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Posts Tagged ‘george-soros’

Invest Like George Soros With This Commodity Stock

October 17th, 2012

Jared Cummans: George Soros is one of the biggest names in commodities, as he is largely known for his success running the Quantum Fund with Jim Rogers. In recent years, Soros has been something of a gold bug, making huge allocations to the SPDR Gold Trust (NYSEARCA:GLD). Read more…

Agriculture, Commodities, ETF

Experts Say That A Stock Market Crash Is Coming (JPM, BAC, GS)

October 10th, 2012

In the financial world, the month of October is synonymous with stock market crashes.  So will a massive stock market crash happen this year?  You never know. The truth is that our financial system is even more vulnerable than it was back in 2008, and financial experts such Read more…

Economy, Financials

Is Vladimir Putin Pouring Billions Into Gold In The Anticipation Of Global Upheaval?

September 10th, 2012

Mac Slavo: Federal Reserve Chairman Ben Bernanke says gold is not money. Berkshire Hathaway’s Charlie Munger claims it’s only for pre-holocaust Jews and that civilized people don’t buy it. The oracle of Omaha Warren Buffet scorned it as an unproductive asset  and says Read more…

Commodities, Currency, Gold, Government

Whispers On Wall Street: Major Financial House Is Going to Implode; Could It Be Morgan Stanley? (MS, JPM)

August 27th, 2012

Mac Slavo: Before the collapse of mega behemoth Bear Stearns there were rumors that a major Wall Street firm had bitten off more than it could chew. Mainstream media, for the most part, Read more…

Financials, Markets

George Soros Just Spent $455 Million on These Two Stocks

June 3rd, 2011

George Soros Just Spent $455 Million on These Two Stocks

Billionaire investor George Soros and his team of advisors take a “top-down” approach. This means they seek out big, “macro” investing themes, and then work their way down to the best ways to play that theme. Every quarter, they adjust their stakes in a range of companies, either by loading up or pulling back, while also looking to enter a few new positions.

In the most recent quarter, Soros, through his financial services company Soros Fund Management, added two brand new positions to his portfolio. Each could be viewed as a proxy for major themes playing out in the global economy.

Here's why they're worth looking into…

Adecoagro (Nasdaq: AGRO)
This ticker symbol says it all. Adecoagro owns and operates nearly 40 massive farms in Brazil, Argentina and Uruguay, a region known for fertile and productive land. Indeed, agriculture has always been the leading export in Argentina, but it also now holds the top spot in Brazil's export economy. This isn't just a play on soybeans or wheat either. It's also a play on cotton, rice, sugar cane-based ethanol, dairy cows, coffee, sugar and other commodities. This all means Adecoagro's annual results aren't subject to the vagaries of volatile prices for any particular commodity, though it surely helps that just about all the items noted above have seen a surge in price in recent quarters.

For George Soros, his $330 million investment (of roughly 27 million shares) in Adecoagro is the perfect play for the ongoing global demographic changes that are taking place. As the global population continues to rise, the amount of unused arable land continues to shrink. In addition the growing middle classe in many emerging markets are consuming ever more calories on a per-capita basis.

Beyond the demographic appeal of South American agriculture, Soros has likely spotted three other reasons to own this stock. First, operating income appears set to rise nicely in the near-term, from $74 million in 2010 to more than $150 million this year, and to $200 million by 2013, according to one of Brazil's largest banks, Banco Itau. Second, high-quality agricultural land is becoming a scarce commodity as new cities pop up in formerly rural areas of South America and Asia. Soros likely anticipates solid appreciation potential in the land Adecoagro holds. Third, Adecoagro plans to aggressively ramp up its ethanol business. Unlike the U.S. production of corn-based ethanol, which needs the help of government subsidies, Brazil's sugar cane-based approach is considered to be more cost-effective and more environmentally sound. In a world of high oil prices, sugar cane-based ethanol is likely to see rising demand.

Adecoagro pulled off a $12 initial public offering (IPO) in late January, rose higher, but now trades right at the offering price. The main reason for the underwhelming post-IPO action is in the complex nature of the company's business. In effect, investors need to figure out a value for each distinct business group. For example, the ethanol business alone is likely worth about $1 billion, according to Banco Itau. The bank's analysts think shares deserve to trade up to $16 (implying a 30% gain) over the course of this year, and perhaps well higher down the road as the company's growth plans come into focus and its real estate holdings appreciate in value.

Look for Soros to hold this stock as a key long-term position for his eponymous investment fund. For the rest of us, Adecoagro provides a way to get into farming without getting down in the dirt, as I discussed in this article earlier this year. The bottom line is that farmland has been a solid investment for a long time and will likely remain so for many years to come.

Visteon (NYSE: VC)

One of the most stunning consequences of the recent global recession was the absolute implosion of demand for new cars and trucks. Many key auto makers and their key suppliers had been used to operating with lots of debt, so when the downturn hit and sales began to slide, they either had to cut costs drastically, seek government bailouts or file for bankruptcy, as was the case with General Motors (NYSE: GM) and Chrysler in 2009. Visteon, which is an auto-part maker and a Ford Motor (NYSE: F) spin-off, couldn't avoid the maelstrom and sought bankruptcy protection as well.

