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13
Investors Bail As Greek Turmoil Rocks North American Markets
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http://ymlp342.net/zHazoT ——————————————————————————– May 13, 2012 Week In Review…
Week In Review For May 7 to May 11, 2012 Canadian Companies mentioned include:
* La Ronge Gold Corp. (TSX-Venture:LAR) * Columbus Gold Corp. (TSX-Venture:CGT) * Magellan Minerals Ltd. (TSX-Venture:MNM) * Commerce Resources Corp. (TSX:CCE) * Western Pacific Resources Corp. (TSX-Venture:WRP) U.S. Companies mentioned include:
* AVI BioPharma Inc. (NASDAQ:AVII) * Power of the Dream Ventures Inc. (OTCBB:PWRV) * KMA Global Solutions International Inc. (Pink Sheets:KMAG) * China Agritech Inc. (Pink Sheets:CAGC) This week on AllPennyStocks.com:
* Article Published, May 8, 2012: Global Licensing Agreement Could Prove a Boon to Sales for Junior Biotech (http://www.allpennystocks.com/aps_ca/special_reports/267/Global-Licensing-Agreement-Could-Prove-a-Boon-to-Sales-for-Junior-Biotech.htm) (CDN Company) * Article Published, May 9, 2012: Junior Healthcare Company Vying for FDA Approval for Cervical Cancer Scan (http://www.allpennystocks.com/aps_us/special_reports/260/Junior-Healthcare-Company-Vying-for-FDA-Approval-for-Cervical-Cancer-Scan.htm) (U.S. Company) * Article Published, May 11, 2012: Junior Medical Device Company Cleared in Canada and Europe with the U.S. in its Sights (http://www.allpennystocks.com/aps_ca/special_reports/268/Junior-Medical-Device-Company-Cleared-in-Canada-and-Europe-with-the-US-in-its-Sights.htm)(CDN / U.S. Company) Video charts for the week:
* May 8th Technical Video Chart For CGT:CA. The Columbus Gold Corp.
chart is holding a base at 48 cents. Despite a few dips below that level, the stock continually pulls up before the closing bell, which could be signaling that the chart is finding a bottom in that area.
view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/WDfa2gs0ZLg ).
* May 9th Technical Video Chart For AVII. The AVI BioPharma chart is holding a support level at 75 cents. A bullish harami 2-day candle pattern was formed on Monday and Tuesday which will be looking for confirmation on Wednesday to add credence to the support level holding. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/b6CJDzIc-Aw ).
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WEEKLY UPDATE – GREEK TURMOIL ROCKS NORTH AMERICAN MARKETS Equities and commodities took it on the chin amongst of flurry of concerns over political and financial stability in Europe. The major North American exchanges fell in a unified manner for the second week against the backdrop of European challenges and China, the world`s second largest economy, showing lackluster economic data, including industrial production slowing to the lowest rate in three years and a dramatic reduction in imports that raised worries about the growth rate of the country. Traders digested another round of earnings news this past week, which continue to remain optimistic, but foreign concerns clearly had the most impact in driving market direction this past week.
Debt-laden Greece was back in focus with another election almost certain after austerity opponents blocked the formation of a new government again on Friday. In earlier elections the two most established parties both lost seats in parliament, leaving no party with a majority of seats needed to form a government. Led by Alexis Tsipras, Syriza, a left-wing party that came in a surprise second in the election, is stirring the waters with its contention that Greece is no longer bound by its promises to cut spending sharply. The lack of any political unity and formation of a coalition government in Greece, including the rejection of new structure proposed by Social party leader Evangelos Venizelos, has awareness back to high levels of potential financial fallout in the country as the chaos could threaten additional bailout funds and, worse yet, see Greece leave the euro.
A change in leadership in France also has investors on the edge of their seats as they speculate about outcomes of the changing of the guard to newly elected President Francois Hollande after his defeat of Nicolas Sarkozy. Hollande believes that drastic austerity measures are responsible for EU countries being tossed into a recession and the root of large-scale unemployment. This week, Hollande will be meeting with Germany`s Chancellor Angela Merkel, a woman who wants the member nations of monetary union to unquestionably follow the EuroZone fiscal pact. Investors will be looking for the meeting in Berlin to help curb the dysfunction overseas, not antagonize the situation, as disagreements could rattle the markets.
With all the political issues in surrounding countries, Spain was not forgotten for its struggling banking sector. The Spanish government took a large stake in Bankia, one of the largest banks in the country, in an attempt to support investor confidence amidst piles of debt and rising borrowing costs. Yields on Spanish 10-year bonds have risen above the 6% benchmark that raises serious concerns amongst investors.
In a thin economic data week from the U.S., stocks tumbled every day this past week, except for Thursday, when mildly positive initial jobless claims stats helped boost stocks tepidly in perhaps what could just have been proper timing for a bounce after six consecutive losing days for the Dow Jones and TSX Composite.
Economic data picks back up next week that could help either pare the impact of foreign affairs or amplify news from overseas. Retail sales and the U.S. Consumer Price Index can have market moving impact and mid-week will bring minutes from the Federal Reserve`s April 24-25 policy meeting. Investors are expected to dig deep into the Federal Open Market Committee information for guidance as to the direction of the US economy and interest rates. At this point, investors should probably expect more choppy trading.
The Canadian dollar gave-up ground against the USD to drop below parity as global turmoil kept investors skittish about riskier currencies like the loonie. Mark Chandler, head of Canadian FIC Strategy at RBC Dominion Securities, commented, “The risk sell-off has undermined equities, undermined commodities and pulled the Canadian dollar along for the ride as well.” The greenback, which is not as commodity sensitive as the Canadian currency strengthened during the week against the majority of its global counterparts. Breaking back under parity the Canadian dollar lost 0.48% against the USD, meaning that next week will begin with one Canadian dollar buying US$0.99985.
Commodity Snapshot:
* Gold futures fell by almost 1% on Friday to conclude a week of selling as an unclear EU picture over ongoing debt concerns resulted in a sell-off in the euro; driving investors in droves to safer assets like U.S. treasuries and the dollar. The dive this week took gold to its lowest levels in 2012. June contracts, the most actively traded, dropped by $61.20, or 3.72%, to close at $1,584.00 per troy ounce.
* Silver, which much like gold, benefited from the debt problems in Europe last year because of its “safe haven” appeal, has moved in conjunction with equities this year based on disturbing news from overseas. Gold`s cousin also slid to new 2012 lows this past week by touching $28.415 on Friday before pulling up modestly. On the week, July contracts were the most actively traded; dropping 5.07%, or $1.542, to close the week at $28.89.
* Copper prices had a volatile week to touch three-week lows and could not overcome a Tuesday nosedive that took prices down by more than 3 percent. News from China that showed an 18.8% drop in imports raised concerns over physical demand as the top importing country of copper has an overabundance of the red metal and curbed international trade as a result. July contracts were the most actively traded on New York`s COMEX exchange during the week and shaved-off 7.3 cents, or 1.96%, to $3.648 per pound.
* Oil prices had fallen for six straight days before getting a boost on Thursday with the report on initial U.S. jobless claims contracting to a one-month low adding optimism that demand from the world`s biggest crude consumer will grow. Oil prices had fallen off a cliff on serious demand worries, including China`s April crude imports dropping to the lowest levels since December 2011 and U.S. stockpiles tallying 379.5 million barrels, the highest level since August 1990.
On the week, June contracts retreated $2.36, or 2.40%, to close at $96.13 per barrel, following a drop of more than 6 percent the week prior.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners continued to be under heavy pressure as gold fell to 2012 lows with Barrick Gold (ABX, -1.59%), Kinross Gold (K, -5.16%), Goldcorp (G, -4.20%), Newmont Mining (NMC, -4.20%), Yamana Gold (YRI, -3.69%) and Agnico-Eagle Mines (AEM, -3.38%) all shedding points on the TSX.
* Thompson Creek Metals Co. (TSX:TCM, -22.69%) and Allied Nevada Gold Corp. (TSX:ANV, -7.34%) felt additional selling as both companies posted first quarter results that missed expectations.
* Energy stocks were laggards again this past week with pessimistic oil news around the globe. Suncor Energy (NYSE:SU, -5.44%), Canadian Natural Resources (NYSE:CNQ, -2.61%), Talisman Energy (NYSE:TLM, -6.55%) and Imperial Oil (NYSE:IMO, -3.45%) all subtracting points from their totals. Cenovus Energy (NYSE:CVE, +1.85%) managed to eke out gains.
* JPMorgan Chase & Co. (NYSE: JPM, -11.47%), the largest U.S. bank by assets, embarrassed itself this past week with news that it lost billions of dollars on bad trades and raised fresh worries that the financial sector was not on the mend. The blunder means that the company now expects its corporate segment to post a Q2 loss after taxes of $800 million. It also resulted in Fitch Ratings cutting its credit rating one notch and Standard & Poor`s revising its outlook of JPMorgan to negative. Importantly, the loss from synthetic trading will surely have regulators taking a close look at potential policy revisions.
* Already having a tough week in general, banks were impacted by the JPM news. Majors Goldman Sachs Group (NYSE:GS, -6.29%), Bank of America (NYSE:BAC, -2.45%) and Citigroup (NYSE:C, -7.12%) posted losses on the week.
* On the Canadian banking front, The Bank of Nova Scotia (TSX:BNS, +0.45%) was a rare winner on the week as Toronto-Dominion Bank (TSX:TD, -0.80%), Royal Bank of Canada (RY, -1.75%) and Bank of Montreal (BMO, -0.81%) all drifted lower with their U.S. peers.
* In M&A news, shares of drugmaker GlaxoSmithKline (NYSE:GSK, +0.18%) said it is taking its previously announced unsolicited $13 a share offer for Human Genome Sciences (NASDAQ:HGSI, +2.30%) directly to shareholders in a hostile bid.
* Bed Bath & Beyond (NASDAQ:BBBY, +5.14%) had shares rise as it agreed to buy Cost Plus (NASDAQ:CPWM, +22.84%) for almost $495 million, or $22 per share.
* Shares of beauty products company Avon (NYSE:AVP, -1.85%) declined after it said that it is considering the new $24.74 a share buy-out offer from perfume-maker Coty. Coty`s original offer was $23.25 per share.
* Shares of insurer American International Group (NYSE:AIG, -3.29%) fell after the Treasury Department announced that it was planning to sell 163.9 million shares for $30.50 each. The Government Accountability Office issued a report stating that the U.S. Treasury may eventually turn a $15.1-billion profit on its bailout of AIG when all final payments and asset sales are complete.
* Bombardier Inc. (TSX:BBD.B, -5.47%) reported net income of $190 million, or $0.10 per share, in Q1 as compared to $220 million, or 12 cents, a share a year ago. Revenue was $3.5 billion, compared with $4.7 billion last year.
* Nvidia Corp. (NASDAQ:NVDA, +7.75%) shares perked upon the company reporting quarterly revenue and an outlook that beat estimates.
* Nexen Inc. (NYSE:NXY, -4.31%) lost share value after saying that it is abandoning drilling operations at a site in the Gulf of Mexico after failing to find commercial hydrocarbons.
* Shares of food company George Weston Ltd. (TXS:WN, -1.96%) fell on the week despite saying that Q1 net earnings attributable to shareholders grew 18% to $124 million from $105 million in the quarter a year earlier. Sales increased 1% to $7.22 billion from $ 7.15 billion a year ago.
* After plummeting the week prior, shares of Green Mountain Coffee Roasters (NASDAQ:GMCR, +0.24%) edged slightly higher after saying that CEO Robert Stiller was ousted as Chairman for selling more than $125 million worth of Green Mountain stock early in the week in a margin call.
* Shares of Walt Disney (NYSE:DIS, +6.13%) hit all-time highs after posting better than expected earnings and reporting a blockbuster opening weekend for its movie “The Avengers” which racked-up $200.3 million in domestic ticket sales. The sales eclipsed the old company record of $169.2 million registered by the wildly-popular “Harry Potter and the Deathly Hallows Part 2″ last July.
* Molson Coors Brewing Co. (NYSE:TAP, -1.62%) reported net income from continuing operations dropped 3.9% to $79.4 million, or 44 cents per share, even though underlying earnings rose to $85.3 million, or 47 cents per share. Net sales were up 0.1% to $691.4 million.
* Fast Food restaurants McDonald`s Corp. (NYSE:MCD, -4.14%) and Wendy`s (NASDAQ:WEN, -6.86%) both depreciated in value with earnings reports. Mic-E-Dees said that same-store sales increased 3.3%, both globally and in the U.S. market, which came up short of analyst expectations of 5% growth. Wendy`s reported operating income of a penny a share, shy of analysts` forecasts for a profit of three cents a share.
* Canada`s largest auto parts maker Magna International Inc.
