Swiss Stocks Look as Sweet as Chocolate Thanks to Franc Move

Last week, the Swiss National Bank announced it would peg its franc to the euro
at a conversion rate of 1.2. The Swiss franc reacted immediately to the
downside, shedding 10% against the U.S. dollar and crushing one of the most
widely held longs by hedge funds. Your opportunity as an investor right now is
to focus on the handful of Swiss companies that are big exporters, who do
business abroad and will benefit from favorable currency exchange rates against
the weak franc. Those stocks could include ABB Inc. (NYSE: ABB ), Logitech
(NASDAQ: LOGI ) and Novartis (NYSE: NVS ), to name a few. The move with the
Swiss franc came in response to fund managers who drove the franc to all-time
highs in early August, seriously damaging the countrys exports, as well as its
domestic economy. The Swiss National Bank found itself backed into a corner, but
nonetheless, its action marked a bold move, especially from a nation that has a
history of taking action piecemeal and not with a sledgehammer. The act of tying
the franc to the euro means Switzerland is no longer immune to the ills of
European sovereign debt and, therefore, does not provide the safe haven that has
escaped the PIIGS nations woes. That is, the euro zone constituents Portugal,
Ireland, Italy, Greece and Spain. Not knowing how low the euro can go, one can
only speculate that the Swiss franc may trade at parity with the dollar in the
next year. Thats assuming Europes fiscal mess gets a bit messier, which is not
out of the question. My take on the euro is that it is trading at an
artificially high level, fully supported by ECB open market purchases. Instead,
I'd posit that the euro ought to be trading at 1.2 and ultimately will do so
at some point in the not-too-distant future. Europe is on the verge of negative
growth, and slapping a number of new austerity measures on what already are
fragile economies is bad news for the euro. The one-year chart of the Swiss
franc (below) illustrates the extreme with which it rallied as interest rates
soared in Portugal, Italy, Ireland, Greece and Spain this time last month,
before austerity programs were voted through, but have yet to be implemented. A
lot still can go wrong with the euro zone, and the value of the euro could well
descend from the current 1.4 level if the ECB fails to get full cooperation from
member nations involved in resolving the sovereign debt crisis. Why the Swiss
would chain their currency to the euro at a time when it could see a big move
lower in the weeks ahead is a real head-scratcher. But from the chart above, the
franc is trading back down to May levels and most certainly will help the export
industry, as exchange rates have vastly improved. My guess is that Swiss bankers
are betting on a lower euro so as to further improve foreign currency exchange
rates. Even at its now lower level, the franc still is very high on a historical
basis. At some point, if the euro starts to unwind, it wouldnt surprise me in
the least to see the Swiss National Bank un-peg the franc and let it free float
again. But lets assume that the Swiss bank decides to let the franc decline so
as to juice up exports. In that case, it would be a lucrative move to buy into
one or two Swiss-based blue-chip companies that do 90% of their business outside
the country and have a strong exposure to emerging markets. Given the backdrop
of investor sentiment that is fearful of a global slowdown, I would view
consumer staples as a way to play this export scenario that has just gotten a
shot in the arm, via devaluation of the franc. Oddly enough, most Swiss equities
sold off on the news, which probably stems from fund managers running
international portfolios who then dumped their Swiss holdings after it became
joined at the hip with the future direction of the euro. The selling pressure
witnessed this week in Swiss stocks makes for some very compelling buys that fit
right in with the new normal landscape a.k.a. growth coupled with austerity.
Well, the Swiss already live an austere lifestyle, and the sudden decline in the
value of the franc is sure to boost the bottom line of the countrys leading
exporters. So it soon might be a good time to get in on stocks with exposure to
non-cyclical businesses that are global leaders in their respective market
sectors. And it makes a lot of sense to do so while these stocks are on sale.
From a total return basis, its about as tasty as a Toblerone. Bryan Perry is the
editor of the Cash Machine dividend stock newsletter.

Learn more about the Chinese geological industry’s impact on global mining sector.

