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Top 10 photos from Hurricane Sandy

I’ve been glued to my computer looking at the photos from Hurricane Sandy rolling in on Twitter, Instagram and Facebook. Here are the Top 10 pics of the hurricane I’ve seen so far:

1) New York’s Skyline blackout (credit Hsyee):

2) Flooding on Avenue C and 14 Street in New York City (credit Megetz):

3) Flooding on the piers in Long Island City (credit JimmyVanBramer):

4) Flooding in Hoboken hours before the storm (credit Tarafied87):

5) Flood waters start rolling into the Hugh L. Carey Tunnel (formerly the Brooklyn-Battery Tunnel) in New York (credit MTAPhotos):

6) Water pouring into Ground Zero in New York City (credit Passantino):

7) Water pouring into the Subway in Hoboken (credit Mr_Alens):

8) Water slams the Statue of Liberty (credit h0es-and-v0dka). FAKE: Per a reader, we’ve learned the image below was yanked from ‘The Day After Tomorrow’.

9) A wind-blown trampoline; not sure where (credit ibejeanette):

10) Flooding at Avenue C and 14th Street in New York (credit ZeroHedge):

Bonus Pics of Hurricane Sandy

11) Water pouring into the a Times Square subway station (credit alelulule). Per a reader, we’ve learned this image is also a fake that cropped up during Hurricane Irene.

12) Girls on the verge of floating away in Brooklyn (credit Ma_Rockaine):

13) Water pours into an underground parking garage in the Financial District (credit KGW.com):

14) Firemen respond to a call in this @Time photo (credit AmericaBlog):

15) NYPD vans underwater (credit ABC User Photo):

16) A wind-damaged building in New York (credit InFlexWeTrust):

17) Water sweeps over roads in Manhattan in this AP shot (credit TheAtlantic):

18) Flooding in the East Village (credit BuzzFeed):

19) Flooding in the Dumbo area in Brooklyn (credit ABC):

Gold and silver bubble will ‘dwarf’ the Internet bubble

One of my favorite quotes in recent news came from Bill Murphy founder and chairman of the Gold Anti-Trust Action Committee (GATA). In an interview (that I highly recommend) with Jim Puplava of the Financial Sense Newshour, Murphy argued that the price of gold and silver have been successfully manipulated for decades.

The debt crisis that’s plaguing the U.S., Europe, Japan and other countries will eventually lead to so much money-printing, though, that continuing to suppress the price of precious metals just won’t be possible. That’s when we’ll truly see a tremendous climb in prices.

“When the public comes in here in our tiny gold and silver markets, it will be a bubble, and it will dwarf what the Internet did except it will be real for a long period of time,” Murphy said. “And that’s coming.”

That’s good news for gold and silver stock holders, but it will likely be bad for everyone on the outside looking in. Since Murphy’s certain we’re nearing the tipping point for inflation (especially after the Fed signaled that QEIII is coming on Friday), he looks at buying mining shares as a no-brainer.

“It’s probably the best risk-reward situation right now as the gold and silver markets have ever seen in terms of the equities,” he says.

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When is Pinterest’s IPO date?

Now that Facebook’s IPO is in the works, investors have started casting around for the next big tech IPO, and Pinterest is one of the names that keeps cropping up. What are the odds that we’ll see a Pinterest IPO? And if we do, when will we see it?

“Big-name social networks like Twitter and Pinterest are months, if not years, from needing to go public, most experts say, given the gobs of money venture capitalists have been throwing at them,” writes Peter Delevett of the Mercury News.

In Pinterest’s case, the company has already raised $30 million in venture capital. Rumors are they’re casting around for more, too, with some sites claiming VCs are valuing Pinterest north of $1 billion. That’s the sort of valuation where an IPO starts looking imminent. And it could help Pinterest raise the warchest it’ll need to bring in the right execs, law firms and bankers to transition from a start-up to a public company.

