The New York Times called it a "moment of reckoning." Widely followed commodities trader Dennis Gartman in a note to his clients wrote that he's "never...ever...EVER" seen anything quite like it.
The references, of course, are to March 15's collapse in the price of gold, the largest single-day percentage drop in 30 years, capping a two-day decline of 13%.
The selling was triggered in part by worries that Cyprus and possibly other European nations might have to dump their gold holdings to raise funds or satisfy bailout requirements. Also, after acting as a commodities tailwind for much of the past two years, the Fed's quantitative easing program looks to be winding down, which would relax inflationary pressure.
Suddenly, the "safest" investment no longer seemed so safe. In fact, there's a good chance that gold's 12-year streak of uninterrupted gains will come to an end this year.
Top Net Payout Yield Stocks For 2016: Tootsie Roll Industries Inc.(TR)
Tootsie Roll Industries, Inc. engages in the manufacture and sale of confectionery products primarily in the United States, Canada, and Mexico. The company sells its products under the TOOTSIE ROLL, TOOTSIE ROLL POPS, CHILD?S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, BLUE RAZZ, ZIP-A-DEE POPS, CELLA?S, MASON DOTS, MASON CROWS, JUNIOR MINT, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES, FLUFFY STUFF, DUBBLE BUBBLE, RAZZLES, CRY BABY, and NIK-L-NIP. It distributes its products through candy and grocery brokers to the wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations, warehouse and membership club stores, vending machine operators, and the U. S. military and fund-raising charitable organizations. The company was founded in 1896 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Sean Williams]
Leave the wrapper on
The returns on confectioner Tootsie Roll Industries (NYSE: TR ) have certainly been sweet for investors over the past year. You have to go back to the summer of 2010 to find sugar prices that were as low as they are now,�which has played a good part in helping Tootsie Roll keep that aspect of its costs down. But taking a bigger view of what's going on with Tootsie Roll and comparing that to its current valuation creates a sour taste in my mouth. - [By Rich Smith]
At the same time, tiny Tootsie Roll (NYSE: TR ) may see its sales grow as little as 13% through 2016. Could it be that in the candy industry, bigger is better? Does Hershey lack the scale to compete effectively against mammoth Mondelez?
Top 5 Safest Companies To Own For 2015: Revett Mining Company Inc (RVM)
Revett Mining Co Inc, formerly Revett Minerals Inc., is a silver-copper producer. The Company owns and operates the producing Troy Mine and the development-stage Rock Creek project; both properties are located in northwestern Montana. Troy is an underground copper and silver mine. Rock Creek is a development-stage underground copper and silver project. Revett Silver owns all of Troy and Rock Creek through two wholly owned Montana subsidiaries, Troy Mine Inc. and RC Resources Inc., respectively. Rock Creek is located in Sanders County, Montana, approximately 5 miles northeast of the town of Noxon. The Troy Mine is located in Lincoln County, Montana. During the year ended December 31, 2011, RC Resources Inc. acquired eight claims (the JE claims) and staked an additional 200 claims (the Lost Girl claims) northwest of Rock Creek increasing the property position at Rock Creek by approximately 4,000 acres. Advisors' Opinion:- [By James E. Brumley]
If you've never heard of Revett Minerals Inc. (NYSEMKT:RVM) before right now, don't worry about it - you're not alone. The $25 million silver and copper miner doesn't have enough size to merit much media attention, and to make things more difficult, silver and miner has spent the better part of 2013 being out of favor. Yet, things are slowing changing for RVM and its shareholders.... for the better. Though a little more work needs to be done, this stock's knocking on the door of a monster breakout.
