Report: BMW to develop 5 Series-based electric sedan for Chinese market

The China's Beijing Youth Daily reports that BMW, along with joint venture partner Brilliance China Automotive Holdings Ltd., will develop a 5 Series-based electric sedan targeted specifically at the Chinese market. The report claims that a battery-powered 5 Series concept will make its debut in China sometime in 2011, likely at the Shanghai Motor Show in April.

BMW Brilliance Automotive Co., the joint venture between BMW and Brilliance, currently manufacturers both the 3 Series and 5 Series sedans in the Chinese city of Shenyang. In 2010, the BMW Group sold 169,000 vehicles in China, a surge of 87 percent over the sales it tallied in in 2009.

Report: Lotus to overhaul Exige, Evora ahead of Esprit production

It's no secret that Lotus has monumental plans in the coming years, announcing no fewer than four new models at the 2010 Paris Motor Show that it says will gradually roll out over the next several years. But there's no denying that the British firm's current level of success was built on the excellence that is the Lotus Elise, Exige and, most recently, Evora.

That being the case, we're hoping that a report from Autocar in the UK is accurate and that Lotus has plans to overhaul the Exige and give the Evora a heavily updated interior before the Esprit goes into production in late 2012. We certainly wouldn't expect wholesale changes to either machine – engineering budgets are surely being diverted elsewhere – but a little something to keep its current models fresh in the eyes of consumers would go a long way towards bridging the gap between the present and the Ferrari-fighting future.


[Source: Autocar]

Mazda MX-5 production hits 900,000 units

After 21 years, 10 months and countless hair dresser jokes, the 900,000th Mazda Miata has rolled off the assembly line in Hiroshima, Japan.

Originally created to capture the essence of classic British roadsters, the 1989 Miata won critical acclaim for its simplicity and fun driving dynamics.

According to Nobuhiro Yamamoto, the program manager of the current MX-5, "Since Mazda launched the original MX-5, it has undergone two complete product redesigns and a series of upgrades. Its enduring success is due to the strong support it enjoys from MX-5 fans around the world. Going forward, I will strive to keep the MX-5's spirit alive while evolving it into a car that will be loved by even more people."

Source: Mazda

Happy New Year - Audi jacks up prices for 2011

Audi is hiking prices on certain models for 2011.

In Germany, Audi prices for the TT, Q7, A8 and R8 models will rise by an average of 0.9 percent and those hikes can be expected in most other European markets too.

For the flagship R8 supercar, starting price on the 4.2 liter V8 variant will be €110,000 instead of €109,100. The R8 Spyder goes up by €1,000 to €122,100.

The A8 3.0 TDI will start at €79,900 - a €700 bump. But base price on the Q7 3.0 TDI stays put at €51,800. The Q7 3.0 liter petrol gets a €600 hike to €53,500.

The entry-level Audi TT with the 160 PS 1.8 liter petrol will go up by €300 to start at €30,500.



Price hikes take effect as of January 17, 2011.

Source: Auto Bild

Chevy Camaro platform underpins new GM vehicle in Chicago

General Motors has big plans for the upcoming Chicago Auto Show. At the exposition opening this week, GM will unveil a pair of new vehicles, although details on what form they'll take remain scarce.
The news comes from reports quoting GM's North American president Mark Reuss. All he's revealed at this point is that one of the two cars will be based on the Chevrolet Camaro's platform. That tells us it will be a front-engine/rear-drive vehicle, but little else. So, commence speculation: Camaro Z28? Chevy Zeta-platform sedan? (Which we think should be called Chevelle, because hey, if Dodge can call its sedan Charger...)

As for the second car slated for the Windy City salon, your guess is as good as ours. So we'll just have to sit tight and see what the General has got in store for us.



[Source: The Detroit News] 

Chicago 2011: 2012 Buick Regal eAssist live in the Windy City

We received the first details about Buick's new Regal eAssist earlier today, but we've just returned from seeing the car in person before the Chicago Auto Show officially kicks off tomorrow. Visually, the more fuel-efficient Regal looks no different than the standard car, save the addition of eco-friendly 17-inch alloy wheels and low-rolling-resistance tires.

What's most important about this car is what's under the hood – a 15-kilowatt electric motor that offers 15 horsepower and 110 pound-feet of torque for initial acceleration thrust, matched with Buick's 2.4-liter direct-injected inline-four. Combine that with regenerative braking and a start/stop system for the engine, and the end result is a Regal that's capable of achieving 26 miles per gallon in the city and 37 mpg highway.

Buick's new eAssist system first debuted on the larger LaCrosse sedan, where it will serve as the base powertrain for 2012 model year vehicles. With the Regal, however, the eAssist model will slot just above the base 2.4-liter car and below the Regal Turbo, which uses the automaker's 220-horsepower 2.0-liter Ecotec inline-four. Pricing will be announced closer to the eAssist's official launch later this year.

Toyota debuts modestly refreshed 2011 Matrix in Chicago

Toyota will not be having a formal press conference at this week's Chicago Auto Show, but the automaker will still have something fresh on its stand. The 2011 Matrix hatchback has officially bowed, with a slightly retouched exterior (new wheels, different paint choices, etc.), a touched-up interior with a new steering wheel and seat fabrics, and a new standard brake-override system called Smart Stop.

The 2011 Matrix is only available in two trim levels – base and S – and is powered by either a 132-horsepower 1.8-liter or 158-horsepower 2.4-liter four-cylinder engine. Transmission choices include a four- or five-speed automatic, as well as a five-speed manual, and all-wheel drive is available on the Matrix S when paired with the 2.4-liter powerplant.

New sport packages are available for both Matrix trims, with the S Sport Package incorporating things like 17-inch alloy wheels, front and rear underbody spoilers, a roof-mounted rear spoiler and, of course, 'S' badging. Pricing has not been released for the 2011 Matrix as of this writing, but we expect the starting MSRP to be just under $17,000. Follow the jump for the official details.


[Source: Toyota]

Best Long Term Profit Stocks For 2012

Short-term volatility can test an investor's mettle. But if you get in during a boom cycle, like copper and iron ore are in today, you can win big. Here's how.

The sky's the limit. The sky is falling. In the short term, that pretty much describes the behavior of commodity stocks.

And it's all too easy to get caught up on the drama of those short-term moves, because the possible profits, if you can outguess the market, are all too tempting. (I know because I get caught up in it myself.)

But for most of us who aren't blessed with market-beating 20/20 foresight, playing the short-term volatility of commodity stocks isn't the best way to make money in this sector.

Permalink: [620] Top Stocks To Buy - Best Long Term Profit Stocks For 2012

For most of us most of the time, the long-term swings between scarce supply (sending prices up, up, up) and scarce demand (sending prices down, down, down), which can last for years and years, are the best sources of profits.

And right now, the long-term pattern says we're in an upswing that has at least two more years to run before we see a significant downside challenge.

Why do I think that? Supply and demand tell me so. I'm going to end this post with my take on the supply/demand picture for several important industrial commodities. But first, let me try to put the current short-term volatility in some context.

Why a Short-Term View Is So Appealing

The potential rewards in the short term are what get our attention. Iron miner Vale, (NYSE: VALE) was up 42% from the August 2010 low to the January high. One-stock commodity portfolio BHP Billiton, (NYSE: BHP) was up 44% from the August low to the February high. Molybdenum and copper miner Thompson Creek Metals (NYSE: TC), was up 88% from the August low to its January high.

But the volatility? Who can stand the drops? Look at just one stock, Freeport McMoRan Copper & Gold (NYSE: FCX).

On Jan. 11, shares had rallied to $60.90. Two weeks later, on Jan. 25, the stock had dropped 12.6% to $53.22.

On Nov. 11, 2010, it traded at $54.01. On Nov. 17, it was $48.42. That's a 10.3% drop in just six days.

But by Nov. 11, the stock had soared 62% from its Aug. 25, 2010, low of $33.33.

Just in case this volatility wasn't enough to make you insane, hovering over all of these moves is the memory of the great commodity rally of 2007, when Freeport McMoRan climbed 86%, and the great commodity collapse of 2008, when the stock dropped 74%. And the volatility in 2008 was even more severe than that if you look at just the last six months of the year. Freeport McMoRan fell from $61.65 on June 13, 2008, to $9.03 on Dec. 3.

If this kind of short-term volatility is what you focus on, you're paying attention to the wrong time frame. You need to be investing on a scale of years, not weeks or months.

Look at oil, for example. In 1980, the average US price of oil was $37.42 a barrel. In 1998, oil sold for an average of $11.91 a barrel. That's 18 years of solid losses in oil stocks and other shares that depended on the commodity.

But 1998 marked the bottom. By 2004, the average price per barrel hit $37.66, the same as it had been in 1980, on its way to a peak near $150 in 2008.

With oil demand sagging because of the world economic crisis, oil fell back to the $30s, where it had been in 1980 and 2004. It then began a climb back to a price near $100 a barrel, as demand recovered along with the global economy and the crisis in Egypt drove up fears of a disruption to global supply.

The long-term pattern for many other commodities looks similar. Copper on the London Metal Exchange, for example, sold for $2,710 a metric ton in 1990, $3,050 a metric ton in 1995, and $1,730 a ton in 1998. It then began a slow, steady climb to $1,880 a ton in 2003 and to $2,950 in 2004 before rocketing up to its current price. Last week, copper hit an all-time record price of $9,955 a ton.

But we're not living in an age when all industrial commodities climb inexorably higher. The big counterexample is natural gas. In January 2002, natural gas sold for $2.50 per 1,000 cubic feet in the United States. It then moved up to $4.43 in 2003, and to $8.01 in 2006.

Since then, though, the price of natural gas has been in what began as a slow decline (to $7.38 in January 2008), then turned into a rout (to $4.60 in January 2009), and now has become a lasting depression. Natural gas traded at $5.14 per thousand cubic feet in January 2010, raising hopes that the economic recovery was about to lift prices permanently. But then it fell—and fell and fell—until it hit $3.34 in December 2010.

So what's a commodity investor to do?

Best Long Term Profit Stocks For 2012: Profit from These Three Principles

Here are my core tenets for commodity investing:

1) Find a Commodity That Is in a Multi-Year Boom

Or, rephrased, find one that is currently behaving like copper and not like natural gas. I don't mean the obvious profits you'd see this year as copper climbs to a record high, while natural gas mopes along the bottom. I want you to think about the longer-term benefit of investing in a commodity that's riding the boom end of a cycle. If you buy and hold, you may suffer a painful 15% loss in a few days, but as long as the commodity cycle that underlies your commodity stock is in a long-term uptrend, this kind of volatility is survivable.

Buying in during a long-term boom cycle can save you from the worst effects of truly terrible timing. Seeing a stock drop from $61.65 to $9.03 in six months is the kind of excruciating loss that can devastate a portfolio if you then sell at the bottom. But Freeport McMoRan didn't just fall from $61.65 to $9.03 in six months; it rebounded to $29.48 by June 2009, then hit $43.66 by January 2010 on its way to $56.76 at the Feb. 4, 2011, close. You could have had the terrible bad luck to buy at the $61.65 top in June 2008, but if you held on, two and a half years later, you'd be looking at a loss of less than 10%.

