There's a multi-year high in demand from the jewelry sector and record demand for gold bars and coins, but slowing demand from central banks balanced it all out, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Gold spiked higher yesterday on news of more violence in the Middle East and an afternoon tumble in the dollar. Gold for December delivery is up 2.34% to $1364 an ounce. Gold stocks are up even more. Jubak's Picks portfolio members Goldcorp (GG) and Yamana Gold (AUY), for example, were up 5.94% and 5.55%, respectively, as of 2:45 PM New York time.
But the medium-term trends make me cautious here. The second quarter numbers from the World Gold Council, out yesterday, show a multi-year high in demand from the jewelry sector and record demand for gold bars and coins. But big outflows from gold ETFs and slowing demand from central banks more than balanced that out. Gold demand fell 12% in the quarter of a four-year low.
Of course, that's backwards looking. The one piece of data that makes me especially cautious looking forward is that a 6% year-over-year drop in gold supply in the quarter, which helped support gold prices, was almost totally due to a reduction in recycling, as individuals held onto gold jewelry rather than selling it because of low prices. Mine output increased by 4% in the quarter and supply from recycling fell 21% to 308.3 tons, the lowest since the third quarter of 2009. If gold supply from recycling picks up (or doesn't fall as much), that will remove some support for the price of gold, and if it picks up enough, it could lead to another round of production cuts from gold miners.
Top 10 Low Price Stocks To Own Right Now: IG GROUP HLDGS ORD GBP0(IGG.L)
IG Group Holdings plc operates as a financial spread betting company worldwide. The company offers financial spread bets and contracts for difference on forex, stock indices, shares, commodities, binaries, options, interest rates, and other financial markets; fixed odd bets on financial markets; and margined forex and binary options. It is also involved in spread bets and fixed odds bets on sporting and other events, as well as operates a regulated futures and options exchange. In addition, the company engages in the operation of an online casino; margin trading and futures brokerage; and software development. It offers its products and services primarily to retail clients, market professionals, and corporate entities. The company was founded in 1974 and is headquartered in London, the United Kingdom.
Top 10 Low Price Stocks To Own Right Now: Ashburton Minerals Ltd(ATN.AX)
Ashburton Minerals Limited engages in the exploration and evaluation of gold, copper, and base metal projects in Australia and Indonesia. The company primarily focuses on the Obi Gold project, which is located on the island of Obi, south of Halmahera in eastern Indonesia. It also holds interests in the Mt Webb copper project in Western Australia; the Yea gold project in Victoria; and the Spring Valley zinc-copper-lead project in New South Wales. The company is based in West Leederville, Australia.
Top 10 Oil Stocks To Invest In Right Now: BCD Semiconductor Manufacturing Limited(BCDS)
BCD Semiconductor Manufacturing Limited, together with its subsidiaries, engages in the design, manufacture, and sale of power management analog integrated circuits (ICs). It offers a portfolio of approximately 300 products, including power management ICs in the linear, AC/DC, and DC/DC categories, as well as other ICs that control the speed of a cooling fan or detect the opening/closing of a cell phone or notebook screen. The company?s linear IC products amplify and compare analog signals or regulate a supply voltage within a tight tolerance and are used in PC motherboards, graphics cards, DVD players, modems and routers, power chargers and adapters, switching mode power supplies, LCD/LED televisions and monitors, notebook computers, cell phones, other portable electronic devices, and household appliances. Its AC/DC IC products convert an AC supply voltage into a DC voltage and are used in cell phone adapters, modem and router adapters, notebook computer adapters, switch ing mode power supplies, LCD/ LED televisions and monitors, cordless phone chargers, small appliance chargers and adapters, and PC power supplies and lighting; and DC/DC IC products convert a DC voltage into a higher or lower DC voltage and are used in LCD/LED televisions and monitors, modems and routers, WLAN cards, set-top boxes, cell phones, car chargers, and other portable electronic devices. The company also offers wafer foundry services directly to end customers through foundry service agreements. BCD Semiconductor Manufacturing Limited sells its products to the computing, consumer, and communications electronics OEM and ODM customers primarily through a regional network of independent distributors. The company offers its products primarily in the People?s Republic of China, Hong Kong, Taiwan, South Korea, and North America. BCD Semiconductor Manufacturing Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.
