Fighting with bears

China Natural Gas is currently trading at only 10.9 times trailing earnings, yet the company grew net income in 2008 by 66%. I expect growth in 2009 will be only marginally higher than in 2008 due to the severe drop in gas prices. But the fact that the company could grow at all after a 70% decline in natural gas prices is a testament to its growth prospects and solid operations. And if natural gas prices rise in 2010 as I expect, than look for China Natural Gas to reap big profits. China Natural Gas should grow earnings by more than 25% in 2010, which would mean the stock is currently trading at 9.3-times forward earnings. This is very inexpensive – Chesapeake Energy is trading at 11.6-times analyst estimates for 2010, yet is forecast to have essentially flat earnings growth. China Natural Gas is a buy here. The stock should trade at least 25% higher in the next few months and push past its October 2009 high of $14.81. I expect to increase my target price in January. This agriculture sector has been red hot, and China fertilizer companies like China Green Agriculture have...

FEI Company is the leading provider of the highly sophisticated instruments and systems used in nanotechnology research, development, and manufacture. Its products include scanning and transmission electron microscopes, focused ion beam systems, and dual beam systems that combine the two on a single platform. Other FEI products include ion mass spectrometers, nano profilometers, and software systems to help maximize semiconductor production yields. Research labs and industrial customers generate 44% of FEI’s revenues. The electronics industry, and in particular semiconductor manufacturers, contribute 19%, and servicing and component sales account for around 24%. These core businesses generate solid if unspectacular growth of around 10% a year. Greater growth potential, however, lies in the life sciences area, which currently accounts for some 13 percent of revenues. Increasingly the pharmaceutical and biotech industries are focusing on three-dimensional structural biology, including the study of biological pathways and cellular structures. These areas offer fertile markets for FEI’s products. Other industries looking to tap nanotech’s potential also could be powerful engines of growth for FEI in the longer run. The mining and energy markets are two prime examples. In mining, automated mineralogy using FEI’s systems promises to speed up the discovery of...

By Money Morning

The U.S. stock market has staged one of the more impressive rallies in history this year, as “green shoots” of economic growth whetted investors appetite for risk. The Dow Jones Industrial Average is up more than…

By Money and Markets

According to the financial markets, the world has become a very calm and comfortable place again. But has it?

Just a year ago markets were crashing all around us …

The U.S. housing market had started…

By Money Morning

In just a few short years, exchange-traded funds have become the hottest item on the stock-market menu, with U.S. ETFs alone now holding more than $600 billion of investors’ money.

While that’s dwarfed by the $9.3 trillion…

By The Gold Report

Source: The Gold Report

You don’t hear a lot about "peak gold," but the fact is that great gold deposits are harder and more costly to find these days. Then getting the few finds into production…