Shares of energy producer Encana (NYSE: ECA) have been moving steadily higher since January. In fact, while the S&P 500 Index is only up about 2% for the year, ECA investors have enjoyed a gain of 18% on their stock position. And this doesn’t even include the $0.07 dividend the company paid to investors of record on March 12. #-ad_banner-#Of course, one of the challenges with a runaway stock like ECA is that it is difficult to jump on board once it has already begun to trade sharply higher. Investors who buy at… Read More

Shares of energy producer Encana (NYSE: ECA) have been moving steadily higher since January. In fact, while the S&P 500 Index is only up about 2% for the year, ECA investors have enjoyed a gain of 18% on their stock position. And this doesn’t even include the $0.07 dividend the company paid to investors of record on March 12. #-ad_banner-#Of course, one of the challenges with a runaway stock like ECA is that it is difficult to jump on board once it has already begun to trade sharply higher. Investors who buy at new highs risk purchasing the stock at a peak, only to see the price pull back. But investors who decide to wait until the stock pulls back could find themselves on the sidelines while potential profits are missed and the stock continues to trend higher. Selling puts for income is a good way to participate in a stock that has established a strong bullish trend, while avoiding the risk of purchasing at the peak of that trend. By selling puts against the stock, we commit to buying shares if the stock pulls back below the strike… Read More

The price of gold has declined below the weekly pivot at $1,300 an ounce, presenting a potentially lucrative buying opportunity. The nearly $100 drop in the metal over the past two weeks is about half of the recent run-up from the double-bottom lows. Despite the recent decline, SPDR Gold Shares (NYSE: GLD) is up nearly 7% as the first quarter comes to a close. However, over the past 52 weeks, GLD is down 28%. And as you can see in the chart below, miner Barrick Gold (NYSE: ABX) has been hit even harder, off 38%.  On… Read More

The price of gold has declined below the weekly pivot at $1,300 an ounce, presenting a potentially lucrative buying opportunity. The nearly $100 drop in the metal over the past two weeks is about half of the recent run-up from the double-bottom lows. Despite the recent decline, SPDR Gold Shares (NYSE: GLD) is up nearly 7% as the first quarter comes to a close. However, over the past 52 weeks, GLD is down 28%. And as you can see in the chart below, miner Barrick Gold (NYSE: ABX) has been hit even harder, off 38%.  On July 5, ABX made an extreme low at $13.43, but this low was not accompanied by new highs in volatility. This bullish divergence suggests a long-term bottom was put in place. Sideways trading action between $22 and $14 since April has midpoint support at $18 to lean on. The $8 channel targets $30 on an upside breakout above $22 resistance.  #-ad_banner-#The $30 target is about 68% higher than recent prices, but traders who use a capital-preserving, stock substitution strategy could make nearly 200% returns on a move to that level. One major advantage of using a long call… Read More

With interest rates near 0% and traditional income investments like savings accounts and certificates of deposits (CDs) earning next to nothing, blue chip telecom stocks like AT&T (NYSE: T) and Verizon (NYSE: VZ) have become wildly popular. That makes sense. Telecom is a “recession-proof” industry. Regardless of what’s happening with the economy, people will still need cell phones and cable TV. And with both stocks yielding over 4.5%, both companies look like a good choice for income investors in search of high yields. But what if I told you there was a way to squeeze a 24% yield out of… Read More

With interest rates near 0% and traditional income investments like savings accounts and certificates of deposits (CDs) earning next to nothing, blue chip telecom stocks like AT&T (NYSE: T) and Verizon (NYSE: VZ) have become wildly popular. That makes sense. Telecom is a “recession-proof” industry. Regardless of what’s happening with the economy, people will still need cell phones and cable TV. And with both stocks yielding over 4.5%, both companies look like a good choice for income investors in search of high yields. But what if I told you there was a way to squeeze a 24% yield out of these very same high-quality stocks? Suddenly, the deal seems a whole lot more enticing… Let me explain how normal investors can do this… #-ad_banner-#First, we start with a stable, well-known stock like Verizon. Verizon benefits from owning a huge barrier to entrance, something Warren Buffett always looks for in his investments. Its national fiber-optic network stretching from Maine to California has helped secure its position as the leader in the domestic mobile market, now boasting 100 million subscribers. It also has more than 20 million fixed-line customers and 9 million broadband subscribers. When you add it all together, Verizon’s massive… Read More