Top 10 Low Price Stocks To Own Right Now: Swift Transportation Company(SWFT)
Swift Transportation Company, through its subsidiary, Swift Transportation Co., LLC, operates as a multi-faceted transportation services company and truckload carrier in North America. The company offers its truckload services through dry van, temperature-controlled, flatbed, and specialized trailers; and rail intermodal services. It also provides freight brokerage and logistics management services to other trucking companies, as well as leases tractors and offers repair services. As of December 31, 2011, the company operated a tractor fleet of approximately 15,900 units, including 11,900 tractors driven by company drivers and 4,000 owner-operator tractors; 50,600 trailers; and 6,200 intermodal containers in the United States and Mexico. It serves various industries, such as retail, discount retail, consumer products, food and beverage, manufacturing, and transportation and logistics industries. The company, formerly known Swift Holdings Corp., and was founded in 1966 and is headquartered in Phoenix, Arizona.
Advisors' Opinion:- [By Sean Williams]
Swift Transportation (NYSE: SWFT ) , for example, delivered a 4% increase in revenue this past quarter in spite of having fewer trucks in service. The company was able to realize better utilization of its existing fleet and actually saw fuel prices fall from the previous year. The results were even more robust for Knight Transportation (NYSE: KNX ) , whose shareholders saw revenue rise by 7% as the company grew from the year-ago quarter for the 14th straight time and delivered growth from each of its business segments.
- [By Seth Jayson]
Swift Transportation (NYSE: SWFT ) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Swift Transportation met expectations on revenues and beat expectations on earnings per share. - [By Sean Williams]
For this week's round of "Better Know a Stock," I'm going to take a closer look at Swift Transportation (NYSE: SWFT ) .
What Swift Transportation does
Swift is a transportation services trucking and intermodal company in North America. The company primarily transports discounted consumer goods, perishable and non-perishable foods, and manufactured goods. As of the end of 2012 Swift operated 15,300 tractors, 52,800 trailers, and had 8,700 intermodal containers. - [By Ben Levisohn]
Shares of Hub have dropped 5.1% to $35.41, but the plunge doesn’t seem to be weighing on other logistic companies. CH Robinson Worldwide (CHRW), for instance, has gained 1.1% to $58.64, JB Hunt Transport Services (JBHT) has risen 1.1% to $71.61, Swift Transportation (SWFT) has advanced 0.9% to $19.56 and Ryder System (R) is up 3.1% to $59.23.
Top 10 Low Price Stocks To Own Right Now: City National Corporation (CYN)
City National Corporation operates as the bank holding company for City National Bank that provides various banking, investing, and trust services to small to mid-sized businesses, entrepreneurs, professionals, and affluent individuals. Its deposit products include demand and interest checking deposits, savings deposits, and money market accounts. The company�s loan portfolio comprises commercial loans, including lease financing; residential mortgage loans; commercial real estate mortgages; real estate construction loans; equity lines of credit; and installment loans. It also offers cash management, international banking, equipment financing, and other products and services. In addition, the company provides investment management, advisory, and brokerage services, including portfolio management, securities trading, and asset management; personal and business trust and investment services comprising employee benefit trust services, and 401(k) and defined benefit plans; and estate and financial planning, and custodial services. Further, it offers various asset classes and investment styles, including fixed-income instruments, mutual funds, domestic and international equities, and alternative investments, such as hedge funds. City National Corporation provides its services through 79 offices, including 16 full-service regional centers in Southern California; the San Francisco Bay area; Nevada; New York City; Nashville, Tennessee; and Atlanta, Georgia. The company was founded in 1953 and is headquartered in Los Angeles, California.
Top 10 Low Price Stocks To Own Right Now: COMS PLC ORD GBP0.001(COMS.L)
Coms plc engages in the development and commercialization of Internet telephony services, and supply and distribution of associated equipment to small and medium sized businesses in the United Kingdom. The company?s Internet telephony enables telephone calls to be transmitted as data over the Internet. It offers hosted VoIP, voice optimized broadband for business, PSTN CPS business telephone, audio and video conferencing, inbound numbers, number porting, and enterprise VoIP services. The company?s Internet telephony services related equipment comprises Internet telephony handsets, VOIP gateways, video phones, and integration consulting and SIP trunks. Coms plc was founded in 2000 and is based in London, the United Kingdom.
Top 10 Low Price Stocks To Own Right Now: Amadeus Energy Ltd(AMU.AX)
Amadeus Energy Limited, together with its subsidiaries, engages in the exploration, development, management, and operation of oil and gas producing properties in Texas, Oklahoma, and Louisiana, the United States. As of July 1, 2011, the company had proven, probable, and possible oil and gas reserves of 8.3 million barrels of oil equivalent. Amadeus Energy Limited was founded in 1996 and is headquartered in Perth, Australia.
Top 10 Low Price Stocks To Own Right Now: TAL International Group Inc.(TAL)
TAL International Group, Inc. engages in the lease of intermodal containers and chassis. It operates in two segments, Equipment Leasing and Equipment Trading. The Equipment Leasing segment involves in the acquisition, lease, re-lease, and sale of various intermodal transportation equipment, such as dry freight containers, which are used for general cargo, including manufactured component parts, consumer staples, electronics, and apparel; refrigerated containers that are used for perishable items, such as fresh and frozen foods; and special containers, which are used for heavy and oversized cargo, such as marble slabs, building products, and machinery. It also leases chassis, which are used for the transportation of containers and tank containers that are used to transport bulk liquid products, such as chemicals, as well as finances port equipment, which includes container cranes, reach stackers, and other related equipment. The Equipment Trading segment purchases container s from shipping line customers and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2009, it had a fleet of 701,946 containers and chassis, including 31,137 containers under management for third parties, representing 1,139,523 twenty-foot equivalent units (TEU). The company was founded in 1963 and is headquartered in Purchase, New York.
Advisors' Opinion:- [By ABN]
TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).
- [By Seth Jayson]
Margins matter. The more TAL International Group (NYSE: TAL ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong TAL International Group's competitive position could be.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, freight container lessor TAL International (NYSE: TAL ) has earned a coveted five-star ranking.
Top 10 Low Price Stocks To Own Right Now: The Spectranetics Corporation (SPNC)
The Spectranetics Corporation designs, manufactures, and markets single use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system, the CVX-300. The company?s excimer laser technology is used to ablate multiple lesion morphology morphologies, such as plaque, moderate calcium, and thrombus. It offers four primary product categories for the Vascular Intervention product line, including peripheral atherectomy, coronary atherectomy, thrombus management, and crossing solutions. The peripheral atherectomy product line consists of a selection of proprietary laser catheters that are indicated for the treatment of infrainguinal (leg) stenoses and occlusions; and the coronary atherectomy product line includes a selection of proprietary laser catheters to be used in various types of coronary artery diseases comprising occluded saphenous vein bypass grafts, ostial lesions, long lesions, m oderately calcified stenoses, total occlusions traversable by guidewire, lesions, and restenosis. The thrombus management product line consists of three thrombus removal devices intended to remove fresh, soft thrombi, and emboli from vessels in the arterial system, as well as to address thrombotic occlusions in dialysis grafts and fistulae; and the crossing solutions product line support guidewires or other devices in facilitating vascular access in the arterial system to enable various types of interventions. The company?s lead management product line comprises excimer laser sheaths, non-laser sheaths, and cardiac lead management accessories for the removal of pacemaker and defibrillator cardiac leads. It sells its products in the United States, Canada, Europe, the Middle East, the Asia Pacific, Latin America, and Puerto Rico. The company has a strategic alliance with Kensey Nash Corporation. The Spectranetics Corporation was founded in 1984 and is based in Colorado Springs , Colorado.
Top 10 Low Price Stocks To Own Right Now: Enerji Ltd(ERJ.AX)
Enerji Limited, together with its subsidiaries, engages in marketing energy recovery and clean energy generation solutions in Australia. It offers Opcon Powerbox cogeneration technology that transforms waste heat from power generation and industrial processes into electricity. The company is based in West Perth, Australia.
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