Reports and Articles on Business
Jumping on Bunge - 12/16/2005
By Eric J. Fry “Happily so...Godiva chocolates are loaded with "trans fat," the dietary bad-boy-du-jour. Soybean oil is not. Within this bit of dietetic trivia resides another reason to like Bunge shares…”
Golden Nematodes and "Active Adults" – 11/30/2005
By Dan Ferris “’Every 7 seconds another boomer turns 50,’ BullMarket.com reports. "There were approximately 78 million baby boomers born between 1946-1964. The numbers increase 56% every year, and will until 2011.”
The Next Enron - 11/02/2005
By Chris Mayer "A 'seismic shift' is underway, Jim Chanos warned a packed house at last week's Grant's Fall Investment Conference in Manhattan, 'and it will destroy the profitability of several well-known American companies.'"
So Long, Dennis Kozlowski... - 09/20/2005
By Eric J. Fry "Fare thee well, Dennis Kozlowski. We will miss you. We will miss you each and every day of your 8 1/3 to 25 year sentence...We only regret that we will not have the opportunity to miss you for longer."
Wild Bill's Legacy - 07/29/2005
By Justice Litle "Ebenezer William "Bill" Peyto was a very unique individual, which is part of what made him such a superb mountain guide."
Pinstriped Psychopaths - 07/08/2005
By Eric J. Fry "Some psychopaths occupy a prison cell. Others occupy a
corner office. Both are dangerous.Psychopaths possess a profound lack of empathy. They use
other people callously and remorselessly for their own ends. Psychopathic CEOs are no different." Reports and Articles on China
Thin Asians and Fat Americans - 09/02/2005
By Eric J. Fry "Thin Asians and Fat Americans crowded into Disneyland last Thursday, along with your editor and his conspicuously lean family. Each of us ponied up $76 apiece to enter the 'Happiest Place on Earth.'"
What Red Menace? - 07/21/2005
By Chris Mayer "The Chinese are stalking American companies...and some Americans resent the trend. We investors, however, cannot afford to indulge in such nationalistic urges."
Shanghai's New Surprise - 07/14/2005
By Eric J. Fry "Eight people in Shanghai have died this year after falling into uncovered sewers, China's Xinhua News Agency reports. Meanwhile, the shares of U.S. Steel have also fallen into a
black hole...Maybe there's a connection."
A Booming Chinese Export - 06/29/2005
By Eric J. Fry "Last year, China exported 504 million pairs of socks, 73
million cell phones...and 30 million tourists." Reports and Articles on the Federal Reserve
Nothing about Turkey or Pumpkin Pie – 11/24/2005
By Eric Fry “Today marks the 18th Thanksgiving of Alan Greenspan's reign at the Federal Reserve. This day also coincides with an 18-year high in the price of gold. Perhaps there's a connection.”
We Just Got "Bernanke'd" – 10/27/2005
By Justice Litle “The big news this week: President Bush disappointed the wags by refusing to appoint his personal tax accountant to the Federal Reserve. Instead he chose Ben Bernanke, the
renowned Princeton man.” Reports and Articles on Gold
Golden Targets – 12/20/2005
By Eric J. Fry "Last week, we asked you, the Rude Awakening readers, to identify gold mining companies that you believed would be attractive takeover candidates. You responded with a flood of emails."
The Perils of Hyperactivity – 12/15/2005
By Eric J. Fry “Most successful investors position themselves for long-term trends and ignore everything else. If they react to the short-term sell-offs at all, they do so as buyers, NOT as temporary sellers.”
Gold Crosses the Rhine – 12/13/2005
By Dan Denning “Gold, from both a technical and psychological perspective, has been engaged in a war of attrition against public opinion and the belief in the dollar.”
A Golden Tan – 12/06/2005
By Eric J. Fry “On most work days, Martin, a 26-year veteran of gold-stock investing at R.F. Lafferty in New York, would prefer to see the yellow metal go up, rather than down. A rising gold price makes his clients happier, after all.”
Gold is the New "Gold" – 12/02/2005
By Dan Denning “Rising oil prices, then, actually create demand for dollars. That's one way of explaining how both oil and gold can rise along with the dollar. Usually, if oil and gold (commodities) are rising, it means the dollar is falling (inflation).
