Jack Adamo, Insiders PLUS newsletter - Fording Canadian Coal Trust (FDG) - Teva Pharmaceutical, Ltd. (TEVA) - Smithfield Foods (SFD)

Jack Adamo, editor of the Insiders PLUS newsletter, highlights a company that he says is holding its own better than any pure play coal stock, a name from the drug sector and a possible merger between two pork producers. Read this featured expert's thoughts and benefit from his expertise. PORTFOLIO UPDATES from September 23 Fording Canadian Coal Trust (FDG) this week declared a quarterly dividend of 80¢ Canadian, which is about 72¢ U.S. This represents an annualized yield of 8.4% on Jack Adamo and his team's original buy price. As Adamo said when he recommended this company, he expected the share price to fluctuate, but the yield, even in bad times, would stay above that obtainable from bonds, and in good times, it should beat almost any return you can get legally. The stock remains true to expectations. Although it is down 12.5% for Adamo and his team, it is holding its own better than any pure play coal stock. This is to be expected with high dividend-paying stocks. There's less fear from selling because you know you're getting a steady return on your investment; you're not relying on the vagaries of the market. As coal prices recover, Fording will make back its current deficit and then some. The dividends will be all gravy. Teva Pharmaceutical, Ltd. (TEVA) took a 5% hit this week on bad news for the generic drug sector. Wal-Mart, in a battle to forestall political attacks on it, has launched a campaign to win America's hearts with super-cheap prices on certain generic drugs. With Wal-Mart's buying power, it could certainly impact industry pricing negatively. Nonetheless, although this is a substantive issue, it is no cause for panic. Teva is the best operator in its industry. It may actually gain by this move, if it becomes a major provider to Wal-Mart. It certainly has the capacity and efficiency to be. That's up in the air, but Adamo would expect this and other recent issues to have a relatively small impact on the company. Over the long-term, it means the difference between Teva doing well, and very well. Smithfield Foods (SFD) also had a bad week, when it announced it was acquiring fellow pork producer, Premium Brands. Frankly, since Smithfield is number one in size and Premium is number two, Adamo will be surprised if this transaction gets approval here and in the EU without major divestitures. But, although Adamo is not usually a fan of growth by acquisition, Smithfield has an excellent track record in this regard; so, he'll be happy whether the merger is approved or not. This article highlights the commentary of Jack Adamo for the Zacks.com audience. Jack Adamo provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Insiders PLUS" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Insiders PLUS" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home