Turkey Stocks are Worth Nibbling

According to the Association of Foreign Investors in Real Estate, also known as AFIRE, a recent study showed that the country of Turkey has the fourth best opportunity for real estate price appreciation of all countries around the world, up from ninth place the previous year. The country is ranked 15th in terms of Gross Domestic Product on a Purchasing Power Parity basis. Less that two months ago, Fitch raised the credit rating of Turkey to investment grade. The literacy rate is approximately 94%.

So what is the best way to invest in this growing country? WallStreetNewsNetwork.com has turned up ten different Turkish stocks available to US investors. The best way to invest with diversification is through an Exchange Traded Fund, the iShares MSCI Turkey Investable Market Index (TUR). The stocks in the ETF have an average price to earnings ratio of 11 and the fund pays a yield of 1.9%. The fund has had a 12.9% average annual return over the last three years.

The fund's three largest holdings are Turkiye Garanti Bankasi (GARAN), Akbank TAS (AKBNF), and Turkiye Halk Bankasi A.S. (HALKB). About 46% of the funds assets are in the financial services industry and almost 16% in industrials.

Another alternative which provides diversification is the Turkish Investment Fund (TKF), a closed end fund. Last year, the fund was up over 49%.

If you want do invest directly in a Turkish company, you should consider Turkcell Iletisim Hizmetleri (TKC), which trades at 12.7 times trailing earnings and 12.1 time forward earnings. The company is a provider of provides wireless telephone services, sports and news entertainment, Internet services, and other telecommunications services. Earnings for the latest reported quarter were up 1% on a 3.8% rise in revenues. The stock has $4.15 in cash per share.

If you want a free list of stocks based in Turkey, that you can download, sort, and update, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

We started off the week with a whimper as the Dow fell 51 points on light volume.  The advance/declines were negative.  I would expect some decline this week or sideways at best.  We need to digest the recent huge gains in the stock indices.  I would look for higher prices in expiration week.  I am looking at getting some OEX calls for next week.  Perhaps later in this week.  There is not a lot of economic data out this week but it is the start of earnings season again.  GE was down a bit but closed off of its lows for the day.  I am looking at the GE January calls.  I did place an overnight order for the January GE 21 calls.  We'll need to see some decline for the order to be filled.  Earnings are due expiration Friday.  Gold was off just a couple of bucks despite a big drop in the US dollar.  The usual inverse relationship here hasn't materialized for the past few weeks.  It isn't a positive for gold in my opinion.  I am still looking to get long the gold shares though.  The XAU fell 2 1/3.  ABX and GG fell 1/2 and NEM dropped 7/8.  Volume was light.  I placed an open order for the February ABX 35 calls.  As with the GE open order, ABX will need to see some decline for this order to be filled.  The gold shares are getting short term oversold once again.  This is a trade that I have tried numerous times in the preceding months.  It hasn't worked yet.  Mentally I'm feeling OK.  I would expect the stock indexes to slosh around here this week.  I do not expect any dramatic moves one way or the other.  Obviously the trend is up but we are extended in the McClellan oscillator.  I'll be looking to purchase some January OEX calls later this week.  Nobody likes gold for now and sometimes that is when you have to like it.  I'll ponder this idea tonight.  It is entirely possible that I should simply let gold do what it does and concentrate my energy elsewhere.  We'll see what happens in the foreign markets and go from there.     

Warren Buffett and Berkshire Hathaway News

The latest news about Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett during the last week.

Warren Buffett Is Approaching His Judgment Day

Don't bet on Warren Buffett's solar gamble

SunPower, solar stocks surge after Warren Buffett buys Calif. plants

Warren Buffett Expands Renewable Holdings

Why Warren Buffett Keeps Buying Wells Fargo

“I Don’t Understand Why People Hate Bank of America”

If you want to invest like Warren Buffett and Berkshire Hathaway, go to the free list of Warren Buffett stocks at WallStreetNewsNetwork.com

100 Ways to Get 5% Tax Free

Municipal bondholders breathed a sigh of relief when the details of the Fiscal Cliff Bill were released. There were concerns that the tax free status of municipal bonds would be affected, but for now, the tax free status is preserved. The non-taxable feature means that states and local governments can borrow money at lower rates than corporations. Taking away this benefit would mean that states and municipalities could be stuck competing with the debt of companies, paying higher rates and putting them more in jeopardy of going bankrupt. Municipalities are in severe financial shape as it is, and taxing muni interest would be the last straw.