Swimming in a Pit of Gold – 11/26/2005
By Joel Bowman “This creature of the floor reminds us of a particularly strict grade school teacher we once had, a maniacal women wielding a ruler in one hand and any troublesome boy's ear in the other.”
Dead President Bounce, Redux – 11/25/2005
By Eric J. Fry “’Eric, I'm about to do something stupid. Please talk me out of it,’ one of your editor's colleagues pleaded recently, ’I'm thinking about selling my gold coins and buying a U.S.dollar CD. What d'ya think?’"
Golden Opportunities – 08/04/2005
By Eric J. Fry “Kerr, whose knack for identifying important investment trends has amply rewarded the subscribers of his Resource Trader Alert, suspects that the dollar's difficulties will continue powering a long-lived gold bull market.”
Rocky Mountain Riches - 08/03/2005
By Tom Dyson "Outside the mine, it felt like any other midsummer's day – hot and muggy. But down here, 500 feet deep in the bowels of a mountain they call Gold Hill, my fingers were slowly
turning numb from the cold."
Honest Money – 07/05/2005
By Eric J. Fry “The structure of short-term interest rates in Europe and the United States may encourage rising gold prices, according to Paul Kasriel, the self-styled chief economist of Northern Trust Co.” Reports and Articles on Housing
Scary Stuff - 11/01/2005
By Eric J. Fry "'I'm not a person that believes in the bubble so much,' says Donald Trump, the billionaire TV star. 'I have seen real estate go up and down, but it always seems to go up more than it goes down. I really think it is a good time to purchase.'"
The Newest Bull Market...in Real Estate! - 10/13/2005
By Dan Ferris "You heard it here first: the new bull market in residential real estate is under way. According to SNL Financial, apartment REITs are up 21% over the past 12 months. That's a little higher than the average REIT, and way above the S&P 500's 6.9% return in the same period."
High Cholesterol, Low Home Prices – 09/27/2005
By Eric J. Fry "It's true that cholesterol assists vital bodily functions. But this fact does not explain why all the yummy foods contain lots of cholesterol and the yucky foods do not?"
Sunsets, Surf and Nicuragua's Best Burgers - 09/23/2005
By Lee Harrison "Leaving the coastal road, I parked the truck by the ocean and looked out at what many say is Nicaragua's best surf spot: Iguana Beach. It's home to the country's two best surf breaks, including the famous Colorado break. I've been to this property before, and still believe its wide, sandy beaches are among the most attractive on Nicaragua's Pacific Coast."
Three Homes for the Price of One - 09/22/2005
By Lee Harrison "Ideally, I'd like to buy three unique homes in Central or South America for the price of one home in the U.S. We just sold our house in Cuenca, Ecuador, which leaves us with just one home – a delightful country place in Vilcabama, Ecuador. But that means we have two other homes yet to buy."
Black Horsemen, White Knuckles - 09/21/2005
By Chris Mayer "Financial bubbles are like great parties. They're fun...too much fun. No one wants to leave too early, so almost everyone stays much later than prudence would permit."
What to do about Real Estate Right Now – 08/26/2005
By Dan Ferris “Steve agreed with my sentiment, i.e., that any headline on USA Today should probably be taken as a contrarian indicator. In other words, the housing boom isn't over yet. Steve added that house prices fall during recessions and when there's oversupply.”
For Whom The Toll Sells - 08/05/2005
By Eric J. Fry "Why are the Toll brothers selling their stock? Are they selling to conduct 'personal financial planning?' Or because the housing market is topping out? Or because Toll Bros., itself, is facing more challenging times? Or all of the above?"
Fun in the Sun - 07/12/2005
By Eric J. Fry "Anyone need more evidence that the housing bubble is approaching the terminal stage?... Property prices along the New Jersey shore are soaring."
The After-Life - 06/17/2005
By Eric J. Fry "Financial bubbles are mortal organisms. Even though they might seem immortal for a time, they never live forever. The housing bubble will be no different. It will perish...eventually."