(NYSE:MGA, +0.82%) notched first quarter sales of $7.7 billion, an increase of 7% from the same quarter in 2011. Net income totaled $341 million, an increase of $19 million over Q1 2011.
* The day is nearly here for the much anticipated Facebook Initial Public Offering. The IPO is slated to happen this coming Friday. Chief Executive Officer Mark Zuckerberg, plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. The top end price range values the social network at $96 billion, but the enormous figure has many analysts claiming that the company is overvalued at that level which is weakening demand.
Weekly Indices Results:
The S&P TSX Composite Index continued the slide from the previous week;subtracting 176.56 points, or 1.49%, to 11,694.67. The TSX Venture Exchange crashed again; dropping 58.77 points, or 4.18%, to 1,346.33.
In the States, the Dow Jones Industrial Average dumped again for the second straight week; depreciating by 217.67 points, or 1.67%, on the week to 12,820.60. The much-broader S&P 500 followed along; shrinking its total by 15.71 points, or 1.15%, to close at 1,353.39. The tech-rich NASDAQ Composite continued to slide after its stellar start to 2012; unleashing 22.52 points, or 0.76%, to 2,33.82 on the week.
Canadian Economic Data:
* In March, contractors took out building permits worth $6.8 billion, up 4.7% from February following a revised 7.6% increase the previous month. The gain was attributable to higher construction intentions for both institutional and commercial buildings, mostly in Ontario.
Intentions for residential buildings fell 1.3 percent in March as the value of permits fell by 1.7 percent for single-family dwellings and by 0.7 percent for multi-family dwellings.
* Canada Mortgage and Housing Corp. said there was a seasonally adjusted annual rate of 244,900 housing starts in April, up 14% from the previous month, and well ahead of the 204,000 figure economists had been predicting. The climb represents the highest level of starts since September 2007.
* The New Housing Price Index (NHPI) rose 0.3% in March, following a similar increase in February. When compared to 12 months earlier, prices were up 2.6%.; renewing concerns about a Canadian housing bubble.
* Canada`s merchandise exports edged down 0.4% and imports decreased 0.6%. As a result, Canada`s trade surplus increased from $273 million in February to $351 million in March.
* Employment increased by 58,000 in April, mostly in full-time work.
This was the second consecutive month of notable gains after four months of little change. With more people searching for work, the unemployment rate increased by 0.1 percentage points to 7.3%.
Next week, the economic data slate will include CREAstats-MLS sales on Tuesday; Monthly Survey of Manufacturing on Wednesday; Canada`s International transactions in securities, Wholesale Trade and New Motor Vehicle Sales on Thursday; and Consumer Price Index on Friday.
U.S. Economic Data:
* The US monthly international trade deficit increased in March 2012, according to the US Bureau of Economic Analysis and the US Census Bureau. The deficit rose from a revised $45.4 billion in February to $51.8 billion in March, as imports climbed faster than exports. The services surplus increased by $100 million to $15.8 billion, increasing the deficit to $67.6 billion in March.
* The Labor Department said that initial jobless claims dropped by 1,000 to 367,000 in the period ended May 5th. After the month of April saw a rise in claims, the mild decreases recently has the level back down to levels at the end of February. The four-week moving average, a less volatile measure than the weekly figures, decreased to 379,000 last week from 384,250 the previous period.
* A sharp drop in gas (-1.7%) and energy costs drove a measure of U.S. wholesale prices lower in April, according to info from the Labor Department. The agency said that the Producer Price Index, which measures price changes before they reach the consumer, dropped 0.2 percent last month from the previous month. It was the first decline since December and the biggest one-month drop since October.
* Consumer confidence rose in May to the highest level in four years, led by gains among upper-income Americans that may contribute to a pickup in spending on expensive items like furniture and appliances.
The Thomson Reuters/University of Michigan preliminary sentiment index for May climbed to 77.8, the highest since January 2008, from 76.4 in April. The index has now risen for nine straight months and has reached its highest level in four years.
Next week, data in the States will include the Consumer Price Index, Retail Sales stats and the Empire State Manufacturing Survey on Tuesday; Housing Starts and Industrial Production on Wednesday; Jobless Claims and the Philadelphia Fed Survey on Thursday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, miner Columbus Gold Corp.
(TSX-Venture:CGT) started a little slow, but then rose the final three days of the week to close at its intraweek high of $0.55, for a gain of 6 cents, or 12.24%. The other stock we had on radar, fellow miner La Ronge Gold Corp. (TSX-Venture:LAR) dropped mid-week before putting together a solid bounce to also close at its intraweek high or $0.365 for a gain of 1.5 cents, or 4.29%.
In the States, drug maker AVI BioPharma Inc. (NASDAQ:AVII) bounced all over the place, including hitting an intraweek high of 85 cents before settling down at $0.771 for a loss of 6.15 cents, or 7.39%. The other U.S. stock on our watchlist, services company Power of the Dream Ventures Inc. (OTCBB:PWRV) never gained any momentum and closed down at 9 cents for a loss of 3.8 cents, or 29.69%, with an intraweek high of $0.124.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 5.14%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have realized gains of 3.88%.
Next week, we focus on Magellan Minerals Ltd. (TSX-Venture:MNM) and Commerce Resources Corp. (TSX-Venture:CCE). In the States, look for big things from KMA Global Solutions International Inc. (Pink Sheets:KMAG) and China Agritech Inc. (Pink Sheets:CAGC).
Amongst our Corporate Spotlights, Western Pacific Resources Corp.
(TSX-Venture:WRP) announced this past Wednesday that they received historical proprietary data compiled by Pegasus Mining for the Mineral Gulch property, formerly known as the Black Pine Mine. Included in the information are comprehensive drill-hole location maps, topographic maps generated during the mining process, various drill-hole gold assay sheets and useful mine permitting reports. The data was purchased for a cost of $5,000. The Black Pine Property produced over 500,000 ounces of gold at an average head grade of 1.5 grams from several small open pits.
“We are extremely pleased to have acquired the historical data. It has been a long process trying to track down this partial data set. Now that we have this information, we will use it to help with our planned summer drill program. This is a very important step in refining our exploration plan moving forward,” said Eric Saderholm, Director at Western Pacific Resources.
Despite the market selloff over the last few weeks, especially in Canadian stocks, V.WRP still finds itself up 17% from our profile launch date of May 1st. The chart pattern looks promising as well for the Company as it continues to find strong support at $0.27 and continues to make higher lows and higher highs which may mean that a new up-trend is in the midst of forming. We encourage our investors to continue to watch for developments and follow trading of V.WRP in the days and weeks ahead.
————————- Forward Looking Statements This report includes forward-looking statements that reflect the mentioned companies current expectations about its future results, performance, prospects and opportunities. the mentioned companies has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plan,” “should,” “typical,” “preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause the mentioned companies actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
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8
Canada’s Employment Stats Blow Away Expectations, U.S. Stats Disappoint
Comments off · Posted by admin in AllPennyStocks
You can read the original version online:
http://ymlp272.net/zUG33D ——————————————————————————– April 8, 2012 Week In Review…
Week In Review For April 2 to April 6, 2012 Canadian Companies mentioned include:
* Rodinia Lithium Inc. (TSX-Venture:RM) * Prodigy Gold Inc. (TSX-Venture:PDG) * Great Quest Metals Ltd. (TSX-Venture:GQ) * Gold Canyon Resources Inc. (TSX-Venture:GCU) * Asantae Holdings International Inc. (TSX-Venture:JVA) U.S. Companies mentioned include:
* Stellar Pharmaceuticals Inc. (OTCBB:SLXCF) * Lithium Exploration Group Inc. (OTCBB:LEXG) * SMF Energy Corp. (NASDAQ:FUEL) * American Apparel, Inc. (AMEX:APP) This week on AllPennyStocks.com:
* Article Published, April 3, 2012: Over $600 Million in Revenue and Most Still Do Not Know About This Micro-Cap Steel Producer (http://www.allpennystocks.com/aps_us/special_reports/248/Over-$600-Million-in-Revenue-and-Most-Still-Do-Not-Know-About-This-Micro-Cap-Steel-Producer.htm) (U.S. Company) * Article Published, April 4, 2012: Dually-Listed Junior Miner Looking For a Rise on Uranium Optimism (http://www.allpennystocks.com/aps_ca/special_reports/260/Dually-Listed-Junior-Miner-Looking-For-a-Rise-on-Uranium-Optimism.htm) (CDN / U.S. Company) Video charts for the week:
* April 2nd Technical Video Chart For SLXCF. Coming off a triple bottom, the Stellar Pharmaceuticals` chart has formed a bullish flag pattern. Three green closes heading into the weekend have the chart on watch to break the flag`s resistance at 62 cents to potentially challenge the next level at 70 cents. Support after the big move is at 54 cents. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/_WXzAgbPbWc ).
* April 3rd Technical Video Chart For MAY:CA. The Meadow Bay Gold chart is forming a large upward channel that is producing 50 percent swings. The pps is coming off the lower side of the channel again with three straight green days giving hints of another potential run. Click here to view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/n6RPIih9hTs ).
Follow AllPennyStocks.com on Twitter: Click here: ( http://www.allpennystocks.com/aps_common/twitter.asp ) to join AllPennyStocks.com on Twitter. Find out about the penny stocks to watch before anyone else, only on Twitter. Following AllPennyStocks.com is free, get all the details here: ( http://www.allpennystocks.com/aps_common/twitter.asp ).
WEEKLY UPDATE – STOCKS KICK-OFF Q2 ON SOUR NOTE The North American markets came out bullish on the first day of the second quarter as gold miners and energy plays charged upward, but sentiment was quickly dampened in the shortened trading week with all the major indexes on Wall and Bay Streets diving into the red by the time the Good Friday holiday arrived. The bulls found a reason to kick the quarter off with optimism based on the latest manufacturing numbers in the States showing that inflation was under control, but from that point forward, a relatively decent batch of economic data from both Canada and the U.S. was largely ignored.
The latest release of the minutes from the U.S. Federal Reserve March meeting sparked concerns and stripped-away hope of another round of quantitative easing in the near future that many investors were hoping for. Typically, signs of the economy recovering would be met with optimism in equities, but the Fed signaling that the favorable movement in the economy has diminished prospects of another round of bond buying by the central bank was met with cynicism causing upward pressure to stall.
Overseas information also weighed on the markets with economic data coming through showing a mixed bag of growth in Japan and Germany.
Weaker than expected demand during an auction for Spanish bonds on Wednesday was also difficult for investors to swallow as it could mean that Spain could struggle in meeting its 2012 budget deficit goals; stoking fears about Europe`s debt problems again. Reaching their highest level in more than three months, the yield on 10-year Spanish bonds jumped to 5.8% Thursday following the poor auction outcome.
Trading volumes throughout the week were notably light with traders taking a breather heading into the long Easter weekend.
If, for some reason April continues as the first week began, it will be bucking a five-year trend in which the benchmark S&P 500 has recorded average gains of 4.5% during the month.
Although the equities markets were closed on Friday, futures trading was open until 9:15 AM EDT. Futures for the Dow Jones Industrial Average were holding in the green until the latest unemployment report from the U.S. hit the wires; coming in below expectations. Dow futures promptly dove about 160 points upon the jobs report, closing down by 143 points as the S&P 500 and NASDAQ futures also retreated into negative territory.
Canada’s dollar recorded its first weekly gain in four weeks against the U.S. dollar on the back of the Canadian jobs report showing that more jobs were added than expected during March. The loonie had been down again against the dollar early in the week on Europe`s sovereign-debt crisis spurring concerns that investors may look for safety in the greenback amid global financial woes, but gained traction against the vast majority of its world peers when Stats Can reported jobs gains that outstripped economists` predictions by more than 600 percent. The Canadian dollar remained stronger than the USD at the week`s end with next week beginning with one Canadian dollar buying US$1.00285.
Commodity Snapshot:
* Gold futures fell to 11-week lows in overnight trading last Wednesday in the wake of bearish sentiment that barreled through the investment community after the minutes from the Federal Open Market Committee of the U.S. Federal Reserve were disclosed early in the week. Gold trading was closed for Good Friday, but overseas trading saw bullion rise in value on Friday amidst the jobs report showing less Americans than expected found jobs in March. Potentially also adding to bullishness to start next week is the fact that a 3-week-long strike in India over excises taxes by traders and jewelers has ended. Gold prices in India shot-up on the news. When trading ended for the week on Thursday in the States, June contracts, the most actively traded, had fallen $41.80, or 2.50%, to close at $1,630.10 per troy ounce.
* Silver prices fell prey to a rising U.S. dollar, the Fed minutes and sliding gold prices that sapped demand for metals across the board. May contracts, which remained the most actively traded, fell hard on Wednesday in part of a broad metal sell-off. On the week, the contracts subtracted $0.754, or 2.32%, to close at $31.73 an ounce.