It’s in Pinterest’s best interests to go public sooner rather than later – especially as competitors like PinView (an app that lets Facebook users use the social network just like they use Pinterest) start nipping at their heels.

So, let’s speculate on when we might see a Pinterest IPO. The first and largest hurdle is the fact that Pinterest isn’t generating revenue. Potential investors would want to see the company roll out a platform for ads, or – at the very least – have future revenue plans in the works.

We can safely assume Pinterest is investigating revenue models. Until they launch one, expect them to “pull a Twitter” and delay going public for as long as possible. Once they’ve started generating income, the next steps on the road to an IPO should come quickly.

After revenue kicks in, they’ll need advisors and (potentially) a seasoned CFO. The company will also need lawyers, auditors and a investment bank. With those pieces in place, Pinterest will file a Form S-1 with the Securities and Exchange Commission. That form will give the public its first look at Pinterest’s finances, and it will need to be approved by the SEC, NASD and state securities organizations – a process that can take anywhere from 20 to 60 days.

After that, we’d likely see a two-week roadshow during which Pinterest will try to drum up investor interest in the company. A few days after the roadshow ends, shares in Pinterest stock would officially start trading.

To use Facebook as an example, the social network filed it’s Form S-1 on Feb. 1, 2012. Per the latest rumbling on the Web, the company will officially go public on May 17, 2012, three-and-a-half months later. Taking that into account, here’s a rough, shot-in-the-dark formula for when we might see a Pinterest IPO:

Development and rollout of a revenue model + Hiring a CFO and lining up finances/investment banks + Filing and approval of an S-1 + Investor roadshow = IPO date

Given that formula, my best guess is we’ll see a Pinterest IPO within a year of the introduction of a revenue model. That would give Pinterest at least three quarters of financial growth to show off in their S-1 filing.

Now, the question becomes, when will we see a revenue model on the site? Considering the fact that they’re growing faster than just about any other Web site in history, I suspect they’re predominantly focused on user and system support right now. Perhaps we’ll see revenue models roll out this fall, then an IPO just over a year later. That puts my tentative guess somewhere around January 2014. I just wish I could get my hands on shares before then…

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Undervalued silver stocks: Alexco Resource Corp. (AXU)

Alexco Resource Corp. (AMEX:AXU) is one of our top 100 favorite gold and silver mining stocks out of the 500 that we profiled in our new book: The Top 500 Gold and Silver Mining Stocks. Here are three reasons why:

1) A truly world-class deposit. It’s hard to argue with quality of Alexco’s Bellekeno deposit in the Yukon Territories. Some veins grade more than 1,200 g/t silver. A deposit of that quality is a once-in-a-generation-type discovery. All told, Alexco hopes to uncover more than 100 million ounces of silver in the Keno Hill Silver District.

2) 30 percent growth and counting. Earlier this week, Alexco reported silver production of 581,808 ounces during the first quarter of 2012. That’s a 30 percent increase over Q1 production in 2011. Alexco’s targeting production of 2.2 million to 2.5 million ounces of silver in 2012. In addition, they expect to mine 19 million pounds of lead and more than 7.5 million pounds of zinc at Keno Hill.

3) 10 million ounces a year within five years. Alexco continues to identify new targets at its Yukon properties – namely on the Bermingham and Flame & Moth properties. These new, large targets may have lower grades of silver than Keno Hill, but their sheer size will help the company rapidly boost production numbers.

“These potential mines vastly increase the likelihood Alexco will surpass the 10 million-ounce-per-year hurdle within five years,” says Chris Marchese, contributor to The Morgan Report, in an interview with The Gold Report. “Its Lucky Queen project is averaging over 1,200 grams per ton (g/t) coming on-line before the end of the year, along with Onek. So it has a really deep pipeline for continuous growth into the foreseeable future.”

