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Fear and Greed Issue #693



Wednesday Nov 16, 2005

Fear and Greed Issue #693

By Andrew Snyder

***Volume Spike Alert

A tiny stock has landed an exclusive patent that has Comcast, Verizon and AOL shaking in their boots. Our reliable (and 100% legal) "source" reveals that the stock is ready to soar to $18.50 per share. Get in now and you could grab a 358% gain by December 21.

Click this secure link for the Free Report.  

http://www.agora-inc.com/reports/RTD/WRTDFA12/

 

Hot off the wire… 

The web is on fire. With all of the talk coming out of the Internet industry lately, it is obviously s in for some major, profitable changes. The web is taking control of many old-school media outlets and consolidating them into a giant, one-size-fits-all consumer trough. 

While this makes our lives more efficient and full of entertainment, it is also making advertisers very happy. No longer do they have to scour various outlets to find deep-pocketed customers. They are all in one easy-to-reach place, the web. 

A recent report from The Wall Street Journal shows that many large websites are actually running out of advertising space. Because of that, they are selling out of spots well in advance, and the ones they do have are going for a premium. 

During the first half of this year, Internet advertising rose by over 25% to weigh in at US$5.8 billion. Currently, web-based advertising comprises less than 10% of the country’s advertising revenues. But many analysts expect that to change in a hurry. 

The increased demand is causing online advertising prices to soar. Four years ago, a 24-hour spot on MSN’s homepage cost somewhere between US$25,000 and US$50,000. Today, that same spot can fetch up to a million dollars. 

What does this mean for the average investor? A lot. It means that technology stocks are back in the spotlight. This time the list of winners is much smaller and much more refined. 

Because the phrase “tech stock” still sends shivers down Wall Street’s spine, many of these companies are grossly undervalued. Once the Street realizes the incredible income potential web-based advertising offers, the Internet industry will take off - again. 

Google certainly isn’t the only stock with US$400 potential. Fortunately, there are plenty of major players still trading for less than US$10. 

Crunching the numbers… 

As expected, the latest Consumer Price Index (CPI) is the most influential nugget of Econo-Data floating around today. 

According to the Labor Department, the price consumers paid for everyday goods rose by 0.2% in October. Most analysts were forecasting no rise in the index. 

The latest reading looks fairly tame when compared to September’s huge reading of 1.2%, which was the highest in over two decades. 

Fortunately, falling gas prices are keeping a lid on rampant inflation. After a 12% rise in September, gas prices fell by over 4% last month. Since then, they’ve dropped even further. 

Making money…

The big winner in the Fear and Greed portfolio is America First Apartment Investors (APRO:NASDAQ). It is up by US$0.22 today. As I write, shares are selling for US$2.80. That gives us a gain of nearly 14% since we entered the play. 

While the gain from APRO is good news, it’s not the stock that I have my eye on today. I’ve been watching Avanir Pharmaceuticals (AVN:NASDAQ) like a hawk. 

While it did not get above the US$3.00 mark today, I am still not ruling out a rally tomorrow. Currently, shares are resting on the US$2.80 mark. If they don’t find a reason to drop further, we’ll be seeing a rally in no time. 

Expect your issue a bit early tomorrow. If all goes as planned, I will have a new play for you before noon. Stay tuned. 

Enjoy your Wednesday. 

 

Andrew Snyder
Assistant Editor,
BreakAway Investor


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