* Copper prices eked higher on Thursday after Wednesday`s sharp drop of 3.3%which enticed a few bargain hunters, although futures remain under pressure, much like other metals. Investors in growth-sensitive assets like copper had been carefully adding to holdings in recent weeks on hopes that the Fed may provide a third round of quantitative easing. Copper is a widely-used metal with applications in the auto industry, electronics and plumbing, making it closely watched with regards to global growth acceleration. On the week, May contracts, the most actively traded on the Comex division of the New York Mercantile Exchange, depreciated by 2.95 cents, or 0.77% to close the week at $3.7955 a pound.
* Oil prices rose last Monday on the good manufacturing stats coming from the Institute for Supply Management`s factory index and concerns arose in the North Sea, but also took a hit on Wednesday to fall into negative territory. A rise of more than 1% on Thursday over concerns surfacing again about possible disruptions in supplies from Iran provided some strength for crude prices to save gains for the week.
The dispute over Iran`s nuclear activities was complicated by news that a major Chinese ship insurer is no longer going to provide coverage for tankers carrying Iranian oil. May contracts, the most actively traded, edged-up by 0.28%, or $0.29, to end at $103.31 per barrel.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners fell again, with most suffering their fourth down week out of the last five. Barrick Gold (ABX, -6.55%), Yamana Gold (YRI,-5.08%), Agnico-Eagle Mines (AEM, -3.13%), Inmet Mining Corp.
(IMN, -3.87%), Kinross Gold (K, -6.15%) and Goldcorp (G, -9.70%) all surrendered points on the Toronto exchange.
* Shares of Ivanhoe Mines Ltd. (TSX:IMN) unloaded 12.30% after TD Securities and Bank of Montreal downgraded their ratings on the stock.
* Lake Shore Gold Corp. (TSX:LSG, -7.77%) reported that an accident at its Timmins West mine in Ontario killed one of its employees.
* Some green was found in the gold sector with Pretium Resources Inc.
(TSX:PVG, +2.88%) reporting a high-grade mineral resource estimate for its Brucejack project in northern British Columbia.
* Energy stocks generally suffered losses, despite oil squeaking ahead modestly. Suncor Energy (NYSE:SU, -6.33%), Canadian Natural Resources (NYSE:CNQ, -3.47%), Cenovus Energy (NYSE:CVE, -3.95%) and Imperial Oil (NYSE:IMO, -2.84%) all doffed-off points. Talisman Energy (NYSE:TLM, +1.03%) was a rare gainer for the week.
* In other big energy news, Canadian Natural Resources Ltd. said Allan Markin had resigned as chairman for personal reasons, and will be succeeded by vice-chairman N. Murray Edwards. Canacol Energy Ltd.
(TSX:CNE, +10.13%) shares perked after ExxonMobil Corp. (NYSE:XOM, -2.20%) agreed to provide $50 million for Canacol`s shale-oil exploration project in Colombia.
* Financial plays languished after a productive first quarter as EU financial concerns surfaced again. Bank of America (NYSE:BAC, -3.55%), Goldman Sachs Group (NYSE:GS, -5.12%), JP Morgan Chase (NYSE:JPM, -2.94%) and Citigroup (NYSE:C, -4.82%) gave back a few points.
* In addition to simply struggling along with banks this past week, JP Morgan Chase felt the sting of the Commodity Futures Trading Commission hitting them with a $20-million civil penalty to settle charges that it had unlawfully handled customer funds ahead of the Lehman Brothers bankruptcy.
* Losses were broad on the Canadian banking front as well with The Bank of Nova Scotia (TSX:BNS, -0.95%), Toronto-Dominion Bank (TSX:TD, -1.57%), Canadian Imperial Bank of Commerce (TSX:CM, -1.10%), Bank of Montreal (BMO, -1.13%) and Royal Bank of Canada (RY, -1.47%) all slinking lower.
* Shares of Royal Bank, Canada`s largest bank by assets, suffered amidst accusations by the U.S. Commodity Futures Trading Commission that the bank has been engaging in illegal stock futures trades with itself to gain Canadian tax benefits. Royal Bank vehemently denies the accusations. Outside of the new lawsuit, the bank also said it has reached a definitive deal to acquire full ownership of the RBC Dexia Investor Services Ltd. joint venture for about $1.1 billion.
* Research In Motion Ltd. (TSX:RIM, -13.74%) fell to new lows after launching the full version of its BlackBerry Mobile Fusion, a mobile device management software that enables enterprise customers to manage Apple`s iOS and Android devices through the BlackBerry server. Shares of RIM are down about 80 percent in the last year as the company continues to pursue options to combat its continuing loss of market share to Apple, Inc.
* Speaking of Apple (NASDAQ:AAPL), shares continue to make new all-time highs amidst several analysts raising price targets and one analyst`s prediction that shares will climb to $1000 each. Shares closed this past week ahead by another 5.69% at $633.68.
* Shares of Molson Coors Brewing Company (NYSE:TAP) dove by 8.80% after the company said it will buy brewer StarBev L.P. from CVC Capital Partners for 2.65 billion euros ($3.54 billion U.S.) to expand in Central and Eastern European beer markets.
* Shares of internet beast Yahoo, Inc. (NASDAQ:YHOO, -1.02%) weighed on the Naz as the company announced 2,000 job cuts, as part of its restructuring process. Retailer JC Penney Co. (NYSE:JCP, -0.74%) also reported that it will be cutting 600 jobs – or 13% of the workers – at its Plano, Texas headquarters.
* Shares of cosmetics maker Avon Products (NYSE:AVP, +20.97%) leapt upward after competitor Coty publicly put an offer on the table to acquire Avon for approximately $10 billion in cash. Coty had been in private discussions with Avon about the acquisition and also said that it will not be pursuing a hostile takeover attempt if the deal doesn`t happen.
* Home renovation retailer Rona Inc. (TSX:RON, +11.82%) had shares spike upon saying that the company is not up for sale, despite comments from Robert Hull, CFO of Lowe`s Companies Inc., saying that Lowes may be interested if Rona put itself on the auction block.
* Some downgrades hit household names this past week with General Electric (NYSE:GE, -2.89%) getting a downgrade from Moody`s, citing debt due to risks associated with its finance subsidiary, GE Capital Corp. International Business Machines (NYSE:IBM, -1.52%) and cruise ship operator Carnival Corp. (NYSE:CCL, -4.36%) also both dropped on reports of analyst downgrades.
* On the social front, the New York Post reported that Zynga (NASDAQ:ZNGA, -9.43%) is in talks with casino operator Wynn Resorts (NASDAQ:WYNN, +0.85%) over a possible online gambling game. Groupon Inc. (NASDAQ:GRPN, -22.85%) shares plummeted after announcing that it was revising its Q4 income and sales to lower levels because of a high rate of customers looking for refunds. Additionally, Groupon`s auditor has discovered a deficiency in its financial statements. This news hit later in the week after the SEC said that it was investigating the first set of financial reports of the daily deals company from when it went public in October of 2011.
* Shares of credit card processor Global Payments, Inc. (NYSE:GPN, -3.87%) fell further this past week after a more than $5 drop per share the week prior as its massive data breach was reported; potentially compromising credit and debit card information from all of the major card operators, including Visa and MasterCard.
* In other news, Air Canada (TSX:AC/B, -8.51%) shares are testing all-time lows again after Moody`s Investors Service downgraded the airline`s debt rating to Caa1 from B3. Air Canada has been plagued with labor issues over the last year and was recently hit by wildcat strikes that caused delays at its biggest airports. Moody`s cited concerns over the airline`s ability to fund new planes and shortcomings related to pensions all ongoing amid rising costs of fuel and soft economic conditions.
Weekly Indices Results:
The S&P TSX Composite Index accelerated its downward pace, falling for the sixth straight week by subtracting 289.07 points, or 2.33%, to 12,103.11. The TSX Venture Exchange wiped-out any gains from the prior week by unloading 85.35 points, or 5.45%, to finish at 1,481.04.
In the States, the Dow Jones Industrial Average continued its up-a-week, down-a-week pattern with a red week; weakening by 151.90 points, or 1.15%, on the week to 13,060.14. The much-broader S&P 500 dropped for the second time in three weeks; stripping 10.39 points, or 0.74%, from its total to close at 1,398.08. The tech-rich NASDAQ Composite hit a bump in the road after 13 weeks of closing higher than it opened; slipping back by 11.07 points, or 0.36%, to 3,080.50 on the week.
Canadian Economic Data:
* After a sharp 11.4% drop in January, building permits rebounded strongly in February with a 7.5 percents increase as contractors grabbed more permits to construct factories and schools. The total value of building permits during the month increased to $6.53 billion, according to Statistics Canada, crushing economists` expectations of a 2 percent increase. The gains were largely paced by a 36.2% rise in the non-residential sector.
* Adding the most full-time jobs since September 2008, employment rose by 82,300 jobs in February after a decline of 2,800 in January.
The new jobs numbers lowered the unemployment rate by 0.2% to 7.2% from January to February. Much like building permits, the substantial gain far surpassed expectations, with economists only calling for a moderate gain of 10,500 new jobs.
* Stats Can said that purchasing activity slid mildly in March as compared to February. The seasonally-adjusted Ivery Purchasing Managers Index edged down to 63.5 in March from a 66.5 reading in February. It was the first drop in five months, but still is recording the highest levels in nearly one year. Readings above 50 indicate growth in purchasing activity.
Next week, the economic data slate will remain thin with housing starts on Monday; and the New Housing Price Index and International Merchandise Trade statistics on Thursday.
U.S. Economic Data:
* Economic activity in the manufacturing sector expanded in March for the 32nd consecutive month, and the overall economy grew for the 34th consecutive month, according to the nation`s supply executives in the most recent Manufacturing ISM Report On Business. Increases in apparel, leather and allied products – followed by nonmetallic mineral products – led the 15 of the 18 manufacturing industries that registered growth in March. Computer & electronic products led the few industries reporting contraction.
* Claims for U.S. unemployment benefits dropped to the lowest level in four years with a drop of 6,000 to 357,000 for the week ended March 31, 2012. While at four-year lows, economists had expected a decrease to 355,000. The four-week moving average, a less volatile measure than the weekly figures, decreased to 361,750 during the week, from 366,000.
* In their monthly non-farm employment report, ADP said that a total of 209,000 private sector jobs were created in March. The number was in line with expectations. A broad increase across all industries were paced by the goods producing sector adding 45,000 jobs during the month. The employment numbers for February and January were revised upwards to 230,000 (from 216,000) and 182,000 (from 173,000).
* The Institute for Supply Management`s Non-Manufacturing Index slipped from one-year highs of 57.3 in February to 56 in March, indicating that the world`s largest economy in still expanding (readings over 50 show growth). The ISM compiles its diffusion index by surveying more than 370 purchasing executives in more than 62 different service industries – covering roughly 90% of U.S. companies in all sectors outside of manufacturing – once a month.
* The latest report from the Labor Department showed that the unemployment rate in the U.S. lowered to 8.2% in March from 8.3% in February as the economy created 120,000 jobs during the month.
Economists had predicted a far greater growth rate of 203,000 new jobs. The U.S. economy has lost more than 5 million jobs since the recession of 2007 – 2009 and, although the unemployment rate has fallen from 9.1% in August 2011, it will not recoup all of those lost jobs at this current pace until early in 2014. On the bright side, the U.S. economy has added 858,000 jobs since December, representing the best four month stretch in hiring in two years.
Next week, data in the States will be very light with International Trade, Initial Jobless Claims and the Price Producer Index updates on Thursday; and the Consumer Price Index on Friday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, mineral explorer Rodinia Lithium Inc. (TSX-Venture:RM) rose to its intraweek high of $0.25 on Tuesday before giving up a portion of its gains to close the week at 23 cents for a gain of $0.005, or 2.22%. The other stock we had on radar, Vancouver-based explorer Prodigy Gold Inc.
(TSX-Venture:PDG) surged ahead to an intraweek high of 76 cents before a pull-back on Wednesday and Thursday to wrap the week weakened by 3 cents, or 4.29%, at $0.67.
In the States, specialty biotech Stellar Pharmaceuticals Inc.
(OTCBB:SLXCF) trickled sideways before taking off on Friday to close at the week`s high of 65 cents, representing a gain of 4.5 cents, or 7.44%. The other U.S. stock on our watchlist, miner Lithium Exploration Group Inc. (OTCBB:LEXG) came out on Tuesday to hit its intraweek high of $0.93, but lost its momentum and slid to close the shortened week down by 12.5 cents, or 15.53%, at $0.68.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 2.54%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have realized gains of a respectable 10.66%.
Next week, we focus on Great Quest Metals Ltd. (TSX-Venture:GQ) and Gold Canyon Resources Inc. (TSX-Venture:GCU). In the States, look for big things from SMF Energy Corp. (NASDAQ:FUEL) and American Apparel Inc. (AMEX:APP).