Mirroring a trend across the mining industry, Alexco’s shares are actually down about 8 percent since the start of the year. The company plans to release new resource statements for its Flame & Moth and Bermingham properties “during the second quarter.” That could be anytime now. If the numbers are good, look for a pop in Alexco’s share price. Look for Alexco to out-perform its peers, too, if investor interest in mining stocks begins to pick up (which we fully expect to happen sometime in 2012).

Like this post? Check out our book, The Top 500 Gold and Silver Mining Stocks, to uncover other undervalued gold and silver mining stocks.

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How to resist the new world order

1) Prepare for the worst. We face an extraordinary number of potential crises: from energy crunches to nuclear war and financial collapse. That makes digging for the truth a bit like prescribing yourself a depression pill. Even psychologists have started looking at the societal and personal ramifications that peak oil will have on our lives (i.e. Dr. Mills at LMU). But there’s a lot to be said for being prepared.

When society breaks down, it happens quickly and without warning, and there are a lot of theories out there that postulate a government-sponsored crisis could be how the elite try to usher in a one-world currency and – eventually – a one-world government.

Crises aren’t fun to live through. Educate yourself so you can resist the move toward a new world order, and so that you can protect yourself (and stay alive) if society does break down. Learn how to garden and purify water. Maintain alternative means of transportation (like working bicycles). Buy a generator. Stockpile essentials, and get to know your neighbors (you may have to lean on them a lot in the coming years).

2) Don’t support the world’s largest banks. It might be more convenient to bank with a company that has branches around the world, but it’s hard to argue with the notion that the world’s largest banks hold enormous sway over our political and economic systems. Just take a look at the staggering number of former Goldman Sachs Group (NYSE:GS) executives who hold positions at the U.S. Treasury and the Federal Reserve. Switch to a local bank. If they get bought out, switch again.

3) Limit your oil consumption. Oil companies hold nearly as much sway over Washington as bankers. Until we reduce our consumption of oil, our country will be dependent on imports and our standard of living will be dictated by the price of oil. If we can limit our consumption of oil via fuel-efficient cars, bicycles, motorcycles (or even better: natural gas-powered cars), we’ll be sheltered from oil shocks and other economic turmoil.

4) Support the politicians you believe in. Not everyone in Washington wants to consolidate the government’s power. Case in point: former Wisconsin State Senator Russ Feingold was the only senator who voted against the USA PATRIOT Act in 2001 – an act that greatly expanded the power of law enforcement agencies to monitor U.S. citizens.

Just one senator opposed the act while 66 members of the House voted against it. Find out who they were and support them and the causes they believe in. Feingold, who lost his bid for re-election in 2010, founded Progressives United. The group now works to overturn Citizens United v. FEC – a Supreme Court decision that removed limits on money corporations can indirectly pour into the electoral process (via smear campaigns, PACs and other avenues).

5) Be skeptical of the media. Pay attention to the sources of “research” that you see in news articles. Google the foundations, think tanks and institutions that are cited. Often, they have specific agendas that may change the way you view the information you take in. Spend some time pouring over actual documents from Wikileaks if you want a true sense of how the world really works.

6) Turn off the television. The average American watches four hours of television per day. That’s the equivalent of nine years by the time we turn 65 or two months out of every year that are spent passively entertaining ourselves. It’s little wonder that we don’t have time to vote, ride our bikes to work or spend time with our families and neighbors. Liberate yourself and get involved with your community by limiting your entertainment time.

7) Shop local. Every dollar you spend enriches someone else. The beauty of that fact is that you get to choose who you enrich. Visit your local farmer’s market for food or join a community-supported agriculture group (CSA). Go to specialty stores in lieu of Wal-Mart. Get a deep freezer and buy meat from a local butcher in bulk. Shop for clothes at thrift stores and utilize your library for entertainment. Not only will you reduce your debt, you’ll be vitalizing your local community and taking cash out of the pockets of corporations.

