There's a multi-year high in demand from the jewelry sector and record demand for gold bars and coins, but slowing demand from central banks balanced it all out, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Gold spiked higher yesterday on news of more violence in the Middle East and an afternoon tumble in the dollar. Gold for December delivery is up 2.34% to $1364 an ounce. Gold stocks are up even more. Jubak's Picks portfolio members Goldcorp (GG) and Yamana Gold (AUY), for example, were up 5.94% and 5.55%, respectively, as of 2:45 PM New York time.
But the medium-term trends make me cautious here. The second quarter numbers from the World Gold Council, out yesterday, show a multi-year high in demand from the jewelry sector and record demand for gold bars and coins. But big outflows from gold ETFs and slowing demand from central banks more than balanced that out. Gold demand fell 12% in the quarter of a four-year low.
Of course, that's backwards looking. The one piece of data that makes me especially cautious looking forward is that a 6% year-over-year drop in gold supply in the quarter, which helped support gold prices, was almost totally due to a reduction in recycling, as individuals held onto gold jewelry rather than selling it because of low prices. Mine output increased by 4% in the quarter and supply from recycling fell 21% to 308.3 tons, the lowest since the third quarter of 2009. If gold supply from recycling picks up (or doesn't fall as much), that will remove some support for the price of gold, and if it picks up enough, it could lead to another round of production cuts from gold miners.
Best Low Price Stocks To Invest In 2014: Desert Energy Ltd(DSN.AX)
Desert Mines and Metals Limited engages in the exploration of uranium, iron ore, copper, gold, and nickel in Australia. It holds interest in the Camel Hills project through a joint venture with Aurora Minerals located in Western Australia. The company was formerly known as Desert Energy Limited and changed its name to Desert Mines and Metals Limited in December 2011. Desert Mines and Metals Limited is based in Belmont, Australia.
Best Low Price Stocks To Invest In 2014: Flextronics International Ltd.(FLEX)
Flextronics International Ltd. provides design and electronics manufacturing services to original equipment manufacturers. The company offers its services to a range of products in the infrastructure, mobile communication devices, computing, consumer digital devices, industrial, semiconductor capital equipment, clean technology, aerospace and defense, white goods, automotive and marine, and medical devices markets. Its services include design and engineering services, such as contract design, joint development manufacturing, and original design and manufacturing services in a range of technical competencies that include system architecture, user interface and industrial design, mechanical engineering, enclosure systems, thermal and tooling design, electronic system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing services, including enclosures, testing, and materials procurement and inventory mana gement services. The company also offers various component product solutions comprising rigid and flexible printed circuit board fabrication, display and touch solutions, optomechatronics, and power supplies; after market supply chain logistics services; and reverse logistics and repair services, such as returns management, exchange programs, complex repair, asset recovery, recycling, and e-waste management services for consumer and midrange products, printers, PDA's, mobile phones, consumer medical devices, notebooks, PC's, set-top boxes, game consoles, and infrastructure products. It has operations in Asia, the Americas, and Europe. Flextronics International Ltd. was founded in 1990 and is headquartered in Singapore.
Advisors' Opinion:- [By Evan Niu, CFA]
Which contract manufacturer will benefit? China's Economic Daily News pegs Flextronics (NASDAQ: FLEX ) as a winner. Foxconn will no longer manufacture the Mac Pro, with Flextronics picking up the win, according to KGI Securities analyst Ming-Chi Kuo.
Top 10 Heal Care Stocks To Invest In Right Now: Timberline Resources Corporatio(TBR.V)
Timberline Resources Corporation engages in the exploration and development of mineral properties in the western United States. It primarily explores for gold, silver, and copper. The company?s principal property includes Lookout Mountain Project located in Nevada. It also owns other projects at various stages of exploration in the Battle Mountain/Eureka gold trend in north-central Nevada. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is headquartered in Coeur D?Alene, Idaho.
Best Low Price Stocks To Invest In 2014: BERKELEY GROUP HLDGS UNITS(EACH COMP NEW ORD & B SHS)
Berkeley Group Holdings plc, through its subsidiaries, engages in residential-led property development focusing on urban regeneration and mixed-use developments in the United Kingdom. It is involved in the acquisition, planning, designing, building, and marketing of land properties. The company builds and develops new homes, contemporary urban apartments, refurbished historic buildings, traditional family homes, and innovative mixed use schemes. It operates primarily under the brand names of Berkeley, St James, St Edward, St George, Berkeley First, and Berkeley Commercial. Berkeley Group Holdings plc was founded in 1976 and is based in Cobham, the United Kingdom.
