Tesla (TSLA) stock to hit $277 in 2015?

CNN Money logs 20 analysts who are tracking Tesla’s shares. They have wildly different forecasts for the company’s stock price over the next year with one predicting shares will fall to $70 and another predicting shares will rise to $400. Tesla closed at $211 today.

When you look at the median forecast of those 20 analysts, though, the overall projection is bullish.

Continue reading “Tesla (TSLA) stock to hit $277 in 2015?”

3 reasons Marc Faber believes the stock market is doomed

In a recent interview with Christopher Menon, Marc Faber predicts we could see a dramatic sell-off in stocks (around the magnitude of 20-30%) that could begin in the coming months. His credentials? Apparently, he correctly predicted the 1987 stock market crash. Why does he think we’re doomed to repeat that fate? Three reasons:

1) 12-month new highs have diminished.

2) Volume is slack. When volume is high, it’s on days when the market is going down.

3) Sentiment is too one-sidedly bullish.

Faber believes investors can protect themselves by moving into precious metals, specifically physical gold bullion. My favorite part of the interview comes when Menon asks if Faber believes gold could rise to $10,000 or more. Faber’s response? “You’d better ask this question to Ms Yellen and to other central bankers, it all depends on how much money they will print.”

Look for silver prices north of $50 by 2015

The white metal is up more than 10% YTD, and, interestingly, silver and gold have now broken above their key 50, 100 and 200 day moving averages. Goldcore believes that trend will continue.

I love to see actual silver price predictions with dates on them. SilverSeek offered that up in an article last week:

“Most analysts, particularly in banks, were bearish from 2001 until very late in the first phase of the bull market,” Goldcore writes. “We believe that they will be surprised again when the intermediate top at $50/oz and $1,911/oz in September 2011, is passed, likely by the end of 2015.”

The white metal is up more than 10% YTD, and, interestingly, silver and gold have now broken above their key 50, 100 and 200 day moving averages. Goldcore’s even more bullish longer-term:

“It is important to remember that silver rose to a recent nominal closing high $48.41/oz on April 28, 2011. This means that silver is nearly 60% below its record nominal high of just over three years ago.

“After more than 3 years of a brutal correction and subsequent consolidation, we believe silver is set to rise above that record nominal high in the coming months. We continue to be bullish on gold, platinum, palladium and particularly silver.

“We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.”

Look for silver prices to hit $100/ounce in 2-3 years

Silver prices haven’t done much over the past year. They were at $20 an ounce last July, and they’re at $20.80 today. That’s a gain of 4%. During the same time frame, the S&P 500 is up nearly 18%! Suffice it to say, it’s been a bumpy ride for gold and silver investors.

Still, the precious metals markets are showing signs of thawing. The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ), a collection of junior gold mining stocks, is up more than 33% year to date. Silver streaming company Silver Wheaton Corp. (NYSE:SLW) is up more than 28% and Pan American Silver Corp. (NASDAQ:PAAS) is up more than 26%.

Sean Rakhimov, editor of SilversStrategies.com, believes that if and when silver prices crest $26 an ounce, prices will climb higher: all the way to $32 an ounce. If prices reach $32 an ounce, the next major stopping point for the white metal will be $50 an ounce. 

“My outlook for silver for the next two or three years is somewhere between $50 and $100/oz,” Rakhimov says in an interview with The Gold Report. “It could be shorter; it could be longer, but that’s not critical. I’m going to stay with it for the cycle; it could be another 10 years to the end of the cycle. I do not expect this next leg to be final but I expect it to be a substantial run
comparable to 2010–2011 when silver went from roughly $10 to $49.50/oz. The next move could go from about $20 to roughly $100/oz, but that will take time. Am I going to take money off the table along the way? Maybe in some stocks that got ahead of themselves or that are not responding to the price move. But I would not touch any of my physical silver.”

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

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

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

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?

What are the odds that we’ll see a Pinterest IPO? And if we do when will we see it?

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 has already grown production by 30 percent in 2012, and we believe they’re just getting started.

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

Here are ten easy steps you can take to avoid complete consolidation of power through the form of one-world government. It seems inevitable, but it doesn’t have to be.

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

As RenRen’s IPO date approaches, the so-called “Facebook of China” may face stiff competition from Baidu.com, Inc. (NASDAQ:BIDU), Facebook and Tencent Holdings Ltd. (HKG:0700).

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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