8) Minimize your tax burden. The financial system is set up to cater to the men and women who control the world’s wealth. The capital gains tax rate (for securities held longer than a year) is 15 percent. Compare that to the Federal income tax bracket, which stands at 25 percent for people earning between $34,500 and $83,600 a year. Put more of your income in dividend-earning stocks and cut back on your hours at your full-time job. Or, better yet, explore real estate investing and the creative ways you can protect your gains from taxes. Grow your wealth and keep your cash out of the hands of the governing elite in the process.

9) Revive the barter economy. One of the best ways to extract your cash from the economy is by trading skills and products for the things you need. Get on Craigslist and buy used or trade away the dusty goodies piling up in your garage. Invest the money you save in hard assets or donate it to a local charity.

10) Spread the good word. It’s hard to talk about things like a one-world government without feeling like you’re wearing a dunce cap. But you don’t even have to mention the new world order to your friends. Instead, tell them about all the exciting, positive things you’re doing with your life. Give them food from your CSA. Talk about the local charity you’ve gotten involved with. Tell them stories about the people you meet on the bus (since you’ve given up driving a car to work!) or invite them over to help you install solar panels on your roof. Dwell on the positives, and you might be surprised at how your actions influence your friends.

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RenRen IPO’s biggest hurdle might be PengYou

With RenRen’s IPO date looming on May 4, investors are salivating over the first major social networking site to hit American stock exchanges. The so-called “Facebook of China” may face stiff competition in the months to come, though, as both Baidu.com, Inc. (NASDAQ:BIDU) and Tencent Holdings Ltd. (HKG:0700) have moved to aggressively ramp up their social marketing efforts in China.

China’s largest search engine, Baidu.com, is well-known among investors. Shares in the company debuted on the Nasdaq in 2005, and they’ve risen more than 1140 percent since. Earlier this month, Facebook announced rumors surfaced that Facebook struck a deal with Baidu to launch a new social networking site in the country (per MSNBC). No launch date has been announced (if it does indeed come to pass), but the companies will reportedly work together to build a new social networking site from scratch, as Facebook.com remains blocked by the Chinese government.

A partnership makes perfect sense. Baidu currently owns 73 percent of the search market in China but has struggled to succeed in the social networking space. The site’s reach should help it heavily promote a new social networking venture much the way Google has done with its Chrome Web browser. Facebook benefits from Baidu’s close working relationship with the Chinese government – something its needed to get past the Great Firewall.

Time is of the essence, though, and Tencent already has a head start on Baidu. Tencent operates the world’s largest online community with its wildly popular instant messaging platform, Tencent QQ. QQ claims more than 636 million active users. To put that in perspective, that’s more than twice the population of the U.S.

Tencent’s earliest foray into social networking started in 2009 with the launch of XiaoYou, a Facebook-like platform targeted at students. XiaoYou allowed users to create profiles based on nicknames (rather than real names) much like MySpace.com. We saw how well MySpace played out here, and Tencent must have taken notice.

The company scrapped XiaoYou last summer in favor of a new “real-name” social networking site dubbed PengYou (per TechRice). When PengYou launched public beta testing in September, invites were extended to employees at publicly-listed Chinese companies, including Fortune 500 companies in China, TechRice writes. By December, the site fully opened up to the public, and an Open API was released so that developers could write custom software for PengYou.

The site allows users to sync up with their QQ accounts and their SINA Weibo microblogging accounts (think the “Twitter of China”). Investors like those ideas. Late last week, analysts at Goldman Sachs actually downgraded SINA Corporation (NASDAQ: SINA) from Neutral to Sell citing a belief that SINA’s Weibo won’t be able to compete with full-scale social networks like PengYou.

“In our new analysis, we believe the most likely outcome is for Weibo to become an alternative loosely-engaged social network weighted toward its distinctive social media elements, and for Tencent Pengyou to become the dominant social network in China by leveraging its much larger QQ community and more developed platforms,” Goldman writes.