Bird Watching - 06/16/2005
By Eric J. Fry "Most of us are sick and tired or reading about the housing bubble, which is why your New York editor has decided to devote ONLY two of this week's columns to the topic." Reports and Articles on India
Can Indians Spend Like Americans? – 12/04/2005
By Joel Bowman “So it seems like a no brainer – a huge influx of foreign capital, sharp increase in competition, historical comparisons – why isn't everyone throwing their money at the McIndia phenomenon?”
Farewell To India - 09/13/2005
By Steve Sjuggerud "Indiabulls Financial Services went public last September at 19 rupees a share. Today - one year later - shares of Indiabulls closed at 225 rupees, up nearly twelve-fold. That's not even a new high. Five weeks ago the shares hit 271!" Reports and Articles on Investing
Squirrel Investing - 12/22/2005
By James Boric “Squirrels, like good small-cap companies, are nimble, efficient and adaptable. They are quick to avoid danger. They can thrive in small niches that most don't even know to look in.”
The Hazards of Familiarity – 12/08/2005
By Eric J. Fry “Familiarity breeds contempt...but not right away. In the beginning, familiarity breeds desire, when then becomes mere comfort, then only tolerance, then resignation...and THEN contempt.”
Million-Dollar Magic – 11/29/2005
By James Boric “Joel Greenblatt is not famous...He is merely rich. Last week, I discovered why he is so rich. My discovery could easily put a few extra dollar bills in your pocket as well...Maybe even millions of dollar bills."
Why Trust a Canadian? – 11/17/2005
By Craig Walters “The term 'trust' is a legal term that means to hold an asset for the benefit of another individual or group. A financial trust buys property to hold for another party, giving them the benefits of ownership while the trust management actually owns it.”
Ka-Ching!...Love That Sound! – 11/15/2005
By Chris Mayer “Corporate America is flush with cash...Lots of it. This little-noticed fact could create great opportunities for value investors like ourselves.”
Yield Curves…That’s Hot! – 11/09/2005
By Eric J. Fry “Your New York editor didn't want to write about bonds again today, but Merrill Lynch made him do it...Actually, Merrill Lynch, Eaton Vance, Dresdner Kleinwort Wasserstein and CIBC World Markets all teamed up together to make him do it. This esteemed cluster of investment banks simultaneously downgraded bonds.”
Corporate Road-Kill – 09/15/2005
By Chris Mayer "Once a giant among retailers, Kmart struggled for decades to compete with the likes of its more agile competitors, namely Wal-Mart and Target. Years of futility finally brought the old retailing icon to its knees. In January 2002, Kmart became the largest retailer ever to file for
bankruptcy."
Vital Voo-doo - 08/25/2005
By Carl Waynberg "In response to a question about moving averages from a reader last week, I thought it would make sense - and, perhaps, cents - to present a brief discussion of technical analysis."
Inflated Assets – 08/19/2005
By Eric J Fry “Your editor and his three kids spent a few days at the Broadmoor Hotel in Colorado Springs, much of it by the hotel's picturesque infinity pool (and somewhat less picturesque water slides).”
The Thrill of Boredom - 08/12/2005
By Eric J. Fry "Tomorrow morning your New York editor will hop a plane to Colorado, where he hopes to continue perfecting his aptitude for doing nothing...or at least for doing as little as possible. He would like to do SOMETHING while he is away, but he has come to understand how counterproductive that can be."
The Silent Killer - 08/11/2005
By Eric J. Fry "'I'll happily accept a lower return in exchange for much lower volatility,' a seasoned stockbroker declared yesterday. 'That's why I've been selling call options against most of the Valero Energy stock that my clients hold.'"
The Art of Short-Selling - 08/09/2005
By Chris Mayer "James Chanos is a famous short-seller at Kynikos Associates in New York, the firm he founded in 1985. Chanos got a lot of press for his accurate bearish call on Enron several years ago."
Tan, Don't Burn - 08/02/2005
By Eric J. Fry "Buy sunscreen, not Sun Microsystems...Such is the approximate message delivered by several stock market indicators, according to options pro, Jay Shartsis."
Torn Buttons and Restful Nights - 07/26/2005
By Eric J. Fry "Some things just don't go together...like Bermuda shorts and knee socks...or cinnamon and tarragon...or Gregorian chants and Gangsta rap...or Bill and Hillary."