I'm not recommending this as an investment strategy, mind you. Spending 30 months to get back to within 10% of the money you started with is still a loss—of both money and time. But it's not the worst thing that can happen to a commodity, or an investor.

2) Understand What's Driving the Commodity Cycle

Let's go back to our friends copper and natural gas. We've already established that, given a choice, you'd much rather own the copper cycle than the natural gas cycle—at least right now. What's the difference between the two cycles at the moment? Sure, one is up and the other is down, but there's more to the difference than that.

The US natural gas industry is currently in the midst of a huge expansion of supply from unconventional sources. The rest of the global industry is following that same path, using technologies pioneered in the United States. The world is, therefore, looking at a big increase in natural gas supply that's likely to run for years. That doesn't necessarily mean that the price of natural gas is headed down, but it does mean that any price increase is dependent solely on an increase in demand—in this case, an increase in demand large enough to outpace the increase in supply.

Contrast that with copper. It's not that copper miners aren't trying to increase supply; it's that they're having a hard time doing it. For example, in the Jan. 20 guidance for 2011 that went along with the release of its 2010 financial report, Freeport McMoRan said that 2011 copper and gold sales would be slightly below earlier forecasts because of a drop in the grade of ores being mined at its Grasberg mine.

This problem—lower-quality ores that require a mining company to move more earth to get the same amount of copper—isn't limited to Freeport McMoRan. Companies across the copper-mining industry face the same conditions. Rio Tinto (NYSE: RIO), for example, recently announced that it had mined 16% less copper in 2010 than in 2009. Copper, unlike natural gas, has both rising demand and constrained supply working in its favor.

3) Make Sure You Can Really Tell Where Supply Is Heading

If you want to own the coppers of the commodity world and not the natural gases, then you should value—really value—supply transparency.

Oil, I'd argue, has very low supply transparency. For instance, we have no more than educated guesses about the condition of the big oil reserves in Saudi Arabia. How badly, if at all, have they been damaged by production techniques over the last decade or so? We know very little about how hard it will be to increase production from the oil fields of Iraq, or how much more damage Venezuela will do to its oil industry, or what kind of environmental restrictions Canada will impose on its oil sands industry.

Contrast that with copper, where the big uncertainties are geopolitical and the possible deviations from consensus outcomes in unstable countries like the Democratic Republic of the Congo would reduce supply, rather than expand it. I'd put iron ore, coal, and potash fertilizer in the transparency-of-supply group, along with copper. I'd put oil, natural gas, and aluminum in the less-transparent supply group.

What to Buy Now? Best Long Term Profit Stocks For 2012 Here

My three basic tenets translate now into a rough hierarchy of commodities, and a few stocks to consider at each level.

At the top of the heap, I'd put copper. It's hard to increase supply, demand is increasing with global growth, and supply is relatively transparent. My three favorite stocks in this commodity are Freeport McMoRan Copper & Gold (NYSE: FCX), Thompson Creek Metals (NYSE: TC), and Southern Copper (NYSE: SCCO).

* For more on Freeport McMoRan, see this post
* For more on Thompson Creek and its transformation from a molybdenum miner to a molybdenum and copper miner, see this post

Next I'd put iron ore. Iron doesn't have quite the same supply problems as copper, but India has been reporting what seem to be significant (perhaps only temporary) supply disruptions. Meanwhile, global demand for iron is growing even faster than it is for copper. My favorite stock in this industry is Vale (NYSE: VALE). It gets the nod over BHP Billiton in my book because it has more concentration in iron than its Australian rival does.

I've got a positive rating on both coal and potash fertilizer, but they sit a step below copper and iron on my list because they don't have the supply problems of copper or even iron ore. It looks like the world has plenty of coal in accessible deposits to meet soaring demand. In potash, Potash of Saskatchewan, (NYSE: POT) still has idle capacity that it can bring into production when demand and price justify it.

In these two sectors, I'd favor the Australian coal producers BHP Billiton (NYSE: BHP), Macarthur Coal, OTC: MACDY), and Whitehaven Coal (OTC: WHITF), because of their proximity to the big coal markets of India and China (for more on Australia's coal miners and the recent floods there, see this post). In the potash sector, I think the most interesting pick is Vale, which is making a big, government-favored push into the fertilizer market in Brazil.

Best Long Term Profit Stocks For 2012: Two Risks to Keep in Mind

Investors face two big bumps with commodity stocks in these sectors. The first is the fear, likely to send the market into repeated swoons in the first half of 2011, that growth will slow in China. (I've suggested cutting back exposure to copper stocks for the first few months of 2011 for investors who want to reduce their exposure to a China slowdown. So far that sector retreat has failed to materialize.)

The second risk, and I think this is a factor for 2012 or so, is the amount of new mining capacity set to come on line from 2013 to 2015 in just about every mining sector. The fear is that this new capacity could send prices down. But I think the reality is that, at least for my two top-rated commodities, copper and iron, the addition to supply won't be enough to keep up with demand.

The global supply deficit in copper will reach 822,000 metric tons in 2011, according to Barclays Capital. That's a lot of supply to make up even when the copper industry is projecting a record amount of capital investment in 2011.

At the time of publication, Jim Jubak did not own shares of any of the companies mentioned in this column in his personal portfolio. The mutual fund he manages, Jubak Global Equity Fund (JUBAX), may or may not own positions in any stock mentioned in this post. The fund did own shares of BHP Billiton, Freeport McMoRan, Macarthur Coal, Southern Copper, Thompson Creek, Vale, and Whitehaven Coal as of the end of December.

3 Best Stocks That Will Benefit In 2011

To make money in stocks, you need to tie together various threads of information to see what it might mean for your investments. Right now, a pair of disparate data points has caught my attention: rising oil prices and a trio of unloved stocks that may really benefit from it. Tie them together, and you may be looking at a pair of the most profitable trades of 2011.

The oil vs. gas conundrum
A clear theme emerged in 2010: oil prices rose ever higher while natural gas prices have been stuck in neutral. Oil now stands at $90 a barrel while natural gas trades for less than $4.50 per million per British thermal units (MMBtu). That's a 20-to-1 ratio. Yet researchers at Rice University note that the ratio wasn't always this stark: Historically, the two energy sources were valued at around 10-to-1 and when natural gas prices spiked a few years ago, the ratio fell to 6-to-1.

Permalink: [618] Top Stocks To Buy - 3 Best Stocks That Will Benefit In 2011

The ratios are very important. Adjusting for the relative energy content for a gallon of oil versus an equivalent amount of natural gas, the 10-to-1 ratio means that powering a car or truck with gasoline was cheaper than with natural gas. With the current move to a 20-to-1 ratio, natural gas is notably less expensive than gasoline. If oil prices keep rising, as many suspect, natural gas will become even cheaper.

Pickens has friends
A few years ago, legendary oilman T. Boone Pickens implored policy makers to pave the way for more natural gas-fueled cars. His plea largely fell on deaf ears. Then again, he made that push when the 10-to-1 oil-to-gas ratio was in place. These days, he's got plenty of company, starting with foreign-policy hawks that would love to see the United States reduce its dependence on Middle Eastern oil. Environmentalists are on board as well, noting that natural gas, while not as clean as wind or solar, still burns cleaner than oil-based fuel.

With support from the left and the right, and with the economics never more compelling, the timing appears right for Washington to finally alter our energy policy to boost the number of vehicles on the road burning natural gas. Congress tried to generate legislation on this front last summer, but a chaotic environment forced the issue to the back-burner. Industry watchers expect the legislation to be raised again this spring. The odds of success have improved: as noted earlier, the economics have improved and Congress is looking for the few issues that have true bipartisan support.

Out of favor
I hate to recommend stocks that are already doing well. As fate would have it, my three favorite plays on the trend have seen their share prices fall sharply recently: Clean Energy Fuels (Nasdaq: CLNE) trades for half of its 52-week high, while Westport Innovations (Nasdaq: WPRT) and Fuel Systems Solutions (Nasdaq: FSYS) have each lost roughly 30% of their value in the past three months. Part of the downturn in these names can be attributed to the frustratingly slow pace in which Washington operates. Supporters of these companies have thrown in the towel -- which is precisely the time to look for value.

Westport Innovations is a leading player in the natural-gas fueled truck market, partnering with major truck engine manufacturers such as Cummins (NYSE: CMI), Kenworth, Peterbilt, and Volvo to modify traditional truck engines to run on natural gas. Demand has been strong: Westport's sales have risen from just $34 million in fiscal 2006 to a projected $245 million in fiscal 2012. Trouble is, the company remains unprofitable and quarterly results remain lumpy. That's why you should be prepared for the occasional bad quarter yet to come. Until legislation is passed, shares may stay in the mid-teens.

Clean Energy Fuels, which is backed by T. Boone Pickens, has taken a different approach. The company has built a network of natural gas re-fueling stations that could see rising traffic as more natural gas-powered vehicles are on the road. Yet, the real focus for the company has thus far been on corporate and government fleets, many of which have already made the move to natural gas. An expanding network of stations is expected to boost sales roughly 50% in 2011 to around $300 million, finally enabling the company to break even. Congressional legislation would help to ignite this business model, and expansion plans could take sales to $500 million within a few years.

Fuel Systems has the most geographically diverse business model, selling components that go into modified engines in Europe and South America as well, where the natural gas-powered vehicle industry is farther along. In contrast to its peers, the company is solidly profitable and trades for around 16 times projected 2011 profits.

Have Gold and Silver Turned the Corner

The $18+ rally in the April Comex gold futures and the 80-cent move in the March Comex Silver futures on the back of the Chinese rate hike are impressive. The question is, however, does this mean that the correction in the metals is over? In an earlier article published late last month (see Gold and Silver: How Low Will They Go?), I continued my discussion of the correction in the metals and noted some key levels to watch on the expected rally. Has anything changed?

Permalink: [570] Top Stocks To Buy - Have Gold and Silver Turned the Corner?


Click to Enlarge

Chart Analysis: The daily chart of the SPDR Gold Trust (GLD) shows the rally from just under $128 to above $133.

* The 50% retracement resistance at $133.26 is being challenged today with the 61.8% target at $135.05
* Volume has been weak on the rally so far and the daily on-balance volume (OBV) is just testing its weighted moving average (WMA)
* The weekly OBV is still acting very weak
* Initial support is at $131.25 with more important support at $129.25

The rally in the iShares Silver Trust (SLV) has been much stronger, but silver is clearly the more volatile of the metals. In the old days, it was referred to as “poor man’s gold.”

