Double Your Money in This Secret Scandinavian Profit Machine

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

More than 200 million people worldwide suffer from some form of diabetes. Patients with type 1 (juvenile) diabetes can’t make insulin at all and need to inject it their whole lives. Type 2 diabetes — the kind you get from eating too much and not exercising — is now much more common. Today, more than 26 million Americans have diabetes and another 79 million have pre-diabetes. Experts calculate that by 2050, one in three American adults will suffer from the full-blown disease. Nor is this a problem limited to us American fatties. As China, India and the rest of the emerging world adopt Western lifestyles and diets, diabetes is surging there as well.

As a result, treatment of diabetes through insulin has emerged as one of the world’s great growth stories. Although it’s been around for a long time, insulin — along with its modern synthetic versions — remains the most potent drug for a disease that is reaching epidemic proportions. Worldwide insulin sales have quadrupled in the last decade to $15.4 billion. As diabetes specialist David Nathan of Massachusetts General Hospital observed, “The market for insulin is almost endless. It is going up and up and up. It is not even close to the peak.” 

Four years ago, NVO Chief Executive Lars Rebien Sørensen refocused NVO on insulin and other injected diabetes pharmaceuticals. That bet has paid off handsomely. Today, NVO is the world’s largest insulin maker, having sold $7.1 billion of insulin last year. Even in the United States, it has overtaken former market leader Eli Lilly.

Exclusive  Booking 212.5% Profits on Alliance Resource Partners (ARLP)

Last year, the company’s overall sales ($11.25 billion) were up 13% and are projected to grow at an 8% to 10% pace as far as the eye can see. In 2010, net profit increased by 34% and earnings per share (diluted) increased by 38%. No wonder Nordisk stock has gone up fivefold in the last decade. And just last week, the stock broke out to the upside, hitting record highs.

So buy Novo Nordisk A/S (NVO) at market today and set your stop at $109.50. If you want to play the options, I recommend the June $120 calls (NVO110618C00120000), which last traded at $6.60.

Portfolio Update

Alliance Resource Partners LP (ARLP) rose another 2.36% this past week. With your remaining options up 118.75%, you still have some big outstanding profits in this position. With coal continuing to power ahead, ARLP remains a BUY.

Cognizant Technology Group (CTSH) ended the week flat. Cognizant beat Q4 earnings estimates by a nickel, earning 70 cents per share. Its revenue rose 45% to $1.31 billion, beating estimates of $1.28 billion. Despite the recent weakness in the Indian stock market, with the stock back above its 50-day moving average, CTSH is back to a BUY.

Denison Mines Corp. (DNN) jumped 4.55% last week. Denison announced that it won’t meet its annual uranium production target in 2010. Paradoxically, this is good news, as it supports the rising spot price of uranium, which now is above $70. DNN remains a BUY.

ELEMENTS Rogers Intl Commodity Agri ETN (RJA) rose another 2% this past week. Bad weather in key places around the world has savaged the global grain crop, as soft commodities continued to hit record highs. That’s bullish for RJA and it remains a BUY.

Exclusive  52.4% Upside in the Bakken Bull Market

Bank of Ireland (IRE) ended the week flat. The country’s next finance minister repeatedly has said that Bank of Ireland should be given every chance to fend for itself as its situation is not as critical as the other banks. With the stock still under its 50-day moving average, I am keeping IRE at a HOLD.

Ivanhoe Mines (IVN) was flat this past week. Chief Executive Robert Friedland announced that Ivanhoe has made major “Tier 1” copper discoveries in the Democratic Republic of Congo and South Africa. IVN remains a BUY.

Melco Crown Entertainment Limited (MPEL) dropped 2.45% this past week. The company will announce earnings on Feb. 22. With the stock flagging a bit, but still above its 50-day moving average, this play on Asia’s Las Vegas remains a BUY.

National Bank of Greece SA (NBG) ended the week where it started. A back-of-the-envelope calculation suggests that once Greece’s situation normalizes, NBG is at least a $7 stock. Trading above its 50-day moving average, NBG remains a BUY.

Sina Corporation (SINA) was up another 2.27% this past week. The most frustrating thing about this stock is its refusal to pull back so that I can recommend more options. Now up 79.60% since I first recommended it in October, “China’s Twitter” remains a BUY.

Spreadtrum Communications, Inc. (SPRD) rose another 3.15% this past week. With the technology sector humming along, this bet on Chinese semiconductors remains a BUY.

Silvercorp Metals Inc. (SVM) ended the week slightly up. This past week, SVM announced record silver production of 1.52 million ounces, a 25% increase compared to the third quarter of fiscal 2010. Its sales hit a record of $51.8 million, up 66% from a year ago. Its net income reached $29.7 million, a 140% increase. Trading a hairsbreadth above its 50-day moving average, SVM is now a BUY.

Exclusive  Bullish on Banking in Brazil

Transocean Inc. (RIG) dropped 3.45% this past week. The company’s board is seeking shareholder approval for a dividend of about $1 billion, payable in four quarterly installments. The payments would be made in June, September and December of this year, as well as in March 2012. Trading above its 50-day moving average, RIG remains a BUY.

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Most of your positions in Global Stock Investor took a breather this week, even as attention directed towards Egypt and the riots there began to wane. Emerging markets, with the broad exception of your holdings in Asian markets like iShares MSCI Malaysia Index (EWM), iShares MSCI Taiwan Index (EWT) and iShares MSCI South Korea Index (EWY), as well as Market Vectors Russia ETF (RSX), continue to underperform.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE