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Agnico Eagle Mines Ltd (NYSE:AEM)

Agnico Eagle Mines Ltd is up and running again today after they reported their second quarter earnings report. I’ve spoken about them in the past in regards to having a position and using a technique referred to as channel trading..
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Well so much for that idea now that the company has posted some good results and given some (in my opinion) great guidance. It will be some time before I’ll know what their new trading range will be. On top of all the news that AEM released, there have also been several analysts that raised the target price for Agnico Eagle.
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Yesterday when I saw the price dropping I put in a limit buy order at $52 per share. Unfortunately the low of the day was $52.17. I figured that I’ll just get the shares today at even a lower price, but when I was watching Mad Money with Jim Cramer, he had the CEO of Agnico Eagle on to discuss the report. I knew at that point the shares would go up in the pre-market and continue to do so throughout the day. So I had to put in a limit buy in for 54.00 (hoping that it would be a good bid) before the market opened and was lucky that it did trigger. I think we’ll see some great thing from this company in the next few quarters and I expect to make some great gains with this stock.
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Their two newest mines, Kittila and Lapa have achieved commercial production as well as their other mine Meadowbank and will be operational in the first quarter of 2010. If you haven’t jumped into Agnico Eagle Mines Ltd., do your research and maybe this can be a winner for you and your portfolio.
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Second quarter 2009 highlights include:
– Record Production – record gold production of 119,053 ounces. First gold poured at Pinos Altos in July
– Good Cost Performance – LaRonde, Goldex and Lapa achieve good
minesite cost performance
– Commercial Production At Lapa And Kittila – commercial production
achieved as of May 1 at both mines
– Remaining Two New Gold Mines On Schedule – Pinos Altos and Meadowbank remain on schedule for initial production in third quarter 2009 and first quarter 2010, respectively
– Growth profile bolstered – expected after-tax internal rate of return (“IRR”) of 76% at Goldex expansion and 17% at Pinos Altos expansion at Creston Mascota
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Happy trading.

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Are The Bulls Charging?

The stock markets have been on a tear for the last three weeks or so it seems. In the last fourteen trading days the DOW has finished in the green for ten of those days. Even though the DOW sit at 8761.42 and was as high as 9000 on Monday, there has been a charge from the bulls that makes you wonder if we have reached the bottom.
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I don’t believe we have, but I do like to think that we did.
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The commodity sector had a beautiful day today and that typically shows that the bottom is near if not here. Basic materials as a whole gained over 5% today with coal leading the way with a gain of over 15%. It goes to show you that the analyst and the “expert” either don’t know what’s going on or that they are not telling us average traders everything. I’ve listened for the last month to them report that commodities are in the tank and will remain there for sometime. So why the rally today? I wish I knew.
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The steel industry has been dropping like a lead balloon, but Cliff Natural Resources Inc. (NYSE:CLF) gained 18% today and is up nearly 38% in just one week. Steel Dynamics Inc. (NASDAQ:STLD) gained 15% today and is also up nearly 60% for the week.

With signs and gains like these, one would think the worst is behind us.
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In the last two weeks we’ve heard that the recession is officially here, so I’m lead to believe that it’s not over. I’m expect a big pull back in these prices as the profit takers come in and remove so of their capital. I’m also looking for the DOW to drop back to the 8000 level in the near future.
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If my readers have any insight to share, please do so in the comments to help enlighten me in any way.

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Ethanol And Alternative Energy