* The 61.8% retracement resistance at has already been exceeded with the 78.6% resistance at $29.49 now being challenged
* The remaining chart resistance is in the $29.90 to $30.44 area
* On an upside breakout, there are targets at $31.75
* Volume in SLV has also been unimpressive
* The daily OBV is positive, but the weekly OBV is still below resistance
* The first real level of support is at $27.34-$28.00

What It Means: For gold futures, GLD, and Market Vectors Gold Miners ETF (GDX), this still looks like a rally within a correction that should terminate in the next week or so. This would set the stage for a test of the recent lows. The case of SLV is different, as new rally highs are possible, yet they are unlikely to be confirmed unless the volume picks up substantially. Another new high, one that was not technically confirmed, would increase the odds of a deeper correction.

How to Profit: As mentioned previously, “A close in GLD above $136.30 on volume of over 30 million shares would be a sign that the correction was over. For SLV, it would take a close above $29.05, and for GDX, it would require a close above $61.20 and high volume on both to confirm the price action.”

We may get that close in SLV today, but not on heavy volume. As per an earlier recommendation, I suggested hedging long positions in GLD by selling calls against holdings in the ETF. We rolled over into the March 130 calls at around $4.15 and they are currently at about $4.40. I would buy these back if there is a daily close above $136.05. We made a few points on the earlier hedge and are still up overall. We have no position in either SLV or GDX. GDX is acting weaker, currently trading around $57.37, and the anemic rebound is consistent with a failing rally.

China, Euro and the Dollar Indicating Short Term Bottom for Gold

Political and social unrest in the Middle East was the most discussed topic during the week. Restlessness and riots could inflate food prices in the region and worsen the economic balance further. As a result, equity, currency and commodity markets have experienced fluctuations. The political disturbances have impacted the crude oil trade significantly as Egypt is a crucial link for oil and gas headed to Europe, Asia and the United States. There are large black swans paddling in the Middle East pond that could have a significant effect on precious metals, oil and stock markets.

On the other side of the globe, the Chinese are celebrating their New Year, the Year of the Rabbit. This year China pulled a rabbit out of the hat; China’s gold imports are estimated to have more than doubled from a year ago in the run-up to Chinese New Year. This means that China is on track to overtake India as the world’s largest consumer of the yellow metal. Traders say China will overtake India as the largest consumer of gold this year. The Indian festival of Diwali was once the key driver of seasonal demand patterns because of the large number of weddings taking place during the holidays. But now the Chinese New Year is starting to have a bigger impact.

Permalink: [569] Top Stocks To Buy - China, Euro and the Dollar Indicating Short Term Bottom for Gold

The growth in demand is being attributed in part to Chinese families giving each other gifts of gold instead of traditional red envelopes filled with cash. Fears of inflation have also driven demand for gold. So if you have a (very good) friend in China you might consider buying them a gift of a small 100 ounce bar elaborately engraved with auspicious rabbit idioms or scenes of rabbits at play, or perhaps a 20-ounce carved rabbit bar.

As per the current fundamentals influencing gold price movement, the long-term suggestion would be a definite ‘buy’. To get an insight on current market sentiment, it is a better practice to recount technical analysis separately. To see if we can pull a rabbit out of a hat and tell you how gold will perform in the near future, let's begin this week's technical part with the analysis of the Euro Index. We will start with the short-term chart (courtesy of Stockcharts.com)

Click to enlarge:

In the short-term Euro Index chart this week, we see a number of bearish signals. These will likely lead to a bullish sentiment for the USD Index as will be seen on the chart that follows below. Here, we have originally seen that perhaps the right shoulder of the bearish head-and-shoulders formation was invalidated at the beginning of this week. However, the price moved quickly below the rising dashed line, thus invalidating the insignificant breakout. Consequently, the head-and-shoulders formation is still forming.

This is, of course, a bearish signal going forward for the euro. And this will likely lead to bullish sentiment for the USD Index as well as possibly for gold, silver and mining stocks. The general stock market may also influence the precious metals sector to a great extent.

Click to enlarge:

Our USD Index chart shows the close proximity at present to long-term support levels. This level has actually been touched and the index has once again begun to move higher. Based on this factor alone, a bounce would be likely. But we have another strong factor in favor of higher USD values: The cyclical turning points. The local bottom at the cyclical turning point is not likely to have any negative impact on gold, silver and mining stocks; there could, in fact, be a positive impact.

Although it is often believed that the rising dollar is bearish news for gold, silver, and mining stocks, that was not the case during the past several months. The USD Index was leading precious metals, and now appears to be trending in tune with them.

Details, along with the cyclical turning points for the dollar, are visible on the chart below.

Click to enlarge:

A closer look at the above chart shows that at least a local bottom has been reached precisely as indicated earlier – at the cyclical turning point. Please note that the RSI indicator is also suggesting higher values of the index in the short run, as it reached the 30 level, which we view as a buy signal.

The technical situation in these two currency indices is particularly interesting, as the USD Index is likely to rally. This would cause the head-and-shoulders formation in the euro to be completed, and would likely cause a decline in the Euro and further upswings in the USD Index.

Consequently, gold has been led by the price action of the dollar in recent weeks. But now gold appears to be moving in tune with the trends seen in the USD Index. Of course, all this bullish sentiment is paired with just the opposite, a strong bearish outlook for the euro.

However, the question remains, can the current rally can be anything more than just a quick move up? The chart below suggests that it’s not out of the question.

Click to enlarge:

We featured the SP Gold Bottom Indicator on as another measure for the technical analysis over a week ago, when we wrote the following:

Finally, we have just seen a long-term buy signal from our SP Gold Bottom Indicator.

Previously we [saw] it at the end of July 2010, right before the over-$200 rally, and before that we saw it on May 21st, 2010 (another local bottom) December 9th, 2009 (insignificant bottom, however, as prices still moved briefly above it before the decline was over), and April 9th, 2009 (almost precisely at the bottom).

As you may see, we don’t get this signal very often, but when we do, it’s worth taking it into account. The implications here are – of course – bullish.

The reason we mention this indicator today is that this signal means gains not only in the short run. Please take a look below for details (the blue line in the middle of the chart):

(Click to enlarge)

Taking other factors into account, it is doubtful that the rally will be a straight line up, but the point is that this signal surely supports a rally from the current levels.

Summing up, the sentiment for gold here is clearly bullish for the short-term and while the medium-term situation remains mixed, please note that – also based on the last two charts featured in this essay - at this point being out of the market with one’s long-term capital is not advised.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Top China Stocks For 2011

The New Bull Market Emerging In China “The 21st century belongs to China. Invest accordingly.”



--Warren Buffett



As 2010 draws to a close, I’ve been spending time reflecting on the year that was… and more importantly, thinking about what’s in store for 2011. Every year all of the firm’s analysts perform a year-end ‘ritual’ to decide which areas of the market offer the best opportunities for the year ahead.

Permalink: [611] Top Stocks To Buy - Top China Stocks For 2011

We look at everything from 2011 stocks to bonds, to commodities to currencies, small-caps, large-caps, growth stocks, value stocks and everything in between…



This year, the general consensus was 2011 should be a GREAT year for individual stocks.



Why?



It’s simple really.



First, the economy is growing. We have a terrific environment for economic growth given the fact that we have low inflation and low interest rates (they haven’t been this low since 1965!).



Second, corporate earnings are expected to grow 12% next year- which is AMAZING! It’s been quite a while since we’ve seen that kind of growth (even in the peak years in the mid 2000’s it wasn’t that high).



Third, the market is undervalued. We’re trading at just 12.9 times earnings- a relatively low multiple. Many experts put fair value at 13.8 to 14.2 times.



Given all of this, we have a ‘perfect storm’ that will cause the US stock market to produce VERY healthy returns in 2011…



But despite all the great things expected for US stocks… we believe even more money can be made elsewhere.



In a word: CHINA



You see, all of the positive expectations for US stocks apply to Chinese stocks of 2011 as well… magnified by 10!



After reading this report, you’ll see that the writing’s on the wall. China stocks for 2011 are about to start a powerful new bull market that could last for years…



In the pages that follow, I’m going to tell you exactly why top Chinese stocks for 2011 are gearing up for a HUGE bull market run.



Then, I’m going to share with you an ‘insiders’ strategy for getting the biggest returns in top Chinese stocks for 2011 (and no, you don’t have to open a Chinese brokerage account or move to China!)



And finally, I’m going to tell you specifically which stocks offer the biggest profit potential.



I know you’re excited as I am, so let’s get right to it…





China’s Spectacular Growth To Continue In 2011



“There is no question that China will shortly surpass the U.S. and become the world’s mightiest economic power.”



--Burton Malkiel, former member of the Council of Economic Advisors





The primary force behind the new bull market emerging in China is the country’s phenomenal economic growth. China’s economy has grown at a pace never before seen in the history of the world. And all signs point to this amazing growth trend continuing in 2011.



To understand the magnitude of China’s economic growth, look no further than the country’s stellar GDP growth. The chart below shows China’s skyrocketing GDP through early 2008. It doesn’t reflect the full year increases of 9% and 8.7% for 2008 and 2009...



But you get the picture…



Over the past 30 years, China’s economy has grown more than ten-fold. On an annualized basis, that works out to a remarkable 10% per year. (In comparison, the U.S. economy has advanced just 2.8% per year.)



What’s more, China is sprinting up the list of largest economies. In fact, China recently overtook Japan for second largest economy in the world.



Now, China has the US in its crosshairs.



Many experts believe China will pass the US in the next 15 to 20 years. No easy task considering the US economy is nearly three times larger than China’s. But according to Goldman Sachs, China will bypass the US as early as 2027.



How will it happen?



They’re going to continue developing the country’s infrastructure through massive investment in heavy industry. And at the same time, they plan on holding the top spoin world exports by further promoting private investment in the country’s light industry.



This bodes well for the country’s many industrial companies involved in building out China’s massive infrastructure. It’s also a positive sign for the thousands of manufacturing firms making up China’s export machine.



It all points to significantly higher stock prices next year... but that's not the end of the good news for investors.



There’s also another new policy… one that will stimulate even more growth and push China over the top.



I’m talking about policies for waking the sleeping giant that is China’s enormous consumer base. Consumer spending in China is very low compared to the US and Europe. But it’s poised to expand at a rapid clip in the decades ahead.



You see, China’s new five year plan places a high priority on boosting per capita income.



Right now the average Chinese citizen makes just $6,838 a year. While that’s 14 times larger than in 1980, it’s still far less than the average American’s income of $46,436. But it won’t stay that way for long.



The Chinese government’s now focusing on closing the income gap.



By investing more into social programs, the government will lower the cost of home ownership, health care, education, and caring for aging relatives. Four of the biggest expenses for the average Chinese citizen.



This means consumers will have more money to spend on discretionary items in the years ahead. Think about that-- 1.3 BILLION people with more money to buy cars, clothes, appliances, computers, smartphones, household products, jewelry and so on.



And don’t forget… we’re talking about a huge number of people spending these dollars.



With over 1.3 billion citizens, China has the largest population in the world. What’s more, over half the population now lives in the country’s fast growing cities. These citizens have higher incomes than their rural brethren and a taste for the higher standard of living their money can buy.



