Two Companies Profiting From the “Fuel of the Future”

by Louise Harris, Investment U Research

You don’t have to look far to find one of today’s big economic and market buzz phrases: Green investing.

From green clothing websites, to CNN headlines heralding biofuel, companies are trying their best to capitalize on growing consumer sensitivity to the environment.

However, like the dotcom era before it, some of the green craze is no more than a speculative bubble. But many of it is the real deal. And despite past debacles, biofuels fall into the latter category.

A Deal With Dow

Take start-up company Cavitation Technologies Inc. (OTC: CVAT), which develops equipment that turns vegetable products into viable fuel. Only established in 2006, it just entered into a long-term agreement with Dow Chemical Co. (NYSE: DOW)

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It is a gray morning, here in London. We sit in the building with the golden balls, look out the window, and wonder…

…how does it all work?

We’re doing some serious thinking this week. What is it that actually causes a depression? A stock market collapse? Or too much debt? How come government can appear to cure the problem sometimes – 2001-2007 – but not other times? How come the Japanese were not able to increase consumer prices? Even now… Japan’s inflation rate is negative. And how come, despite the most massive effort at monetary inflation ever undertaken, the US bond market still forecasts an inflation rate of less than 2%?

An interview with Richard Koo, author of ‘The Balance Sheet Recession,’ and a new book by Ken Rogoff and Carmen Reinhart are helping us understand what it going on. More to come…

In the meantime, the Dow went down 42 points

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Dow Chemical (DOW) priced a $2.75 billion public debt offering in an effort to repay a loan used to acquire Rohm & Haas in April this year.

The offering includes $250 million of floating rate notes due 2011, $1.25 billion of 4.85% of notes due 2012 and $1.25 billion worth of 5.90% notes due 2015. The proceeds will be used to repay a bridge loan used for the $16.5 billion acquisition by the year-end.

In April, Dow acquired all outstanding shares of Rohm & Haas at $78 each, funding the deal by issuing $7 billion in preferred stock and borrowing $9.23 billion in a short-term loan.

To help finance the transaction, Dow has also renegotiated a $12.5 billion bridge loan syndicated by 19 banks led by Citigroup (C), Merrill Lynch and Morgan Stanley (MS). This new loan agreement adds two years to the repayment and has slightly looser

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On Aug. 3, Dow Chemical Co. (DOW) reportedly agreed to sell its acrylic acid and esters plant in Clear Lake, Texas, and the North American UCAR Emulsion Systems specialty latex businesses to Arkema Inc. for $50 million. Arkema is a global chemical company and France’s leading chemicals producer, specializing in Vinyl Products, Industrial Chemicals and Performance Products.

Media reports said that Dow would use proceeds from the sale for further de-leveraging which will be accretive to the company’s shareholders. The U.S. Federal Trade Commission (FTC) should approve Arkema as the buyer of Dow’s assets. The deal is expected to close in the fourth quarter of 2009.

Earlier in July, Dow had entered an agreement with Petroliam Nasional Berhad (PETRONAS) of Malaysia, a state-owned integrated oil and gas corporation, to divest its ownership in Optimal Group of Co.s for $660 million. This transaction is likely to close by the

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Editor's Note: I know many of you enjoy reading analysis of dividend-yielding stocks. Therefore, I am pleased to share with you this great article from Carla Pasternak.

Carla writes the Dividend Opportunities newsletter for our partner, StreetAuthority, and has some good insight on yields for the stocks within the Dow Jones Industrial Average.

