While I don�� have strong views on the direction of silver prices, I think it�� important to distinguish between silver and gold rather than assume that the two metals are interchangeable�.
To be sure, it�� not unreasonable that gold and silver (along with platinum) are often lumped together in the precious metal basket. Silver, like gold, is viewed as a store of value and indeed has acted as a form of monetary base in the past. (History buffs will recall the late 19th advocacy of ��ree silver�� a debate memorialized by William Jennings Bryan in his famous Cross of Gold speech at the 1896 Democratic National Convention).
But while silver shares many characteristics with gold, here are three important differences between the metals .
Silver tends to be more sensitive to economic variables, while gold is often more sensitive to monetary variables. Industrial uses make up a large portion of silver demand ��roughly 40%. In contrast, gold demand is driven almost exclusively by investment and jewelry demand. Thanks to its strong tie to industry, silver tends to be far more sensitive to economic variables, such as industrial production and manufacturing demand, than gold is.At the same time, gold tends to have a higher correlation with monetary variables such as real interest rates, inflation and changes in the value of the dollar. For example, based on annual data over the past fifty years, gold prices have had a 0.5 correlation with inflation, while the correlation between silver and inflation is around 0.35. And in earlier posts, I��e written much about the high correlation between gold�� returns and real interest rates. While the same relationship holds for silver, it is less strong .
Top Super! market Companies To Own In Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Jonathan Yates]
There are many blue chip stocks with high dividends and high betas such as BP PLC (NYSE: BP), the major oil firm, and Caterpillar (NYSE: CAT) -- the world's largest heavy equipment maker and a member of the Dow Jones Industrial Average.
- [By Stephen Rosenman]
Can you really take a company's yearly guidance seriously? Who can predict future events a year from now? It's so hard most companies skip the ordeal. Who can blame them? So many unforeseen events can derail a company's guidance. Yet, a few daredevil companies continue giving their yearly outlook. As far as I'm concerned, that's akin to writing the front page of next year's Wall Street Journal. I've already highlighted how Caterpillar (CAT) and Parker Hannifin (PH) - two excellent companies - almost never get their yearly guidance right.
- [By Dan Burrows]
As we noted recently with Caterpillar (CAT), declining metals prices have been weighing on sector shares for years. A wide range of hard commodities are near or below prices that were last seen at the end of 2010.
- [By Dan Caplinger]
Finally, the U.S. dollar finished weaker against the euro and the British pound but strengthened against the Japanese yen. During this earnings season, we've seen many companies struggle due to the impact of the strong dollar on the value of their foreign revenue and earnings. For instance, Caterpillar (NYSE: CAT ) cited what it called a "substantial currency headwind" in its second quarter that weighed on its disappointing results. The company doesn't expect a recurrence of the $134 million in currency-translation and hedging losses it suffered during the quarter, but investors should keep an eye on currency movements and weigh their potential impact on earnings.
Hot Value Companies To Own In Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By WALLSTCHEATSHEET]
Schlumberger provides essential energy products and services to consumers and companies operating around the world. The stock has not see much movement in recent years but may be getting ready to head higher. Earnings and revenue figures have mostly been increasing but investors have grown to expect more from the company. Relative to its peers and sector, Schlumberger has been an average performer. WAIT AND SEE what Schlumberger stock does this coming quarter.
- [By Dan Caplinger]
One potential thing for Core Labs shareholders to watch out for is the prospect for a takeover bid. With a market cap of $6 billion, Core Labs would be a substantial acquisition for most industry players. But both Schlumberger (NYSE: SLB ) and Halliburton (NYSE: HAL ) are large enough to at least consider adding Core Labs to their respective oil-services portfolios, and both companies have fairly healthy balance sheets that could arguably withstand taking on more debt for a buyout.
- [By Vanina Egea]
To explore and produce, a great investment is required in tools, and one of the leading equipment suppliers is Schlumberger (SLB). A key to remaining on top of the industry is innovation, and of that the company has a whole load. Throughout 2014 alone, the firm has introduced a microseismic surface acquisition system, a new fracturing technique for unconventional reserves, launched a degradable alloy technology to improve well productivity, a multilayer bed boundary detection service for clastic and carbonate fields, and a rotary steerable system that increases directional control and drilling efficiency. These product introductions have been done during the first quarter of 2014, making a strong statement about the company�� research and development pipeline. Gurus, however, mostly dropped the stock during the end of 2013. Let us see whether you can take advantage of the dumping and take a large position with long-term prospects.
- [By Tyler Crowe]
Many of the national oil companies in the Middle East do not have the experience to do EOR or production optimization on their own. This is where oil services specialists come into play. Both Core Laboratories and Schlumberger (NYSE: SLB ) saw sizable upticks in revenue from the Middle East region. If Middle Eastern oil production trends were to continue, it would not be a stretch to see these two companies as well as other oil services grow their Middle Eastern business substantially over the next several years.
Hot Value Companies To Own In Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
- [By Eric Volkman]
Tupperware Brands (NYSE: TUP ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.
Hot Value Companies To Own In Right Now: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Paul Ausick]
Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.
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