Here’s the key… the urban population makes up the country’s mushrooming middle class.



The size of China’s middle class is a frequent topic of debate. But most experts say it numbers between 80 and 230 million people. And while there’s disagreement over the current size, everyone agrees it’s only going to get bigger.



Here's why…



Over 600 million Chinese still live in the poorer rural areas of the country.



They’ve stood by and watched as their urban brothers’ incomes and standard of living rose much faster than their own.



Wanting more for themselves and their families, many rural Chinese are making their way to the cities.



As a result, the urban population is growing fast…



Most estimates put the number of rural Chinese migrating to the cities over the next two decades between 300 and 340 million. And by 2030, the number of Chinese living in the nation’s cities is expected to reach a jaw-dropping 1 billion!

This can mean only one thing, China’s middle class is poised grow into the largest consumer block the world has ever seen!



In fact, Euromonitor projects China’s middle class growing to a whopping 700 million people by 2030. That’s more than twice the size of the entire US population. A veritable army of Chinese consumers with money to burn.



Clearly, the companies catering to this group are sure to see huge top and bottom line growth in the years ahead. And guess what that means? STOCK PRICES GOING THROUGH THE ROOF IN 2011!



While rapid growth in GDP is a major growth driver for Chinese companies and stocks, it’s not the only one. Let’s take a look now at another powerful source of growth.





Why The Fed’s QE2 Is Bullish For Top Chinese Stocks in 2011



This past November, the U.S. Federal Reserve announced a second round of quantitative easing for the struggling U.S. economy.



Fed Chairman Bernanke explained the Fed would buy up to $600 billion worth of U.S. government bonds by the end of June 2011. The idea is the infusion of liquidity into the monetary system will stimulate lending and ultimately economic growth.



The phrase “quantitative easing” is just the Fed’s fancy term for “printing money.”Basically it's a way to expand the supply of money out there.



But here’s the key…



Not all of this new money will stay in the U.S. economy.



A good portion of it will find its way into China. You see business people have a habit of deploying capital where it will earn the highest returns. Right now that area is the emerging market economies.



And the most attractive emerging market economy is China.



To put it plainly, QE2 is creating a tidal wave of cash that’s about to wash over the Chinese economy. Tens of billions of dollars are expected to flow into Chinese companies from foreign investors every month.



And the first waves are already washing ashore.



The People’s Bank of China (PBOC) just reported “capital inflows to China increased 79% month-on-month to $77 billion in November.” According to the PBOC, “investors have moved in to take advantage of China’s strong overall economic outlook and more attractive returns.”



Here’s the upshot…



This huge flow of foreign money into Chinese companies will spur outsized revenue and earnings growth for years to come. Higher growth in turn should attract more investors to top Chinese stocks for 2011. And greater demand for these stocks should drive prices higher in 2011.



The machinations of the Fed will definitely help Chinese stocks next year, but there's another stimulus plan out there that will have a far greater impact...





Chinese Stimulus Still Creating Growth Two Years Later



When the global financial crisis hit in the fall of 2008, all eyes were focused on the US. World governments, investors, and ordinary citizens the world over watched and waited with baited breath. They wanted to see what the U.S. would do to prevent the world from falling into an economic abyss.



But, as usual, Congress did what they do best… argue about what to do without doing anything!



While US leaders were debating and posturing, China took deliberate action…



In November 2008, a full three months before the US stimulus was passed, China announced their own stimulus plan. The plan called for spending 4 trillion yuan ($586 billion) to stimulate their economy.



They didn’t form a committee to study the idea. They didn’t waste months arguing about it in front of television cameras. They moved forward as quickly as possible to save their economy (this is one benefit of the type of government China has-- they don't drag their feet on things!)



Here’s the key…



China’s stimulus not only kept their economy growing, it launched a buying spree for top Chinese stocks for 2011. From late October 2008 to early August 2009, the Shanghai Composite more than doubled in value-- with many individual securities rocketing up even more than that!



Specifically, the index surged a whopping 108%!



You see, investors realized China’s stimulus would maintain the country’s strong economic growth. And they knew this huge wave of cash would help the bottom lines of Chinese companies.



Now, here’s the best part…



This cycle is about to repeat itself but on a MUCH bigger scale. A recent news report shows China’s leaders are poised to unleash a new stimulus plan that dwarfs the massive 2008 program…



According to Reuters, China is preparing to spend a whopping $1.5 TRILLION on seven strategic industries over the next five years. Word is China’s going to invest $300 billion a year into the following industries:



• alternative energy

• biotechnology

• information technology

• high-end equipment manufacturing

• advanced materials

• alternative-fuel cars

• clean technology industries



So what do you think this tidal wave of money is going to do to top Chinese stocks for 2011? You guessed it-- it's going to fuel a superboom that could last for years!



Massive government investment is bound to drive high growth rates for companies in these industries. And private investment dollars are sure to follow pushing growth rates even higher.



In light of this shocking news, analysts are scrambling to raise their growth outlooks.



Merrill Lynch now projects China will grow 9.1% annually from 2011 through 2015. UBS upped their growth target for 2010 to 10% and expects 9% growth in 2011. And Goldman Sachs sees even more robust growth estimating gains of 10.1% this year and 10% next year.



Again, the importance of China’s staggeringly high economic growth can’t be overstated. With the economy growing 9% to 10%, Chinese companies are certain to enjoy faster growth than companies in other slower growing countries.



And when investors see this growth show up in corporate top and bottom lines, they’re going to drive Chinese stock prices through the roof!



Now, if you can believe it, there is yet another catalyst that could send Chinese stocks soaring next year. This catalyst has to do with the currency exchange rate between the Chinese yuan and the US dollar.



I know this may sound complicated, but trust me, it’s not. This is very simple stuff. The only difficult thing to understand is how such a simple dynamic could create such a huge windfall for so many Chinese companies.



As great as all that is for top Chinese stocks for 2011, there's yet another looming event that could really send shares soaring...





A Rising Yuan Would Be A Boon For Chinese Stocks of 2011



This is important to understand...



In July, growing criticism from world leaders pushed China to make a major change in their monetary policy. They finally de-pegged the Chinese yuan from the U.S. dollar. The news took everyone by surprise, and world stock markets rallied.



Why is depegging the yuan a good thing for stocks?



Given the strength of China’s economy and their stellar balance sheet, the yuan is likely to increase in value against the dollar and other world currencies. While Chinese exporters will feel a pinch, many Chinese industries will benefit from a stronger yuan.



First, Chinese companies buying raw materials in the international market will pay lower prices.



Remember, many commodities are priced in U.S. dollars. With a stronger yuan, these companies will be able to buy more commodities per yuan. This will enable them to lower manufacturing costs and boost profit margins.



Second, Chinese companies selling goods in the domestic market should see a big boost in sales.



A stronger yuan will allow Chinese consumers to buy more goods with each yuan. Again, that's 1.3 billion people buying more stuff from Chinese companies.



Armed with stronger purchasing power, spending by Chinese consumers should skyrocket. And of course, greater consumer spending will drive higher sales and profits at Chinese companies.



But here’s the best part…



If the yuan does rise against the dollar, the biggest winner will be shareholders of U.S. listed Chinese stocks of 2011. You see, the share prices of these stocks should surge if the yuan appreciates significantly (US is calling for 20% appreciation).



Here’s why…



Because the shares are valued in dollars, they will lose value every time the yuan appreciates. The only way to close the gap is for stock prices to increase and raise market valuations to the appropriate level.



Thus, a stronger yuan means higher stock prices for US listed Chinese stocks in 2011!



Now, to be clear, I’m not calling for a huge rise in the yuan immediately. The Chinesegovernment has made it clear they’re only going to allow the yuan to appreciate gradually. However, if the Chinese do allow the yuan to surge in value (as many economists and analysts are predicting), Chinese stocks are going to skyrocket.



In fact, we're already seeing it in one area that tends to lead the market...





Exploding Chinese IPO Market Indicates Huge Demand For Chinese Stocks of 2011



As you might expect, based on what I’ve told you so far, investors are tripping over one another to get into Chinese stocks for 2011. And nowhere is this more apparent, than with Chinese IPOs.



According to Barrons, “Chinese IPOs running across a number of industries have been hot tickets in recent months.”



A big reason for the surge in investor appetite for Chinese companies is an increase in quality. Barron’s goes on to report seeing a larger number of “bona fide companies with year-over-year revenue growth and strong profit.”



What’s more, investing in Chinese IPOs this year has been very profitable for investors. Half of the 10 largest IPOs this year have been Chinese companies.



Check out the stunning performance of a few recent Chinese IPOs…



• Jinko Solar (JKS) hit a high of $41.75 on November 4, 2010 for a gain of 318%



• HiSoft Technology (HSFT) hit a high of $33.47 on December 2, 2010 for a gain of 235%



• ChinaCache International (CCIH) hit a high of $35.00 on November 12, 2010 for a gain of 152%



China Kanghui Holdings (KH) hit a high of $23.16 on December 2, 2010 for a gain of 126%



• Soufun Holdings (SFUN) hit a high of $95.50 on November 11, 2010 for a gain of 125%



• China Lodging Group (HTHT) hit a high of $27.50 on October 15, 2010 for a gain of 124%



All of the above stocks did an IPO this year. And within a few months, all of them doubled in value, with some even tripling and quadrupling.



Clearly, demand for Chinese IPOs is strong. And investors are making a killing in short order.



With the global IPO market heating up, it looks like 2011 will be even better for a whole new batch of Chinese IPOs. Savvy investors knowing which ones to buy should be able to capture huge gains.





Putting It All Together



No question about it, Chinese stocks look to be THE best investment opportunity of 2011. Investors who know which trends to play and what stocks to ride are poised to rake in ENORMOUS profits.



Now, we’ve covered a lot of ground, so let’s take a minute to review.



China’s red-hot economy, with GDP growth in the 9% to 10% range, is going to continue driving strong revenue and earnings growth for Chinese companies.



On top of this, foreign investors are going to dump tens of billions of dollars more into Chinese companies thanks to the Fed’s QE2. And, on top of that, the Chinese government will throw in another $300 billion a year into strategic industries.



Then take into account a rising yuan and a red-hot IPO market and you have the makings of bull market unlike anything we've seen for quite some time!



Hopefully, you can see the trend we’re seeing. A tidal wave of cash is about sweep across China. And you know what they say about a rising tide… it lifts all boats!



The question now is what’s the best way to take advantage of this trend? Keep reading, and I’ll share with you a little known secret for reducing your risk while capturing the huge potential upside in Chinese stocks for 2011.





The Best Way To Access China Stocks for 2011



If you’ve read this far, you now understand the once-in-a-lifetime opportunity Chinese stocks are presenting for 2011. You see how strong economic growth, $1.5 trillion in government spending, the Fed’s quantitative easing, a rising yuan, and a strong IPO market all point to monumental growth for Chinese companies.