Best Low Price Stocks To Invest In 2014: IXYS Corporation(IXYS)
IXYS Corporation, an integrated semiconductor company, engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits (ICs), application specific integrated circuits (ASICs), microcontrollers, and systems and radio frequency semiconductors. It offers power metal oxide silicon field effect transistors; insulated gate bipolar transistors; and thyristors and rectifiers, including fast recovery epitaxial diodes. The company?s power semiconductors are used primarily in controlling energy in motor drives; power conversion systems, including switch-mode and uninterruptible power supplies; medical electronics; and renewable energy sources. It also provides ICs, such as solid state relays for telecommunications applications; power management and control ICs comprising current regulators, motion controllers, digital power modulators, and drivers; microcontrollers, including embedded flash microcontrollers, core 8-bit microc ontrollers, and microprocessors; and line card access switch and data access arrangement integrated products. The company?s mixed signal ICs are used in telecommunications products, central office switching equipment, customer premises equipment, set top boxes, remote meter reading equipment, security systems, flat displays, medical electronics, and defense aerospace systems. In addition, it manufactures and sells laser diode drivers, high voltage pulse generators and modulators, high power subsystems/modules/stacks, and direct copper bond substrates. Its radio frequency power devices are used in wireless infrastructure, industrial radio frequency applications, medical systems, and defense and space electronics. It sells its products principally in the United States, Europe and the Middle East, and the Asia Pacific through direct sales personnel, independent representatives, and distributors. IXYS Corporation was founded in 1987 and is headquartered in Milpitas, California.
Advisors' Opinion:- [By Lisa Levin]
IXYS (NASDAQ: IXYS) surged 5.70% to $14.66. The volume of IXYS shares traded was 1097% higher than normal. IXYS' PEG ratio is 0.55.
Posted-In: volume moversNews Intraday Update Markets Movers
Best Low Price Stocks To Invest In 2014: FMC Corporation (FMC)
FMC Corporation, a chemical company, provides solutions, applications, and products for agricultural, consumer, and industrial markets. The company operates in three segments: Agricultural Products, Specialty Chemicals, and Industrial Chemicals. The Agricultural Products segment develops, markets, and sells a portfolio of crop protection, pest control, and lawn and garden products. It produces insecticides, herbicides, and fungicides to protect crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits, and vegetables from insects and weed growth; and for non-agricultural applications, including pest control for home, garden, and other specialty markets, as well as for turf and roadside applications. The Specialty Chemicals segment focuses on food ingredients, pharmaceutical excipients, biomedical technologies, and lithium products. It produces microcrystalline cellulose that is used as drug dry tablet binder and disintegrant, and food ingredient; carrageena n, which is used as food ingredient for thickening and stabilizing; encapsulant for pharmaceutical and nutraceutical applications; alginates that are used as food ingredients, and for pharmaceutical excipient, wound care, orthopedic uses, and industrial uses; and lithium that is used in pharmaceuticals, polymers, batteries, greases and lubricants, air conditioning, and other industrial applications. The Industrial Chemicals segment produces inorganic materials, such as soda ash for glass, chemicals, and detergents; specialty peroxygens for pulp and paper, chemical processing, detergents, antimicrobial disinfectants, environmental applications, electronics, and polymers; and zeolites and silicates for detergents, car tires, pulp, and paper. It has operations in North America, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. The company was founded in 1884 and is headquartered in Philadelphia, Pennsylvania.
Advisors' Opinion:- [By Rich Duprey]
Just as Monsanto is enjoying a surge in sales of Roundup, pesticide makers are witnessing greater sales of pesticides to combat these superbugs. Revenues at Sygenta (NYSE: SYT ) rose 1.5% to $4.2 billion, FMC's (NYSE: FMC ) sales were 5% higher, and American Vanguard's (NYSE: AVD ) surged 39% last quarter. The three companies account for three-quarters of all ground pesticides sold in the United States.
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