Big news hit this past week for Asantae Holdings International Inc.
(TSX-Venture:JVA) (Pink Sheets:ASNHF) when the company reported record growth metrics in several key areas from the first quarter that outpaced even the company`s own guidance. Asantae reported triple-digit gains in recurring (auto-ship) orders for its RealW8 product and new affiliates as well as a 280% increase in total units sold over the fourth quarter of 2011. More information on Asantae can be found by going here: (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp).
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18
Nasdaq At Highest Level Since 2000, U.S. Economy Continues To Expand
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http://ymlp249.net/zm4438 ——————————————————————————– March 18, 2012 Week In Review…
Week In Review For March 12 to March 16, 2012 Canadian Companies mentioned include:
* Aura Minerals Inc. (TSX:ORA) * General Moly, Inc. (TSX:GMO) * Barkerville Gold Mines Ltd. (TSX-Venture:BGM) * Rockgate Capital Corp. (TSX:RGT) * Asantae Holdings International Inc. (TSX-Venture:JVA) * Sirona Biochem Corp. (TSX-Venture:SBM) U.S. Companies mentioned include:
* Augusta Resources Corp. (AMEX:AZC) * NeoStem (AMEX:NBS) * NeuroMetrix Inc. (NASDAQ:NURO) * Petaquilla Minerals Ltd. (OTCBB:PTQMF) This week on AllPennyStocks.com:
* Article Published, March 13, 2012: Micro Cap Trying to Leap off its Stock Chart Bottom with New Partnership (http://www.allpennystocks.com/aps_us/special_reports/243/Micro-Cap-Trying-to-Leap-off-its-Stock-Chart-Bottom-with-New-Partnership.htm) (U.S. Company) * Article Published, March 14, 2012: Junior Miner Acquires Ground in Tanzania, Shares Up On News (http://www.allpennystocks.com/aps_ca/special_reports/254/Junior-Miner-Acquires-Ground-in-Tanzania,-Shares-Up-On-News.htm) (CDN Company) * Article Published, March 16, 2012: Junior Tech Provider Benefitting From Shift To Mobile Technologies (http://www.allpennystocks.com/aps_ca/special_reports/255/Junior-Tech-Provider-Benefitting-From-Shift-To-Mobile-Technologies.htm) (CDN Company) Video charts for the week:
* March 13th Technical Video Chart For AZC. The August Resource chart has bounced-off these level five times in the last year, generally climbing by 25 percent or more. Last week concluded with three straight green closes, giving hints that another bounce could be in the making. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/8Aqc2XlsdoE ).
* March 14th Technical Video Chart For ORA:CA. The Aura Minerals chart is trending in a channel between $1.12 and $1.28. Two down days to start the week have the candles back near the bottom support, which – if the pattern holds true – should lead to another bounce back towards the topside of the channel. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/-e-6_mxs_CI ).
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WEEKLY UPDATE – NORTH AMERICAN MARKETS A TALE OF TWO MARKETS LAST WEEK North American markets were about as different as investors have seen in 2012. The U.S. exchanges broadly advanced while the resource-heavy Canadian markets suffered with gold and silver taking a deep step backward, losing 3.25% and 4.70%, respectively. Economic data from the States continues to add strength to the concept that the U.S. is making headway towards a full economic recovery from the crash that happened nearly four years ago. The U.S. Federal Reserve gave no hints to another round of bond buying (known as “quantitative easing”), but did keep interest rates at record lows to help battle a still depressed housing market and thwart vulnerabilities to strains from the global financial markets. But, on the whole, the U.S.
central bank said the job market has improved, consumer spending has increased and inflation is under control despite higher oil and gas prices, adding fodder to the bulls on Wall Street.
On March 7th, the Dow posted its first triple-digit gain in nearly two months and followed that this past week with a more than 200 point rise on March 13th. The Dow Jones had risen in seven consecutive sessions before a mild slide of 20 points on Friday, its longest string of up days in 13 months. During those seven days, the Dow packed-on 450 points to firmly cross past 13,000, a key resistance level. The S&P 500 breached the 1,400 mark for the first time in nearly 4 years this past week. The tech-rich NASDAQ has simply been a beast, breaking through 3,000 this past week for the first time since December 11, 2000.
The Canadian markets had their legs chopped-out from under them early in the week when China reported an unexpectedly wide trade deficit which set-off concerns about the growth rate of the second largest economy in the world. As the largest trade partner of Canada outside of the U.S., China showing a less-than-expected import rate hurts the TSX exchanges and puts heavy pressure on the commodity prices that bear much weight for the Canadian markets. The larger TSX managed to end the week on an upbeat note to recover most of its losses from Monday and Wednesday, but the highly-speculative and mining-rich Venture Exchange simply was overwhelmed by falling precious metals.
The week was a relatively tame week with regards to the amount of data coming from overseas. China had an early week impact with their trade deficit, but flew primarily under the radar after that. Greece was not as hot-button since it has received its bail-out funds, settled with private-sector creditors and averted a credit default. Greece actually overshot its tax collection targets to add additional cash to its coffers. Next week will be a relatively light week on North American economic data, but a potential market driver could lie in a raft of data coming from the housing market. Commodities will also be in focus with eyes remaining fixed on Iran and their nuclear efforts as a potential catalyst for a rise in oil and gas prices. Pressure is building on metals as equities on Wall Street continue to grow long legs, leaving investors pulling cash out of safe havens in lieu of faster profits from equities and signaling a start of downtrends with analysts now talking out of the other side of their mouths about lower price targets in the near term.
Canada’s dollar had another flat week against its U.S. counterpart.
The Canadian dollar typically moves as a reflection of strengths (or weaknesses) in the U.S. economy. While the economic recovery from the crash of 2008 still remains in question to some, data from the States continues to support growth, including a positive inflation report this past week which concurred with speculation that the U.S. Fed will maintain its current policies toward no more quantitative easing in the immediate future. With no real strong market drivers, the greenback and the loonie have maintained little movement over the last couple weeks. Canada`s currency is still stronger than the U.S.`s even though it gave back just over a tenth of a cent, or 0.14% this past week. Next week will begin with one Canadian dollar buying US$1.00825.
Commodity Snapshot:
* Gold continued its downward plight this past week. Bullion posted its second largest weekly fall in 2012 after an early week dive based on the U.S. Federal Reserve offering little guidance on any further easing efforts amid a steady influx of encouraging economic data.
10-year treasury yields, a gauge of short-term U.S. interest rates, also weighed on gold prices by topping 2.3% early in the week, their sharpest rise in nine months. Further pressure on bullion came from India, the world`s biggest importer of the metal, with news that imports are likely to fall significantly in 2012 as the government`s decision to double import duty to 4 percent is hampering local demand.
April gold contracts, the most actively traded, steadied some on Friday, but still unloaded $55.70, or 3.25%, on the week to close at $1,655.80 per troy ounce.
* Silver was one of few precious metals to register gains on Friday, but still took another lashing on the week. Investors are growing worried that the string of weekly losses are putting gold`s cousin in a firm downtrend with a target around $30 per ounce. Friday`s 2 cent rise helped pare losses, but May contracts, the most actively traded, still fell to $32.604, representing a loss of $1.608, or 4.70%.
* Copper had a volatile “up a day, down a day” week as the sensitive metal was tossed around on economic data and reactions to the idea the QE3 will not be happening. Copper prices fluctuate easily on demand news, so an unexpected weakening in China`s trade deficit spurred early-week concerns about the number one copper consumer in the world needing increasing supplies of the metal in the future. Additionally, investors want to hear that more economic easing to stimulate growth is on the horizon, keeping demand for the multi-use metal high, but have gotten little indication that it will be coming. Weighing organic economic growth with stimulated growth kept copper prices at bay this past week. Ending the week on a down note, May contracts, the most actively traded on the Comex division of the New York Mercantile Exchange, still added 1.95 cents, or 0.51% to close the week at $3.878 a pound.
* Oil prices continue to hold firmly over the $100 per barrel mark and probably will until the tensions between the West and Iran subside. High oil prices are becoming a steady source of conversation as supply issues are feared if Iranian oil exports are disrupted.
OPEC oil ministers are addressing this issue at the International Energy Forum with the intention of avoiding a price flash similar to the one leading into the 2008 collapse in oil prices. Helping to combat any spike in prices, U.S. crude inventories rose this past week and Saudi Arabia swore to make up any supply shortfalls should Iran try and cut the supply chain. On the week, benchmark West Texas Intermediate crude prices moved only moderately with April contracts, the most actively traded, falling-off by 0.32%, or $0.34, to end at $107.06 per barrel.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Major gold miners suffered against the backdrop of falling bullion, with Goldcorp (G, -6.87%), Barrick (ABX, -4.03%), Yamana Gold (YRI, -7.79%), Agnico-Eagle Mines (AEM, -7.37%) and Kinross Gold (K, -10.00%) all falling hard on the TSX.
* Kinross` fall was also fueled by its shareholders filing a class action lawsuit against the mining giant alleging that the company misrepresented its public disclosure for the quality and quantity of gold at its mine in Mauitania, Africa. Kinross denies the allegations and says that they are without merit.
* Big energy stocks were mixed with oil prices only moving mildly.
Suncor Energy (SU, -3.86%), Cenovus Energy (CVE, -2.27%) and Canadian Natural Resources (CNQ, -1.32%) carved-off points, while Talisman Energy (TLM, +0.98%) and Imperial Oil (IMO, +0.07%) eked forward.
* After a general slide on Monday, financial plays soared in the States this past week as risk appetite seems to be growing amongst investors. Also helping boost banks, the Federal Reserve reported that after latest stress tests, it determined that the country`s largest banks would be able to sustain another deep recession should one come. Big Banks Goldman Sachs Group (GS, 4.81%) and Bank of America (BAC, +21.74%), JP Morgan Chase (JPM, +8.63%) and Wells Fargo (WFC, +7.04%) all produced strong weeks. Even Citigroup (NYSE:C, +7.28%) rose despite the Fed saying that it would likely need a cash infusion should economic shockwaves hit the bank.
* On the Canadian banking front, The Bank of Nova Scotia (BNS, +4.20%), Toronto-Dominion Bank (TD, +1.66%), Royal Bank of Canada (RY, +2.40%) and Bank of Montreal (BMO, +1.93%) all grew legs again this past week with most advancing now for four consecutive weeks as the worries from Greece continue to be more subdued.
* “The YouTubes of China,” Youku (NYSE:YOKU, +8.20%) and Tudou (NASDAQ:TUDO, +145.03%) announced that they would be merging to form a new company called – you guessed it – “Youku Tudou Inc.” * Canadian grains company Viterra Inc (TSX:VT, +19.37%) continued to rally following a report on Sunday that Glencore International PLC has bid $3.5 billion U.S. to buy the outfit. No acceptance of the offer has been given by Viterra execs and the company has stated that it is in the midst of reviewing takeover offers, but disclosed no particular details. Shares have risen approximately 60 percent in the last three weeks.
* Research In Motion (TSX:RIM, +6.69%) unveiled its new mini keyboard as a fresh accessory for its PlayBook tablet. Although nothing has been confirmed, BGC analyst Colin Gillis said there was talk that Samsung Electronics may make a minority investment in RIM. After falling in value for 7 straight weeks amid a host of bad reports from analysts, Canada`s tech darling finally had a green week.
* Shares of Air Canada got a lift early in the week after the Canadian government said it proposed legislation to protect the Canadian economy, which would prevent work stoppage at the country`s largest air carrier. But, like it has done in 5 of the last 6 weeks, shares closed the week lower than they started, with share value retreating 3.16% to $0.92 each.
* Yahoo (NASDAQ: YHOO, +3.76%) filed a lawsuit against Facebook claiming that the social media giant infringed on 10 of its patents related to advertising, privacy, customization, messaging and social networking.
* Analysts had nothing but nice things to say about Apple (NASDAQ:AAPL, +7.41%) this last week, sending shares further upwards to all-time highs as the biggest company in the world saw it shares top $600 briefly before closing the week at $585.57. Shares were at $420 two months ago. The company put the latest version of the iPad on sale on Friday.
* Drug Maker Cytori Therapeutics (NASDAQ:CYTX, +19.47%) shares climbed on news that the Food and Drug Administration approved the company`s Puregraft 850 System for body contouring using a patient`s own fat.
* The future of TMX Group Inc. (TSX:X, +4.19%), the operator of the Toronto Stock Exchange, may be decided soon as the Quebec securities regulator said it plans to approve a takeover offer for TMX Group by the Maple Group consortium of financial institutions.