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photo by plan my green

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Now with the price of oil being down over 60% since it’s July high of $147 per barrel, it seems that ethanol and other alternative energy sources have fallen out of flavor with investors. It was obvious to see that we needed to find other means to supply our fuel needs when we were paying $4.11 per gallon of gas (national average July 7, 2008), but with the price of gas now at $1.89 (Nov. 24,2008) people and investors are being blinded by how cheap it is at the moment.
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Ethanol is a fuel source that is derived from corn. A fuel source that has been in use for many years. Unfortunately, it has cause the price of corn to be very volatile and may cause a food shortage if we’re not careful.
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Other alternative energies consist of wind, solar, nuclear and natural gas. All of which we can produce and manufactured in our own backyard without the assistance of foreign countries.
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The problem is that with the price of oil falling to where it was in March 2007, it has made the idea of alternative energies less competitive. The credit crisis has also made it even harder to get the funding that is needed to expand on these ideas.
T.Boone Pickens plan of have a major wind farm built in Texas has been delayed because of the lack of financial lending.
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It now seems that President-elect Obama is getting on board with Mr Pickens and his ideas to free this country from the dependency of foreign oils. Word is spreading that within the next stimulus package, alternative energies will be added in.
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Out of the choices that were listed in this post, ethanol is the one that Obama is favoring the most. If that’s the case, ethanol stocks may be something that might interest you. I do not recommend any ethanol stocks because of what is going on with the industry. VeraSun Corp. (NASDAQ:VSE) has filed bankruptcy last week and it’s leading competitor Poet LLC, a private held company is looking to acquire them.

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Are Dividend Yields Too High?

What a difference a year makes. Last year at this time the stock market was on a tear, it just came off it all time high of 14,136 and looked like it was taking a healthy pull back, waiting to go up again. Then all of a sudden all the walls started to fall from the house of cards that had been built over the last few years. Signs of trouble from the sub-prime mortgage were starting to show.
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Fast-forward back to November 2008. The stock markets have lost nearly 50% from where they were last year and everyone is running for some sort of safe place to hide their money until the storm has passed. Jim Cramer from TheStreet.com
has been suggesting hiding out in strong companies that have some great dividends.
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What are dividends? Dividends are what some companies give to their shareholders. Basically dividends are cash that the company distributes from their cash reserves because they don’t have anything else to do with the profits that they make every year.
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Dividend payouts are figured on a percentage basis of what the share is worth at the time. When stocks drop in value, the yield on those dividends rises. Let’s say that a company’s stock is valued at $100 and they give a $5 dividend payout for the year (typically broken up in four payments), the yield of those dividends are 5%. Now if the company is now trading at $40 per share, the yield would be calculated at 12.5%. That would be some great returns on your investment. You can’t get that in any other type of investments.
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The problem comes in where the yield is too high for the company to keep paying out that dividend. So the company will cut the dividend to help the company keep some cash flow. So what is considered the “sweet-spot” yield for dividends? It’s hard to really pinpoint it. Typically look for those strong companies that give any where in the 3%-7% yield, but anything that is over 10% is considered too high to really expect it to stay there.
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Don’t get me wrong there are some that continue to give double digit yields, but they’re few and far between. The only one that I can say that kept their dividend payout the same this past month was Atlas Pipeline Partners (NYSE:APL). The stock was trading at $18 per share and their quarterly payout was $0.96 per share. That was a 5% yield just for the quarter, if you calculate it for the year it comes out to a 20% yield. I don’t expect it to be the same when they pay out their next dividend in February 2009. The company is in trouble now that oil has come down so much, so my advice is to stay away from Atlas.

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What A Wild Ride In The Stock Market Today

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photo by Hagerman

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No matter what good news may be out there to trade on, someone else will sell on that same message. The Markets again for the second day trades lower. The Dow closes down almost 6% with most of that lose happening in the morning hours, but at one point it was down nearly 700 points.
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In after market trading Amazon fails to beat the street with their earnings report, while Amgen beats what was expected from them today. Amgen has actually raised guidance for next year. What are you to do with this news? Nothing. For one by the time you’re able to get into Amgen the news will be priced into the stock. As of right now in after market trading Amgen is up $3 per share and the news just came out Secondly in this volatile market that we’ve been seeing, in the next couple off days we could see another major down day and see the stock drop below it $49.73 close price of today.
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Freeport McMoran Inc (NYSE:FCX) Has taken a beating in the last few weeks or so that has the price down to a new five year low. If you have five years to wait before you need you money, this might be the stock for you. In regards to the basic material sector, these stocks have been dealt a blow that will take some time before they really come back to the level that they were at this time last year. If you’re a veteran trader I’m sure that the UltraShort Basic Materials ProShares (AMEX:SMN) is something that you’ve been following if not trading . The stock was at $66 just two days ago and hit an intra-day high of $92.97 in the last 20 minutes of open trading today.
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If you’re going to trade in this volatile market, you need to know how to play both sides of the trading floor. You need to diversify your portfolio and understand what shorting can do for you. It something that I recommend for average traders to do until you fully look into how it’s done.
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In the last two days the Dow has lost nearly 700 point (almost 8%), but because of how I trade and hedge myself, I’ve increased my portfolio over 15% during the same period. Do your homework, double check your research and follow through with your due diligence.

