The Watchlist: Ed’s Daily Notes for April 11th   Leave a comment

Interestingly, there was only one stock on my watchlist yesterday which was green: Reynolds American Inc. (RAI), up 0.02%. If you are looking for a stock to hold through a downturn, RAI may be it, although I would only recommend it as a long-term hold. However, I would still like to see it closer to $51 before I would buy it (currently at $54.02).

As for the rest of my watchlist, here it is: AMZN, BID, BIDU, C, CMCSA, CTCM, DSUM, GLW, GNW, GWPH, HYG, LMCA, NFLX, ONVO, RAI, REGI, SDRL, TSLA, VZ, and YNDX. Feel free to poke holes in any of these stocks, as I am always looking to trim stocks from this list.

Associated Press (via Yahoo News): US Internet ad revenue surpasses broadcast

Good news for Google:

For the first time, U.S. Internet advertising revenue has surpassed that of broadcast television thanks to sharp growth in mobile and digital video ads.

That’s according to a report from the Interactive Advertising Bureau, which said Thursday that Internet advertising revenue rose 17 percent to a record $42.8 billion in 2013. Broadcast TV ad revenue, in comparison, was $40.1 billion in 2013.

Mobile advertising revenue more than doubled to $7.1 billion from $3.4 billion in 2012 as companies like Facebook, Google and Twitter boosted their mobile presence.

Bloomberg: Russia Plays the ‘China Defense’

As soon as Russian President Vladimir Putin annexed Crimea last month, U.S. and European politicians started to talk about cutting Russian energy exports to punish him. Surely a country in which oil and gas are expected to account for 48 percent of budget revenues in 2014 would think twice if faced with curbs on its hydrocarbon exports?

As U.S. Senator John McCain called Russia “a gas station masquerading as a country,” and the U.S. congress moved to expand liquefied natural gas exports to displace Russian sales in Europe, Chinese officials must have rubbed their hands with glee. For 10 long years they had talked to Russia about building a gas pipeline from Siberia to China, but could never agree on a price. Now, thanks to the Ukraine crisis, there was a chance for a breakthrough.

China is the biggest energy-consuming nation in the world, but ranks only fourth in natural gas consumption, because more than two-thirds of its energy comes from coal. China burns about as much of the stuff as the rest of the world put together and it desperately needs cleaner energy. The Chinese government has made plans to produce gas from coal, but the process releases lots of carbon dioxide and guzzles water, which is scarce in many regions of China. Importing gas is therefore the best option, but it is expensive unless delivered through a pipeline: China paid an average of $11.13 per million British thermal units for LNG in the first half of last year, according to Platts, about twice the price paid in the U.S.

While Russia might not make as much money from China as they do from Europe, they can still make enough. This will allow Russia to continue to annex their neighbors as they see fit, especially as Europe and the U.S. continue to remain toothless.

As for China, they impress me sometimes. If the Chinese have a flaw, it is ignoring the short-term for the long-term. However, they do seem to make most of the right moves.

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Posted April 11, 2014 by edmcgon in China, News, Stocks

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