You’re ready to put some money to work. But you’re not exactly sure how to invest in Top Chinese stocks for 2011. This is a problem for many investors because China is still closed off from the outside world in some ways.



If we were talking about nearly any other country, you’d simply place buy and sell orders through your broker, who would make them for you on that country’s stock exchange. But, China’s stock market is unlike any other in the world.



Let me explain…



China has many different kinds of shares trading on their exchanges. It’s a confusing alphabet soup of A shares, B shares, H Shares, and so on. However, the bigger problem is, unless you’re a Chinese citizen or an institutional investor, you can’t even trade these shares for the most part.



Fortunately, there’s a better way to trade Top Chinese stocks for 2011…



Over the past decade, hundreds of Chinese companies have listed their shares on the New York Stock Exchange, the American Stock Exchange, and Nasdaq. And many more are trading on the OTC Bulletin Board.



In other words, you can find a large number of quality Chinese companies from a wide variety of industries.



More importantly, these Chinese companies have complied with the US exchanges’ stricter transparency, financial reporting, and accounting standards. You can have much greater confidence in the numbers reported by these companies than those listed on the Chinese exchanges.



Clearly, there’s no better way for individual investors to invest in Chinese stocks than to stick to those listed on U.S. exchanges. But which companies offer the greatest upside?





These Are The Stocks To Invest In To Take Adnatage Of the Boom In China



We have identified seven investment themes for China in 2011. These themes cover a broad spectrum of the Chinese economy. And we believe the stocks involved in these themes offer the highest upside potential (and least amount of risk).



Theme #1: Energy



China’s massive population and fast growing industries require an ever increasing amount of energy. This surging demand for all kinds of energy is driving huge growth in industries like oil and gas, coal, and nuclear power.



And since most of China’s electricity is still generated from coal, there is now rising demand for clean technology solutions. By utilizing clean technology, the country’s thousands of factories can help lower their harmful emissions.



Theme # 2: Transportation



Companies involved in building out China’s transportation infrastructure should continue growing rapidly. The government’s spending billions to build more highways, roads, bridges, railways and ports. China already has the world's second-longest set of freeways covering 28,210 miles as of 2006. This infrastructure is critical to the country’s economic growth.



In addition, China has quickly become one of the world's largest market's for automobiles- with plenty of room for further growth. Keep an eye on automakers as they all race to expand market share in China.



Theme #3: Travel/Tourism



With the country’s phenomenal economic growth, the number of millionaires and affluent citizens has grown rapidly. And one of their favorite things to spend money on is travel (provided they can get government permission of course). This powerful consumer block is driving strong growth in China’s tourism industry. Airlines, hotels, travel/ticketing agencies, entertainment businesses (casinos), and cruise lines are all benefiting from this trend.



Theme #4: Agriculture



With 300 million farmers, China is number one in the world in farm output. This means demand for farming equipment, fertilizer, seeds, and livestock feed is robust and steady. Companies operating in this industry are looking at huge growth going forward.



Theme #5: Consumer Spending



With the ongoing expansion of China’s middle class, spending on consumer products is going to rise sharply. They’re going to be buying all the same things we buy here (except for many Chinese it will be the first time).



Think of all the cars, home appliances, household products, clothes, computers, smartphones, TVs, and so on. And add on to those luxury items like luxury vehicles, jewelry, watches, designer clothing, yachts, and second homes (China is already the world's second largest buyer of luxury goods). The companies supplying these goods stand to make gobs of money.



Theme #6: Massive Population



The sheer size of China’s population is going to drive phenomenal growth in certain industries. Take healthcare for example. Think of the hundreds of millions of patients buying drugs, using medical devices, and using hospital services.



Education is another area. Businesses providing testing, tutoring, vocational, and post-secondary education services are seeing huge increases in student enrollments every year.



And don’t forget housing and construction. You need a lot of apartments and homes to shelter 1.3 billion people.



Theme #7: Banking and Financial Services



This is another population driven theme. Over a billion Chinese need bank accounts, financial planning, and insurance. And, the expansion of the country’s financial markets is creating huge opportunities for investment banks handling mergers, acquisitions, and IPOs. Nearly every financial firm in the world is banging on the door to get into China!





The Easiest Way To Make A Fortune In Top Chinese Stocks For 2011



By now it should be obvious that top China stocks could absolutely take off in 2011. All the catalysts are there. The only question is, “which China stocks should I buy”? As many of you already know, investing in top Chinese stocks is even more challenging than investing in stocks of US companies.



You have to understand how the Chinese economy works. You need to be aware of the impact the Chinese government can have, both positive and negative, on any given industry. And most importantly, you have to have the experience to sift through these companies to find the ones that will really soar.



If you have the time, knowledge and experience to do all this, that’s terrific! But for those who don’t, Hyperion Financial will soon be launching its first ever trading service dedicated solely to top China stocks for 2011!



Called China Stock Insider, this new service will focus on discovering only those China stocks and IPOs that offer outstanding profit potential without all the risk you’d normally associate with these types of stocks.



As this new service demonstrates, we feel VERY strongly about China for 2011. We truly believe you can make an absolute killing over the next 12 months with these exciting stocks…



Now, we’re still putting the final touches on the service but should have everything ready to go by the first week or two of January. Keep an eye on your email inbox for more information over the coming weeks… this is going to be big!

Top Stock Picks For 2012

Top Stock Picks For 2012: Yongye International

by Jim Trippon, editor Global Profits Alert



Yongye International (YONG) is a leading developer, manufacturer, and distributor of plant and animal nutrient products in the People's Republic of China.



Its plant nutrient product can significantly increase the plant's output and nutritional value and improve its taste.



As a result of receiving greater value in the marketplace, Yongye says its product helps increase farmers' incomes and improves their living standards. Directly addressing the need for greater e#ciency and more environmentally friendly require?



ments in the agricultural sector, Yongye's products dramatically increase the quality of crops and yields, and improve the health of livestock, according to the firm. The company is striking for its valuation with a bargain basement PEG ratio of only 0.15 Yongye has impressive financials with gross margins above 57 percent and a profit margin of 24.86 percent. Earnings per share are expected to climb 43 percent next year.



While the company has only been in operation a short amount of time, its predecessor, Inner Mongolia Yongye Company, had over 15 years' operational history which it has passed on to Yongye.



From this experience, Yongye International says it aims to inherit its predecessor com?pany's managerial experience and corporate culture to continue emulating its long-term success.



Learn more about this financial newsletter at Jim Trippon's Global Profits Alert.

Permalink: [613] Top Stocks To Buy - Top Stock Picks For 2012



Top Stock Picks For 2012: Uranium Resources

by Brendan Coffey, editor of Cabot Green Investor



Zero emissions is the holy grail of green technology as the world looks to grapple with the converging pressures of tight fossil fuel supplies, air quality issues and global warming.



I see the push for zero emissions reviving a technology once largely written o": nuclear power. In light of this, my top pick for 2011 is Uranium Resources (URRE). At this moment, some 60 nuclear plants are under construction worldwide. In the U.S., where nuclear plant construction has been dormant for decades, as many as eight new plants are scheduled to be built by 2020.



China, the fastest growing energy user in the world, should be a major driver in the market: It's building 30 nuclear reactors right now to add to its existing 12 and has an additional 157 planned.



In the next 20 years, global annual uranium demand is projected to double and the supply pressure is already starting to be seen.



From May to December 2010, uranium prices rocketed up 50% and appear set for a stronger 2011 as the market prepares for the end of the Megatons to Megawatts program in 2012.



Uranium Resources is a small uranium miner in Texas, which has produced 8 million pounds of the commodity in its 33 years of operation.



The real value in URRE isn't in its mining abilities however—it's a relatively high-cost producer, and it stopped mining for the first part of 2010 due to soft prices. Rather, over the years it has amassed parcels in New Mexico that hold over 101 million pounds of uranium, giving URRE the eighth-largest uranium reserves in the world.



By comparison, industry leader Cameco has just nine times the reserves of Uranium Resources but 50 times the market value.



That makes URRE ripe for a takeover. Until then, its share price tends to trade in tandem with uranium's price, meaning the coming year should benefit shareholders regardless of whether a takeover bid materializes.



Learn more about this financial newsletter at Brendan Coffey's Cabot Green Investor.





Top Stock Picks For 2012: Scientific Games

by Jason Shade, editor Texting Trader



As is the case with most of my trades and recommendations, my stock prediction for 2011 is a company that many of my peers are not giving much attention.



Scientific Games (SGMS) is a turnaround story that intrigues me and I select owning it as my top stock idea of 2011.



SGMS is an $882 million global leader in providing customized, end-to-end gaming solutions to lottery and gaming organizations worldwide.



Scientific Games' integrated array of products and services include instant lottery games, lottery gaming systems, terminals and services, and internet applications, as well as server-based interactive gaming machines. Scientific Games serves customers in approximately 50 countries.



After peaking at a high of $40 in 2007, this legalized gaming services provider has seen its shares collapse during the recent economic crisis.



The stock bottomed out earlier this year at $6.58 following a weak quarterly earnings report in which the company reported a .04 a share miss with revenues that also were on the light side.



Whether it was this earnings report or the prior three years of underperformance, the board and investors decided to reinstate SGMS's Chairman and former CEO Lorne Weil as CEO of the company.



Weil was at the helm during the stock's last major run from 2000 to 2005 and his returning to lead the firm is a positive catalyst for the success of SGMS and its potential return to prosperity.



Investors also can take heart in the recent binge of insider buying that accompanied Weil's return to the C-suite.



In December, management and insiders accumulated more than 4 million shares of company stock between the prices of $7.89 and $9.75 a share. One buyer of particular interest is long-time Wall Street investor Ron Perelman. Perelman now owns more than 30 million shares of the company stock. Most of his ownership is at much higher prices, including a large purchase of 400,000 shares at $14.26 a share last March.



Finally, you can't have a good corporate turnaround story without improving business fundamentals. Herein lies the challenge to management, the company and its stock. The last earnings report was anemic, but there are encouraging signs demonstrating that SGMS is committed into cleaning up its balance sheet and positioning the firm for sustainable growth in the coming years.



At the end of November, the company retired nearly $80 million in short term debt by issuing Senior Subordinated Notes due in 2018.



SGMS already boasts an 80% market share in the U.S. lottery market. Thus, the real growth engine for the firm will come from emerging markets.



SGMS is already focusing on growing these markets by working on gaining a larger footprint in the China market where its instant ticket retail sales have posted an impressive 28% gain in the latest quarter.



Following this success is a recent agreement signed between SGMS and China Sports Lottery Printing which o"ers great growth opportunities for this fast-expanding market. I find this even more intriguing as we have seen gaming stocks such as Wynn Resorts and Las Vegas Sands provide investors with huge gains based on their sales growth in Macau.



At some point, I expect analysts and investors alike to begin waking up to the Asian growth story happening at SGMS.



Like all companies, SGMS does face competitive pressures in all markets. In fact, last year the firm reported operating margins of 23%, a 5 year low for the company. This will need to be monitored over the next couple of quarters along with EPS and revenue growth.