"Hold" This - 07/22/2005
By Eric J. Fry "It is very easy to recommend selling a stock you never would have purchased in the first place. Wall Street analysts do that all the time."
How Losers Win - 07/19/2005
By Christopher Mayer "Ralph Wanger is an expert investor...a true expert. Under his shrewd guidance from 1970–2003, the Acorn Fund (a mutual fund dedicated to small-cap stocks) produced an astounding 17.2% annualized returns."
Low Cut Dresses and Ugly Ducklings – 07/13/2005
By James Boric "We met at 227 West Monroe Street at 11:00 sharp. Both of us were giddy with excitement. Wanger is to the small-cap market as Buffett is to value investing. There is no one better – and we were about to meet him."
The Riches of Humility - 07/07/2005
By Chris Mayer "The average American consumer may be cash-poor, but the average American corporation is not. A few of these cash-rich corporations are spending their money very wisely...by
investing in their own shares."
The Three Things Rich People Do All Day - 07/06/2005
By Dan Ferris "Johann Sebastian Bach (1685-1750) taught me something about picking stocks. I studied music in college. I was a classical guitarist. When I first started studying, I was familiar with Bach's work, but I thought it was terribly boring."
Sadistic Tendencies - 07/01/2005
By Eric J. Fry "Even though Mr. Market is capricious – bordering on sadistic – he often responds to persuasive "lobbying" from the real world."
Searching For Losses – 06/22/2005
By Dr. Steve Sjuggerud “I can't tell you the secret indicator. But I can share with you what the options trading in the world's most widely used search engine may be telling us about where the stock price is headed...”
Thrifty Investing – 06/14/2005
By Chris Mayer “Into this mess stepped Peter Lynch, then the manager of Fidelity Magellan, and on his way to compiling one of the most amazing track records in the history of investing.”
Sell Stocks Also – 06/09/2005
By Eric J. Fry “Please allow us to explore the possibility that bonds might be more right than stocks about the likely course of prevailing economic trends. Stocks and bonds have been rallying together for several weeks.”
The Deadliest Sin – 06/07/2005
By Eric J. Fry “Indeed, he would also encourage everybody everywhere to refrain from envy, anger, sloth, avarice, gluttony and lust. But pride seems to be the deadliest of INVESTMENT sins.”
A Cheap Speculation - 06/03/2005
By Eric J. Fry "Shortly after putting yesterday's column to bed, futures trader Richard Morrow rang our office to announce, 'I'm shorting bonds...I LOVE this trade!'"
Sells Bonds… Once More With Feeling – 06/02/2005
By Eric J. Fry “We suspect we will discover, with the benefit of hindsight, that the recent spike lower in bond yields had much more to do with temporary, non-economic influences, than with underlying macro-economic trends.” Reports and Articles on Hurricane Katrina
Katrina Plays, Part II - 09/09/2005
By Eric J. Fry "We asked...They answered.Yesterday afternoon, we dispatched an email to various colleagues, acquaintances and investment gurus to solicit their favorite 'Katrina plays.'"
Katrina Plays, Part I - 09/08/2005
By Eric J. Fry "We don't make the rules; we just try to play by them... without getting hurt, of course. Therefore, whenever a disaster strikes, we endeavor, first and foremost, to avoid numbering among the victims. Next, we remember that disaster often begets opportunity."
The Aftermath - 09/07/2005
By Andreas Ettl "Last week, hurricane Katrina transformed New Orleans into a modern-day Atlantis. The day after this massive storm blew into what used to be the most beautiful city in the south of the United States, two levees broke, leading to the near complete immersion of New Orleans."
An Oil Panic in Plain Sight - 08/31/2005
By Sean Brodrick "Hurricane Katrina smashes 'Energy Alley,' a concentrated area of oil production in Gulf of Mexico that supplies about 35% of America's domestic oil." Reports and Articles on Mexico
Sell China, Buy Mexico - 09/01/2005
By Christopher Mayer "Every contrarian investor pledges allegiance to the following creed: Shun whatever the masses love; love whatever the masses shun." Reports and Articles on Natural Gas
Protein-Powered Profits – 12/09/2005
By Dan Denning “What happens to global agricultural production, therefore, when natural gas soars to an all-time high, like it did yesterday? Let's query the experts..."