The population in North America and the rest of the developed industrialized world is getting older, the bulk of which is the so-called baby boomers. In the U.S., the number of baby boomers is 77.3 million, while Canada has more than 8 million, and there are millions more in other industrialized nations. With this trend comes a larger demand for insurance — long-term care insurance, life insurance, annuities and mortgage insurance. This is precisely the wheelhouse of Genworth Financial (NYSE: GNW). This Fortune 500 financial services company provides various insurance products and services, as well as investment and financial solutions,… Read More

The population in North America and the rest of the developed industrialized world is getting older, the bulk of which is the so-called baby boomers. In the U.S., the number of baby boomers is 77.3 million, while Canada has more than 8 million, and there are millions more in other industrialized nations. With this trend comes a larger demand for insurance — long-term care insurance, life insurance, annuities and mortgage insurance. This is precisely the wheelhouse of Genworth Financial (NYSE: GNW). This Fortune 500 financial services company provides various insurance products and services, as well as investment and financial solutions, in the U.S. and internationally. Genworth — which my colleague Tim Begany profiled earlier this month — has more than $100 billion in assets and operates in more than 25 countries. Last month, the company released outstanding fourth-quarter results that beat analysts’ estimates on all fronts. Net income for the quarter rose 24% year over year to $208 million. For the full 2013 year, net income was up 72% to $560 million, and net operating income increased 53% to $616 million. The gains were helped by a strong U.S. mortgage business, but the company is also in the process of… Read More

Crop prices have been moving sharply higher over the past several weeks due to a number of different factors. #-ad_banner-#In the U.S., a particularly cold spring has featured freezing temperatures and snowfall well into the prime planting time for Midwestern farmers. A delay in planting means that it will take longer for crops to mature — with the potential for supply disruptions in the works. While the Midwest is dealing with cold and snow, farmers in California are facing one of the most severe droughts seen in decades. Low levels of rainfall have left reservoirs well below normal levels and… Read More

Crop prices have been moving sharply higher over the past several weeks due to a number of different factors. #-ad_banner-#In the U.S., a particularly cold spring has featured freezing temperatures and snowfall well into the prime planting time for Midwestern farmers. A delay in planting means that it will take longer for crops to mature — with the potential for supply disruptions in the works. While the Midwest is dealing with cold and snow, farmers in California are facing one of the most severe droughts seen in decades. Low levels of rainfall have left reservoirs well below normal levels and have made it increasingly difficult for farmers to irrigate crops. Expectations for the next few months continue to be bleak for California and other areas of the southwestern United States. This could pressure crop output and result in shortages and agriculture price spikes. Internationally, political tensions are also causing fear of supply disruption. For instance, Ukraine was expected to be the third-largest corn shipper this year, but that’s in doubt with Russian troops on the country’s border. Military action could have a destabilizing effect on the entire region, and disrupt supplies of grains that were previously expected to… Read More

As gold and silver prices exit a two-year bear market and begin to turn higher, we’re seeing some great opportunities in precious metal mining companies. #-ad_banner-#Chinese demand for gold is a large part of what is driving the price of the yellow metal higher. According to the World Gold Council, China surpassed India in gold purchases last year. This demand should continue to rise in 2014 as China braces for what could be a very painful contraction in its economic growth rate. A recent Bloomberg article noted that Chinese bond defaults were now “unavoidable,” and the country’s shadow banking system… Read More

As gold and silver prices exit a two-year bear market and begin to turn higher, we’re seeing some great opportunities in precious metal mining companies. #-ad_banner-#Chinese demand for gold is a large part of what is driving the price of the yellow metal higher. According to the World Gold Council, China surpassed India in gold purchases last year. This demand should continue to rise in 2014 as China braces for what could be a very painful contraction in its economic growth rate. A recent Bloomberg article noted that Chinese bond defaults were now “unavoidable,” and the country’s shadow banking system has been referred to as a “ticking time bomb.” With a white-hot real estate bubble posing significant risk, and China’s policymakers expanding the allowed trading range for the yuan, Chinese investors have legitimate reasons to want to protect their wealth against a potential debasement of their currency. Buying gold is one way to help protect their purchasing power, and as long as the country remains on unstable economic footing, I expect demand for gold to increase. Not only is this demand good news for precious metal miners as they will be able to sell production at higher prices, higher gold… Read More

Prices for agriculture commodities such as corn, wheat and soy have been climbing sharply over the past several weeks. The chart of PowerShares DB Agriculture (NYSE: DBA) helps illustrate the magnitude of this price spike. #-ad_banner-#There are a number of factors conspiring to send agriculture prices higher. A continued drought in California after one of the warmest winters on record there sets the stage for a potential rise as it is becoming more difficult for farmers to irrigate crops. Meanwhile, geopolitical risk could be playing a factor as well, as Ukraine represents a meaningful portion of the world’s… Read More