Nevertheless, I see the recent management shakeup, swell of insider buying and market expansion in Asia to o"er investors a compelling turnaround story worth gambling on. I have a 12-month price target of $17 on SGMS.





Top Stock Picks For 2012: Seadrill

by Elliott Gue, editor The Energy Strategist



Seadrill (SDRL) is the best-placed contract driller in my coverage universe. The company doesn't produce or explore for oil and natural gas; rather, it is in the business of owning drilling rigs that are leased out to major producers for a daily fee known as a day rate.



There are three major reasons to buy Seadrill. First, the company has the youngest and most advanced ?eet of drilling rigs of any of the major contractors.



Second, Seadrill's rigs are primarily booked under long-term contracts at attractive rates for several years into the future, providing a guaranteed backlog of cash how regardless of the path of commodity prices.



And finally, Seadrill has a policy of paying out sizeable quarterly dividends supported by its backlog of rig contracts.



In the most recent quarter, Seadrill paid $0.65 per share, equivalent to an annualized yield of approximately 8 percent at the current price.



I see the company boosting its payout to around $0.75 per quarter by the fourth quarter of 2011; given strong investor preference for income-paying stocks, a growing dividend will continue to drive further upside in the stock.



Seadrill owns a feet of sixteen deepwater drilling rigs including ten semi-submersibles and six drillships.



The average operating Seadrill rig is less than five years old and that only includes the 13 rigs currently working on contracts.



The remaining 10 rigs in the feet were all built between 2008 and 2010 and are of the most modern and capable design.



All are ultra-deepwater rigs able to drill in waters more than 10,000 feet deep and are powerful enough to complete wells more than 6 miles in length.



Deepwater operations are only going to get more complex in coming years; as a result, producers need the most advanced, state-of-the-art rigs In addition to its deepwater feet, Seadrill also owns around 20 shallow-water jackup rigs and 17 tender rigs that are used to ferry people and equipment and to support o "shore drilling operations.



Seadrill has a backlog of over $8.5 billion in contracts covering its deepwater rigs, $2 billion covering its jack-ups and $1.5 billion for tender rigs.



Since these revenues are essentially guaranteed under long-term deals signed with major oil and gas producers, this represents a highly visible stream of cash?ow over the next few years.



With a ?eet that's ideal for the current market, a growing 8 percent yield and opportunities to grow via new rig construction, the stock rates a buy under $38.





Top Stock Picks For 2012: Siga Technologies

by Dennis Slothower, editor Stealth Stocks



Last year for my favorite stock pick, I recommended IMAX which more than doubled. This year I would like to recommend Siga Technologies Inc. (SIGA), a bio-defense company that o"ers the same kind of upside potential for 2011.



In 2004, the US started an initiative called Project BioShield, which gave the government the right to purchase and stockpile vaccines and drugs to fight anthrax, smallpox and other potential agents of bio-terror.



SIGA is a leader in the development of pharmaceutical agents to fight potential bio-warfare pathogens and their ST-246 drug is considered to be the only known cure for smallpox, which the government is keenly interested in.



Recently, BARDA has stated their intent to award SIGA a $500 million contract, with options that potentially could be as high as $2.8 billion in orders. However, SIGA is being challenged in court by a competitor as being too big as a company to qualify for the government contract.



In fairness, BARDA has announced plans for a market survey to determine, whether there are any qualified small businesses with the capacity to produce an adequate supply of smallpox antiviral medication for the National Strategic Stockpile. It is unlikely that a small company will be able to meet the government's needs as the drugs expire and need to be constantly replaced.



It is expected that SIGA will win this contract and if so investors could be rewarded with a double or triple in appreciation.





Top Stock Picks For 2012: PMC Sierra

by Paul McWilliams, editor Next Inning



PMC Sierra (PMCS) is a top speculative investment for the coming year. The company is a leader in the field of integration. By integrating more functions into a single chip, the company has doubled its market share in the SAS storage market as the industry moved from 3Gbs to 6Gbs."



The company is also building significant traction with its single-chip "RAID on a Chip" solution and has leveraged its integration talent to become one of the dominant suppliers in the FTTx space serving both GPON and EPON requirements.



Most recently, PMCS announced its acquisition of Israeli based Wintegra -- a private company and the world leader in network processors for access networks. "



The market for network processors in access applications, which includes broadband wireless backhaul, is just now building traction, and Wintegra will likely dominate the market for at least the next few years."" As I see it, the acquisition makes a ton of sense from many perspectives." First, as I noted, Wintegra is the leader in a market that is set to expand rapidly during the next few years. "



Second, once we factor in the Wintegra balance sheet and PMCS minority ownership (yes, PMCS was a venture" investor in Wintegra), PMCS paid only about $205M net for the company. "



Third, PMCS and Wintegra" have worked together for years and in many of the design wins you'll find a PMCS and a Wintegra chip sitting side-by-side. "



This means there is a very good integration opportunity for PMCS to put the functions of both chips into a single chip, and by doing so extend competitive advantages and lower costs.



The short story is that in spite of the fact that the company has topped the earnings consensus for six out of the last seven quarters, and equaled it for the" seventh, Wall Street still insists on slapping the stock with a huge risk discount. "



I believe as PMCS maintains this practice of topping Wall Street projections the risk discount will be removed, and with that, the forward price to earnings (valuation multiple) will rise considerably.



Top Stock Picks For 2012: PowerShares DB Agriculture ETF

by Gene Inger, editor The Inger Letter



One of the easiest ways to participate in the long-term demand for corn, wheat, cotton etc. is with a soft commodity-based exchange traded fund.



We recommend the PowerShares DB Agriculture ETF (DBA), our top pick for 2011. We believe the economy is entering a period of 'hyper-stag?ation', where prices for life's necessities -- such as gasoline, food and utility rates -- will rise persistently over time.



The owerShares DB Agriculture ETF -- soft commodity-oriented exchange traded fund -- is one of the easiest ways to participate in the long-term demand for corn, wheat, cotton etc. is



This ETF has shown fairly steady progression over time. Given steady in?ation in food costs, soft commodities are likely to rise, with periodic bouts of selling and volatility. We think an investment retained over time in 'soft commodities', is relatively low risk contrasted to volatility in markets such as Oil, or the extended Gold market for now. Why? With Asian demand bound to increase over time, soft-commodity demand will too.



Nevertheless we caution investors against chasing strength; rather, one strategy to avoid timing is to scale into one's position over time. If you scale-in, you get benefits of ensuing pullbacks while holding an initial stake.





Top Stock Picks For 2012: Canadian Oil Sands Trust

by David Dittman, contributing editor Canadian Edge



Canadian Oil Sands Trust (COSWF) has clearly lagged broad-based and energy-sector benchmarks alike over the trailing 12 months. A series of unplanned turnarounds at the Syncrude operation, of which Canadian Oil Sands owns 36.7 percent, have analysts questioning whether rising costs will ever allow Canadian Oil Sands to really benefit from elevated oil prices.



And the very skeptical wonder if actual output will ever match Syncrude's capacity potential. All in all, after years of hype and outperformance the bar is now set rather low for Canadian Oil Sands. The stock is likely to revert back to its usual pattern of trading in sympathy with crude oil prices, a relationship that did break down in 2010.



New demand from Asia, old demand in the developed world and a desire from investor for hard assets will keep the per barrel price of oil elevated over the next 12 months.



Canadian Oil Sands will restrain the excruciating growth of unplanned turnaround costs, and Syncrude will get on the path to realizing its potential.



At the new rate of CAD0.20 per share per quarter, the stock will yield about 3 percent. The stock has taken a hit in the second half of 2010, and management has shown it will boost the payout to re?ect upside oil-price surprises. Soon-to-convert Canadian Oil Sands Trust is a solid total return play on one of the world's most intriguing resource stories, set up for capital appreciation as well as dividend growth. Buy it up to $28.





Top Stock Picks For 2012: Catlin Group

by Vivian Lewis, editor Global Investing



Insurers benefit when things go wrong. That explains our latest pick, Catlin Group (CNGRY). Incorporated and regulated in Bermuda, listed primarily in London as CGL, the stock's ADR is equal to two British shares.



It is the largest syndicator at Lloyd's of London, the reinsurance business. It's also a favorite holding of institutional investors.



It very conservatively invests its premiums, in cash and fixed income with only 2.5% in hedge funds, yet it managed to produce a return on equity of 1.8% in H1 and of 2.9% in 2009 and Q3.



It keeps raising its dividend, more steadily if you buy in sterling than the ADR. Given its current yield of 6% I'm satisfied with the payout but Citigroup analysts say it will go to 7.7%..



It's a family businees, under CEO Steve Catlin, established as a Lloyd's underwriter in 1984.



It's green, funding the Catlin Arctic Survey to measures the thickness and density of ice foes in the Arctic Sea and carbon dioxide absorption (ocean acidification). Nice but not why to buy.



Rather, you should buy because Catlin is a globally diversified insurance business operating 88-89% in US dollars. It is quick to develop new businesses to benefit from macro-economic trends.



It shifted its casualty lines from insuring British solicitors and surveyors, to hot button more profitable US insurance lines: medical malpractice; directors and o#cers (D&O) insurance; cover for architects, engineers, and construction and design professions; and environment risk.



Catlin justifies these new lines (priced by its experienced actuaries) as "short tail" controlled latent risk cover for underserved niches.



Longer-tail risk is very selectively underwritten by Catlin based on claims made. (Tails refer to the extremes of a normal curve, the unexpected events. Longer-tails mean unexpected payouts.)



"Crysalis" is innovative oil production insurance, launched in Feb for oil and gas drillers. New business is booming post-Gulf of Mexico, and not just from US drillers.



BP's disaster explains the rush for Crysalis cover. BP had a Bermuda "captive" (self-financed) insurance firm.



What it will be able to collect for its captive, say industry sources, is $1.5-3.5 bn. Against this, the economic loss from the Gulf disaster is $40 bn. And since the Macondo sank, BP shareholders losses from the stock's drop topped $73 bn, a compelling argument for buying insurance. Crysalis standard contracts cap the amount of cover per event at $200 mn, and per company at $100 mn, shortening the tail.



Not everything went Catlin's way. Its first half earnings were nipped 8% from prior year by Chilean earthquake claims and the Gulf of Mexico. However, we had a benign hurricane season.



And for all the dollar's appeal, getting a decent investment return is not easy in the present QE2 environment.



If in?ation takes o", claims will be higher and coverage from investment income lower. But then Catlin can raise its premiums. And it may have shifted the policies it o"ers into another currency.



Citi expects the total payout next year for this "undervalued" (rated low risk, high return) share to come to 23.4% in sterling, and 16.6% in dollars at its target price of $12.80. Citi's 2010 profit forecast is $369 million, vs $243.8 million in 2009 and $384.9 million in 2008. (Per share, the hit was even greater in 2009 because Catlin did a rights o "ering to invest more during the crisis.).



