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Labor disruptions, flooding and infrastructure problems will mean a substantial reduction in coal exports.
Infrastructural limitations in Mozambique continue to pose a challenge to Vale, hampering its ability to get the coal produced from pit to port.
The reduction in export volumes, combined with falling coking coal prices in the international market, will impact revenues negatively. However, since the coal division constitutes just 2% to 2.5% of the company's total gross operating revenues, the overall impact is expected to be muted. On the other hand, the news exposes the fragility of Vale's Mozambican business and the significant challenges it faces to diversify away from its iron ore business.
With so many regulatory, market and other risks to manage, the banking giant has more downside than upside potential.
By Ilan Moscovitz and John Reeves
JPMorgan Chase (JPM) CEO Jamie Dimon began his most recent letter to shareholders on a triumphant note. He proudly reported a record $21.3 billion in net income for 2012, which he said marked the third consecutive year of record profits.
Dimon also pointed to the solid performance of the company's stock over the past eight and a half years, and said that the company is optimistic about the future.
Despite this commendable performance by JPMorgan, we strongly believe that investors should pass on buying its stock.
The tech giant should step out of a politically charged debate on taxation and into growth mode.
Kudos to Apple (AAPL) for figuring how to legally shuffle $44 billion in profits to non-tax jurisdictions.
Unfortunately, while the iPhone designer may have broken new ground in tax avoidance -- according to a Senate Subcommittee on Investigations -- the company would be better off not holding the most swollen bank account among non-financial companies in the history of Corporate America.
Currently, Apple is sitting on about $137 billion in relatively interest free cash. The company even recently raised $17 billion in debt financing to boost its dividend and increase share buybacks, while leaving its cash untouched.
JPMorgan Chase shareholders opted for the devil they knew over the ruckus they feared might result from a slap to the chairman and CEO.
Call it a triumph of practicality over idealism.
Jamie Dimon not only survived a nonbinding vote to unseat him from his role as chairman of JPMorgan Chase (JPM), but the proposal to split the roles of CEO and chairman got less support from shareholders than it received last year.
The surprising vote tally capped a very public battle.
SodaStream is downgraded to 'neutral,' and Monster Beverage is initiated with an 'outperform.'
Wednesday's noteworthy upgrades include:
- Bristol-Myers (BMY) upgraded to Buy from Neutral at Citigroup
- Roche (RHHBY) upgraded to Buy from Neutral at Citigroup
- Volcano (VOLC) upgraded to Overweight from Equal Weight at First Analysis
- Cree (CREE) upgraded at Sterne Agee from Neutral to Buy
- Chesapeake (CHK) upgraded to Positive from Neutral at Susquehanna
These 2 stocks in very diverse industries are hitting the dividend sweet spot.
By John Dobosz, Forbes Dividend Investor
Oil is bubbling higher again over the past month, with both West Texas Intermediate and Brent crude prices up 10%, since hitting short-term bottoms in mid-April.
Shares of U.S. oil majors Exxon Mobil (XOM) and Chevron (CVX) are modestly higher by about 4% in that time, but several European majors, like previously recommended Royal Dutch Shell (RDS.A) and Total (TOT), have rallied 7% and higher.
Lean valuations and fat yields in the group prompt me to add another global energy giant to our list of recommendations -- Britain's BP (BP). The company is one of the largest integrated oil and gas companies in the world, with upstream (exploration and production), midstream (transportation and storage), and downstream (refining and marketing) operations.
These picks can weather any potential pullback.
Despite growing pessimism, the market continues to take indices to new highs. The constant drip higher has a growing number of sidelined investors looking for a way to get their cash to work without feeling they're setting themselves up to buy on the highs and sell on the lows.
One strategy that allows these investors to feel a little more comfortable with putting money in the game at these levels is to target lower volatility stocks within leading indices. The idea is simple: Lower volatility performers may be less likely to see deeper pullbacks when a correction does occur.
With this in mind, the table below identifies the ten lowest volatility stocks in the Nasdaq-100. This index represents the largest domestic and international non-financial securities listed on the Nasdaq Composite ($COMPX) based on market capitalization.
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Government support and low rates make a compelling case for real estate-related stocks.