Top 5 Safest Companies To Own For 2015: Inergy L.P. (NRGY)
Inergy, L.P. engages in the storage and transportation of natural gas and natural gas liquids (NGL) in the United States and Canada. The company is also involved in the fractionation and distribution of NGL; and processing of natural gas and distribution of propane, marketing, and price risk management services to users, retailers, and resellers. In addition, it engages in the production and sale of salt products. The company owns and operates four natural gas storage facilities that include Stagecoach, Thomas Corners, Steuben, and Seneca Lake; natural gas transportation assets in New York and Pennsylvania; NGL storage facility in New York; and solution-mining and salt production company in New York. Its customers primarily include natural gas local distribution companies, electric generation companies, natural gas producers, other natural gas pipelines, and natural gas marketing companies. Inergy, L.P. founded in 2001 and is headquartered in Kansas City, Missouri.
Advisors' Opinion:- [By Matt DiLallo]
Inergy (NYSE: NRGY )
With operations that include a natural gas storage business as well as natural gas liquids assets, Inergy is another MLP to consider if you are on the lookout for a dividend-paying stock. There are a lot of moving parts with this company, which makes it an interesting stock to watch. The company, along with its affiliate Inergy Midstream (NYSE: NRGM ) , is in the process of merging with Crestwood Midstream Partners (NYSE: CMLP ) to create a company boasting increased size, scale, and diversity, as you can see below. Once the transformational transaction is complete, the company can pursue its opportunity-rich organic growth projects which should drive both returns and income growth for investors. - [By Dan Caplinger]
Consolidation has been the name of the game for growth in the propane industry lately, with some deals having made big changes to the industry over the past year. Last spring, Inergy (NYSE: NRGY ) decided to sell off its retail propane business to Suburban Propane (NYSE: SPH ) , vastly increasing Suburban's size while giving Inergy a big stake in its former rival. Meanwhile, Ferrellgas has continued its string of more modest acquisitions, with the company's buyout of privately held Western Petroleum marking the fifth purchase Ferrellgas has made since last August.
- [By Robert Rapier]
Early returns suggest this proposition is generating plenty of enthusiasm. When�NRG Energy�(NYSE: NRGY) became the first company to spin off a YieldCo subsidiary holding solar generating assets last July, the offering price for�NRG Yield�(NYSE: NYLD) provided for a 5.5 percent yield at the promised dividend rate. The IPO was more than 10 times oversubscribed — an indication of pent up investor demand for such offerings. Less than 11 months later, NYLD’s share price has more than doubled, so even though it has already raised its dividend the yield is down to 2.7 percent.
Top 5 Safest Companies To Own For 2015: Tianrong Internet Products and Services Inc (TIPS)
Tianrong Internet Products and Services, Inc. (TIPS), incorporated on January 29, 1959, is a holding company. The Company is a development-stage company. The Company is engaged in developing and marketing its Website (Phonecalls.com) for commercial exploitation. TIPS is an e-commerce business which is engaged in reselling mobile and other telephony solutions to customers via its Website. The company markets products on behalf of suppliers through search marketing and other e-marketing initiatives, such as virtual mail shots.
The Company�� Website catalogues new and refurbished mobile handsets and landline phones from a range of suppliers, as well as a variety of accessories. Customers can purchase products by clicking directly through to the supplier�� Website and the Company l receives a commission on sales made. Suppliers can upload their product advertisements remotely and independently without any human interaction with the Company.
Advisors' Opinion:- [By Canadian Value]
To quantify the relationship between real gold prices and real yields, we can regress the price of gold from 2006 to 2013 (we used the logarithm of the real price of gold in our model) against the 10-year real yield from the Treasury Inflation-Protected Securities (TIPS) market. (In our view, this regression is appropriate since gold and real yields are co-integrated and there is an economic rationale for believing they should be.) Based on our study, the regression shows that, all else equal, a 100-basis-point (bp) increase in 10-year real yields has historically led to a decline of 26.8% in the inflation-adjusted price of gold. In other words, over the past seven years gold has had a real duration of 26.8 years. (Note that this is solely an empirical duration that describes the way that gold has traded. Since gold has no cash flows, its duration does not need to be constant, and there is nothing magic about the 26.8 number. Just as the correlation between stocks and bonds varies over time depending on changes in macroeconomic variables and investor risk appetite, the real duration of gold may also change in the future.)
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