This Small Oil Producer is Ripe for a Takeover… Here’s How to Profit

by Sheena Martin, Contributing Editor Friday, November 20, 2009

Takeovers are big news in the market at the moment.

In fact, did you know that takeovers have the biggest one-day gain in stocks for any asset?

As my colleague – and takeover expert – Louis Basenese says, they’re “some of the safest companies you can own. According to FactSet Merger Stat LLC, the average one-day return for shareholders of the target company is 48%.”

Furthermore, Louis says, “Industries naturally go through cycles of consolidation – waves of mergers, acquisition and takeovers.”

One industry riding this wave as it comes out of recession is oil. And I have a takeover target making strides in oil exploration that could put money in your pocket in a few months

406 Days Until This Market Crashes…

by Robert Williams, Publisher Friday, November 20, 2009

David Fessler has a sector that warrants your attention. But first, I want to officially raise a red flag in another market.

Something’s amiss in the municipal bond market. Year-to-date, “munies” have behaved more like momentum stocks than their intended purpose of providing a safe yield.

Consider this: A handful of closed-end muni funds have averaged a 46% return so far this year.

The rally, of course, was borne out of the financial crisis, when investors and institutions alike went furiously scrambling to safety.

The novice move was into cash. But the smart money flowed strategically into the bond market. And a lot of the action was in municipal bonds. (The junk bond market is similarly overheated.)

What’s noteworthy, however, is that when the market’s

The Transportation Sector: Here Are Three Investments in a Sector That’s Ready to Soar

by David Fessler, Energy & Infrastructure Expert Friday, November 20, 2009: Issue #1142

As the old saying goes, “You’re either a contrarian, or a victim.”

It just so happens that one of the savviest contrarians I know is my colleague, Louis Basenese.

And nobody takes that to heart more than Lou does. I’ve scratched my head in bewilderment on many occasions after reading one of Lou’s bold predictions – only to see his intuition prove uncanny time after time.

So today I’m stealing a page from the “Basenese Playbook” and taking a look at the severely battered transportation sector, one that pretty much everybody hates. However, I think, it’s not only about to come off life support, but perhaps become one of the hottest investments in 2010.

Senior Secured Floating Rate Bonds (SSFR): The Best Investments to Own When Interest Rates Rise

by Louis Basenese, Small Cap and Special Situations Expert Thursday, November 19, 2009: Issue #1141

With interest rates resting at historic lows, we can all agree they will eventually rise.

And when they do, you’ll want to make sure you own something called Senior Secured Floating Rate bonds.

I know… these under-the-radar bonds aren’t headline makers. But please don’t let their relative obscurity – they’ve only been around since the early 1980s – convince you to overlook them.

Senior Secured Floating Rate bonds (SSFR) are actually ideally suited for the current environment and deserve a place in every investor’s portfolio. Here’s why…

The Problem With Most Bonds & Interest Rates

When it comes to bonds, the equation is simple: As interest rates decline, the value

As U.S. Refiners Recover, This Company Aims to Jump to the Next Level

by Sheena Martin, Contributing Editor

Even as U.S gas prices climb, petroleum traders still have no interest in buying right now.

And why would they? The summer driving season is at an end. Consumers are still trying to save cash, especially with the holidays approaching. And inventories are still bearish.

Last week, the Department of Energy (DOE) said gasoline demand is at 8.844 million barrels per day – the lowest number since late January 2009. And with practically no demand, refiners are still running at only 80% capacity, on average.

So with refinery woes persisting, it might seem odd to devote attention to investments in the industry. However, that’s precisely why you should. A contrarian strategy often pays dividends – and the recent challenges have shaken out

Where’s That Cracking Sound Coming From?

by Robert Williams, Publisher
Wednesday, November 18, 2009

When I saw the latest cover of BusinessWeek – “Why the Commercial Real Estate Crisis Looks So Scary” – I immediately fired off a text to my friend and Investment U colleague, David Fessler.

“We scooped ‘em by six whole months,” I texted.

Dave’s been tracking (and cautioning us about) the commercial real estate market for the better part of a year now. (You can read Dave’s June article on the commercial real estate fallout or his April article on the commercial real estate sector.)

“Last year, commercial real estate sales fell off a cliff, plunging 73%… But it’s going to get worse… much, much worse,” asserted Dave, months ago.

He nailed it. The market is indeed cracking.

BusinessWeek reported that $6.4 billion worth of commercial real

…

Overvalued Stocks: Don’t Touch These Bloated Investments With a 10-Foot Pole

by Marc Lichtenfeld, Healthcare Expert Wednesday, November 18, 2009: Issue #1140

To celebrate my parents’ anniversary, I took the family to see Grease last weekend. As musical theater buffs, I figured that they’d love the seeing the show, especially with my kids who had never seen a Broadway quality production.

Unfortunately, they still haven’t. The show stunk. The “actor” who played Danny Zuko couldn’t act. And American Idol winner Taylor Hicks was so bad as Teen Angel, it was laughable. It was one of the worst productions I’ve ever seen – and I should know, as I’ve been in some pretty awful shows (if you saw Last Exit to Brooklyn in San Francisco in 1995, I apologize).

But the purpose of this column is not a theater review, but

The Biggest Threat to America’s Relationship With China

This analysis is from Sheena Martin, Contributing Editor, Investment U Tuesday, November 17, 2009

The continually weak U.S. dollar is a constant source of debate among economists and the media.

And most of the chatter is decidedly negative. But there are a few benefits, including the effect it has on the bloated U.S. trade deficit. Both economists and the U.S. government are hoping that such dollar weakness will help reduce the nation’s trade deficit, one of the most criticized aspects of the U.S. economy.

Sure enough, during the recession, America’s trade deficit with many other countries has shrunk. It’s already seeing increased exports of locally produced goods with falling demand for imports of highly priced foreign goods.

But then there’s China – one of the largest exporters to the United States…

By pegging the

Options Terminology: The Differences Between In, At and Out-of-the-Money

by Karim Rahemtulla, Options Expert Tuesday, November 17, 2009: Issue #1139

To put it bluntly, some people are just downright afraid of the options market.

It’s too bad. Most believe the popular misconceptions and myths about options – among them, that they’re too complex, too confusing and too risky – or are just reluctant to the leave the relative comfort zone of stock investing.

It’s also a mistake. Many investors are missing out on some huge gains when all it really takes is a better understanding about the options landscape.

And that’s what I’m here for. Because while options terminology is different, it’s not really that complicated. So let’s run down a few of the basics…

Options Terminology 101

When it comes to option trading, you’ll find that there are two basic

Brazil is Set for An End-of-Year Economic Samba… Here’s How to Join The Dance

This analysis is from Martin Denholm, Senior Editor, Investment U Monday, November 16, 2009

A GDP growth rate of 9% would be an impressive performance over the course of a year.

But it’s nothing short of outstanding over just one quarter.

Yet that’s the projected fourth quarter performance for Brazil – a country far removed from the United States both geographically and economically.

Leading the charge is a surge in domestic consumption, as optimistic Brazilians (no doubt also buoyed by the decision to award Rio the 2016 Olympic Games) pump money into the economy.

If that fourth quarter projection holds, it would provide a major shift in fortunes and a solid springboard for 2010. You see, even with that impressive 9% estimate, Brazil’s full-year GDP growth is