Since its launch in December (just five months ago), PengYou has grown rapidly. The social network’s currently ranked by Alexa.com as the 26th most-visited site in China. That puts it in striking distance of RenRen.com, which is ranked as the 15th most-visited site in China. It’s clear we’re witnessing the start of what promises to be a dogfight over social networkers in China. Tencent, Facebook and Baidu have entered the race late, but the finish line is a long way over the horizon.

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Why silver prices are making gold’s gains look meager

Long viewed as the red-headed stepchild of gold, silver’s returns over the past year has made gold look like a second-class metal. Indeed, silver’s outpaced gold by more than 500 percent over the past year, according to Golden Economizer at SeekingAlpha. Why exactly has silver done so well and will the trend continue?

Gold is the safest safe-haven.

Individual investors with portfolios in the tens of thousands of dollars (and often less) have trouble conceptualizing the amount of money controlled by hedge funds, mutual funds and corporations. Managers for those funds have one primary mandate, and that’s not to lose money for their clients. If you’re managing a billion dollars, for example, a loss of even 1 percent means you’re out $10 million!

When the stakes are that high, you’ve got to got to choose your investments carefully. That makes gold more attractive for institutional investors who need to ensure they’re not going to wake up with a gaping hole in their multi-million dollar portfolio. Silver, which is far more volatile than gold, poses a much greater risk. Of course, fund managers can’t ignore silver’s gains forever, and the metal’s recent out-performance of gold could be attributable in no small part to more institutional interest in silver.

Silver will help power the future.

Silver’s status as an industrial metal got some added clout in the wake of Japan’s ongoing nuclear disaster, as governments around the world turn to solar power as a way to take some pressure off mounting energy needs. Thanks to silver’s conductive properties, it’s a common ingredient in solar panels, and that demand is likely to continue growing.

Industrial uses of silver grew by 20.7 percent to 487.4 million ounces last year, per the The Silver Institute. High gold prices, on the other hand, have decreased industrial demand for the metal as companies turn to cheaper alternatives.

Restoring the ratio.

When the ongoing bull market in precious metals started in 2003, the gold:silver ratio stood at 83:1. Over the past century, the gold:silver ratio has averaged roughly 36:1, according to Ian McAvity, one of the founders of the Central Fund of Canada. As of Friday, the ratio was 34:1 and shrinking.

Eric Sprott, the chief investment officer at Sprott Asset Management, has been arguing for months that we could see the ratio tumble to 20:1 or lower – perhaps as low as 10:1 – as the ratio’s pendulum swings back toward its historic average. At the height of the silver bubble in 1980, the gold:silver ratio fell as low as 17:1 as investors flocked to the metal. It’s unclear where the ratio might end up this decade, but another run at a historically low ratio might not be out of the question – particularly when gold prices are hovering near $1,500 an ounce.

Gold and silver tell the same story.

Gold and silver may swap places as the precious metal investment du jour, but the underlying message is the same: investors have little faith in global currencies. The U.S. government is pumping $110 billion a month into the economy, and that’s driving down the value (or at least the perceived value) of the dollar. So long as the Fed’s spigot remains open, precious metals and other finite commodities will continue to outperform.

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A Sina Weibo IPO could be in the works as China’s Twitter moves to Weibo.com

China’s popular Twitter-like site Weibo may have taken a step closer to an IPO yesterday by unmooring itself from Sina.com. No longer will users have to click or type their way to t.sina.com.cn. Instead, they can type in Weibo.com to access the microblogging site instantly, according to Penn Olson.

Back in February, I wrote a post titled Will we ever see a SINA Weibo IPO? I speculated then that SINA Corporation (NASDAQ:SINA) would be silly to spin off its fastest-growing business. I may have jumped the gun.

All systems seem to be pointing to a Weibo IPO sooner rather than later. First, there was a thinly-sourced report in March from China’s 21st Century Business Herald that claimed Sina was in talks with several investment banks as it mulled a Weibo IPO.

Now, there’s a move to separate the microblogging site from Sina.com by giving it its own domain. Perhaps it’s just a matter of time before we get our hands on an official S-1 filing.

