A stealth bull market in Europe... Another winner for Doc... 81 winning trades in a row... The most valuable U.S. company of all time... Making huge gains in the silver rally...
In today's DailyWealth, Steve Sjuggerud told readers about one sector of European stocks that is crushing the overall market. Despite mounting fears that the European monetary union may collapse, these stocks hit an all-time high. Steve wrote…
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Health care stocks have kicked into a major uptrend. (I told DailyWealth readers about the incredible value in health care last fall. My preferred investment – the ProShares Ultra Health Care Fund (RXL) – is up 44% since then.) Even the terrible economic times in Europe can't hold back health care stocks any more. |
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The S&P International Health Care Sector Fund (IRY), which holds many major European drugmakers, is taking off... It just broke out to an all-time high. |
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Today, IRY is in a powerful uptrend. Longtime readers know how important it is to get onboard these moves. And importantly, even after the recent run, these companies are still cheap. |
IRY is a portfolio of Europe's largest pharmaceutical and health care companies – names like Novartis, GlaxoSmithKline, and AstraZeneca. According to Steve, these stocks haven't been this cheap on a price-to-earnings basis since 1980.
Back then, the sector soared 600% in the following six years.
And despite the international health care sector trading at new highs, the dividend yields are still the highest since 1973. GlaxoSmithKline, for example, yields 4.5%. Novartis yields 4.2%.
Even if these stocks doubled (and the companies didn't increase the dividend payments), the yields would still be higher than the 1.93% average yield on the S&P 500 today. Steve recommended his True Wealth subscribers add RXL to their portfolios in March. It's up about 45% since then. He added IRY to the portfolio last month, and those shares are up 2%.
Retirement Millionaire editor Dr. David "Doc" Eifrig is also bullish on health care stocks. For years, he's written that the aging Baby Boomer generation will demand more health care. And the higher demand will push health care stocks higher.
Today, one of Doc's favorite health care stocks, Medtronic, hit a new high. He originally recommended the stock in his March 2011 issue of Retirement Millionaire. He wrote…
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Medtronic (MDT) is synonymous with health care technology. The company's main business is pacemakers. For generations, Medtronic has been a leader in using electronics to stabilize and manage heart rhythms and maintain lives. |
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... Medtronic has grown steadily, even during tough economic times. Sales have grown about 8% in each of the past three years, a difficult feat for any business. |
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But what makes Medtronic special is its dividend. The company has paid shareholders for 36 years and increased its dividend for 33 consecutive years. A company that keeps growing by producing cutting-edge technologies and rewarding shareholders is the kind of company we love to own at Retirement Millionaire. |
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... Yet, today MDT is trading like a cheap industrial company at just 10 times earnings. This is 50% less than the average S&P 500 stock, and MDT is better than an average business. MDT continues to grow revenues and increase profits and dividends. |
Medtronic is benefiting from the rally in health care stocks. But the stock – which currently yields 2.6% – also benefited from what our editor in chief, Brian Hunt, calls the "dividend magnet." With interest rates near record lows, companies that pay healthy and increasing dividends are attracting yield-thirsty investors.
Retirement Millionaire readers are up a little more than 6% on the recommendation... And they'll continue collecting healthy and growing dividends for decades as they hold this stock.
More kudos are due to Doc for his Retirement Trader advisory... On Friday, he closed a put sale on drug-store chain CVS for a 40.7% return in less than six months (nearly 85% annualized). That marks the 81st consecutive winning trade he's closed since launching Retirement Trader in 2010.
Shares of technology giant Apple are up around 2.2% today to a new all-time high. Hype surrounding the new iPhone 5 and smaller-screen iPad have pushed shares higher.
Today, Apple's market capitalization is nearly $623 billion. According to Bloomberg data, that makes Apple the most valuable U.S. company in history. The previous record goes to Microsoft, which was worth $618.9 billion in 1999. (It's worth $258 billion today.)
Silver prices are up $0.72 an ounce at the time of this writing today to $28.81... Just as our expert options trader, Jeff Clark, predicted.
On July 31, Jeff sent an urgent update to S&A Short Report readers telling them to get ready for a rally in the silver markets. He wrote…
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Yesterday, silver popped above the down-trending resistance line. That's an upside breakout... and it brings the next resistance level at about $30 per ounce into play. It's not a guaranteed move, though. Nothing in the markets is ever guaranteed. But the odds have shifted in favor of the silver bulls. If silver can add to yesterday's gains – or at least not drop back into the triangle pattern – we should see higher silver prices for the next several weeks. – July 31, 2012, S&A Short Report |
At the time, silver was trading around $28 an ounce.
To profit from the trend, Jeff recommended buying calls on Pan American Silver. The company has more than three times its market capitalization in proven and probable silver reserves. And it trades for around five times earnings.
Tracing silver's move, Pan American is up 2% today. And S&A Short Report readers have made more than 75% on his recommended option trade. He thinks readers will eventually make triple-digit gains on the trade.
And if history is any indication, Jeff will be right. Since May of this year, S&A Short Report readers have made 100% in one week trading GDX, 95% in one week on Seabridge Gold, and 77% in less than a month on Gold Fields.
And his readers also made a fortune trading precious metals in 2011... He made 142% in seven days on the SPDR Gold Shares Fund, 100% in 22 days on Seabridge Gold, and 103% in 22 days on Gold Fields... just to name a few. He also closed six other precious-metals trades for gains between 47% and 91%.
Jeff also recommended another silver position last Thursday... Subscribers who followed his recommendation are already up more than 55% in just three trading days.
New 52-week highs (as of 8/17/12): Berkshire Hathaway (BRK), BlackRock Corporate High Yield Fund (HYV), iShares Dow Jones U.S. Home Construction Fund (ITB), PowerShares Buyback Achievers Fund (PKW), Constellation Brands (STZ), Automatic Data Processing (ADP), 3M (MMM), Medtronic (MDT), Union Pacific (UNP), and GenMark Diagnostics (GNMK).
At S&A, we strive to constantly bring you valuable research and other tools to make navigating the markets easier for you. And we appreciate positive feedback as we continue rolling these out. How have we helped you in the markets? Let us know here... feedback@stansberryresearch.com.
"Porter, your 'Global Oil Value Monitor' is a great analysis tool and will pay huge dividends going forward. As a south Texas boy who frequently drives through the small town boom region of the Eagle Ford shale plays, there is no question about the renaissance in American energy. The only caveat is the regulation loons and feckless politicians in DC. I find it interesting how clueless the public is regarding the country's energy potential, while some energy insiders have yet to see the warning signs of an oil price reduction. However, because of S&A's thorough and informative analysis, I and other subscribers will prosper. Thank you." – Paid-up subscriber Dave Embry
Goldsmith comment: Thanks for the note, Dave. We're glad you got a lot out of Porter's work on the oil and gas sector...
The "Global Oil Value Monitor" (which Porter mentioned in Friday's Digest) is part of the extensive analysis we've just published on the energy boom taking place in oil and gas fields across America.
The soaring oil and gas production will upend the global energy sector and make the U.S. a leading producer and exporter of energy resources. It's a shift Porter described as potentially "the most important economic event of my life."
To learn the details of what's happening – and gain access to all of Porter's work on the subject – click here.
Regards,
Sean Goldsmith
New York, New York
August 20, 2012