WaveStrength Market Trends for November 29, 2006
The Swiss Market's Success
by Ann Sosnowski
The Swiss index SSMI has made gains of 120% since early 2003.
Also, look at the iShares MSCI Switzerland Index Fund (EWL). You could have bought a piece of this fund for $9.50 in March 2003.
Today, it’s valued at $25, giving investors a gain of 163% in a little more than three years.
Believe me, Switzerland will continue to push its bull market over the next three years, setting a new 52-week high after a 52-week high. It’s easy to see why.
Switzerland is the banking capital of the world. In fact, out of the top ten holdings on the EWL, half are banking companies.
Additionally, breaking news just came out regarding some of the top Swiss companies.
Nestle SA, the world’s largest food maker, may buy Gerber Products, the maker of baby food, from Swiss drugmaker Novartis AG (NVS:NYSE).
Nestle could reportedly pay $5 billion for the acquisition.
Recently, both companies have been working on a deal that would give Nestle a medical-nutrition company that Novartis also owns.
Interestingly enough, both companies are not commenting on the Gerber deal. However, market speculation took the EWL back above its 10-day Moving Average support, getting it ready for a new 52-week high.
Now, in other news on a continuous theme:
The New York Times Company (NYT:NYSE), which WaveStrength Traders made 30% on via calls this month, is up substantially again today. NYT’s stock has gained 4.03% since the open after it was announced that ex-American International Group (AIG:NYSE) chairman Maurice Greenberg has been buying up “hundreds of thousands of shares” of the company.
This comes on the heels of another online company joining the race to prop up the newspaper industry. Monster Worldwide Inc. (MNST:NASDAQ) announced that it’s also partnering with newspapers to help them gain ad revenue, just like Google Inc. (GOOG:NASDAQ) and Yahoo! Inc. (YHOO:NASDAQ) are doing.
Monster’s jumping on the bandwagon, as well as the news about Greenberg’s interest in newspapers, is just another indication that the print industry is gearing up for a cycle of renewal.
The 7.4% that NYT has gained since August, as well as the 14.55% that TRB has gained since May, is just a drop in the bucket for the potential these stocks now have.
No doubt they are severely undervalued at this time.