-Charles Rotblut, CFA Senior Market Analyst, Zacks.com

The 30 stocks in the Dow Jones Industrial Average ($DJI) sport some attractive yielding stocks -- many with more than twice the average yield of the S&P 500. But the question is: Which company has the safest dividend in the Dow? General Electric's (GE) double-digit dividend yield looked pretty juicy a few months ago -- that is, until they slashed it by -68%. And Citigroup (C), which recently got kicked out of the Dow, had a once-rich yield. Now its quarterly dividend payment stands at one lonely penny per share. But rest

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Rice rationing redux?  Chris Mayer on the return of rising food prices… Dan Amoss on what the Fed says versus what the Fed does… Russia sings dollar’s praises, dollar bulls stampede… Chuck Butler looks past the rhetoric… China’s latest resource grab… Iraqi oil… America’s best-selling car… with an MSRP of $60…

We begin a new week pondering the question that bedevils the conscientious market observer every day.Inflation? Deflation? Or as Agora founder Bill Bonner is wont to suggest, both?

“Inflation – rising prices, or a drop in the purchasing power of the dollar – will soon rise to the very top of economic concerns,” writes Chris Mayer. “I can’t understand why there are pundits who insist we can’t have inflation while the economy is weak. There are plenty of examples of weak economies with high inflation. After all, I don’t think they are hitting on

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Monday March 23, 2009 Navivest

Dow          7,775.86 +497.48 +6.84% NASDAQ   1,555.77   +98.50 +6.76% S&P 500      822.92    +54.38 +7.08%

The stock market led by financials, had a massive rally today, with six plus percentage gains in the major stock market indices. The rally was fueled by the U.S. Treasury’s release of a plan that it hopes will help to solve the credit crisis currently gripping the country and the globe for that matter.

Under the plan, the treasury will take launch the program with about $75 billion to $100 billion from existing financial rescue funds, specifically, the $700 billion Troubled Asset Relief Program, combine the funds with loans from the Federal Reserve and debt guarantees from the FDIC and in partnership with private capital, create a buying pool that will purchase the toxic assets that are weighing down the balance sheets of the nation’s banks.

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The BIG FIVE TRENDS Video

In my new, short five minute video, I analyze the major trends in what I call the big five. We’ll be looking at the DOW (INDEX_DJI), the Dollar index (NYBOT_DX), crude oil (NYMEX_CL.J09.E), gold (FOREX_XAUUSDO), and the CRB index (NYBOT_CR).

I will show you step-by-step how to analyze each of these markets quickly to get the trend.

Once you discover this simple approach, you’ll be amazed at just how accurate it is over time.

This is one of my most important videos and I want you to be able to see it without having to register or pay a fee to watch it. I honestly believe that my new video can make a world of difference to how you approach the markets in the future.

Every success and enjoy the video.

Adam Hewison
President, INO.com
Co-creator, MarketClub

Thursday February 19, 2009
Navivest

With the Dow Jones Industrial Average closing at 7495.65 after falling 89.68 points for 1.19% in regular trading on Thursday, the index is now at its lowest closing price since October 9, 2002.

Traders had been looking for the Dow to hold above 7,552.29, a low that the index hit on November 20 of last year, before dramatically turning around the next day and putting in a V shaped formation, by rallying 494.13 points.

While all is not lost, we are still looking for a big rally in the next few days, if we don’t get much in the way of bullish or buying signals on Friday, more market participants will panic and pull money out or refrain from buying, which could cause even more damage next week.

Financials led the way down, with Citi (C) $2.51 – $0.40 and Bank of America (BAC) $3.93

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Friday January 23, 2009
Navivest

On July 10, 2008, Dow (DOW), announced that it had reached a definitive agreement with Rohm and Haas (ROH), under which Dow will acquire all outstanding shares of Rohm and Haas common stock for $78 per share in cash, in an $18.8 billion deal.

That was six months ago, and in that time, as so often happens whenever a merger/acquisition deal is announced, there have been questions as to whether the deal will get done.

Plaguing this deal, was news on December 29, that a planned 50-50 joint venture deal between Dow and Kuwaiti state-owned Petrochemical Industries Company that would have created the leading global supplier of petrochemicals and plastics, had been cancelled at the behest of the Kuwaiti government.

The failure of that deal, which, originally, would have had Dow receive an infusion of cash from Petrochemical Industries Company, was seen as dealing

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