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Not Another Manic Monday

What a day in the stock market. the day started with the big three markets in the green and continued that way throughout the entire trading period. I did expect the day to go quite different on the fact that Ben Bernanke and Hank Paulson were due to speak during the trading day. When that usually happens lately, the markets don’t react in a positive way. It was mentioned over the weekend that there will be continued international support for the financial system, with focus being on the effort to loosen the credit lending.
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The basic material sector had a great day today. It assumed that the sector was oversold over the past week and took back some of those loses. The entire sector started in positive territory and continued to tick upward.
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Oil also had a good day by moving up just over $4 during the day. It’s being said that the bottom is starting to show with this commodity. OPEC is expected to cut production after their meeting in a couple of days. As a matter of fact the latest news is now that they might not cut production since they need make up for the revenue from the drop in prices.National Oilwell Vargo Inc. Had a great day with a 24% gain. A stock that was beaten up for last few months after hitting a high of $92.70 back in July of this year and now after today’s gain is at $31.80 in after market trading.
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Early in the day Ben Bernanke spoke with Congress today on the condition of the economy. He did say that he sees the economy to be weak during the next couple of quarters. He also took the time to inform Congress that a second stimulus check is something that should be considered to help the economy. I do have to say that when Bernanke speaks (in english) I still need a translator to figure what he’s really saying to us average Joes.
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The markets looked quite strong today and continues to look that way through after market trading, but be aware that we are not out of the woods yet. Take you time and do your due diligence with any company that you want to jump into.

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Great Rally After The Selloff

Today the DOW had one of it’s top 6 days in history after it’s worst week in it’s 112 year history. Everybody is jumping for joy and looking forward to the rest of the week. But let’s be real, I said in my earlier post this morning that the markets don’t turn around this quickly.
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We still have a lot of work to do before we can reap the rewards of what has been done in the financial sector over the last few weeks. I’m very happy from today’s gains, but I’m realistic in the fact that this has to come down from profit takers within the next few days. With my interest in Morgan Stanley, my portfolio is up an average of 25% today.
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What we witnessed today was investors and traders getting in on some great deals after a major sell off last week. Most of the trading wasn’t based on fundamental, but on the fact that many hedge funds and other entities were trying to raise capitol and cover margin calls. no matter what you were invested in (except GE and ABX), you made some big gains.
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If you are up in any stocks at this time, you might wnat to think of taking some off the table for when we will have a down day (and believe me, we will have one soon). It’s better to miss out on some short term gains than to lose out on the ones that you made already.
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DOW @9,387.61 +936.42 (+11.08%
NASDAQ @1,844.25 +197.74 (+11.1%)
S&P 500 @1.003.35 +104.13 (+11.58%)
Oil $81.85 (+$4.15)

Hang in there and happy trading.

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In The World Of The Stock Markets

