Your Global Stock Investor portfolio was broadly flat this past week, as global markets continue to struggle with negative sentiment. Barrick Gold (ABX) was the star of the week in rallying 11.77% on the strengthening gold price.
It’s hard to imagine that global markets aren’t due for some kind of rally at some point soon. Remember, bear market rallies tend to be short and sharp. You can expect your holdings to soar on any relief rally. You will likely see that most in your telecom holding NII Holdings (NIHD), which is announcing its quarterly results next week. You stopped out of the portfolio’s other telecom holding, Millicom International (MICC), for a gain of 22.55% yesterday. That return includes income from a special dividend that MICC paid in May, so the stock served us well since we bought it in mid-September last year.
Transocean (RIG) booked another $3 billion in revenue yesterday from Brazilian oil giant Petrobras. The Elements Rogers International Commodity ETN (RJI) sold off on the retreat in the oil price. ArcelorMittal (MT) began to recover, before falling back once again, even as the company completed its huge share buyback program. You should feel comfortable buying these three stocks, along with Barrick Gold (ABX), on a fundamental basis. Sasol (SSL) rallied somewhat this past week but remains a HOLD.
PORTFOLIO UPDATE
Barrick Gold (ABX) is launching a $350 million hostile bid for Cadence Energy Inc. as a hedge against oil prices to get control of soaring production costs. The stock is performing strongly, along with the rising gold price, and is a BUY.
ArcelorMittal (MT) is acquiring a 35% stake in Turkish mill Uginox as part of its efforts to gradually double the size of its stainless service operations in Turkey. ArcelorMittal is a BUY.
NII Holdings (NIHD) will host its 2008 second quarter financial results conference call with its senior management next Wednesday, July 23. With a PEG ratio of .52 and a target price of $80, the stock is a BUY.
Transocean (RIG) announced that the Brazilian oil giant Petrobras’ board had approved contracts for four of its rigs which add up to 22 rig years and $3 billion in revenue for Transocean. The stock remains a bargain and a BUY.
Elements Rogers International Commodity ETN (RJI) fell back as the oil price plummeted yesterday. But this is the most diversified of all commodity plays and the recent weakness is a good time to add to your position. RJI is a BUY.
Sasol (SSL) recovered slightly late last week but the technical breakdown in the stock continues to keep it a HOLD.
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