Prices for agriculture commodities such as corn, wheat and soy have been climbing sharply over the past several weeks. The chart of PowerShares DB Agriculture (NYSE: DBA) helps illustrate the magnitude of this price spike. #-ad_banner-#There are a number of factors conspiring to send agriculture prices higher. A continued drought in California after one of the warmest winters on record there sets the stage for a potential rise as it is becoming more difficult for farmers to irrigate crops. Meanwhile, geopolitical risk could be playing a factor as well, as Ukraine represents a meaningful portion of the world’s wheat production. Higher agriculture prices have a tendency to juice fertilizer prices. While challenging weather conditions and increased risk remain, I expect global demand for fertilizer to be robust as farmers use it to boost yields. Shares of Potash Corp. of Saskatchewan (NYSE: POT) look particularly attractive, not only because of the rising demand for fertilizer, but also because of political events that could result in a much better pricing environment for potash fertilizer. Leading up to last July, there was an established cartel agreement between Russian Uralkali, the world’s largest potash producer, and Belaruskali, a producer in Belarus. A… Read More

Imagine buying AT&T (NYSE: T) for $25 a share, Cisco (Nasdaq: CSCO) at $16 or Microsoft (Nasdaq: MSFT) for $20. And imagine not only buying these or any stock at a much lower price — but actually being paid to do so. #-ad_banner-#Sound too good to be true? I know it seems like a dream, but sophisticated investors accomplish this on a regular basis. Here’s how… Limit Orders: You Set The Price The average investor accomplishes buying stocks lower than the current asking price by using a limit order. By specifying a chosen share price, your order isn’t filled… Read More

Imagine buying AT&T (NYSE: T) for $25 a share, Cisco (Nasdaq: CSCO) at $16 or Microsoft (Nasdaq: MSFT) for $20. And imagine not only buying these or any stock at a much lower price — but actually being paid to do so. #-ad_banner-#Sound too good to be true? I know it seems like a dream, but sophisticated investors accomplish this on a regular basis. Here’s how… Limit Orders: You Set The Price The average investor accomplishes buying stocks lower than the current asking price by using a limit order. By specifying a chosen share price, your order isn’t filled until the stock dips to your set price. If the stock never reaches your limit order price, then you get to keep your money. The downside is that it can take forever for the stock to dip to your price and you don’t get paid for waiting. Also, limit orders often cost slightly more commission than traditional market orders from most stock brokers. But this method actually pays you for the time you spend waiting for the price to dip. The best part? If the share price never hits your buying level, then you get to keep the money… Read More

The Goodyear Tire & Rubber Co. (Nasdaq: GT) is one of the world’s leading tire companies. It is the #1 tire manufacturer in North America and Latin America, and operates 52 plants in 22 countries. It also has approximately 1,240 tire and auto service centers. #-ad_banner-#Shares have been in a steady uptrend for the past year, more than doubling in price. They now trade at six-year highs and well above their 50-day, 100-day and 200-day moving averages. The stock surged 11.5% on Feb. 13, after the company released strong quarterly results. Goodyear’s fourth-quarter profit was up 90% year over year… Read More

The Goodyear Tire & Rubber Co. (Nasdaq: GT) is one of the world’s leading tire companies. It is the #1 tire manufacturer in North America and Latin America, and operates 52 plants in 22 countries. It also has approximately 1,240 tire and auto service centers. #-ad_banner-#Shares have been in a steady uptrend for the past year, more than doubling in price. They now trade at six-year highs and well above their 50-day, 100-day and 200-day moving averages. The stock surged 11.5% on Feb. 13, after the company released strong quarterly results. Goodyear’s fourth-quarter profit was up 90% year over year to $0.74 a share (excluding special items), handily beating Wall Street’s estimate of $0.62 a share. Full-year 2013 earnings rose more than 200% to $2.28 per share, from $0.74 in 2012. The consensus estimate for this year’s earnings per share (EPS) is $2.96, and analysts expect $3.37 in 2015. GT is currently trading at about 8 times next year’s earnings, and analysts expect EPS to grow an average of 15.7% a year for the next five years. The price-to-earnings growth (PEG) ratio compares a stock’s price-to-earnings (P/E) ratio to its earnings growth rate, with a reading of 1 being considered… Read More

One of the few certainties in the market is that investors will always search for new ways to profit. And there is one strategy that continues to gain popularity. #-ad_banner-#That’s because it enables investors to make money regardless if stocks go up or down. It also provides the potential for… Read More