Categories: Stock Market NewsThe Alpha Investor Letter Hotlines

GLOBAL STOCK INVESTOR HOTLINE UPDATE 66

Your Global Stock Investor portfolio had a solid week, with three of your holdings: Potash (POT), ArcelorMittal (MT) and the Elements Rogers International Commodity ETN (RJI) hitting record highs. Potash has more than doubled, up 101%, since we recommended it in October.

The pull back in iShares MSCI Brazil Index ETF (EWZ), Sasol (SSL), and Transocean (RIG) are all opportunities to add to your current positions.

Meanwhile, I have moved the CurrencyShares Japanese Yen Trust (FXY) to a HOLD, as the Fed is now focusing on talking up the U.S. dollar. Barrick Gold (ABX) also remains a HOLD as the gold price continues to correct.

Keep an eye open for next month’s Global Stock Investor to arrive in your mailbox soon. I’ll be recommending a turnaround play that’s one of Alpha Investor George Soros’ favorite global bets.

PORTFOLIO UPDATE

Barrick Gold (ABX) closed lower this week as the price of the metal fell to $879 an ounce on the New York Mercantile Exchange, after earlier trading as low as $869 an ounce. The stock is a HOLD.

Coca-Cola Hellenic Bottling (CCH) treaded water again this week. Without much news, there is little to drive this stock. The stock’s current oversold position is a terrific opportunity to BUY.

iShares MSCI Brazil Index ETF (EWZ) fell yesterday after data showed that the country’s economy expanded by 5.8% in the first quarter of this year. The figure met market expectations and added to speculation that the central bank will continue to hike interest rates to fight inflation. The recent correction is an opportunity to BUY the world’s top-performing market.

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CurrencyShares Japanese Yen Trust (FXY) dropped this week, as the Fed has embarked on a campaign to talk up the dollar. The Yen is losing its status as a hedge against falling equity markets, so I’ve moved it to a HOLD.

Millicom International (MICC) paid out its $2.40 dividend on June 9 and the payment should have hit your accounts already. The stock itself was flat this week, even as the initial public offering of Kenya’s Safaricom soared 40% in its debut. This was the biggest initial public offering ever in East Africa, and was oversubscribed by more than 500%. With investor interest in Africa growing, use any pullback as an opportunity to BUY.

ArcelorMittal (MT) closed at a record high of $104.25 last week before its stock price dropped back into double digits this week. The world’s largest steelmaker announced that it planned to double the steelmaking capacity of its Temirtau plant in Kazakhstan to 10 million tonnes. The stock is a BUY.

Potash (POT) continues on its relentless path upward, and is trading up at record highs in pre-market trading this morning. The stock has now more than doubled since our initial recommendation. Potash has a larger market cap than Goldman Sachs. POT remains a top BUY.

Transocean (RIG) is as technically oversold as it was when the market bottomed in March. With soaring oil prices here to stay, and the stock cheap on a forward-earning basis, the world’s biggest driller oil services company is a BUY.

Elements Rogers International Commodity ETN (RJI) hit a record last Friday before falling back slightly. This holding is a diversifier in your portfolio and remains the safest play on the commodity boom. It is a BUY.

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Sasol (SSL) was upgraded by Citigroup, which raised it price target on the stock to $76.50. That’s a substantial 30% upside from Sasol’s current levels. The stock is a BUY.

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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.