By Jim Powell, Global Changes & Opportunities Report
The government's biggest stimulus target is now the housing industry. More than any other industry in which we can invest, housing has a mandate to be successful. Without a housing rebound, the economy has little chance of becoming self-supporting again.
Besides the long term capital gains we can expect, housing also offers a good way to convert paper and electronic "wealth" into real, tangible wealth. In addition, real estate is usually a great inflation hedge. If you put all the attractions of the housing sector together, you get what I believe is a compelling case for making an investment.
A housing recovery is already underway, but it's still in its early stages. I think prices will start to move much higher this summer. The big question is, how much higher are prices likely to go from this point?
Producers stand to benefit as farmers make up lost ground in corn fields.
By Jim Probasco
Until last week, only 15% of the corn crop in Iowa (the leading corn growing state in the nation) had been planted.
Then came a week of good weather. Iowa farmers responded by launching an invasion of farm machinery into their fertile fields. As of Sunday, 71% of the corn crop had been planted according to The Associated Press.
The same scene played out in all of the key grain states to the extent that the U.S. Department of Agriculture said in its weekly crop progress update that 71% of the corn crop had been sown in those states as well. This figure isn't far off from the 79% average farmers planted by this time over the past five years.
That exclusivity is one reason shares of this company are up a market-beating 40% this year.
Real estate is one of the hottest investment stories on the Street. That's because for the first time in six years, home prices logged an annual gain in 2012. That momentum has carried into 2013, with the S&P/Case Shiller house price index showing prices on the upswing.
Thanks to health-conscious millennials, this company is in fine shape.
Younger people hate the food chain. It's like Ronald Reagan with Russian missiles. He was willing to trust them, but he wanted to verify. The millennials, who will be about 30% of this country in a half-dozen years, want their food vetted and verified.
That's exactly what Whole Foods (WFM) does. What it stands for. The millennials believe Whole Foods wouldn't sell something unless it were as good as it can be for them. I say "good as it can be" because, even if it is made or sold at Whole Foods, it can still be fattening. It can still be "bad for you," so to speak. But you need Whole Foods to protect you from a world of mass production the way you needed Upton Sinclair's The Jungle as a way to expose the wretched unsanitary conditions of the meatpacking industry at the turn of the century.
However, the overall revenue growth will remain healthy owing to the retailer's strong direct-to-consumer channel.
- Gap is scheduled to release its first quarter fiscal 2013 earnings on May 22. Gap's first quarter revenue growth stood at 7% with comparable store sales increasing by just 2%.
- The retailer performed well during February and April due to strong marketing and seasonal product offerings. However, the prolonged cold in March weighed on its results as demand for spring clothing declined.
- We expect the strength in the direct-to-consumer channel to continue, which will drive Gap's overall revenue growth.
The home improvement retailer's latest report contains all the metrics that explain why it's crushing its rival.
The sub-slinger simply told us something we already know.
By Kyle Woodley
Stick to sandwiches, Subway.
The "House That Jared Built" recently went on the offensive against McDonald's (MCD) and the rest of the fast-food gang by unleashing the results of a survey gauging customer "shame."
The results were both entirely predictable and mostly useless. Reports Business Insider:
Investors await the Fed chief's Congressional testimony about the economy and monetary policy.
By Tim Parker
U.S. markets reached another record high Tuesday as the Dow Jones Industrial Average ($INDU) added 50 points and the S&P 500 ($INX) nearly three points. All eyes will be on Federal Reserve Chairman Ben Bernanke's testimony at 10:00 a.m. ET Wednesday.
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DuPont is downgraded to 'sell,' and Pacific Sunwear is upgraded to 'buy.'
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[BRIEFING.COM] The S&P 500 has climbed past its morning rebound high amid relative strength in technology.
The tech sector has crossed into positive territory as major components were able to shake off the early weakness. Apple (AAPL 443.35, +2.00), IBM (IBM 208.28, +1.29), and Cisco Systems (CSCO 23.54, +0.21) are all up between 0.4% and 0.9%.
Also of note, Hewlett-Packard (HPQ 24.12, +2.89) is soaring 13.6% ... More
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