The Quest For 12% - 11/18/2005
By Craig Walters “Urea ammonium nitrate is not a chemical weapon...nor is it a homeopathic dietary supplement. It is North America's most versatile nitrogen fertilizer...and Terra Nitrogen Co. L.P., manufactures more of it than anyone else in the world.”
What's An Ouroboros? - 09/16/2005
By Eric J. Fry "Sometime around 1600 B.C., the Egyptians created the image of a serpent devouring its own tail. A few millennia later, the Greeks gave the serpent a name, 'Ouroboros.'"
Juggling Uranium - 08/17/2005
By Sven Lorenz "I was about 10 years old when tragedy struck at Chernobyl. At the time I did not grasp the full extent of the consequences of this event, only that my beloved excursions into the woods to collect mushrooms were put on hold."
In Royalty We Trust - 07/28/2005
By Justice Litle "In last Tuesday's Rude Awakening, we examined BlackRock Global Energy and Resources Fund (NYSE: BGR), a unique closed-end fund that specializes in high-yielding natural
resource securities." Reports and Articles on Oil
Exploding Strippers – 11/19/2005
By Joel Bowman “August "Augie" Bond was the last nitro-related fatality in the Titusville area, back in 1937. I couldn't decide if I should take comfort in the relative infrequency of such tragedies, or worry that we were about due for another.”
God Is, Or He Is Not – 11/16/2005
By Justice Litle “The big oilmen recently gave testimony in Washington. Their multibillion-dollar profits have ruffled feathers, and the dubious notion of a "windfall profits tax" has risen on a current of hot air to top the agenda.”
Exxon's Shopping List? – 11/11/2005
By Byron King “In boom times, oil companies are supposed to be out in the field, drilling for oil & gas. But when oil companies actually make some money in the biz, the folks on Capitol Hill believe that they should be drilling the oil companies. It is all politics, if not showmanship. And you know the script.”
Let’s Play Monopoly – 10/19/2005
By Chris Mayer “The volatile oil stocks took another wicked tumble yesterday, while boring old New Zealand Telecom gained more than half a percent...Sometimes boring is better. As I noted in last Friday's Rude Awakening, oil stocks are looking dicey to me.”
Counterpoint – 10/18/2005
By Justice Litle “I'm firing off this response to my friend and colleague Chris Mayer's recent Rude Awakening essay, ‘The Other Oil Crisis.’”
Stinky Water, Sweet Oil...The Last Word - 10/12/2005
By Dan Denning "Last week, I paid a visit to Royal Dutch Shell's oil shale project in Colorado. The visit left me with more questions than answers, but I came away from the place with the sense that this opportunity is very real...or, at least, it soon will be."
Stinky Water, Sweet Oil, Part II - 10/11/2005
By Dan Denning "America's oil shale reserves are enormous, totaling at least 1.5 billion barrels of oil. That's five times the reserves of Saudi Arabia! And yet, no one is producing commercial quantities of oil from these vast deposits. All that oil is still sitting right where God left it, buried
under the vast landscapes of Colorado and Wyoming."
Stinky Water, Sweet Oil - 10/07/2005
By Dan Denning "You won't think much of Rio Blanco County if you ever drive through it. In fact, unless you take a right turn off Interstate-70 West at Rifle, head north on Railroad Avenue and then west on Government road to Colorado state highway number thirteen, odds are you'll never even step foot in Rio Blanco County."
"Swimming In Crude Oil" - 10/05/2005
By Eric J. Fry "For the past couple of months, investors have been frantically chasing after oil stocks - the shiniest and tastiest prey in the stock market. But the feeding frenzy has reached a dangerous stage. Oil stocks are no longer easy prey; they are barbed lures."
E-Day! – The Final Chapter - 10/04/2005
By Eric J. Fry "'Dan, Peak Oil, as you've described it, will be wrong,' Chris Mayer badgers Dan Denning, 'because energy will not get more expensive - in the long-run, say, over the next decade or less.'"