This news, plus the goal of the government to keep interest rates low for a while longer, is good news for investors in municipal bonds and tax-free closed end funds. The biggest risk is if interest rates rise significantly, the price of munis and muni CEFs will tank.

Investors who are looking for tax free income may want to consider the municipal bond closed end funds, sometimes referred to as tax-free stocks. There are many advantages besides the tax free income feature to these CEFs. Almost all of them pay dividends monthly, whereas, if you by an individual bond, the interest is paid semi-annually. CEFs have no minimum investment, whereas municipal bonds are sold in $5,000 denominations and many brokers have minimum purchases ranging from $15,000 to $25,000. You also have better liquidity with CEFs as prices are quoted real time and quotes are immediately available on the Internet. In addition, CEFs provide diversification through a group of bonds in the portfolio.

Municipal bonds pay interest that is exempt from Federal taxes and may be exempt from state taxes if issued in the state you live in or issued by one of the US territories, such as Puerto Rico, the Virgin Islands, or Guam. Munis are generally issued by states, counties, cities, and other governmental entities such as school districts, sewer districts, bridges, and water and power departments. WallStreetNewsNetwork.com just recently updated its list of over 150 tax-free income CEFs, and more than 100 sporting yields greater than 5%.

One example, appropriate for New York residents, is Nuveen New York Investment Quality Municipal Fund (NQN) which has a goal of current income exempt from regular Federal and New York State and City income tax, and pays a decent yield of 5.3%. However, it does use leverage, to the tune of about 37%, to achieve its high yield. The fund trades at about a 0.7% discount to net asset value, also referred to NAV. The management fee of 0.61% is below the overall average of all tax free CEFs. It has been paying dividends since 1990. A very small portion of the bonds in the portfolio are subject to the alternative minimum tax, also referred to as AMT.

California residents might want to take a look at the Nuveen California Municipal Value Fund (NCA), which doesn't use any leverage to achieve its 4.5% yield, free of Federal and California state income taxes. It currently trades at an 0.8% discount to NAV, and carries a reasonable 0.54% management fee. The CEF, which has been around since 1987, has a little over 10% of its portfolio in AMT bonds.

For a CEF that is diversified nationwide, there is the Federated Premier Intermediate Municipal Income Fund (FPT), which seeks to provide current income exempt from federal income tax, including AMT. The fund yields 4.9% and has no AMT bonds in the portfolio. It is trading at a very slight 0.7% premium to net asset value. Leverage is quite high at 29% but the management fee is a reasonable 0.55%. Income has been paid since 2002.

The issues to watch out for with tax free CEFs:
* high leverage
* high management fees
* trading at a premium to NAV
* bonds in the portfolio that may be subject to the Alternative Minimum Tax
* quality of bonds in the portfolio

For a list of tax free income closed end funds, which includes yields, discounts and premiums, leverage, management fees, date founded, and other information, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

What Companies are Raising Their Dividends?

There are a lot of dividend raisers to start out the new year. Here are some that recently boosted their payouts.

