Archives: 2007 June

For the past several years I have subscribed to The Daily Reckoning. Edited and owned by the talented Bill Bonner, The Daily Reckoning has established itself as an entertaining yet informative read for those who enjoy investing and in following world events.

Bonner himself often writes the feature article. You can get a good favor of his writing style from the recent article below.

I have added The Daily Reckoning web page to the Stock Trading Pro blogroll. You can subscribe to your own email delivered copy at The Daily Reckoning website. The email delivered service is a true bargain, it’s free.

Here is your sample article.

“There is nothing like a long spell of good luck to ruin a man. He begins to think he can get away with anything. The next thing you know, he is wagering big money in Las Vegas and chatting up stewardesses.

Right now, the whole world economy is enjoying a spell of catastrophic prosperity. That is to say, things are going far too well…for far too many people.

With global peak oil rapidly approaching the world wide interest in nuclear energy as an energy source is more intense than ever.

While there are still concerns about the safety of nuclear energy power plants the new designs are considered to be vastly improved and are considered safe enough for construction to move forward as it is in many locations around the world including Iran, China, France, and Russia.

There are also concerns about the disposal of waste materials from nuclear power plants. However, again improvements in disposal technology have lessened these fears and the operation of nuclear power plants is now considered safe enough.

Of course, the need for energy sources other that from fossil fuels and oil have perhaps in themselves lessened the concern about the safety of operating nuclear power plants.

With a golden age for nuclear power plant operators approaching those companies that produce a most necessary material in nuclear power production, Uranium, will do well.

Buying for the long term shares in leading companies that produce Uranium should be a most gratifying investment over the next ten to twenty years and beyond.

In recent years India has come into its own as a capitalistic market. Indian companies are increasingly tapping into the US capital markets to help finance their worldwide expansion.

The following press release from the New York Stock Exchange shows just what big global players Indian companies are becoming.

It’s a new world as far as rapid growth is concerned and India is one of the nations leading the way.

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Press Release
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Indian Offerings Raised $6 Billion in Global Offerings on NYSE

~ Largest deals by NYSE-listed Indian Companies include: Sterlite IPO, ICICI Follow-on Offering~

NEW YORK, June 25, 2007 – Today, ICICI Bank Ltd. (NYSE: IBN), India’s largest private sector bank by assets, completed the largest offering by an Indian company, raising $4.3 billion in a global follow-on offering, half in the form of ADRs (excluding greenshoe). Trading of the additional ADRs began today, June 25th.

On June 19, Sterlite Industries (India) Limited (NYSE: SLT), India’s largest non-ferrous metals and mining company based on net sales, raised $1.75 billion (excluding greenshoe) in a global IPO on the NYSE . In its first day of trading, the ADR price rose over 9% to $14.70 on volume of 28.5 million ADRs.

If you like to speculate here is a service that you may want to give a try. The Doubling Stocks Newsletter has been published since 2000 and has attracted a good many fans since then.

The following is one of the “bait” letters sent to interested prospects.

“I was searching through my favourite forum yesterday when I came across a post. The post was by a user who goes by the user name “chronus”.

But what he said in his post was very interesting. Bragging he talked about how he stumbled across a website 2 weeks ago. The website was about a newsletter called “Doubling Stocks”.

This newsletter has been running for years and the average return of each stock is 105.67%. “Chronus” went on to explain how he’d invested in the last 3 stocks recommended and had so far earned $1937.24

He told everyone, on Sunday evenings he: Opens his emails, Downloads the latest stock recommendation… then watches as his investment doubles in the next few days.

Other users of the forum, asked him of the web address where they could subscribe to this service. He declined.

Warren Buffet hasn’t let age slow him down very much.

On his 76th birthday Warren Buffet married his long term girlfriend Astrid Menks. Then about a year ago Buffet donated about 31 billion dollars to charity, most of it going to the Gates Foundation.

How’s that for a powerful combination? The number one and number two richest men on this planet combining forces to be a force for good deeds in this world.

What a positive statement for enlightened capitalism.

How did Warren Buffet become so rich? The primary way is by making value based investment decisions and by living to be 76. Buffet is one of the gurus of the value investment approach to investing.

Warren Buffet bought control of textile firm Berkshire Hathaway in 1965. Using that company as his investment vehicle Buffet bought into companies that he understood and in whose management teams he trusted.

Then he held on. There was no attempt to out guess the market or to try and time short term exit and entry points.

The key to what made Warren Buffet so rich is simple. He did his homework, bought undervalued companies, and held on to his holdings for the long haul.