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What's Working on Wall Street Now
Louis Navellier's FREE weekly e-letter
Making Profits by Connecting the Dots
04.10.08

As an investment professional, I try to spot major trends in financial markets and see connections where they may not obviously appear. Many investors can see the individual dots, but what makes a truly successful investor is one who can see the entire picture.

Helping individual investors see the whole picture is one of the reasons I started my Blue Chip Growth service 11 years ago. I’m very proud of the track record we’ve accomplished. According to The Hulbert Financial Digest, my Blue Chip recommendations have gained over 274% since 1998, beating the rest of market by nearly 200%. Most importantly, we’ve done it without taking undue risk.

Even Crooks Are Commodity Bulls
 
In just a moment, I’m going to tell you how you can sign up for Blue Chip Growth and join our exclusive membership. But first, in this week’s issue of “What’s Working on Wall Street Now,” I want to discuss one of the most important trends in today’s world economy—the global bull market for commodities.

I’ve written about commodity trading a lot over the past few months, and it’s something every investor needs to understand. In short, if something comes out of the ground, the price for it has probably risen a lot lately.

The effects of this rally are very far-reaching and continuously changing how we need to invest. For most people, the effects of the commodity rally are painfully obvious every time they fill up at the pump, but there are other ways that the commodity rally is playing out as well. In Britain, for example, thieves have been making off with the roofs of rural churches. The New York Times recently reported that St. Michael and All Angels, an 800-year-old church in Edmondthorpe, England, now has a gaping hole in its roof.

The thieves weren’t interested in desecrating the church for religious reasons. Nope, they just wanted the lead off the roof. Thanks to surging demand from emerging markets, the price for lead has risen by 600% over the last six years.

Once the economics of crime changes, you’ll never know where crooks will strike next. Who ever thought that some rural church would be an open target? There are lots of valuable commodities sitting out in the open just waiting to be robbed.

In fact, thieves in Hawaii have been stealing copper from roadsides. For the fourth time in the last five months, copper wiring has been stolen causing a blackout along stretches of the highway. Last week, more than a mile and a half of copper wire was stolen from a freeway on Oahu. Thanks to the boom in copper, the police estimate that the haul was worth $33,600.

Southern Copper: Up 185% for Us in Two Years

Surging prices for metals has hit every part of the world, from rural parishes to highways in paradise. Today, the amount of copper in a penny is actually worth more than one cent making commodity trading even more popular. In fact, a person could buy up a huge store of pennies, melt them down and sell the copper for a profit. (Don’t try this though, as it’s against the law.)

This week, I want to show you how you can safely (and legally) profit from the commodity rally. There are lots of folks out there who are making money right now, but they’re not paying attention to the risks. Two years ago, I recommended shares of Southern Copper (PCU) to my Blue Chip Growth subscribers. Since then, the shares have soared over 185%. Let me put it this way: If the Dow had done that well, then it would be over 30,000 today. In Blue Chip Growth, I currently rate Southern Copper as a moderately aggressive buy up to $132 a share.

The Next Southern Copper

The stock on my Blue Chip Growth Buy List that has the most potential to be the NEXT Southern Copper is Gerdau (GGB). It’s a Brazilian-based company that many American’s aren’t yet familiar with.

Gerdau is Brazil’s largest producer of long-rolled steel. Last year, the company completed 12 acquisitions in North America, Europe and Latin America. Gerdau sells steel bars, billets and wire rods to autoparts makers, construction contractors and agricultural companies. In the past year, Gerdau has posted earnings growth of 35.2%. But what I really like about it is that the shares are currently going for only 11 times this year’s earnings. Wall Street still doesn’t know much about Gerdau as only a few analysts cover the stock.

If you’re going to buy Gerdau, I urge you to move quickly. Earnings season is coming up soon, and the stock is already rising. In less than three months, GGB has soared nearly 50% higher. In Blue Chip Growth, I rate Gerdau a strong buy for moderately aggressive investors up to $41 a share.

That’s all for now. I’ll have the next issue of “What’s Working on Wall Street Now,” next Thursday, April 17.

Sincerely,
WEBCUE_AUTHOR
Louis Navellier

P.S. You can sign up now for a one-year subscription to Blue Chip Growth for only $149. That’s more than half off our regular price! Your subscription includes 12 monthly issues of the newsletter and complete access to our Blue Chip Growth Buy List. There’s also my no-risk guarantee. If you’re not completely satisfied with our market-beating returns, then you can cancel your subscription at any time within the first six months and get a 100% refund. No questions asked. So please, sign up today.

P.P.S. If you haven’t had a chance, be sure to check out my Stock of the Week feature. This week’s stock is Mosiac (MOS), a 163% winner in Blue Chip Growth. As always, I would love  to hear your feedback under the discussion thread.
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Week of 05.07.08
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Annaly CapitalNLYBBUY
Brookfield AssBAMCHOLD
Gladstone CommGOODCHOLD
Kimco Realty CKIMCHOLD
Plum Creek TimPCLBBUY
St. Joe Co.JOECHOLD
Washington ReaWRECHOLD
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Christopher & CBKDSELL
Gymboree Corp.GYMBBBUY
J.C. Penney CoJCPDSELL
Macy's Inc.MDSELL
Nordstrom Inc.JWNCHOLD
Target Corp.TGTCHOLD
Tiffany & Co.TIFCHOLD
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