LNG Makes It A Really G’Day, Mate

by Tony Daltorio, Investment U Research

They don’t call Australia the lucky country for nothing.

It must be luck to have such abundant amounts of energy, metals, minerals and agricultural commodities, not to mention residing so close to China and India, two countries with large populations and a seemingly insatiable appetite for such natural resources.

And that luck shows again in the recently approved, multi-billion dollar, Gorgon liquefied natural gas (LNG) project, which is spreading good fortune to the foreign companies involved in the venture and the investors who know that Australia is where it’s at…

Australia currently has the 14th largest known gas reserve in the world, and many expect it to make the world’s top ten list in that category sooner than later. Dr. Graeme Behtune, the director of research firm Energy Quest, estimates the

...

Emerging Market for Pharma

Tony Daltorio, The Investment U Research Team

The shape of the global market for pharmaceuticals is undergoing a rapid change.

As recently as 2006, more than half of the market growth was in the United States. This data comes from IMS Health, a consultancy that is a leading provider of pharmaceutical trends.

However, the necessity for the pharmaceutical industry to develop new markets is urgent. The latest forecasts from IMS Health suggests that global sales in the industry will grow by just 2.5 – 3.5 percent this year, the smallest expansion it has ever recorded. The United States – which still accounts for two-fifths of all revenues – will decline by 1-2 percent.

Many large pharma companies are now realizing that a lot of future growth is likely to occur outside of what used to be

...

Chinese Metals Boosted by Stimulus

Tony Daltorio, The Investment U Research Team

At least one government stimulus package seems to be working right now. But, it’s not the United States. If only our stimulus program was as successful as the “cash for clunkers.” Unfortunately, we’re closer to clunker with the rest of economic stimulus.

The stimulus package we’re talking about is in the country that many pundits love to hate – China. So far this year, China’s economy has accounted for virtually all of the world’s economic growth. Including China, global growth is 1.6 percent. Without it, growth was flat to slightly down.

Here are just a couple examples of China’s successful stimulus:

China’s auto market is now growing at 50% per year and has surpassed the United States as the world’s ...

A Partly Sunny Outlook for the Solar Industry

Tony Daltorio, The Investment U Research Team

The forecast for the solar power industry is rather cloudy.

On the one hand, we have governments globally trying to give the industry the impetus it needs, through subsidies and incentives, to fulfill its potential and become a mainstream energy source.

On the other hand, the fundamentals for the industry are currently far from sunny.

But just because there’s cloud cover, doesn’t mean that solar panels don’t make energy. And even though the markets conditions have changed, doesn’t mean we can’t make money here. Let’s take a closer look at the solar sector to see where the best opportunities are for investors.

The Global Solar Industry

Only last year, it was bright sunny skies for the solar industry. Demand for photovoltaic panels had been growing at 45 percent annually from 2000

...

Adding Iron for a Healthy Portfolio

Tony Daltorio, The Investment U Research Team

Hiking along back-trails has a calming effect, is good for your cardiovascular system, and is good for your health in general. It’s serene, with few people around.

Hiking along investment back-trails where few Wall Street sales people are around can also have a good effect on you. It can be profitable and very good for your portfolio’s health.

One such isolated back-trail can be found in the world of commodities, which Wall Street usually gives the cold shoulder. This particular commodity does not even have futures traded on it, so Wall Street completely ignores it.

The commodity is iron ore. (Let’s?) take a look at the positive fundamentals for iron ore and the ways that investors can profit from it.

Iron Ore and China

Iron ore is

...

Hot New Spanish Model… for Banking

Tony Daltorio, The Investment U Research Team

There’s a hot new Spanish model that has everyone in Europe going ga-ga.

No, it’s not a runway or swimsuit model. It’s Spain’s banking model.

The Bank of Spain forced Spanish banks to follow a very conservative banking model using what they call “dynamic provisioning” requirements. These requirements forced Spanish banks to build reserves during the good times. This left the banks with capital to draw upon which is helping them survive the downturn.

The Bank of Spain also restricted local banks from piling into mortgage securities. And Spain has a small credit-card and commercial property market which limited risk exposure for the banks. But the banks did their part too. They focused on the retail market rather than risky investment banking, as did their American counterparts.

This new ‘hot’ model

...

How to Prepare for the Storm Brewing in Copper

Tony Daltorio, The Investment U Research Team

There is a copper-red sky this morning – it reminds me that a serious “storm” is brewing for Copper.

Copper is one of the most important commodities in the world. It is a key component of the engine powering the vehicle called ‘global economic growth.’

The widely used reddish metal is a vitally important element in global industrial development. Much of the world’s infrastructure – construction, transportation, telecommunications, etc. – depends on copper.

Yet, copper is rarely mentioned on Wall Street. It is dismissed as “only” a commodity.

When copper is discussed, the full story is never told. At best, it is mentioned that copper demand has fallen in the United States because of the recession. Fair enough. But there is a lot more to the copper

...

Semiconductor Industry Trying to Survive

Tony Daltorio, The Investment U Research Team

The financial downturn and global recession has hit the semiconductor industry hard.

Orders for microchips were almost non-existent at the end of 2008 as computers and mobile phones languished unsold on retailers’ shelves.

According to the Semiconductor Industry Association, global semiconductor sales fell 2.8 percent last year and are expected to fall a further 21.5 percent to $195.6 billion this year.

Despite the positive reaction in the stock market to the latest sales figures from Intel (INTC),the world’s biggest chipmaker, the numbers were mixed at best. Intel did enjoy a sales revival driven by consumers buying cheaper, smaller netbooks, but revenues fell in Europe and sales in the key business customer area were weak.

Let’s take a closer look at the semiconductor industry for profit opportunities.

...

Pepsico and AmBev - a Cola and a Beer, Together?

Tony Daltorio, The Investment U Research Team

According to a recent research study for the Financial Times prepared by the consulting firm Wolff Olins, the world’s next top brands are set to rise in the east. A strategist at Wolff Olins, Melanie McShane, stated that “It used to be possible to be a global brand by dominating the US market. That’s changing rapidly. Now you have to be number one in Asia.”

The findings of the Wolff Olins research echo research by the US-based consulting firm, Bain & Co. Their research estimated that one-third of the FT Global 500 companies could come from emerging markets by 2015 thanks to what it calls a “seismic shift” away from developed markets.

A partner with Bain & Co. said that established western consumer

...

Three Ways to “Sweeten” Your Portfolio

Tony Daltorio, The Investment U Research Team

Money can often be made in investment backwaters where few others are fishing for profits. This is in stark contrast, for example, to the technology sector where everyone in the Wall Street community is fishing for the next Moby Dick stock such as Google or Apple Computer.

One quiet backwater of the investment marketplace is the world of soft commodities – coffee, cocoa, sugar, etc. Most investors don’t give a thought to these commodities, except when they are drinking or eating them. One such overlooked soft commodity is sugar.

There has been a good bit of excitement this year in the sugar market as sugar has climbed to a multi-year high, at over 18 cents a pound. Sugar has some real solid fundamentals behind it and it looks

...