Nicholas Vardy
MORE GOLDEN THAN GOLDMAN
Investment bank Goldman Sachs gets a lot press these days. Most recently it was the subject of a cover of the British weekly The Economist. That’s unfortunate for Goldman Sachs: The appearance of a company on a magazine cover is often a strong sell signal. Fortunately this week’s Global Bull Market Alert pick, Deutsche Bank (DB), attracts much less attention than its higher-profile rival. Absence of magazine covers notwithstanding, there is no doubt that DB’s recent performance has thrust this German Goldman Sachs into the top ranks of the world’s “bulge bracket” investment banks.
MEGATREND YIELDS MEGAPROFITS
Our Indian outsourcing play CTSH made huge gains yesterday, closing up more than 9% and setting a new 52-week high of $69.67, before pulling back and closing at $66.89. The stock is now up almost 19% since March 20th, and the options are up 240%.
ASIA’S STEALTH TIGER
With all the headlines focusing on investment opportunities in Asia, you would think Indonesia would attract more attention than it does. After all, with a population of more than 240 million (#4 in the world) and its economy expanding at a rate of 5.8% this year, Indonesia is both a faster grower and larger market than stock market superstars Brazil and Russia. And because of its relative wealth, the size of Indonesia’s middle class rivals that of higher-profile markets like China and India. But with its stock market up more than 27% so far this year (a whopping 42% in dollar terms), Indonesia is slowly but surely creeping back onto global investors’ radar screens.
THE “ABBs” OF MAKING MONEY
With global infrastructure play ABB Ltd. (ABB) soaring 16% to $14.40 and with the options up just under 60%, you should sell half your options to lock in some profits. Hold onto the stock, though: Swiss investment house Vontobel just upped its price target on the stock to $17.30 on the back of ABB’s 30% increase in operating profits. Move your stop to $13.40.
A WINNING SEASON
Every one of our Global Bull Market positions is comfortably in the black. Let’s review what has been a very profitable few weeks:
PORTFOLIO UPDATE
Last week Goldman Sachs helped bump up the price of our investment in Indian outsourcing play Cognizant Technology (CTSH). The stock is up 12.5% since we recommended it only a month ago.