For now, users will be able to use t.sina.com.cn AND weibo.com. Eventually the two sites will be merged, and traffic going to t.sina.com.cn will get re-directed to Weibo.com. The re-branding should help raise public consciousness for Weibo in China and abroad.

“We have successfully built Sina microblog Weibo into the largest and most influential social media platform in China, with user base increasing by more than 25 times in 2010,” Sina’s CEO Charles Chao said after the company’s Q4 earnings report last month.

The total number of Weibo users doubled to 100 million in the four months leading up to the report, and Sina’s in the process of deploying an advertising and a virtual goods marketplace on Weibo. While the microblogging service is yet to generate any revenue, analysts still believe Weibo could be valued at $3 billion or more.

And judging by the success of several recent tech IPOs out of China (including YOKU, DANG and QIHU), a Weibo IPO has the potential to turn into a public spectacle – especially if the site could beat Twitter, LinkedIn and Facebook onto stock exchanges.

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Copper supply in 2011 expected to fall short by 500K tons

Expect a worldwide deficit of about 500,000 tons of copper this year, according to The Australian. The looming threat of a supply crunch has helped push copper prices to a record levels above $10,000 per ton.

Major copper mining companies have benefited handsomely from the surge in prices. Xstrata PLC (PINK:XSRAF), one of the world’s top four biggest mining companies, saw its revenue rise by 34 percent last year on the strength of rising commodity prices, the company reported Tuesday. Profits jumped 700 percent after earnings were impacted by restructuring in 2009. Analysts expect copper and iron ore miner Anglo American PLC (PINK:AAUKY), which will announce its full-year earnings on Feb. 18, to show equally impressive numbers with Thomson Reuters calling for a 100 percent increase in profits in 2010.

Still, some writers have cautioned that copper’s price gains aren’t so much a result of incredible demand as they are the product of shrinking supply. That could lead traders to get too bullish on commodities since copper’s price movements are lauded for deducing the world’s economic health. The red metal’s supposedly so good at indicating the health of economies that its even got its own nickname: Dr. Copper.

“Even if global economic growth was modest, copper prices would be high, as we saw in late 2009 and early 2010,” writes Javier Blas at FT.com. Indeed, copper output at the world’s largest listed copper miner Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) fell 5 percent last year and Xstrata cautions that onerous regulation and a lack of skilled labor and engineers is making copper production increasingly difficult.

The net result? High copper prices are here to stay, and this year’s 500,000 ton shortfall might not look so bad compared to what’s coming in the future.

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China’s best growth stocks through 2015

If you could invest in only one sector in China through 2015, it should be e-commerce. That’s the takeaway from a Credit Suisse forecast for what China will look like in 2015.

Credit Suisse expects China’s e-commerce sector to grow 100 percent a year over the next four years, and most of the companies that will benefit from that growth are still in private hands (check out my 2011 tech IPO calendar to see the Chinese tech stocks I’m following).

Still, if you’re on a quest for China’s best growth stocks through 2015, Credit Suisse’s report gives us clues on other sectors where we can also focus. Here’s a very rough guide to the growth Credit Suisse expects to see in China over the next four years. Percentage forecasts are approximate as I put them together based on charts at BusinessInsider.com:

  • E-commerce will rise by 400 percent.
  • Gas consumption will rise 200 percent.
  • Healthcare spending will by 150 percent.
  • Household wealth will rise by 100 percent.
  • Car sales will rise by 70 percent.
  • Tobacco sales will rise by 50 percent.
  • China’s electricity consumption will climb by 40 percent.
  • Oil consumption will rise by 20 percent.

My two picks right now? Amazon.com-style Dangdang (aka E-commerce China Dangdang, Inc., NYSE:DANG) and Chinese wealth-management company Noah Holdings Limited (AMEX:NOAH). Both sell at extraordinarily high multiples right now, but if Credit Suisse is on the money, you should pocket a nice return on both stocks in the coming years.

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