Mr. Jionghui Wang, Assistant President of one of the leading metals and mining
corporations globally shared with the delegation at the Central Asia Mining
Congress his opinion on the worldwide exploration market. Mr. Wang is currently
the Assistant President of China Minmetals Corporation and the President of
Minmetals Exploration and Development Co.,Ltd. In the past few years, Mr. Wang
has successfully led several large-scale exploration projects, which attract
extensive attention from both domestically and abroad ( e.g. Nihe Iron Mine
project in Anhui Province, Songxian Gold and Molybdenum Project in Henan
Province, Coking Coal Project in Qinghai Jiangcang, and Shi Donggou Silver
Polymetallic Project in Gansu Province. In his presentation at the Central Asia
Mining Congress , Mr. Wang brought up the importance of the resource demand in
China & the further strategy, highlighting the following: • In the next
decades, China has to face up to the severe resource demand occurred in the
industrialization and urbanization. • Confronted with the challenge, China is
implementing the leap forward strategy, and creates more key breakthroughs as
far as possible. • During this course, China exploration workforce will play
leading role and undertake the important responsibility to guarantee the
resource supply. Want to learn more about the Chinese geological industry's
impact on global mining sector? Download his full presentation slides here. Join
us at the Central Asia Mining Congress 2012 and find out more about the further
development of the global as well as the Central Asian mining sector. Register
now!

Top 10 Specialty Finance Stocks with Highest Return on Equity: TGH, TAL, AGM, TCAP, CIM, NLY, CISG, HTS, INSW, MMC (Sep 15, 2011)

Below are the top 10 Specialty Finance stocks with highest Return on Equity
(ROE) ratio for the last 12 months. ROE shows a companys efficiency in making
profits from shareholders equity. It is equal to net profits divided by
shareholders equity. One Chinese company (CISG) is on the list. Textainer Group
Holdings Limited (NYSE:TGH) has the 1st highest Return on Equity in this segment
of the market. Its ROE was 27.69% for the last 12 months. Its net profit margin
was 51.14% for the same period. TAL International Group, Inc. (NYSE:TAL) has the
2nd highest Return on Equity in this segment of the market. Its ROE was 21.68%
for the last 12 months. Its net profit margin was 23.16% for the same period.
Federal Agricultural Mortgage Corp. (NYSE:AGM) has the 3rd highest Return on
Equity in this segment of the market. Its ROE was 21.24% for the last 12 months.
Its net profit margin was 26.65% for the same period. Triangle Capital
Corporation (NYSE:TCAP) has the 4th highest Return on Equity in this segment of
the market. Its ROE was 21.13% for the last 12 months. Its net profit margin was
84.15% for the same period. Chimera Investment Corporation (NYSE:CIM) has the
5th highest Return on Equity in this segment of the market. Its ROE was 17.76%
for the last 12 months. Its net profit margin was 66.92% for the same period.
Annaly Capital Management, Inc. (NYSE:NLY) has the 6th highest Return on Equity
in this segment of the market. Its ROE was 17.30% for the last 12 months. Its
net profit margin was 63.47% for the same period. CNinsure Inc. (ADR)
(NASDAQ:CISG) has the 7th highest Return on Equity in this segment of the
market. Its ROE was 16.39% for the last 12 months. Its net profit margin was
27.36% for the same period. Hatteras Financial Corp. (NYSE:HTS) has the 8th
highest Return on Equity in this segment of the market. Its ROE was 15.05% for
the last 12 months. Its net profit margin was 67.21% for the same period. InsWeb
Corporation (NASDAQ:INSW) has the 9th highest Return on Equity in this segment
of the market. Its ROE was 14.35% for the last 12 months. Its net profit margin
was 3.56% for the same period. Marsh & McLennan Companies, Inc. (NYSE:MMC) has
the 10th highest Return on Equity in this segment of the market. Its ROE was
14.13% for the last 12 months. Its net profit margin was 8.32% for the same
period.

