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A Comeback for the IPO Market

Written By Brian Hicks

Posted November 21, 2009

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.

We wrap up another week of infuriating schizophrenic market madness, one that seems to be hell-bent on draining the sanity of seasoned traders…

But even those traders know there’s always opportunity in crisis. And as promised, despite the malaise, we’ve found the bull markets that still exist. Here’s where they were this week.

  • Just weeks after Hyatt ran $3 on IPO, six new companies raced to go public this week — another sign that the IPO market is once again heating up. The last time U.S. markets saw this many deals in a week was December 2007, when nine companies went public in a week. Security company Fortinet (FTNT), for one, priced its IPO at $12.50 before spiking to $17 on Wednesday trading, helping it raise $156 million on day one. Expect more.

  • It pays to keep buying gold. Famed hedge fund guru John Paulson is — and he’s betting that the gold bull run is just beginning. In fact, he’s starting a new fund that’ll buy shares of gold miners and bullion-related investments, according to The Wall Street Journal. Expected to begin on January 1, 2010, Paulson has already announced he would "himself invest as much as $250 million in the new fund."

  • "Cash for Volts" was introduced by the Electrification Coalition, which calls for the U.S. to offer tax credits for buying electric "plug-in vehicles, as part of a $128 billion program to get seven million such cars on the road by 2018." The group also outlined a plan to put up to 100 million of these cars on the road by 2030, according to The Wall Street Journal. We expect lithium-related companies to skyrocket as a result.

  • And while this one’s a bit negative for the banks, it was still good for a laugh: Jim "Hold Bear Stearns" Cramer "going off" on Meredith Whitney after she said the banking sector is "not adequately capitalized today." Cramer thought she was wrong and called her an "an embarrassment" in his most recent piece. But if he spent more time doing research and less time criticizing, he’d realize she was right… especially as January 2010 and the FAS 167 roll around.

  • There’s a growing chorus of Whitney-doubters that doesn’t just include Cramer. Bank of America’s stock, for example, will double over the next two years, according to John Paulson’s Paulson & Company. They believe shares of BAC will hit $30 by December 2011. The stock is on the move, despite Whitney’s bearishness on the sector.

Until next week…

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. And in case you missed any of the week’s top-read articles from Wealth Daily and our sister publications, I’ve included them below.

The Outlook for Lithium Production: Lithium Battery Market to Hit $15 Billion in 2010
Wealth Daily revisits the lithium production boom and talks about another little-known element that could literally change the world.

Greenland’s Rare Earth Metals: The Company About to Exploit its Vast Mineral Resources
Wealth Daily reports on how, on January 1st, Denmark will relinquish its sovereign hold over Greenland’s mineral rights… and how for the first time in history, the country’s $273 billion Rare Earth resource will become private property.

Investing in Smart Meter Companies: Giving Up the Electricity Answering Machine
Energy & Capital Editor Nick Hodge discusses smart meter companies before turning to the next areas of interest for smart grid profits.

Best Silver Stocks to Buy: Where the Smart Money is Heading
In this article, WD discusses the one over-looked diamond in the rough that has reliably paid those in the know 852% every year for nine years straight. Why pass this opportunity up… especially as silver races higher?

The Green Millionaire Infomercial: The Truth Behind this "Green" Media Scam
Editor Sam Hopkins exposes the truth behind the "Green Millionaire" e-book promoted on the internet and television.

Oil Rises to Near $80 as Crude Oil Stockpile Falls: Here’s How to Profit
Wealth Daily reports: Joining a number of other forecasters raising oil price estimates, Bank of America-Merrill Lynch just raised its 2010 forecast for U.S. crude to $85 a barrel from $75, thanks to a stronger-than-expected economic recovery. We’ll tell you how you can profit… again and again.

The Mongolia Mining Boom: Energy, Precious Metals, and Mining Take Off
Wealth Daily Editor Christian DeHaemer reports from Mongolia as he networks with his contacts in commodity-rich Central Asia.

U.S. Dollar Cary Trade: When Bad News is Good News
Wealth Daily Editor Steve Christ explains the U.S. Dollar carry trade and the how markets can rise against a massive tide of bad news.