaring, there is strong demand for URS' energy-related engineering
and construction services.
URS trades at 15 times forward earnings while sporting a long-term
growth rate of
+15%. Thus, the stock trades in line with its growth
rate despite the company's exposure to some of the world's most
lucrative markets. Even better, the stock trades at a discount to
its major competitors in the engineering and construction space
despite its stable growth profile. URS looks like a good value under
Additional Investing Ideas
Investor Trivia -- +127.8% Gains
and 11.9% Yields
market index has gained an astonishing +127.8% in the past five years and has
an average dividend yield that is more than twice what economic powerhouse
China has to offer?
click on one the links above. After you make your choice, we'll show
you the correct answer on our web site.)
Featured Topic --
Warming Relations with China are Heating Up Taiwan's Market
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