Currency funds manager Axel Merk warns the die of the dollar’s long-term decline has been cast, suggesting investors recognizing we’ve crossed this currency Rubicon may find salvation in a widely “misunderstood” euro.
In a recent commentary, the chief investment officer of Merk Investments, which managers four currency-based funds, offers a variety of unflattering comparisons between U.S. monetary and fiscal management and that of the oft-maligned eurozone.
The euro, he notes, bested the dollar two years ago in the midst of the eurozone crisis, and last year as well.
U.S. monetary policy, with its emphasis on the purchase of Treasury and mortgage-backed securities, has kept rates low.
But rising rates — to be expected as the Federal Reserve tapers its bond purchases — have been associated with a weakening dollar, Merk says.
A greater problem, however, is our inability to afford positive real interest rates.
“The biggest threat we face might be economic growth,” her writes, “because a stronger economy may warrant higher interest rates in order to contain rising inflationary pressures.”
Top 5 Valued Stocks To Watch For 2015: Zoetis Inc (ZTS)
Zoetis Inc, incorporated on July 25, 2012, is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The primary livestock species are cattle (both beef and dairy), swine, poultry, sheep and fish, and the primary companion animal species are dogs, cats and horses. In February 2014, Benchmark Holdings PLC purchased aquaculture vaccine and development assets from animal health company Zoetis Inc.
The Company�� more than 300 product lines include vaccines, parasiticides, anti-infectives, medicated feed additives and other pharmaceutical products. The Company�� product portfolio also includes businesses, such as diagnostics, genetics, devices and services, such as dairy data management, e-learning and professional consulting. The Company operates in North America, Europe, Africa, Asia, Australia and Latin America.
Advisors' Opinion:- [By Maxx Chatsko]
Pfizer (NYSE: PFE ) recently announced plans to sell its remaining 80% stake in animal-health company Zoetis (NYSE: ZTS ) after about four months on the public market. Margins and profits aren't as high in the animal health business, which has pushed the world's largest pharmaceutical company to streamline its focus. It also highlights a delicate Catch-22 for Big Pharma.
- [By Ant贸nio Costa] Zoetis Inc (NYSE: ZTS) Near-term outlook appears positive. A move above the key resistance level of $32.9 would help the stock touch the immediate PT of $33.98-34.21. Only a drop below $31.02 would negate the positive outlook for ZTS. ( click to enlarge )
- [By Dan Caplinger]
The other major move that Pfizer made during the quarter was to launch an initial public offering of 20% of its interest in its Zoetis (NYSE: ZTS ) animal-health division. Given the prospects for growth in animal health -- pet owners are willing to spend big to keep their pets healthy -- Zoetis will have a good shot at gaining its share of an expanding pie even in the face of strong competition, and Pfizer shareholders will continue to reap rewards of those gains because of Pfizer's 80% ownership of Zoetis.
- [By Selena Maranjian]
The biggest new holdings are pharmaceutical company Actavis�and fertilizer specialist Mosaic. Other new holdings of interest include Zoetis (NYSE: ZTS ) . If you haven't heard of Zoetis, that may be because it was just spun off by Pfizer�earlier this year. It's a major enterprise, though ��the world's largest animal-health company, and a new addition�to the S&P 500. Its dividend is on the puny side at the moment, but with a low payout ratio, it has much room to grow.
Hot Gas Utility Stocks To Watch For 2014: Enersys (ENS)
EnerSys manufactures, markets, and distributes industrial batteries in the Americas, Europe, the Middle East, Africa, and Asia. It offers reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and in other specialty power applications, including security systems; starting, lighting, and ignition applications; switchgear and electrical control systems used in electric utilities and energy pipelines; and commercial aircraft, satellites, military aircraft, submarines, ships, and tactical vehicles. The company also offers motive power products that are used to provide power for manufacturing, warehousing, and other material handling equipment, including electric industrial forklift trucks, mining equipment, and diesel locomotive starting and other rail equipment. In addition, it offers industrial battery re lated products, such as chargers, power equipment, and battery accessories, as well as provides related after-market and customer-support services. EnerSys markets and sells its reserve power batteries principally under the ABSL, ABSL Power, ABSL Space, ArmaSafePlus, Cyclon, DataSafe, Genesis, Hawker, Huada, Odyssey, Oerlikon Battery, PowerSafe, and SuperSafe brand names; and motive power batteries primarily under the Douglas Battery, Express, Fiamm Motive Power, General Battery, Hawker, Huada, and Ironclad brand names through a network of distributors, independent representatives, and its internal sales force. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001 to reflect its focus on the energy systems business. EnerSys was founded in 1999 and is headquartered in Reading, Pennsylvania.