* The hoarding of Rare Earth Elements by China has been a brewing debate over the last few months leading up to the United States, the European Union and Japan filing a trade case over China`s export restrictions on the crucial raw materials used in many high-tech devices. China controls nearly all of certain REE minerals used in specific advanced technologies and is seen as unlikely to back down from pressures challenging its restrictions on exports. Although REE plays initially got a pop thinking that demand would be large as a result of the new case, they quickly faded with Molycorp (NYSE:MCP, -6.70%) and Quest Rare Minerals Ltd (TSX:QRM, -0.69%) sifting-off points. Jiangsu-based China Rare Earth Holdings (Pink Sheets:CREQF), however, rose in value by 16.67% to $0.315.
* In some earnings news, 5N Plus Inc. (TSX:VNP, -27.50%) watched shares tumble as the producer of purified metal and chemical products reported a Q4 loss and had analysts from National Bank of Canada and Versant slash their ratings to sector perform and sell, respectively.
* Calgary-based oil and gas company Baytex Energy Corp. (TSX:BTE, -1.91%) reported that Q4 profits increased more than 100% and revenue rose 40% to $367.8 million compared to the year prior quarter of $263.5 million. Net income rose to $57.8 million or 48 cents per diluted share; up from $21.3 million or 18 cents per diluted share in the fourth quarter of 2010.
* Internet connectivity company Cisco Systems (NASDAQ:CSCO, +1.16%) fell from highs of the week upon announcing its $5 billion bid to buy privately-held NDS Group Ltd., a UK-based provider of video software.
* Atlas Resource Partners LPC (NYSE:ARP, +25.72%) shares vaulted upward after Carrizo Oil & Gas Inc. (NASDAQ:CRZO, +2.56%) reported that an Atlas subsidiary would purchase part of its holdings in the Barnett Shale of Texas for roughly $190 million in cash.
* Canada`s biggest telecommunications company BCE Inc. (TSX:BCE) said that it is buying Astral Media Inc. (TSX:ACM/A), the owner of Bell Media, for $3.38 billion. The buy-out wasn`t exactly well-received by BCE shareholders and Toronto-listed shares of BCE shed 4.60% on the week. Astral shares leapt upward towards the offer price of $50 per share, closing the week at $48.55, ahead by 34.56% on the week.
* IPO`s continue to sizzle on opening days with Demandware, Inc.
(NYSE:DWRE) being the latest to produce huge initial moves. The company priced 5.5 million shares at $16 U.S. per share in its initial public offering late Wednesday and closed the week at its new high of $27 per share.
Weekly Indices Results:
The S&P TSX Composite Index fell for the third straight week; subtracting 6.66 points, or 0.05%, to 12,496.96. The TSX Venture Exchange followed suit at a sharper pace to shed 43.64 points, or 2.65%, to finish at 1,606.17.
In the States, the Dow Jones Industrial Average rallied to stop its losing streak at two weeks; surging ahead by 310.60 points, or 2.40%, on the week to 13,232.62. The much-broader S&P 500 continued to grow taller; rising by 33.30 points, or 2.43%, to close at 1,404.17. The tech-rich NASDAQ Composite closed higher than it opened the week for the eleventh consecutive time, forging gains of 66.92 points, or 2.24%, to 3,055.26 on the week.
Canadian Economic Data:
* Statistics Canada reported that the number of new motor vehicles sold in January rose 15.4% to 153,623 units after falling by 3 percent in December 2011 when sales tallied 133,146 units. The 15.4% increase was the fastest in 15 years and crushed estimates of about a 2 percent climb. Stats Can did not provide numbers from February, but did indicate that preliminary data suggests a drop of 7 percent for that month.
* Manufacturing sales declined 0.9% to $49.6 billion in January, the second decrease – and fastest pace – in seven months. A rise in automobile output was sharply countered by a plummet of more than a third in aerospace products as sales of factory goods declined 0.9% during the month. January auto shipments increased by 2.6% to $4.5 billion, its highest level of sales since November 2007.
* The Canadian Real Estate Association (CREA) said national resale housing activity improved 1.4% in February 2012 after having declined in January. Actual (not seasonally adjusted) activity was up 8.6% from February 2011 levels. The number of newly listed homes climbed 1.9% from January to February.
* On the international securities transactions front, Canada`s number crunchers said that foreign investors reduced their holdings of Canadian securities by $4.2 billion in January after a cumulative acquisition of $55.1 billion in the previous six months. Canadian investors acquired foreign securities for a ninth straight month as they added $1.3 billion to their holdings, purchasing equities while selling debt instruments. The divestment in short-term debt instruments was primarily in Federal Treasury bills where retirements exceeded acquisitions.
Next week, the economic data slate will include Wholesale Trade on Monday; Leading Indicators on Wednesday; Employment Insurance and Retail Trade updates on Thursday; and February`s Consumer Price Index on Friday.
U.S. Economic Data:
* Posting their largest gains in five months, retail sales rose 1.1% in February as Americans gobbled-up motor vehicles and bought a range of goods, despite paying more at the pump, according to the Commerce Department. The monthly increase followed an upwardly revised 0.6% increase in January. Auto sales perked by 1.6% during February.
Sales at gasoline stations soared 3.3% higher in February after a 1.9% in January. Excluding autos, retail sales increased by 0.9%.
* The Producer Price Index, or “wholesale inflation” as it is called, increased by 0.4% in February for finished goods. Gas helped fuel the rise, bumping ahead by 4.3% during the month, leading to a 1.3% increase in the energy class. Core PPI (which excludes food and energy), increased by 0.2% during February, its third straight month of gains.
* The Federal Reserve Bank of New York reported that New York manufacturing activity accelerated in March. After registering a 19.53 in February, the gauge of business conditions in New York rose to 20.21 in March, the highest level in more than one year. Looking ahead six months, manufacturers remain very optimistic, even though there is a tepid slowing expected in the forward-looking business conditions index, which moved down to 47.5 from 50.4 for the month.
Readings above 0 indicate growth, while readings below 0 show contraction in manufacturing.
* The Philadelphia Fed Manufacturing Index – which measures changes in business growth in the third district including Pennsylvania, New Jersey and Delaware – also rose, reaching an eleven-month high in March, affirming growth in regional manufacturing activity. The index climbed to 12.5 during the month; up from a 10.2 reading in February.
* The number of people filing for first time unemployment benefits fell for the week ended March 10, 2012. Matching a four-year low, initial applications slipped by 14,000 to a seasonally-adjusted 351,000. The four-week moving average, generally regarded as more stable than the weekly numbers, remained unchanged from the previous week at 355,750.
* Consumer prices, led by a spike in gasoline prices, surged to a 10-month high in February, according to the Labor Department. The Consumer Price Index rose by 0.4% during the month after a 0.2% increase in January, but nearly all of the rise (80%) was attributable to growing gasoline prices. The Core CPI, which strips out food and energy costs, moved upward by 0.1% during February. Despite the increases, economists say that there is little sign or underlying inflation pressure building.
* The 17 percent hike in gasoline prices in 2012 has dampened consumer sentiment, according to the latest Thomson Reuters/University of Michigan preliminary index of consumer sentiment. The barometer was anticipated by analysts to rise to 76 in March, but unexpected shifted to a reading of 74.3 from 75.3 in February. The lower reading of sentiment is almost exclusively attributed to the gas pump, but not considered to be a “game changer” at this moment.
Next week, data in the States will bring Housing Starts and Building Permits updates on Tuesday; Existing Home Sales on Wednesday; Initial Jobless Claims on Thursday; and New Home Sales on Friday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, molybdenum explorer General Moly Corp. (TSX:GMO) gimped along with other Canadian stocks this week, fading to $3.34 on the week for a loss of $0.11, or 3.19%, with an intraweek high of $3.50 hit on Friday. The other stock we had on radar, gold and copper explorer Aura Minerals Inc. (TSX:ORA), rolled down the same path as GMO; shedding 4 cents, or 3.23%, to $1.20 with an intraweek high of $1.23.
In the States, biotech NeoStem, Inc. (AMEX:NBS) channeled during the week and closed mildly ahead by 1 cent, or 1.67%, at $0.61 with an intraweek high of $0.63. The other U.S. stock on our watchlist, base metal hunter (AMEX:AZC), lost the momentum it had coming into the week; slinking lower by 14 cents, or 4.67%, to close the week at $2.86 with an intraweek high of $2.98.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 2.35%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have tempered the loss to 1.24%.
Next week, we focus on Barkerville Gold Mines Ltd. (TSX-Venture:BGM) and Rockgate Capital Corp. (TSX:RGT). In the States, look for big things from NeuroMetix Inc. (NASDAQ:NURO) and Petaquilla Minerals Ltd.
(OTCBB:PTQMF).
News hit a couple times this past week for Sirona BioChem Corp.
(TSX-Venture:SBM) (Pink Sheets:SRBCF). On Monday, the company reported results of a study with its biological inducer in the expression of a difficult to produce recombinant protein. In the study, Sirona Biochem`s inducer SBM-TFC-358 produced more protein than IPTG, a leading commercially available inducer, and was able to maintain induction over a longer period. Inducers are carbohydrates which trigger recombinant protein production, which can be used in research and the manufacturing of insulin and other drugs. These findings of Sirona are significant because the quality of the inducer is key to the production process and can affect the quality and yield of the protein.
Additionally, Sirona announced the appointment of Dr. Brett Premack, a man with a successful resume in the drug discovery arena, as Scientific Consultant. Shares of SBM spiked as high as 15 cents on Friday.
Our other recent Canadian spotlight, Asantae Holdings International Inc. (TSX-Venture:JVA), received some national exposure as Dr. Dwight Lundell, the formulator of Asantae`s RealW8™ product, appeared twice on Fox News Channel`s “Fox and Friends”. The company also released a new white paper on RealW8™ that discusses, 1) Why dietary carbohydrates are the root cause of obesity; 2) Why we are addicted to dietary carbohydrates; and, 3) How RealW8™ addresses the addiction and helps us lose weight. Members are encouraged to read this informative document.
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http://ymlp300.net/zNLyr6 ——————————————————————————– March 7, 2012 Penny Stock Profile ….
Asantae Holdings International Inc.
(TSX-Venture: JVA) (Pink Sheets: ASNHF) For complete profile, CLICK HERE: (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp).
“Asantae has several products in addition to RealW8 and is looking to top its record revenue of more than $4 million in 2010 with the goal of being cash-flow positive in Q2 2012.” Company Profile (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp) Quote & News (http://app.quotemedia.com/quotetools/clientForwardtargetURL=http://www.baystreet.ca/quotedata/partners/allpennystocks/quotes.cfm&action=showDetailedQuote&symbol=JVA:CA) V.JVA PROFILE The world is packing on pounds. That’s not a harsh statement or meant to ridicule; it’s a hard fact and one that we as a planet need to spend more time addressing. Why this is happening is a topic for lengthy and complicated debate as the list of macro and micro reasons ranges from genetic to economic to psychological factors and everything in between. The positive thing is that obesity is garnering more attention today than it ever has before because of the life-threatening complications that research has identified as firmly correlated to excessive amounts of body fat.
The World Health Organization considers a person obese if they have a BMI (Body Mass Index) score of 30 or over, and overweight if they have a score of between 25 and 30. Obesity rates in the United States have been on the rise for two decades and currently cost the country approximately $150 billion annually, or 10 percent of all medical costs. The obesity rate has reached epidemic levels with 1 in 3 adults and 1 in 6 children considered obese in the U.S.
People suffering from obesity are at greatly increased odds to develop heart disease, cancer and Type-2 diabetes. Is that simple statement not scary enough Consider these facts: Cardiovascular disease (CVD) is the number one cause of death globally with 17.3 million people dying from CVDs in 2008 (30% of all deaths) and that number is expected to surge to 23.6 million by 2030; 25% of all deaths in the United States are the result of cancer with nearly 600,000 people expected to die from cancer in 2011 (that’s about 1,600 people per day); and Type-2 diabetes is running rampant with the International Type-2 diabetes Federation recently stating that 10% of the global population (that’s 500 million people) will suffer from Type-2 diabetes by 2030. Obese people run higher risks in each category individually, not to mention the intermingling of likelihood of death that stems from combing each deadly disease with another one.
While the chain of events surrounding Type-2 diabetes and obesity is still somewhat spotty as to which causes which, there is no denying that obesity is probably the most important factor in the development of insulin resistance. It is also known that persons with Type-2 diabetes and people that are obese stand higher chances of pancreatic cancer. Controlling sugar spikes can help with the overall conditions and potential deadly complications. Biologically speaking, spikes in blood sugar tell the pancreas to release more insulin (Type-2 diabetes patients either do not produce insulin, not enough insulin or the body uses it improperly when produced), a hormone that regulates the absorption of sugar into the body’s cells. The increased insulin because of the high glycemic levels (blood sugar)results in the pancreas telling the liver to store the sugar as fat for later energy use, which may indeed not even be necessary; contributing to excess body fat. Completing the weight-gain cycle, fat cannot be burned for energy in the presence of elevated insulin levels. It’s a vicious cycle that starts with sugar and carbohydrates and ends with fat.