E-Day! – Part II – 09/30/2005
By Eric J. Fry “But I see these two threats as inseparable realities. You assert that peak oil can't ever produce a genuine and lasting energy crisis, because eventually high oil prices will make other unconventional energy sources 'economic.' In other words, there is plenty of energy in the world. It
just may cost us more to get it.”
E-Day! - Part I - 09/29/2005
By Eric J. Fry "On September 19, Byron King, editor of Whisky and Gunpowder, dispatched an email to several of his colleagues that contained an article by Jim Kunstler. The gist of the article may be gleaned from its first two paragraphs:"
See Oil Demand! See Oil Demand Fall! – 09/14/2005
By Eric Fry "Energy demand worldwide is falling. So says the International Energy Agency; and so says the weight of anecdotal evidence worldwide. Because energy prices have been climbing to very high levels – and staying at very high levels – the world's energy consumers are beginning to trim their consumption."
From Laguna to London - 08/30/2005
By Eric J. Fry "The inventory of copper cathodes at the London Metals Exchange has tumbled to record lows. The inventory of shimmering, chrome-rimmed SUVs rolling through Laguna Beach, California, has soared to record highs..."
More Pleasure, Less Pain – 07/15/2005
By Eric J. Fry ”To be sure, oil stocks deliver no lack of thrills, but the ride is hardly serene. Maybe there's a way to make the ride just a little more comfy...without sacrificing the exhilaration.”
Oil at a Crossroads – 06/23/2005
By Justice Litle “So there you have it...Both sides of the crude oil debate make a compelling argument, but we are more persuaded by the bulls than the bears.”
A Bit About Drilling – 06/01/2005
By Eric J. Fry “Not surprisingly, therefore, the cost of finding and pumping a barrel of oil -- including labor, equipment and seismic testing - cost a record $17.12 last year, up 43 percent from a year earlier, based on data compiled by Bloomberg News.” Reports and Articles on U.S. Economy
Torture, Abuse & Deception – 11/23/2005
By Bill Bonner and Addison Wiggin “Let us take a moment to stand back and gaze at America's great Empire of Debt. It is the largest edifice of debt ever put up. It sustains the most magnificent world economy ever assembled. It brings more wealth to more people than any system ever before devised.”
Eternal Sunshine of the Thoughtless Mind – 11/22/2005
By Bill Bonner and Addison Wiggin ”Under Ronald Reagan, Americans thought they had rediscovered their youth. They couldn't remember ever feeling more confident or more optimistic.”
Meet The Doctor - Part II – 10/26/2005
By Eric J. Fry “You Anglo-Saxons know no limits at all! And no one complains about it. We Europeans impose fiscal limits on ourselves and have difficulty keeping them under control, which is understandable.”
Meet The Doctor - Part I - 10/25/2005
By Eric J. Fry "’I’m a faithful reader of your monthly newsletter,’ your editor began his recent half-day discussion with Dr. Richebacher in Cannes, France. ’And I accept your grim diagnosis for the U.S. economy. But I don't want to accept your equally grim prognosis.’"
Buy Treasurys... For A Trade – 10/21/2005
By Eric J. Fry “’I love the 5-year Treasury right now,’ your editor declared to his colleagues yesterday during their monthly editorial meeting in Baltimore. ‘In fact, I like the entire yield curve, from three months out to 30 years.’"
Betting on the “Almost Inevitable” – 10/20/2005
By Steve Sjuggerud “Let me state categorically that [this] sequence is barely questionable, almost inevitable, 99% unavoidable, and in modern parlance - a ‘slam-dunk.’"
How to Sell the Dollar – 08/24/2005
By Addison Wiggin “But the Fed and Treasury have engineered a strategy to pay
off the debt with weaker and weaker dollars. And guess what?”
Migrating Toward Mediocrity - 08/10/2005
By Dan Denning "It is nice to step back from the world of mainstream media, where I have been making the case I made in The Bull Hunter."
Murphy's Trade - 07/20/2005
By Tom Dyson "He was an engineer in the air force, working on a project to see how much deceleration a pilot could withstand in a crash. One day, he lost his temper with a technician." |