I’m sure all of us would like to have our world in better condition than it is today. The news in the stock market was what I was expecting and there should be more to come.
The financial sector didn’t continue it’s rally today for many reason that may take until next week to explain it all. What I will say is that the confidence in the stock markets is definitely not back. The DOW closed at 11,015 down just over 372 points.
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Goldman Sachs and Morgan Stanley came up with a nifty concept to avoid the turmoil as much as possible by transforming themselves from investment banks into traditional bank holding companies. By becoming bank holding companies, Morgan Stanley and Goldman will come under the scrutiny of national banking regulators and will be subject to new capital requirements. Too bad that the investors of Goldman Sachs didn’t think of it as a good idea as of right now, but let’s see what happens in the days and weeks ahead.
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The government has found something else to bitch about to each other than actually coming out with some real clear cut plans than just spending $700 billion of our money. I heard on CNBC tonight that that amount of money would pay off all failed mortgages that were held by Fannie Mae (I might have heard wrong, but I’m looking into it). If that’s the case why is the Treasury Dept. asking for so much? Maybe they needed some money for lunch this week, who knows?
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The 10 day suspension of shorting over 800 financial type stocks didn’t go over too well today either. It seems that what’s the sense of buying a stock if you can’t short it so you can hedge your bet. I guess it’s not a good idea to buy into a company for the sole purpose of the value to rise.
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The dollar lost some strength today as oil went on a 15% rally to close at $120.92 at the last trade that I saw tonight. Heating oil also jumped on the expected cold weather season that is on it’s way. Today is the first day of autumn.

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Agricultural Stocks – Converted Organics Inc...

Agricultural stocks have been a big winner over the last year or so. The leaders of the sector are Potash, Monsanto and Mosaic which have had great returns for their shareholders except for the ones that bought and held on to the stocks during that period. These stocks as well as the sector have come back down to their levels of last December.
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With the way the markets have been performing, it has caused the entire sector to pull back to levels that can’t be ignored. On September 8th these three Stocks have hit their lows of the year and what should be a great entry point back into them. Their fundamentals are still strong and should be a great buy. About two months ago Jim Cramer of Mad Money said that these stock are out of favor with the street, but I beg to differ.
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What really caught my eye last month was Converted Organics Inc, a stock that I’ve been in before and made some money. When the stock fell below $4 per share I decided to jump back in, but instead of buying ticker symbol: COIN, I looked at their other symbol: COINZ Converted Organic CL B WRTS which has basically mirrored the parent stock. I bought into the stock at $2 a share and in the first two days it did drop $.25 where it hasn’t looked back since. In the last three weeks it has gone up over 250%, I don’t know about you, but those are the types of quick returns I love to see. The company has continued to make deals and grow. They reported that their revenue grew in the second quarter. In their press release dated August 13, 2008 the president Edward J. Gildea said “We are very pleased to report that Converted Organics’ revenue almost doubled from first quarter to second quarter of 2008, and we look forward to updating Converted Organics shareholders on the status of their business, We are very pleased with the Company’s progress thus far in 2008, and we are optimistic about future potential.”
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As for myself, I too am very pleased with the reports that have been released and enjoy the gains that I’m having so far.
At the present time the only stock of this group that I own is COINZ, but I am waiting for another pull back from the other three and do plan to get in at that time.
Before buying any stocks that I’ve spoken about in this post, please do your homework to see if this invest is right for you.

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Financials, Oil And Commodities, Oh My.

The stock market today will see more of the same volatility as it has for the last week. Lehman Brothers (NYSE:LEH) reported their expected horrible quarter and as a result it has cause the markets to get scared and run. With the price of oil dropping, one would think that the markets would be off and running to great gains, but that’s not the case. Commodities are also dropping as quick as lead would if dropped off the Empire State Building. China’s demand for commodities have basically stopped. The country was buying materials like no one else has done in the last year and was expected to continue even after the Olympics, but for some reason that’s not happening. I did read some reports a couple of months ago saying that China was stock-piling many commodities like steel and copper.

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Crude inventories fell 5.8 million barrels and OPEC has decided to trim it’s output to help increase the falling prices of oil. OPEC has decided to decrease the overall output by more than 500,000 barrels a day.

This is the reason why we need to get off the our dependency of foreign oil as well as the use of oil itself. If they don’t like the price that they get for a barrel of oil, they just go ahead and produce less to cause the price to go up. A clear and present danger on our security and our economy. President G.W. Bush has announced that he disagrees with their decision (oh, like they really care), but what is that going to do? We are in a situation where we need this product and if we don’t pay the price, someone else will and then what are we suppose to do.

In a related report  that was released today, the International Energy Agency has lowered their forecasts for global oil demand for the rest of this year as well as 2009 because of the impact of the weaker economic conditions and the high prices during the summer.

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