Top 10 Solar Stocks with Highest Return on Equity: GTAT, DQ, JKS, SOL, TSL, LDK, JASO, YGE, FSLR, STP (Sep 15, 2011)

Below are the top 10 Solar stocks with highest Return on Equity (ROE) ratio for
the last 12 months. ROE shows a companys efficiency in making profits from
shareholders equity. It is equal to net profits divided by shareholders equity.
Eight Chinese companies (DQ, JKS, SOL, TSL, LDK, JASO, YGE, STP) are on the
list. CLICK HERE for Solar Stocks Comparison Table GT Advanced Technologies Inc
(NASDAQ:GTAT) has the 1st highest Return on Equity in this segment of the
market. Its ROE was 91.54% for the last 12 months. Its net profit margin was
21.14% for the same period. Daqo New Energy Corp. (NYSE:DQ) has the 2nd highest
Return on Equity in this segment of the market. Its ROE was 54.90% for the last
12 months. Its net profit margin was 37.18% for the same period. JinkoSolar
Holding Co., Ltd. (NYSE:JKS) has the 3rd highest Return on Equity in this
segment of the market. Its ROE was 49.72% for the last 12 months. Its net profit
margin was 15.76% for the same period. ReneSola Ltd. (ADR) (NYSE:SOL) has the
4th highest Return on Equity in this segment of the market. Its ROE was 30.88%
for the last 12 months. Its net profit margin was 12.29% for the same period.
Trina Solar Limited (ADR) (NYSE:TSL) has the 5th highest Return on Equity in
this segment of the market. Its ROE was 26.38% for the last 12 months. Its net
profit margin was 12.61% for the same period. LDK Solar Co., Ltd (ADR)
(NYSE:LDK) has the 6th highest Return on Equity in this segment of the market.
Its ROE was 25.30% for the last 12 months. Its net profit margin was 10.39% for
the same period. JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) has the 7th
highest Return on Equity in this segment of the market. Its ROE was 25.12% for
the last 12 months. Its net profit margin was 11.22% for the same period. Yingli
Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) has the 8th highest Return on
Equity in this segment of the market. Its ROE was 21.21% for the last 12 months.
Its net profit margin was 13.15% for the same period. First Solar, Inc.
(NASDAQ:FSLR) has the 9th highest Return on Equity in this segment of the
market. Its ROE was 15.24% for the last 12 months. Its net profit margin was
20.33% for the same period. Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP)
has the 10th highest Return on Equity in this segment of the market. Its ROE was
14.16% for the last 12 months. Its net profit margin was 0.09% for the same
period. CLICK HERE for Solar Stocks Comparison Table

Gold & Silver Prices – Daily Outlook September 16

Gold and silver prices suffered a sharp drop yesterday and thus completed 4.2%
and 5.1% deceases, respectively from the end of last week. The recent
announcement of ECB along with the Fed to issue US dollar based loans to
European Banks may have helped restore some confidence in the European market
and consequently rallied up the Euro against the US dollar. This news also
eclipsed the negative results of the Philly Fed Manufacturing Index. The
declines in precious metals prices coincided with the recent rally of US stock
markets and the rise in US Treasury bills yields. Today, US TIC long term
purchases will also be published. Lets examine the precious metals market for
today, September 16th: Gold and silver prices –September Gold and silver
prices sharply declined yesterday: Gold price fell on Thursday by 2.47% to
$1,781; silver price also declined by 2.55% to $39.50. During September, gold
price declined by 2.7% while silver price fell by 5.4%. The chart below
(normalized gold and silver prices (August 31st 2011=100)) shows the price
development of precious metals during September. The ratio between gold and
silver prices stats to slowly pick up in recent days; on Thursday, September
15th the