Even outside of the realm of Type-2 diabetes, repeated spikes in the blood sugar over a sustained period of time can cause major damage to the pancreas and other parts of the body by inhibiting brain functions and cause severe high blood pressure, circulatory, heart, kidney and vision problems. As such, it’s important for all people, whether affected by Type-2 diabetes or not, to regularly control sugar spikes.
In most diet discussions, controlling carbohydrates is a frequent topic of high importance. This is because in food science, the term carbohydrate generally means any food that is particularly rich in the complex carbohydrate starch (such as cereals, bread, and pasta)or simple carbohydrates, such as sugar (found in candy, jams, and desserts).
The dire need for treatments of obesity has had many biotechs chasing development and FDA approval of a drug for decades. The problem is that all efforts for new compounds have been accompanied with toxic side effects or relatively limited benefits compared to the side effects. Qnexa , an obesity drug by Vivus, Inc. (Nasdaq:VVUS) recently received approval from an FDA advisory panel after previously denying the application because of risks of birth defects and heart problems.
Qnexa is a cocktail of two older drugs, phenteramine and topramine, an anti-seizure drug. The drug is already a target of significant scrutiny because it is a desperate measure to finally get an obesity drug to market that will be severely restricted in use because of side effects. Moreover, Qnexa only yielded results showing 10% weight loss after two years of intense treatment. Ultimately, Qnexa will make Vivus money, but still does not address the basic reasons for weight gain.
There is nothing more reliable in weight loss and health than exercise and diet. Just like quitting smoking, there isn’t a miracle cure, but the combination of smoking cessation products and willpower have proven far more effective than any drug on Earth. Taking the approach of science and reality to the next level has resulted in a revolutionary product by Asantae Holdings International Inc.
(TSX-Venture: JVA) (Pink Sheets: ASNHF), a Phoenix, Arizona based producer and marketer of innovative nutritional products through a network of independent affiliates. The company’s flagship product is RealW8™, the first weight-loss supplement to address the main catalyst of weight gain and excess fat storage- our craving for and overindulgence of carbohydrates and sugar. RealW8 has already gone through a soft launch in the fourth quarter of 2011 to grab some traction and is ready for a full-blown launch this quarter. Do to its composition and benefits that target root causes of obesity, RealW8 looks ready to take the dietary supplement industry by storm.
The supplement was designed under the guidance of Dr. Dwight Lundell, a cardiovascular surgeon and father of Asantae founder and Chief Executive Officer Dan Lundell. Dr. Lundell can be attributed for extending the lives of countless people through performing thousands of heart by-pass surgeries, but felt that treating the symptoms was not the answer. Addressing the fundamental problems was the answer, which ultimately led to the RealW8 product. Dan Lundell`s passion for Asantae`s mission stems from his experience running a weight-loss clinic with his father.
In what could be called “Willpower in a Bottle,” RealW8 is a first-in-class, all-natural supplement that blunts sugar spikes and breaks the carbohydrate addition cycle by reducing cravings for carbs, some of the largest contributors to weight gain today. The supplement is comprised of a proprietary blend of a marine macroalgae extract that is designed to block the digestion of sugar and fat; nopal cactus that reduces absorption of sugars and fats in the gastrointestinal tract; and a raw organic coffee extract that has been shown to change glucose metabolism. Two capsules of RealW8 contain less caffeine that a large cup of Starbucks coffee.
While the primary focus of Asantae at the moment is centered on the hard launch of RealW8, the company also has Asantae Java™, an antioxidant coffee; Heartshot™, a supplement that reduces inflammation; and Amune™, an immune system enhancer in its portfolio of products.
Asantae is well-positioned in the $60 billion weight loss industry all by itself, but their strategies to expedite growth could send the RealW8 product “viral”across the world. The company is taking the unique marketing approach of “Network Marketing” to build brand awareness and loyalty. Network, or Multi-Level, Marketing in a $114 billion industry that has about 16 million people in the United States working under its umbrella. Household names such as Warren Buffet and Donald Trump have invested in companies that incorporate Network Marketing into their business plans. In today’s tough economic climate, the Network Marketing has even greater appeal as it has no overhead and can create residual income for people of all ages.
Asantae’s lead distributor has a proven track record in weight loss and network marketing. At the last company he lead, his efforts created nearly $500 million in sales of weight loss products. Asantae has more than doubled its list of active distributors during the months of September to December 2011. The strategy is working as shown through the fact that auto-ship orders have skyrocketed by 400 percent over pre-launch levels. In addition, the Company has a five-month trend showing a 20% – 25% affiliate growth rate per month.
Asantae is by no means unaccustomed to generating revenue. In 2010, revenues tallied just over $4 million. With the alignment of affiliate programs, the new order flow and incentive programs, the company intends to smash those record revenue levels from 2010 this year and be cash-flow positive in the second quarter of 2012.
The team at Asantae is impressive and comprised of seasoned professionals with over 150 years of experience in the Health and Nutrition Industry. In addition to CEO Dan Lundell, the Board of Directors includes the Chairman of the Board, Honorable John Reynolds, who is the Former Official Opposition House Leader for the Conservative Caucus in Canada. Honorable Larry Campbell, a Member of the Senate of Canada and former mayor of Vancouver, sits as a director at Asantae.
(Technical Analysis Chart: http://www.allpennystocks.com/images/Tech_Analysis_Charts/JVA_tech_analysis_chart_mar_7_2012.png) Technically speaking, the Asantae chart is in a prime position. The short-term moving averages, including the 20 day simple moving average is breaking upward through the 50 day simple moving average. Shorter dma’s climbing through longer dma’s is a sign of bullishness. The price per share has been channeling between 10 and 15 cents for several months, but recently made a strong move through the $0.15 resistance and is now holding that mark as support, another strong technical sign for possible upward movement. Mild resistance comes in at 19 and 23 cents, but stronger resistance doesn’t enter the picture until more than a 50 percent climb to reach $0.28.
The Relative Strength Index (RSI), a measure of momentum, is holding over 50 and has been in a multi-month uptrend. Again, this is a sign of strength in the chart. Technical traders will be looking for the momentum to continue and push through 70, or into “the power zone”.
The MACD, a gauge of trend, has been in a solid uptrend and now has made the all-important climb into positive territory by moving above the zero line. The zero mark is often referred to as “the money line” because it is a sign of bullishness that is usually accompanied by a rise in price per share. Today`s close at $0.18 late in the trading day to close up 20% on volume of under 200,000 shows the moves this stock can make on minimal volume.
With resistance being indicated at around $0.15 a share, stop losses just below that level may be wise moves to protect against unwanted downside pressure. As we always mention at this point, these are merely the interpretations of AllPennyStocks.com. We encourage all investors to do their own due diligence and consult with a financial advisor prior to making any investment decisions.
With the technicals looking quite promising and the Company producing strong sales and record revenues, those metrics alone produce a winning combination, but an after the bell announcement may further fuel the uptrend that this stock is currently experiencing.
The Company announced after the bell: (http://finance.yahoo.com/news/asantae-provides-2012-outlook-210500262.html) today their corporate outlook for 2012. The Company has done a lot in a short amount of time, and this PR is further evidence of that. In the press release, Asantae CEO, Dan Lundell stated, “In January, after a better than expected pre-launch, the company began the highly anticipated official launch of RealW8™. We are extremely pleased with the metrics to date. Based on the current growth trajectory, we anticipate a significant increase in revenues and expect to be cash flow positive in the second quarter of this year; we also expect record revenues for fiscal 2012.” While the press release didn`t hit on too many new points then were already public, it does indicate how quickly this Company is growing and really makes one wonder how a Company making revenues in the Millions and growing at break-neck speeds can still have a market cap of under $5 Million. However with the recent uptrend in the stock price, this market cap may not stay this low for too much longer.
Asantae is slipping under the radar of the general investment community and is only carrying a market cap of $4.47 million and a 18-cent price tag as a result;leaving considerable headroom for share appreciation. With less than 25 million shares outstanding and a minimal debt load, if the company can continue to set revenue records in 2012 and be cash-flow positive, it will present one of those rare opportunities for investors to catch a company whose ratio of market cap to revenues are inverted as an accurate reflection of future sales. A successful weight loss supplement the caliber of RealW8 should be able to take its fair market share of the multi-billion dollar industry and significantly bolster Asantae’s share price. It is for these reasons, as well as the ones listed above that we at AllPennyStocks.com have decided to turn our latest corporate spotlight on Asantae Holdings International Inc. (TSX-Venture: JVA) (Pink Sheets: ASNHF) and encourage our members to immediately begin their due diligence and add it to their watchlists.
As always, more information on Asantae Holdings International Inc., (TSX-Venture:JVA) (Pink Sheets:ASNHF) can be found by going to the full Asantae Holdings International Inc. profile at AllPennyStocks.com or by clicking here: (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp)..
INVESTMENT HIGHLIGHTS * Solution for Epidemic. Asantae’s RealW8™offers a core solution to obesity, a health challenge that affects 1 in 3 adults and 1 in 6 children in the U.S. and leads to numerous health consequences and diminished quality of life.
* Designed by Cardiovascular Surgeon. RealW8 was designed under the guidance of Dr. Dwight Lundell, a cardiovascular surgeon and father of Asantae founder and Chief Executive Officer, Dan Lundell.
* Targets Core Issues of Obesity. The all-natural product is the first weight-loss supplement to address the main catalyst of weight gain and excess fat storage – our craving for and overindulgence of simple carbohydrates and sugar.
* Massive Industries. The weight loss industry is $60 billion and growing. Asantae is looking to maximize its capture of that industry by leveraging the $114 billion Network Marketing industry that employs about 16 million people in the United States and garnered investors like Warren Buffet and Donald Trump.
* Orders & Distributors Rising. Asantae’s lead distributor has a proven track record in weight loss and network marketing. At the last company he lead, his efforts created nearly $500 million in sales of weight loss products. Asantae has more than doubled its list of active distributors during the months of September to December 2011. The strategy is working as shown through the fact that auto-ship orders have skyrocketed by 400 percent over pre-launch levels.
* Unmatched Executives. The team at Asantae is comprised of seasoned professionals with over 150 years of experience in the Health and Nutrition Industry. The Board of Directors includes the Chairman of the Board, Honorable John Reynolds, who is the Former Official Opposition House Leader for the Conservative Caucus in Canada.
Honorable Larry Campbell, a Member of the Senate of Canada and former mayor of Vancouver, sits as a director at Asantae.
* Room for Exponential Growth. Asantae has minimal debt, less than 25 million shares outstanding and a paltry market cap of $4.47 million, giving it unprecedented room for possible share appreciation.
OVERVIEW Asantae Holdings International Inc. is a producer and marketer of innovative nutritional products through a network of independent distributors (Asantae Independent Affiliates). Asantae`s flagship product RealW8™addresses the primary threat to public health in the industrialized world; overweight and obesity. Asantae`s approach to this threat is based on a body of research related to the brain chemistry of addiction, chronic low-grade inflammation and oxidative stresses which, according to scientific and medical research, are the underlying conditions for most modern epidemic diseases(obesity, heart disease, diabetes, stroke, some cancers, etc.).
Corporate Information * Exchange: TSX-Venture * Market Cap: 4.47 Million * Outstanding Shares: 24.8 Million * Price: $0.18 * 52 Week Low / High:$0.09 / $0.44 * Information As Of March 7, 2012 Useful Profile Links * Corporate Information (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp) * Recent News & Press Releases (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp) * Management Team (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp) * Contact Information (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jva.asp) Forward Looking Statements This report includes forward-looking statements that reflect Asantae Holdings International Inc. current expectations about its future results, performance, prospects and opportunities. Asantae Holdings International Inc. has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,”"anticipates,” “believes,” “intends,”"estimates,” “plan,” “should,” “typical,”"preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Asantae Holdings International Inc.`s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
Disclaimer AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable.
For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company`s expectations and estimates.