Hormel Foods Corporation (HRL) had an increase to its 47th consecutive annual dividend

Becton Dickinson (BDX) had a 10% increase in dividend payout, and has raised its dividend for 42 years in a row

Dominion Resources Inc. (D) increased its quarterly dividend 6.6%

The Boeing Company (BA) increased its quarterly dividend 10%

Edison International (EIX) increased its quarterly dividend 3.8%

Tyco (TYC) Plans 7% Dividend Increase

KBR (KBR) raised its dividend by an incredible 60%

Realty Income (O) raised its monthly dividend by 2%

Rent-a-Center (RCII) raised its quarterly dividend by 31%

General Electric Company (GE) increased its quarterly dividend by 12%

Nu Skin Enterprises Inc. (NUS) increased its quarterly dividend 50%

AXIS Capital Holdings Limited (AXS) increased its quarterly dividend 4%

If you like stock lists like this, such as a list of stocks going ex-dividend, beer stocks, candy stocks, or coffee stocks, go to WallStreetNewsNetwork.com.

A good end to the first week of trading in 2013 for the bulls as the Dow gained 43 points on light volume.  The advance/declines were 3 to 1 positive.  The summation index is heading higher.  The employment report came in as expected and it really wasn't much of a market mover.  The stock indices are short term overbought but they could stay that way.  I think any declines will be bought here.  You cannot argue with price and the market is moving higher.  I still think that we will see more gains heading into the option expiration in 2 weeks.  GE was up a bit and the volume was light.  I would like to see more participation here from GE but it isn't happening yet.  If we can break through the declining tops line at around $21.50, we should see GE move up.  I am still considering the January calls here.  Gold had a roller coaster type of session.  The futures closed down $25 and they were lower than that during the morning.  But gold made a comeback in the after hours trading.  I'm not sure what to make of todays action.  The US dollar opened higher but closed well off of the highs for the day.  The XAU was actually up 1/3 as the gold shares performed pretty good considering the drop in gold.  This is a positive for the gold shares.  ABX, GG and NEM all had slight fractional gains on average volume.  I'm not exactly sure what to do with the gold shares here.  The are still medium term oversold and due for some type of rally.  The daily technicals are more overbought than oversold though.  I'll probably be looking elsewhere for the next trade.  Mentally I'm feeling OK.  The stock indexes are overbought.  I'll will look to get some calls next week perhaps if there is a pullback.  The Dow transports have broken out and it is up to the industrials to follow.  I may get some GE January calls next week.  The only caveat is that the earnings are due on expiration Friday.  We'll see.  Gold is acting volatile to start the year.  I would still like to get long there at some point.  Perhaps I'll move out to the February option cycle there.  Plenty to consider over the weekend.  For now it's the first Friday of the new year and time for a break.

Starbucks Opening in Vietnam: Is this the Next Big Asian Growth Country?

Starbucks (SBUX) has been expanding all over the world and will now open its first coffee shop in Vietnam in Ho Chi Minh City.

Vietnam has a fast growing economy. According to the Ministry of Industry and Trade, the country spent almost $4.5 billion on Apple (AAPL) iPhones and other cells phone imports last year.

Vietnam is drawing the eyes of other companies. As an example, Siam Cement Group, based in Thailand, paid $240 million to purchase an 85% interest in Prime Group, one of the largest tile and brick manufacturers in Vietnam.

So if an American investor wants to participate in Vietnam's growth, there are some options available. According to the list of Vietnam stocks at WallStreetNewsNetwork.com, there are over a dozen companies that are either based in Vietnam or have large operations in Vietnam. Unfortunately, most of these companies are either very illiquid, have low market caps, or don't trade in the United States.

The best way to take advantage of the Vietnamese business expansion is through the Market Vectors Vietnam Exchange Traded Fund (VNM). The fund owns several Vietnam companies that would not be available to US investors, such as Vincom Joint Stock Company, Viet Nam Joint Stock Commercial Bank For Industry And Trade, Bao Viet Holdings, and the Joint Stock Commercial Bank for Foreign Trade of Vietnam, all of which make up about 30% of the portfolio.

The average price to earnings ratio is 10.6 and the average price to book value is 1.19. The fund pays a yield of 1.0%. Although the fund had a volatile year in 2012, it was actually up 22%. It started off the year well, spiking 4.7% on January 2.

For a free list of Vietnam stocks, go to WallStreetNewsNetwork.com.

Disclosure: Author owns AAPL.

By STockerblog.com