Advisors' Opinion:- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature a pair of downgrades, for toolmaker Stanley Black & Decker (NYSE: SWK ) and electrical equipment maker EnerSys (NYSE: ENS ) alike. But the news isn't all bad, so before we address those two, let's take a look at why one analyst thinks that...
- [By Michael Flannelly]
Early on Wednesday, industrial battery manufacturer EnerSys (ENS) entered into an agreement to acquire Purcell Systems for $115 million.
EnerSys expects the transaction to be accretive to its earnings by 15 to 20 cents per share in the first year. The company will finance the purchase of the Spokane, Washington-based company with existing cash and credit facilities.
Purcell Systems is a manufacturer of “thermally managed electronic equipment and battery cabinet enclosures for customers globally in telecommunication, broadband, utility, rail and military applications.”
EnerSys shares were inactive during pre-market trading on Wednesday. The stock is up 48.1% year-to-date.
- [By Rich Duprey]
Stored energy solution specialist�EnerSys� (NYSE: ENS ) �announced yesterday�it would be initiating its first quarterly dividend payment of $0.125 per share, payable on June 28 to the holders of record at the close of business on June 14.��
Hot Gas Utility Stocks To Watch For 2014: MB Financial Inc.(MBFI)
MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. It offers commercial banking products and services, including credit products, comprising working capital loans and lines of credit, accounts receivable financing, inventory and equipment financing, industrial revenue bond financing, business acquisition loans, and owner occupied real estate loans, as well as financial, performance, and commercial letters of credit. The company?s commercial banking products and services also consists deposit treasury management products, such as Internet banking products, investment sweep accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, lockbox, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, wire transfers, vault services for currency and coin, international banking services, capital markets products, and checking accounts, as well as provides various credit, deposit, and treasury management services for real estate operators and investors. In addition, it offers retail banking products and services; and wealth management solutions, which include banking, investment management, custody, personal trust, financial planning, wealth advisory services, estate settlement, guardianship, tax deferred exchange services, and retirement plan services. The company provides its services through operating 87 banking offices in Chicago, Illinois metropolitan area; and 1 banking office in Philadelphia, Pennsylvania. MB Financial, Inc. was founded in 1911 and is headquartered in Chicago, Illinois.
Advisors' Opinion:- [By Rich Duprey]
Looking to expand its banking business in the Windy City, MB Financial (NASDAQ: MBFI ) jointly announced with Taylor Capital (NASDAQ: TAYC ) that it was buying the�holding company of�Cole Taylor�Bank, a Chicago-based commercial bank with $5.9 billion in assets, $3.3 billion in loans, and $3.7 billion in deposits.
- [By Sean Williams]
What: Shares of Taylor Capital (NASDAQ: TAYC ) , the holding company of Cole Taylor Bank, a commercial and consumer lending and financial services company located in the Chicago area, skyrocketed as much as 22% after agreeing to be purchased by MB Financial (NASDAQ: MBFI ) .
Hot Gas Utility Stocks To Watch For 2014: Nova Measuring Instruments Ltd. (NVMI)
Nova Measuring Instruments Ltd., together with its subsidiaries, designs, develops, produces, and sells integrated process control metrology systems and stand-alone metrology solutions used in the manufacturing process of semiconductors. Its metrology systems measure various thin film properties and critical circuit dimensions during various steps in the semiconductor manufacturing process. The company provides metrology systems for thin film measurement that is used in chemical mechanical polishing and chemical vapor deposition applications; optical CD and metal line thickness systems for use in post-copper chemical mechanical polishing applications; and optical critical dimension systems for lithography and etches applications. It also offers integrated thickness monitoring systems for chemical mechanical polishing process control that enable wafer-to-wafer closed loop control. The company serves various sectors of the integrated circuit manufacturing industry, including logic, ASIC, foundries, and memory manufactures, as well as process equipment manufacturers. Instruments Ltd. sells its products in the United States, Europe, Japan, and rest of the Asia Pacific region. The company was founded in 1993 and is headquartered in Rehovot, Israel.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Nova Measuring Instruments (Nasdaq: NVMI ) , whose recent revenue and earnings are plotted below.
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