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4
Commodities & Continued EU Drama Dominate Market Direction
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http://ymlp282.net/zhNJf0 ——————————————————————————– March 4, 2012 Week In Review…
Week In Review For February 27 to March 2, 2012 Canadian Companies mentioned include:
* Ely Gold & Minerals Inc. (TSX-Venture:ELY) * Ethos Capital Corp. (TSX-Venture:ECC) * Scorpio Gold Corp. (TSX-Venture:SGN) * Touchstone Exploration Inc. (TSX-Venture:TAB) * Sirona Biochem Corp. (TSX-Venture:SBM) U.S. Companies mentioned include:
* Clean Wind Energy Tower Inc. (OTCBB:CWET) * Axion Power International Inc. (OTCBB:AXPW) * TurkPower Corp. (OTCBB:TRKP) * Mustang Alliances Inc. (OTCBB:MSTG) * Auri, Inc. (OTCBB:AURI) This week on AllPennyStocks.com:
* Article Published, February 27, 2012: Impressive Gold Findings in Quebec Continue to Add-up for Junior Miner (http://www.allpennystocks.com/aps_ca/special_reports/250/Impressive-Gold-Findings-in-Quebec-Continue-to-Add-up-for-Junior-Miner.htm) (CDN Company) * Article Published, February 29, 2012: Extended Contract with Department of Energy Boosting Shares of Industrial Goods Company (http://www.allpennystocks.com/aps_us/special_reports/241/Extended-Contract-with-Department-of-Energy-Boosting-Shares-of-Industrial-Goods-Company.htm) (U.S. Company) * Article Published, March 2, 2012: Polymer Housing Product Maker Tests Multi-Year Highs on Record Earnings (http://www.allpennystocks.com/aps_ca/special_reports/251/Polymer-Housing-Product-Maker-Tests-Multi-Year-Highs-on-Record-Earnings.htm) (CDN Company) Video charts for the week:
* February 28th Technical Video Chart For AURI. Shares of Auri have consolidated mildly since a climb from 4 cents to 9 cents. The indicators are holding bullish positions which are signaling that the chart may be ready for another run at resistance and the 50 dma at $0.09 as support is being established at 6 cents. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/lgl06zY8AV4 ).
* February 29th Technical Video Chart For ECC:CA. The Ethos Capital chart is channeling between 87 cents and 98 cents. A breakout of the topside of the channel could lead to at least a 15 percent move to the next resistance with further resistance not in play until around $1.30. view:
( http://www.youtube.com/user/AllPennyStocks#p/a/u/1/28Cztj–nBU ).
Follow AllPennyStocks.com on Twitter: Click here: ( http://www.allpennystocks.com/aps_common/twitter.asp ) to join AllPennyStocks.com on Twitter. Find out about the penny stocks to watch before anyone else, only on Twitter. Following AllPennyStocks.com is free, get all the details here: ( http://www.allpennystocks.com/aps_common/twitter.asp ).
WEEKLY UPDATE – NORTH AMERICAN MARKETS MIXED ON COMMODITY UNCERTAINTIES North American markets were tossed about this last week as commodities, especially metals, fell on Wednesday, sucking the wind out of the sails of markets that were pushing strongly forward during the first two months of 2012. U.S. Fed Chairman Ben Bernanke downplayed the need for any more economic stimulus at this point as upbeat economic data continued to flow from the States, sending investors to the sales register to cash in gains that have been had from strong producing commodities and equities in the last eight weeks. All of the major North American indices are up more than 10 percent in 2012 as fears have been contained about the EU debt crisis and stronger-than-expected economic data is being produced regularly from the U.S. and China, the world`s largest consumers of products, materials, and services.
The resource-heavy Canadian markets were subject to volatility on uncertain commodity prices as oil fell early in the week, metals tumbled mid-week (as oil recovered) and then both metals and oil slid into the weekend. The U.S. markets got a bit of an early rebound on good housing data, but were kicked in the teeth when Big Ben pulled the QE3 rug out from under it.
Getting oil prices under control is a major concern as spikes have strong ripple effects on economies as they naturally lead to gas prices soaring. The chain continues by higher gas sucking money out of consumer`s pocketbooks, leaving them less money for consumption of other items that help fuel (no pun intended) greater economic growth, which leads to more jobs, etc. For example, an analysis of the situation by BMO Capital Markets said that gas prices in Canada averaged about $1.25 per litre in February and determined that an increase to $1.50 per litre would drain about $10 billion in annualized spending power, which is 1 percent of personal consumption.
The Eurozone debt woes were still in focus last week as rising oil invoked concerns about the effect of higher prices on the susceptible, fragile economies in the region. But.. a major cash infusion helped chill money worries and 25 of the 27 EU leaders inked a fiscal compact in Brussels designed to strengthen budget discipline and hopefully deter any future financial crisis. The ECB’s first-ever three-year long-term refinancing operation, or LTRO, saw 800 banks take up 530 billion euros in three-year loans at a rate fixed to the central bank’s 1% refi rate. The new fiscal compact is also a step in the right direction, but the agreement still has to be approved by the parliaments of each individual country before it is legally binding.
The two countries which did not consent to the terms were the Czech Republic and the United Kingdom. Ratings firm Standard & Poor’s cut Greece’s long-term and short-term sovereign credit ratings to selective default. However, both S&P and the Greek government said that after a completion of the agreed debt swap, Greece’s sovereign ratings will likely be raised. At least instead of taking one step forward and two steps back with each monetary movement attempt, the EU looks to be taking two forward with each regression; calming the world about financial fallout.
On the whole, it was a flat introduction to March 2012 last week. The main story lines are the same with the overall sense that the economic recovery in the United States is better than expected; Greece`s potential debt defaults are controlled; Iran is still a thorn in the side of the oil industry, but still hasn`t been attacked; and China is still growing modestly with no real threats of any type of crash.
One of the big questions lies in near term movement without any strong catalysts as the U.S. markets appear a bit top-heavy as they sit at multi-year highs. On a monthly basis, the Dow Jones has only closed above 13,000 on nine occasions (the six months before its October 2007 peak of 14,198.10 and the two months following) in its history. With constant talks of economic recovery and worry over future growth, analysts are questioning the level of the Dow as it is only 1,200 points from all-time highs and at its tenth highest level ever on a monthly basis. Seemingly confident with overall bullish market trends, but recognizing the position, Phillip Petursson, director of institutional equities at Manulife Asset Management, commented this past week, “We could be entering a consolidation or a bit of a contraction or correction phase but nothing beyond what would be seen as normal market activity. It’s rest, re-evalute, reposition and look ahead.” Canada’s dollar climbed to nearly six month highs midweek as appetite for riskier currencies was fueled by a move from the European Central Bank to make 529.5 billion euros worth of low-interest loans to banks, its second batch of enormous credit infusions. Optimistic economic data from the U.S. regarding jobs and demand for raw materials also gave the Canadian currency a lift early in the week.
By the end of the week, the loonie had pared its gains on the USD as commodities broadly pulled-back, strengthening the U.S. dollar. A stronger greenback usually helps depress oil prices and other commodities, which are denominated in U.S. dollars, as it makes them more expensive for holders of other currencies. The loonie picked-up more than one percent against its U.S. counterpart in the last five days. Next week will begin with one Canadian dollar buying US$1.01095.
Commodity Snapshot:
* Gold couldn`t extend its 2012 climb this past week as it took a pause on Wednesday amidst signs of a strengthening U.S. economy.
April gold rose on Tuesday for the first time in four days before getting pummeled by nearly $100 on Wednesday on calming of fears of any global financial meltdown as the ECB lent money to banks and economic data and commentary from the United States added to convictions that the Fed won`t be doing another round of quantitative easing, which involves printing cash to buy bonds. The U.S. firing-up the money printing press strengthens the value of bullion typically.
April gold contracts, the most actively traded, unloaded $66.60 on the week, or 3.75%, to close at $1,709.80 per troy ounce.
* Silver, which had hit five-month highs last week, saw investors dumping the metal right along with other commodities mid-week. Strong gains on Tuesday – when silver tracked higher by 4.70% – were eliminated by Wednesdays` 6.89% tumble. May contracts, the most actively traded, settled the week at $34.525, representing a loss of $0.813, or 2.30%.
* Copper ping-ponged around this past week. Prices were lofted higher early in the week on speculation that demand from China would increase, but then felt pressure from weakness in equities and talk that surplus in China will put additional pressure on the markets.
The red metal still expanded in price during the week, largely because of a strong upward move on Thursday before light volume on Friday took a little back. Copper is still up more than 13 percent in 2012, but like most other commodities and equities, analysts are concerned about it being toppy and overbought, leaving it susceptible to a retracement. May contracts, the most actively traded on the Comex division of the New York Mercantile Exchange, advanced by 4 cents, or 1.04% to close the week at $3.903 a pound.
* Oil prices pushed briefly through $110 per barrel on Thursday, reaching its highest level since the Lehman collapse of 2008, before losing some momentum after Saudi Arabia`s interior ministry denied reports of a sabotage-related explosion in a pipeline near a major refinery. The price pop came on Thursday after Iranian media reported the explosion, but slid after Saudi Arabia denied the event. Oil had been rising for three weeks on concerns of supply issues in the future, but face strong challenges as most of the fear being is spread because of topics related to Iran. An erosion in the propaganda (or the fact that Iran actually doesn`t get bombed because of its nuclear efforts) could lead to a quick decline in oil prices. On the week, benchmark West Texas Intermediate crude prices edged lower with April contracts, the most actively traded, backing-up by 2.80%, or $3.07, to end at $106.70 per barrel.
Equity Market Snapshot:
(All percentages on a weekly basis unless otherwise noted) * Gold miners took their lumps with the fall in bullion. Kinross Gold (-3.58%), Goldcorp (-3.91%), Agnico-Eagle Mines (-2.79%), Barrick (-4.05%) and Yamana Gold (-5.08%) all depreciated in value last week.
* Newmont Mining, the second largest gold producer and largest copper producer in the world, said it’s too early to say whether its proposed $4.8 billion Conga mine in Peru will proceed while a state-commissioned review is in progress. A 40-day review of the environmental impact is underway by consultants from Spain and Portugal that were hired by Peru. Newmont stopped construction on the mine in November 2011. Shares of Toronto-listed NMC fell by 3.59%.
* Energy stocks didn`t like oil`s volatility. Suncor Energy (-4.11%), Cenovus Energy (-2.10%), Talisman Energy (-4.71%) and Imperial Oil (-3.91%) all suffered a red week.
* Base metal plays didn`t get any love even with the tepid rise in copper as Teck Resources (-5.26%) and HudBay Minerals (-5.81%) posted losses. Ivanhoe Mines (+3.25%) helped the sector to a degree as it said that after considerable interest being expressed, it is considering selling some assets for additional funding of its ongoing developments at its gigantic copper/gold Oyu Tolgoi Mine in Mongolia.
Ivanhoe has spent more than $5 billion over the past decade on exploration and development at the project. Production is on schedule to start in Q3 at Oyu Tolgoi.
* Financial plays rebounded on EU controlling their debt problems with Goldman Sachs Group (+3.84%), JP Morgan Chase (+6.14%), Bank of America (+3.30%) and Wells Fargo (+3.64%) all recovering from dropping the week prior.
* Strong mortgage lending helped banks in Canada top earnings expectations last week. A boosting of quarterly dividends was a theme, despite warnings from federal officials that consumer debt levels are dangerously high.
* Toronto-Dominion Bank (+3.13%), Canada`s second largest bank, boosted its quarterly dividend by 6% to 72 cents a share. Hurt by $171 million in litigation reserves set-aside related to a $1.2 billion Ponzi scheme, first-quarter earnings came in slightly lower than in the year-earlier period, but EPS recording $1.86 per share beat estimates of $1.76.
* Royal Bank of Canada (+3.18%), the country`s largest bank, raised its quarterly dividend by about 6% to 57 cents a share as the bank said that revenue for the first quarter ended Jan. 31 rose as net profit slipped to $1.86 billion from $1.95 billion. EPS rang in at $1.25 a share, ahead of estimates of $1.13 a share.
* Bank of Montreal (-0.34%), Canada`s fourth biggest banker, said first-quarter earnings rose 34% to $1.11 billion, or $1.63 per share (as compared to $1.34 in the 2011 quarter) helped by much lower loan-loss provisions and the recent acquisition of Marshall & Ilsley Corp. Adding M&I Corp to its family more than doubled its bank locations in the United States to 688. Adjusted earnings, which exclude certain items such as costs related to its purchase of Marshall & Ilsley and a restructuring charge in its capital-markets operations, were up 19% to $972 million or $1.42 a share, nipping ahead of estimates of $1.38.
* Sears Canada Inc. (+7.77%) stock surged as it announced plans to close three of its department stores in major Canadian cities by October, selling back the leases to the landlord for $170 million as the retailer continues to rebuild its Canadian operations. The locations targeted for shuttering are in Vancouver, Calgary and Ottawa.
* Home improvement chain Lowes (+3.57%) reported its strongest same-store sales growth (+3.4%) in almost six years in Q4, which helped drive a 13 percent increase in earnings as consumers warmed to discount programs and unseasonably mild weather this winter. For the quarter, Lowes reported a profit of $322 million, or 26 cents a share, up from a profit of $285 million during Q4 2010. Lowes is seeking to keep pace or gain ground on its larger rival Home Depot (+0.92%), who reported a week earlier that same store sales increased 5.7% globally and 6.1% in the U.S.