But that's beginning to look like ancient history now: Visteon went public once again last October (with a much cleaner balance sheet) and saw its shares rise from about $50 to $75 before a recent pullback down to $61. George Soros' firm established a new 2.1-million share position (worth about $125 million), presumably after the stock suffered a 20% drop in just two days in early March, after announcing a year-over-year decline in first-quarter sales and profits.

Commodities, Real Estate, Uncategorized

Russian Roulette Anyone?

May 10th, 2011

by Raghu Gullapalli -  SmartStops.net contributor

SLW, SLV
After an extremely volatile week, what can we expect in Silver from the week to come? If you’ve read some of the same reports in the blogosphere I have, you may want to try your chances at Russian Roulette; your odds of success are higher.

There are a couple of metaphors I especially enjoyed:

-> “Dead Cat Bounce”
-> “Gap and Crap”
-> “Silver takes the stairs up and the elevator down”
At the end of its move up, Silver was on a rocket.  The entire world was in a frenzy, from the taxi drivers to my Mother.   That was the big clue. -> “Sell on excitement”

And that’s exactly what, George Soros and Carlos Slim among the most notable did. They started exiting their Silver position when it made new all time highs. In some ways the death of Osama Bin Laden may have been the catalyst many experienced investors sought. One last spark to bring the market to a fever pitch.
Now what?
Well after a week where Silver lost almost 25% of its value, it hard not to take the value of Risk Management seriously. 
This morning Silver Wheaton (SLW), the miner, come out with it quarterly earnings. According to SmartStops.net, the short-term stop is $34.05 and the long-term stop is $32.93.     iShares Silver Trust (SLV) may experience the afore mentioned “Dead Cat Bounce” wherein the price bounces up from last week’s lows, making a woeful attempt to break the down trend and then continues downward. The SmartStops.net short-term stop is $33.68 and the long-term stop is $31.10

 
Disclosure:  Author has no positions in the mentioned symbols.

Read more here:
Russian Roulette Anyone?




HERE IS YOUR FOOTER

Uncategorized

George Soros Owns $205 Million Worth of These Two Stocks

February 14th, 2011

George Soros Owns $205 Million Worth of These Two Stocks

Legendary investor George Soros is a “big picture” guy. He likes to spot major themes and then find the savviest direct ways to benefit. This approach has served him well: he's worth an estimated $14.2 billion and, according to Forbes, was the 35th richest person in the world in 2010. A pair of biotech investments highlights his desire to profit from the steady decline of Big Pharma stocks, so I decided to analyze these two investments and to see how you can profit alongside him.

As I've noted previously, many major drug companies are set to lose exclusive rights to some of their most profitable drugs. From the industry's misfortune, real winners will emerge: companies with newer promising drugs and companies that steadily profit from making drugs once they lose patent protection. Soros has big stakes in both areas, with his $130 million stake in Teva Pharmaceuticals (Nasdaq: TEVA) and a $75 million investment in Dendreon (Nasdaq: DNDN).

Uncategorized

George Soros Loves These Two Biotech Stocks

February 14th, 2011

George Soros Loves These Two Biotech Stocks

Legendary investor George Soros is a “big picture” guy. He likes to spot major themes and then find the savviest direct ways to benefit. This approach has served him well: he's worth an estimated $14.2 billion and, according to Forbes, was the 35th richest person in the world in 2010. A pair of biotech investments highlights his desire to profit from the steady decline of Big Pharma stocks, so I decided to analyze these two investments and to see how you can profit alongside him.

As I've noted previously, many major drug companies are set to lose exclusive rights to some of their most profitable drugs. From the industry's misfortune, real winners will emerge: companies with newer promising drugs and companies that steadily profit from making drugs once they lose patent protection. Soros has big stakes in both areas, with his $130 million stake in Teva Pharmaceuticals (Nasdaq: TEVA) and a $75 million investment in Dendreon (Nasdaq: DNDN).

Uncategorized

George Soros Owns $205 Million Worth of These Two Stocks

February 14th, 2011

George Soros Owns $205 Million Worth of These Two Stocks

Legendary investor George Soros is a “big picture” guy. He likes to spot major themes and then find the savviest direct ways to benefit. This approach has served him well: he's worth an estimated $14.2 billion and, according to Forbes, was the 35th richest person in the world in 2010. A pair of biotech investments highlights his desire to profit from the steady decline of Big Pharma stocks, so I decided to analyze these two investments and to see how you can profit alongside him.

As I've noted previously, many major drug companies are set to lose exclusive rights to some of their most profitable drugs. From the industry's misfortune, real winners will emerge: companies with newer promising drugs and companies that steadily profit from making drugs once they lose patent protection. Soros has big stakes in both areas, with his $130 million stake in Teva Pharmaceuticals (Nasdaq: TEVA) and a $75 million investment in Dendreon (Nasdaq: DNDN).

Uncategorized

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