Its Sept. quarter saw Catlin premium income up 9% and earned income up 13%. Market cap is $1.982 billion, with the ADR stock at $11.50. It has an A.M. Best A rating from the insurance watchdog.



Its combined ratio, a key metric, is 97% -- meaning expenses are 97% of premium income so underwriting was 3% to the good before any investment income. Buy CNGRY.







Top Stock Picks For 2012: Aflac

by Richard Moroney, editor Dow Theory Forecasts



Aflac (AFL) represents a top year-ahead pick based on its solid operating momentum and modest valuation. In our proprietary ranking system (known as Quadrix), the stock earns an Overall score of 99. At 10 times trailing earnings, the shares trade 33% below the five-year average P/E ratio of 15.



The insurer's sales rose 13% in the first nine months of this year, while free cash how rose 12%. At 10 times trailing earnings, shares trade 32% below the three-year average P/E ratio. Arac continues to grow in Japan (about 75% of sales), but growth in the U.S. (roughly 25%) has been tougher to find.



Management remains cautious about its U.S. outlook, but it should benefit as small companies, which make up a large portion of the domestic business, begin to hire again. A?ac -- yielding 2.2% -- is a Focus List Buy and a holding on our Long-Term Buy list.



Top Stock Picks For 2012: Allot Communications

by Ian Wyatt, editor Small Cap Investor PRO



The smartphone revolution -- with web-browsing, video-watching, music-streaming mobile devices -- has made bandwidth a scarce resource.



That's where Allot Communications (ALLT) comes in. Allot is an Israeli company that develops deep packet inspection (DPI) technology specifically designed to manage bandwidth use Consumers want phones that let them listen to music, surf the web, watch video, and access a wide array of applications. Maybe even occasionally make a call or two. Allot's solutions are critical for Internet Service Providers (ISP), cable companies, landline operators, mobile phone companies, businesses and governments.



The company has consistently grown overseas in Europe, Asia, and South America. The U.S. still represents a huge growth market, if and when regulations permit carriers to implement Allot's technology. Allot's third quarter was a good one. The company increased revenue by 36 percent to $14.7 million year-over-year.



Quarter-over-quarter revenue also increased, by 8 percent, marking the sixth consecutive quarter of sequential revenue growth. On a GAAP basis, Allot earned $0.03 per share, a nice improvement over a $0.10 loss in the third quarter of 2009.



But what I really like here is that the company ended the quarter with $56.2 million in cash and essentially zero debt. Allot is a play on the future growth of smartphones, and the near certainty that service providers will segment bandwidth in order to design service plans tailored to customer behavior.



What's more, this tiny company is a potential takeout candidate and management has shown an ability to orchestrate acquisitions in the past.





Top Stock Picks For 2012: Cisco Systems

by Lou Basenese, editor White Cap Research



One a theme that hasn't worked in, well, forever - large cap technology stocks; many large cap tech are trading at historically low valuations.



As a contrarian, I'm picking the most contrarian large cap technology stock out there: Cisco Systems (CSCO), which could be a top-performer in 2011. Cisco also happens to be one of the cheapest of the large cap tech stocks.



I'm well aware the network equipment maker isn't exactly enjoying halcyon days. After all, when the company reported third quarter results, it lowered guidance. And investors dumped the stock en masse. Shares fell 16% in a single day. Mind you, that's a colossal move for a $100 billion market cap company.



Here's the thing - the shares are dirt cheap, trading at almost a 40% discount to their historical price-to-earnings ratio. In fact, at 14 times earnings, Cisco's the cheapest it's been in over a decade.



Not only that, it remains the dominant player in the space. Its Ethernet switches, which move data along local networks, control 70% of the market.



Meanwhile, its closest competitor only boasts a 10% market share. Cisco's routers, which move data across long distances, also enjoy similar market share advantages. I'm sorry, folks. Internet tra#c is only headed in one direction. Straight up By as much as 50% per year, according to some estimates.



And such a steady increase all but guarantees steady demand for Cisco's products. Especially since switching costs in the industry are high. In short, this dominant market leader, which expects to grow earnings up to 15% per year, is just too darn cheap.



While most investors fear buying stocks bouncing around their 52-week lows, don't fear this one. A historically low valuation, $39 billion cash pile and a newly announced $10 billion worth of stock repurchases provide ample downside protection.

Best Value Stocks For 2011

With best advisors participating in this year's survey, there's something for every type of investor, from high quality blue chips to speculative home runs.



As always, we caution you to only use these ideas as a starting place for your own research and only buy stocks that meet your own personal investing criteria, your risk parameters, and your time horizon.



Importantly, these stocks represent each advisor's current outlook. As fundamentals change during the year, a favorite "buy" can become a strong "sell". As such, It is up to each investor to monitor future develops at the underlying companies to be sure that the reasons behind buying a stock remain in place. We wish you the very best for your investing in 2011.

Permalink: [612] Top Stocks To Buy - Best Value Stocks For 2011

Best Value Stocks For 2011: Aastrom Biosciences

by John McCamant, editor The Medical Technology Stock Letter



We are recommending Aastrom Biosciences (ASTM) as our top stock recommendation for 2011 because we believe that they are the clear leader in the regenerative stem cell space.



The company is focused on the development of autologous cellular therapies for the treatment of cardiovascular diseases utilizing its Tissue Repair Cell (TRC) technology. We are impressed with the Phase II clinical data sets we have seen in Critical Limb Ischemia (CLI) and ASTM will start a Phase III development program to treat CLI patients in 2011.



More importantly, we believe that ASTM has the experienced and motivated management team with a proven track record of creating shareholder value. Tissue repair cell (TRC) technology is ASTM's platform for processing a patient's bone marrow cells into a therapeutic treatment. The collected sample of bone marrow will contain mostly hematopoietic and endothelial stem cells.



Simply put, ASTM's technology increases the amounts of other types of cells in a way that mimics the response to a wound, increasing the sample's regenerative properties. When the cells are re-inserted into the patient they act in harmony to regenerate the vasculature (in the case of CLI).



ASTM has published convincing research, corroborated by independent experts, that a mixed population of stem and progenitor cells is optimal for regenerating tissue, and it makes sense intuitively that many cells will work better than a single type since the body naturally uses many di"erent cell types acting in concert. In addition to the CLI clinical program, ASTM also has an ongoing program to use the TRC technology to treat dilated cardiomyopaty (DCM).



DCM is an enlargement of the heart due to weakening, leading to further degradation of cardiac function and associated with end- stage heart failure.



The only option left for these patients is a heart transplant, but ASTM's technology may help to regenerate the heart and add time and quality to these patient's lives. Both of these clinical programs and ASTM's TRC technology are protected by a strong intellectual property portfolio.



We are very familiar with ASTM's new CEO, Tim Mayleben, who took over the reins at the Company late last year.



Mr. Mayleben served as COO of Esperion Therapeutics, where he led the raising of more than $200 million in venture capital and institutional equity funding. On top of that, far and away his most impressive achievement was when Tim led the negotiations that triggered the acquisition of Esperion by Pfizer in December 2003 at a huge premium.



Tim has significant operations experience and has no pie-in-the-sky illusions regarding the di#culty of navigating new technologies through the FDA gauntlet. We have found through the years that it is much harder to get new technologies to market than anyone has forecasted.



This puts an even higher premium on quality management, as the promise of a technology is not enough in the hands of poor leadership. The upcoming year is shaping up to be an excellent time for ASTM. The company has recently raised cash that will enable them to start their Phase III progrma for CLI patients in 2011. We could also see the CLI Phase II data published in a peer-reviewed medical journal, which would be an important validatation of the Company's technologies and drug dvelopment candidates.



Interestingly, publication of Phase II data was one of the main drivers that got Esperion bought by Pfizer for a huge premium.



We have been impressed with ASTM's management team and have growing confidence that they will continue to deliver and create value for their shareholders. With the recent financing out of the way we believe the stock is poised to regain momentum. We are recommending ASTM as a buy under $3.50 with a one year target of $7.





Best Value Stocks For 2011: Uranium Resources

by Brendan Coffey, editor of Cabot Green Investor



Zero emissions is the holy grail of green technology as the world looks to grapple with the converging pressures of tight fossil fuel supplies, air quality issues and global warming.



I see the push for zero emissions reviving a technology once largely written o": nuclear power. In light of this, my top pick for 2011 is Uranium Resources (URRE). At this moment, some 60 nuclear plants are under construction worldwide. In the U.S., where nuclear plant construction has been dormant for decades, as many as eight new plants are scheduled to be built by 2020.



China, the fastest growing energy user in the world, should be a major driver in the market: It's building 30 nuclear reactors right now to add to its existing 12 and has an additional 157 planned.



In the next 20 years, global annual uranium demand is projected to double and the supply pressure is already starting to be seen.



From May to December 2010, uranium prices rocketed up 50% and appear set for a stronger 2011 as the market prepares for the end of the Megatons to Megawatts program in 2012.



Uranium Resources is a small uranium miner in Texas, which has produced 8 million pounds of the commodity in its 33 years of operation.



The real value in URRE isn't in its mining abilities however—it's a relatively high-cost producer, and it stopped mining for the first part of 2010 due to soft prices. Rather, over the years it has amassed parcels in New Mexico that hold over 101 million pounds of uranium, giving URRE the eighth-largest uranium reserves in the world.



By comparison, industry leader Cameco has just nine times the reserves of Uranium Resources but 50 times the market value.



That makes URRE ripe for a takeover. Until then, its share price tends to trade in tandem with uranium's price, meaning the coming year should benefit shareholders regardless of whether a takeover bid materializes.



Learn more about this financial newsletter at Brendan Coffey's Cabot Green Investor.



Best Value Stocks For 2011: VIST Financial Corporation

by Benj Gallander and Ben Stadelmann, editors Contra the Heard



VIST Financial Corporation (VIST) is our favorite investment idea for the coming year. Last April two institutional investors specializing in banking recently purchased 644,000 shares at $8.00, moving the share count to around 6.5 million. The stock fits in with our focus recently of buying financial plays. This past quarter there was a nominal loss of $602,000, knocking net income for the first nine months of this year down to about $2.5 million.



Last April two institutional investors specializing in banking recently purchased 644,000 shares at $8.00, moving the share count to around 6.5 million. Perhaps the buyers were regarding the bank's capital ratios, which exceed all regulatory guidelines.



Or maybe they like that VIST is looking to grow somewhat with the purchase of Allegiance Bank that is expected to be accretive immediately. Whatever their rationale, this pushed insider ownership to better than 11 percent.



Our target price is $24.75, a distance from the current level of around $7.00. The stock had a good stretch where it traded above this price.



The annual dividend of $0.20 will almost certainly increase if the operation returns to previous levels of profitability.



Learn more about this financial newsletter at Benj Gallander's Contra the Heard.



Best Value Stocks For 2011: PMC-Sierra

by Daniel Frishberg, editor The MoneyMan Report



PMC-Sierra (PMCS) -- our top pick for 2011 -- develops semiconductor system solutions for advanced communications.