* Bombardier Inc. (-10.02%) dropped a bomb when it reported a 27% decline in fourth-quarter earnings. The Montreal-based plane and train manufacturer said that earnings came to $214 million, or $0.12 a share, compared to $295 million ($0.16 a share) in the year prior quarter. Aircraft deliveries only totaled 60, down from 100 the year earlier. The company is the third largest plane-maker in the world behind Boeing Co. (-1.53%) and European Aeronautic Defence & Space Co.
* Shares of South America-focused oil and gas company Petrominerales Ltd. (-23.04%) got cooked when it reported that reserves in 2011 fell 14% from 60.2 million barrels at the end of 2010 to 51.5 million barrels as it wrestled with lower-than-expected success from its exploration efforts. Production in January slid to 33,511 barrels per day from 36,041 barrels per day in December.
* The largest maker of computer-memory chips in the U.S., Micron Technology Inc. (+8.74%), gave up some of its gains from early in the week, but still rose strongly on news that Japan-based rival Elpida Memory Inc. filed for bankruptcy.
* Research In Motion Ltd. (-7.67) took its string of red weeks to five as the BlackBerry maker absorbed a lowering of a price target on forecasts of weak fourth quarter earnings from Jefferies & Co. analyst Peter Misek. Misek said that the company has a “greater than 50 percent chance” of missing estimates for the quarter ended February 29, 2012. RIM reports for the quarter on March 29th. Misek lowered his price target on RIM to $12.
* Domino`s Pizza Inc. (+14.01%) reported that its fourth-quarter profit rose to $30.9 million, or 52 cents a share, compared to $24.2 million, or 40 cents a share a year ago. Revenue rose to $501.7 million, up from $480 million in 2010. While earnings per share topped estimates, revenue came in slightly lower than analysts forecasted.
* Office Depot Inc. (+10.54%) swung to a profit and topped earnings estimates in its fourth quarter by earning $12.3 million, or 4 cents a share, during the quarter, compared to a loss of $108.6 million, or 39 cents in the year prior quarter. Revenue for the quarter was basically inline with analysts` predictions as it eked upward to $2.97 billion, compared to $2.96 billion in the 2010 period.
* Sales from the Big 3 auto makers jumped in February, according to reports, putting the industry on pace to tally about 15 million vehicle sales in 2012, well up from the 14.1 million annual pace expected after January and the highest pace in almost 4 years. Shares of Ford rose 4.01%. Shares of GM increased 1.46%.
* The biggest grocery chain in the U.S., Kroger (+2.29%), topped estimates even though it reported a fourth-quarter net loss due to pension costs as low prices and personalized deals led to higher sales. Not including one-time charges, the company said it earned 50 cents per share, which topped estimates by a penny. Total sales in the quarter increased 7.7 percent to $21.4 billion from a year ago.
* Every week there seems to be another stellar performing IPO. This week it was online review website Yelp Inc. whose shares skyrocketed from an opening price of $15 each to hit $26 and settle at $24.58 in its first trading day on Friday, for a 63.87% climb.
* Canada`s largest wind power operator TransAlta Corp.’s (-0.06%) said that fourth-quarter profits were hamstringed by a one-time charge, falling to $24 million or 11 cents per share from a year-earlier $92 million or 42 cents per share. Excluding the loss related to the bankruptcy of MF Global Holdings Ltd and other one-time items, profit was still well below estimates of 22 cents per share.
* Shares of Shutterfly (+20.20%) galloped higher after the company bought recently-bankrupt Eastman Kodak`s (-4.13%) online photo services business for $23.8 million.
* Motorola Solutions (+2.85%), which split in two last year after pressure from Carl Icahn, said that it bought back $1.2 billion in stock, or about 7% of all outstanding shares, from activist investor Icahn and affiliates as part of a $3 billion buyback program. As part of the transaction, Vincent J. Intrieri, a director of Icahn Enterprises G.P., agreed to resign from the Motorola Solutions` board of directors. Google (+1.86%) is buying the spun-off business, Motorola Mobility Holdings Inc.(+0.00%), for $12.5 billion.
* Shares of online game maker Zynga (+13.61%) surged when it announced a new online platform, Zynga.com, which will allow users to play Zynga`s games such as FarmVille and Words With Friends on its own site, rather than on Facebook.
* U.S. officials are investigating more than 240 people spanning more than 120 insider trading cases, according to an FBI briefing report delivered in New York last week. The report said that at least 50 percent of those being investigated are considered “targets” that the government believes have broken insider trading laws.
Weekly Indices Results:
The S&P TSX Composite Index fell from highs by shaving-off points Wednesday and Friday; subtracting 81.95 points, or 0.64%, to 12,643.82. The TSX Venture Exchange followed suit to shed 10.62 points, or 0.63%, to finish at 1,678.90.
In the States, the Dow Jones Industrial Average pulled back to modest losses; fading by 5.38 points, or 0.04%, on the week to 12,977.57. The much-broader S&P 500 continued to grow taller; rising by 3.89 points, or 0.28%, to close at 1,369.63. The tech-rich NASDAQ Composite is still showing that tech is king, forging gains of 12.44 points, or 0.42%, to 2,976.19 on the week.
Canadian Economic Data:
* Statistics Canada said that the Industrial Product Price Index rose 0.3% in January as compared to the significant decrease registered in December (-0.9%), led by petroleum products and primary metals. Gas prices had been easing, but reversed course to spike by 3.5%, aiding in consumers paying 2.1% more for petroleum and coal products while primary metals prices rose by 1.9% during the month.
* The Raw Materials Price Index edged up in January by 0.1% over December when prices fell to a downwardly revised 2.5 percent, primarily because of higher prices for non-ferrous metals (+3.6%) and wood (+2.4%). Gains were pared by a drop in crude oil prices (-1.1%) for a second consecutive month.
* Canada trimmed its current-account deficit at the end of last year.
The surplus in goods trade increased to $3.13 billion from $248 million in the final quarter, the biggest gain since the third quarter of 2008. Exports to the U.S. rose by $5.9 billion, helping account for a total increase of $6.7 billion. Energy jumped $4.1 billion on higher crude oil prices, and automotive sales rose $1.9 billion.
Imports of goods rose by $3.8 billion, led by energy and machinery.
* Basically in line with expectations, Statistics Canada said the economy expanded at an annualized rate of 1.8 percent in the final quarter of 2011 following an upwardly revised 4.2% increase in the third quarter (up from 3.5%). For the December month, GDP grew by 0.4 percent. “After spending the better part of 2011 lurching from one shock to another, the Canadian economy seems to have ended the year on a solid footing,” said David Tulk, chief Canada macro strategist at TD Securities, in a note.
Next week, investors will be watching for the Ivey PMI on Tuesday; Building Permits on Wednesday; Housing Starts, a new Interest Rate Decision on Thursday; and updates on the Unemployment Rate and Labor Productivity on Friday.
U.S. Economic Data:
* The National Association of Realtors said that contracts to purchase previously owned U.S. homes reached its highest level since April of 2010, further evidence the housing market was slowly turning the corner. New contracts, which generally lead sales by one or two months, rose by 2 percents to 97.0 after an upwardly revised 1.9 percent drop in December. On a year over year basis, new contracts to buy homes in January outpaced the year prior by 8 percent.
* The Commerce Department reported that orders for durable goods (big ticket items meant to last more than 3 years) fell by a larger-than-expected 4.0% in January, following an upwardly revised 3.2% in December, as demand fell broadly for long-lasting items. It was the largest one-month drop in three years. Economists were expected a slide, but only by 1.3%, mainly attributed to lower aircraft orders and the year-end expiration of a temporary tax credit.
Large drops in orders included commercial aircraft (-19%), heavy machinery (-10.4%), computers (-10.1%) and primary metals (-6.7%). On the flip side, auto orders increased by 0.9%. Orders for core capital goods, which exclude defense and transportation, contracted by 4.5%.
Shipments of core capital goods, a number used in calculating quarterly GDP, deflated by 3.1% during the month.
* Chicago PMI grew from 60.2% to 64.0% during February, representing its highest reading since April 2011, but excitement was kept at bay as the reading for the business barometer was still way down from its recent peak at 70 in Q1 2011. Production, orders and jobs were all stronger in Feb. The index measuring production rose as new orders hit an 11-month high, order backlogs moved out of contraction and employment had the biggest one-month gain since March 2008.
* Updates in the Case-Shiller Home Price Index showed that U.S. home prices fell 1.1% in December to bring the year-over-year fall to 3.8 percent and take the 20-city composite to its lowest level since the housing crisis began in mid-2006. Detroit, which has seen home prices decimated in the last half-decade paced the decliners with another 3.8% drop in December. The only two cities posting gains were Phoenix and Miami during the month.
* Jobless claims fell to match a four-year low, giving evidence that America`s broken economy is still healing. First time claims for unemployment benefits dropped by 2,000 for the week ended February 25th to 351,000, according to the Labor Department, topping economists` expectations of 355,000.
* Economic activity in the manufacturing sector expanded in February for the 31st consecutive month, and the overall economy grew for the 33rd consecutive month, said the nation’s supply executives in the latest Manufacturing ISM Report On Business. Of the 18 manufacturing industries, 11 are reported growth in February, led by Apparel, Leather & Allied Products; Machinery; Primary Metals and Transportation Equipment. The four industries reporting contraction in February were: Furniture & Related Products; Nonmetallic Mineral Products; Plastics & Rubber Products; and Electrical Equipment, Appliances & Components.
Next week, data in the States will bring fresh stats on the ISM Non-Manufacturing Index on Monday; Initial Jobless Claims on Thursday; and February`s Unemployment Rate, Trade Balance and Non-Farms Payroll on Friday.
Penny Stocks to Watch & Company Spotlight Results:
Among the stocks we watched this week, miner Ely Gold & Minerals Inc.
(TSX-Venture:ELY) touched intraweek highs of 21 cents on both Monday and Tuesday, but couldn`t punch-through the resistance point; fading by the end of the week to 19 cents for a mild loss of one penny, or 5.0%. The other stock we had on radar, mineral land owner Ethos Capital Corp. (TSX-Venture:ECC), channeled sideways before launching on Friday to close the week at its high of $1.10 for a gain of $0.13, or 13.4%.
In the States, alternative energy company Clean Wind Energy Tower Inc.
(OTCBB:CWET) surged ahead early for strong gains in hitting an intraweek high of $0.145 before tumbling back to close the week at $0.097, a drop of 1.83 cents, or 15.87% . The other U.S. stock on our watchlist, energy storage device maker Axion Power International Inc.
(OTCBB:AXPW), had a quiet week by advancing to highs of $0.419 and closing at $0.40, for a tepid loss of one penny, or 2.44%.
If you`d invested in all four stocks and held them to the end, you`d have seen an average loss of 2.48%. However, if you`d bought all four at the beginning of the week and sold each at its peak, you`d have realized gains of 11.59%.
Next week, we focus on Scorpio Gold Corp. (TSX-Venture:SGN) and Touchstone Exploration Inc. (TSX-Venture:TAB). In the States, look for big things from TurkPower Corp. (OTCBB:TRKP) and Mustang Alliances Inc. (OTCBB:MSTG).
The last two weeks have produced stellar moves for both of our latest spotlights, Sirona BioChem Corp. (TSX-Venture:SBM) (Pink Sheets:SRBCF) and Auri, Inc. (OTCBB:AURI).
Sirona, which we spotlighted on February 23rd at $0.085, issued press saying that its lead compound for the treatment of Type 2 diabetes significantly reduced fructosamine levels in a chronic preclinical study. In a 28-day chronic dosing study of obese diabetic rats, Sirona Biochem`s SGLT (sodium glucose transporter) inhibitor, SBM-TFC-039, normalized diabetes and significantly lowered fructosamine levels. Fructosamine is a standard biomarker that reflects the level of glucose in the blood and that is commonly used for monitoring diabetes. Since introduction to our members, shares have spiked as high as 22 cents (+158,82%), but have slipped back to a support level at a dime after some profit-taking upon the big move.
Shares rose again on Friday, which could be signaling that this junior biotech may be ready for the next leg-up.
Auri did not issue any new updates last week, but the designer shoe maker seems to be garnering attention steadily. As we discussed in our technical evaluation of the stock, it appears to have found a bottom. Volume surged last week from our introductory price of 8 cents to touch 11.2 cents (+40.0%) and is still holding strong at a dime.
We encourage our members to not only keep their eyes open for more movement from these two exciting companies, but also to watch their inboxes closely as we are completing our due diligence on another dually-listed company that we feel has strong potential. We will be releasing the name of this company early this week, so stay tuned! ————————- Forward Looking Statements This report includes forward-looking statements that reflect the mentioned companies current expectations about its future results, performance, prospects and opportunities. the mentioned companies has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plan,” “should,” “typical,” “preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause the mentioned companies actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.
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AURI · AXPW · CWET · LTRO · MIXED · MSTG · SGLT · SRBCF · TRKP