Charts Say It’s Time to Sell

Yesterday's triple-digit advance by the Dow Jones Industrial Average was
again the result of a focus onEurope. And whether here or there, the story is
that you just can't fight central banks when they decide to flood their
systems with U.S. dollars. On this side of the pond, weekly jobless claims rose
above expectations and regional manufacturing missed the mark (Empire State
Manufacturing Survey for September fell to -8.8 instead of -4). And there was a
flurry of other reports, but they had little impact on a market that is focused
onGreece,Italyand the ECB's every effort to save them from defaulting on their
debt. For the fourth consecutive day stocks moved higher, completing a run of
4.3% from Monday's close, and a Collins-Bollinger Reversal (CBR) buy signal,
to Thursday's close. Traders who took leveraged ETF positions on Monday's
buy signal should consider cashing in. And it would be prudent for traders to
close all other long positions this morning. It is possible that stocks could
make a further run through the neckline at Nasdaq 2,602 and the 50-day moving
average at 2,612. But an overbought MACD, and the vagaries of a triple-witching
day argue against holding long positions in a bear market within an incomplete
bear flag formation. Finally, the bounce from the August low to last night's
close is a 50% retracement of the fall from the July 7 high to the Aug. 9 low a
Fibonacci number. After breaking from major resistance at a triple-top and its
200-day moving average, the U.S. dollar pulled back closing the first of two
open breakaway gaps. The dramatic breakout confirms a double-bottom for the
buck, but there is no guarantee of an immediate follow through since patterns of
this type often take weeks or months to develop.

Top 10 Real Estate Stocks with Highest Return on Equity: SFUN, INTG, HGSH, OMEI, CBG, HF, APSA, BPO, WPC, CNR (Sep 15, 2011)

Below are the top 10 Real Estate stocks with highest Return on Equity (ROE)
ratio for the last 12 months. ROE shows a companys efficiency in making profits
from shareholders equity. It is equal to net profits divided by shareholders
equity. Four Chinese companies (SFUN, HGSH, OMEI, CNR) are on the list. SouFun
Holdings Limited (ADR) (NYSE:SFUN) has the 1st highest Return on Equity in this
segment of the market. Its ROE was 85.73% for the last 12 months. Its net profit
margin was 31.16% for the same period. The InterGroup Corporation (NASDAQ:INTG)
has the 2nd highest Return on Equity in this segment of the market. Its ROE was
80.27% for the last 12 months. Its net profit margin was 17.71% for the same
period. China HGS Real Estate, Inc. (NASDAQ:HGSH) has the 3rd highest Return on
Equity in this segment of the market. Its ROE was 42.98% for the last 12 months.
Its net profit margin was 47.14% for the same period. China Oumei Real Estate
Inc. (NASDAQ:OMEI) has the 4th highest Return on Equity in this segment of the
market. Its ROE was 29.24% for the last 12 months. Its net profit margin was
31.62% for the same period. CB Richard Ellis Group, Inc. (NYSE:CBG) has the 5th
highest Return on Equity in this segment of the market. Its ROE was 28.57% for
the last 12 months. Its net profit margin was 4.03% for the same period. HFF,
Inc. (NYSE:HF) has the 6th highest Return on Equity in this segment of the
market. Its ROE was 27.96% for the last 12 months. Its net profit margin was
13.44% for the same period. Alto Palermo S.A. (ADR) (NASDAQ:APSA) has the 7th
highest Return on Equity in this segment of the market. Its ROE was 26.83% for
the last 12 months. Its net profit margin was 26.17% for the same period.
Brookfield Office Properties Inc. (NYSE:BPO) has the 8th highest Return on
Equity in this segment of the market. Its ROE was 24.59% for the last 12 months.
Its net profit margin was 143.83% for the same period. W. P. Carey & Co. LLC
(NYSE:WPC) has the 9th highest Return on Equity in this segment of the market.
Its ROE was 20.75% for the last 12 months. Its net profit margin was 41.08% for
the same period. China Metro Rural Holdings Ltd (AMEX:CNR) has the 10th highest
Return on Equity in this segment of the market. Its ROE was 20.75% for the last
12 months. Its net profit margin was 34.85% for the same period.