This choice is based on our forecast is for accelerating growth in the U.S. along with powerful growth sustained in developing markets. In our view, this should lead to rapid acceleration in PMCS' stock price.



Its systems include their pioneering work on Asynchronous communication, which changed the way data packets are carried around the world via telephone networks, wide area networks and local area networks.



To understand why profits are exploding at PMC-Sierra, and why they will continue as long as global growth holds up, you only have to remember how frustrating it was to send and receive real-time entertainment and voice over the internet just a couple of years ago.



Today, our radio program is listened to all over the world, carried by small packets, on smart-phones and other devices that are far more convenient than AM radio.



Every day, we communicate for free, or very cheaply, by voice and even video, with reception that if not as good as the movies, at least works, and it is clear to us that another billion people in the world will soon be enjoying these same benefits. The PMCS' leadership in areas named by acronyms, such as ATM, WAN, LAN that few investors really understand.



While these products provide a moat around them which insures profitability, the complex nature of its systems has also inhibited the rush to buy their stock, as so many people fail to understand what the company actually does.



Nevertheless, the pent-up demand for IT infrastructure is now being satisfied, and PMCS sales are accelerating along with additional leverage a"orded by rising profit margins.



This will allow earnings to almost double if our 2010 expectations prove correct. The company has plenty of cash available to continue R&D, and to maintain a powerful pipeline of new product o"erings allowing continued improvement in service in this very hot area.



Assuming the company continues the very rapid growth in earnings, which we fully expect, the market will soon begin to a"ord PMCS much higher multiples, which could make the company one of the standout stocks for 2011.



The economic recession in the first half of 2009 does show that progress in this industry is somewhat vulnerable to interference by a declining economy. In addition, the semiconductor industry in general has always been highly volatile and economically sensitive. However, we think PMCS o"ers the right balance of risk and reward.


Best Value Stocks For 2011: Longwei Petroleum Investment Holdings

by Jim Trippon, editor China Stock Digest



Longwei Petroleum Investment Holdings Ltd. (LPH) is one of the leading diesel, gasoline, fuel oil and solvent oil distributors and wholesalers in Shanxi Province, China (near Beijing).



The company sells its products mainly to large-scale gas stations, coal plants and power supply companies, and on a smaller scale to small, independent gas stations. Shanxi Province, where Longwei operates, has no oil fields or oil refineries and thus provides a unique market space for fuel oil and petroleum products.



Longwei serves the heavy industries in this rapidly growing region. Shanxi Province's demand for fuel oil has experienced double-digit growth in the past several years. Despite the recent setback caused by derivative contracts, we share Longwei's optimism about future performance. That's why we have set such a high target sell price of $20.00 relative to the current share price.



The company has a forward P/E ratio below 4.0, and a profit margin of 12.07 percent. The company is looking for strong future growth based on rapidly increasing auto usage in China as well as rising industrial activity.



Longwei says China's rapidly growing economy will drive energy demand growth rates of four to five percent annually through 2015. Production and distribution of energy will be one of China's greatest challenges in the coming years. In its earnings report released in November the company increased its profits by a stunning 131 percent to $50.2 million for the year ending June 30, 2010 (the end of its fiscal year).



The company surpassed its revenue guidance for the period by 10 percent. In its guidance for fiscal 2011 the company projects revenues to exceed $500 million and adjusted net income to exceed its forecasted $73 million (the adjusted net of derivative and financing costs).



Best Value Stocks For 2011: Citigroup

by Jim Powell, editor Global Changes & Opportunities Report



After two years of economic declines, even the small uptick in growth we are starting to see should be a tonic for America's battered banks.



Of the major U.S. banks, I think Citigroup (C) o"ers investors the most promise; as such, I am selecting the stock as my top pick for 2011.



Banks are sitting on a mountain of federal bailout cash they want to put to work by loaning it out. Until recently, however, there was little demand for credit. Now that's starting to change.



It may come as a surprise, but the mild to moderate in?ation we can expect in 2011 can be positive for banks.



The institutions will simply increase their rates accordingly. Then they will add a little more for good measure, and for greater profits.



Although Citigroup must be considered a speculation, I think the worst is behind Citigroup, and its long-term outlook is good. Citigroup is now returning to its banking roots by providing advice, facilitating transactions, and serving consumers throughout the world.



The company is greatly expanding its operations in Asia and South America where it is finding a great deal of new business. Citigroup is nearly free of its TARP debt and the government restraints that went with it. In e"ect, the bank is "o" parole."



Once Washington has sold the last of the Citigroup stock it received in exchange for the bailout funds, I think the price will start to rise again. Citigroup is still carrying some bad paper and a lot of debt from its past mistakes. However, it appears that the bank is valuing the assets well below their fair market values.



In any event, the company is selling its discounted assets, reducing its debt, and refocusing on its strengths. Citigroup is once again profitable and should stay that way.







Best Value Stocks For 2011: Computer Sciences

by Sy Harding, editor Street Smart Report



Computer Sciences (CSC) -- our top pick for 2011 -- is a global leader in providing information technology and related services to commercial accounts and government agencies.



In our view, the wind is likely to be at the company's back as the economic recovery continues to strengthen over the next two years.



The company specializes in complex IT applications, and its services include operating all or portions of a customer's technology infrastructure, including systems analysis, applications development, network operations, and data center management. The company weathered the 2007-2009 recession with ease, but experienced sluggish growth in 2010.



However, the future looks brighter again as the company's 'qualified new-business folder' has grown 20% from a year ago, with potential for new government contracts particularly promising.



For example, CSC announced a number of deals in December, including a seven-year agreement with a major insurance company for the use of Computer Sciences' Wealth Management Accelerator software.



The company also announced a $33 million contract with the Department of Veteran A "airs, and four application management contracts with the Environmental Protection Agency.



Computers Sciences was also honored in December as '2010 Enterprise Cloud Leader' at the 2010 Cloud Expo in California for its leadership in guiding customers in the implementation of 'cloud-computing'. The shares are selling at just 8.6 times estimated 2011 earnings, and at about one times book value. We have a 12-month upside target of 60.




Best Value Stocks For 2011: Timberline Resources

by Gene Arensberg, editor Got Gold Report



Timberline Resources (TLR) is a soon-to-be gold producer that we believe has been overlooked by the market. However, we doubt it will remain overlooked for much longer.



Overall, I consider this a strongly undervalued stock that is highly likely to have a string of excellent news in 2011.



Not exactly a household name, Timberline's management teamed up with the premier underground mining and development company in North America, Small Mine Development (SMD), to develop the Butte Highlands gold deposit just south of Butte, Montana.



Timberline provided the project; SMD provides the development funding and knowhow to bring the gold ore out from under Nevin Hill.



When we visited the future mine in June of 2010, the 16-foot tall and 14-foot wide development ramp had already been excavated nearly 1,000 feet down. Timberline shareholders benefit from the SMD partnership because the company did not have to heavily dilute the share structure in order to raise the development capital

to get the gold ore out of the ground.



In addition, the company will spare investors the cost of building an expensive processing mill because the ore can be hauled to nearby existing third-party processing facilities already permitted and operational in Montana. Once the development capital has been recovered through production, the partners will share the net proceeds of the gold mined at Butte on a 50/50 basis.



Timberline estimated in 2010 that the cost of production for the gold would be less than U.S. $500 the ounce given the richness (high grade) of the deposit. With gold above $1,300 the ounce that means that the Butte Highlands project should enjoy significant positive cash ?ow once production, estimated to be about 50,000 to 70,000 ounces per year, begins.



The mine could be operational for approximately ten years at that production level, perhaps longer if there are additional resources discovered just ahead.





Best Value Stocks For 2011: Under Armour

by Bernie Schaeffer, editor Schaeffer's Investment Research



Athletic apparel manufacturer Under Armour (UA) has been a solid performer in 2010, gaining 110 percent year-to-date.



The stock -- our top pick for 2011 -- has been in a strong uptrend since early September, and is trading above all major moving averages.



On the fundamental side, the company has reported earnings per share that have surpassed analysts' estimates for seven consecutive quarters.



UA reported third-quarter revenues that rose 21.9 percent year over year.In fact, the company has reported revenue growth of more than 15 percent in each quarter since the first quarter of 2008. UA also issued upside guidance for the third straight quarter.



Despite the strong technical performance and solid fundamental results, the stock faces a particularly pessimistic backdrop.



Analysts have remained on the sidelines during the equity's run higher, as currently only five of the 25 analysts covering the stock rate it a "buy."



Should the company continue to outperform expectations, analysts could begin to change their tune, potentially pushing the shares higher.



Short sellers appear to be in the early stages of recognizing the company's consistently improving outlook.



Since reaching a peak in September 2010, short interest has been steadily declining. However, nearly 14 percent of the stock's ?oat remains sold short, representing significant pent-up buying pressure.



A continuation of this short-covering as we move into 2011 could also continue to drive the shares higher.



UA looks poised to have another solid year in 2011 on the heels of positive fundamentals and the unwinding of the surprisingly large amount of pessimism surrounding the shares.





Best Value Stocks For 2011: Apple

by Stephen Quickel, editor US Investment Report



After its two-year romp from 85 to 320 you might be leery of buying Apple (AAPL). The stock's advance has slowed noticeably since topping 300 in October. Even so, we regard Apple as one of our top picks for 2011 -- destined to crack above 400 in the year or so ahead.



True, the autumn surge in trading volume has abated since carrying AAPL above 300 (from our November 2008 entry price of 87).



But the stock deserved a rest after its 33% run from 240 last summer. And while taking a breather, it has never closed below 300 since first hitting 320 in early November.



It brie?y touched it 50-day moving average just before Thanksgiving, but as of Dec. 20 had regained 320 on fairly moderate volume. From our vantage point, that's just the beginning of its next major move.



The obvious driver is Apple's continued outpouring of brilliant new products. But upgraded versions of its iPad and iPhone, plus other attractive new o"erings, are only part of our rationale for Apple's move to 400 and beyond.



They will keep the competition at bay--and keep earnings growing by the expected high teens percentages (First Call projects 20% a year five-year growth). To us, the stock's biggest attraction right now is its bargain-basement valuation.



It's incredible that this growth stock to beat all growth stocks today trades at just 14.5 times estimated 2011 earnings of $19.19 per share. And at an amazing PEG ratio (P/E divided by earnings growth rate) of 0.80 based on 18% a year growth. A PEG of 1.00 is considered ideal, making AAPL's 0.80, if you will, super ideal.



Here's the icing on the cake: We believe AAPL deserves to trade at a forward P/E at the 18 level ; the stock s, and should easily reach that in a buoyant economy. With earnings of $22.20 now projected for 2012, we see a price target of $400 sometime in 2011 or just beyond, up 25% from today's level. The current consensus guesstimate of 14 sell-side analysts calls for earnings of $24.63 in 2013. You can do the rest of the math for yourself.