{"id":9362,"date":"2014-01-25T13:05:48","date_gmt":"2014-01-25T17:05:48","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=9362"},"modified":"2014-01-25T13:05:48","modified_gmt":"2014-01-25T17:05:48","slug":"highlight-of-the-week-of-january-20-2014","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/highlight-of-the-week-of-january-20-2014\/","title":{"rendered":"Highlight of the week of January 20, 2014"},"content":{"rendered":"<p><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/stock-market-down1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-9369\" alt=\"stock-market-down1\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/stock-market-down1.jpg\" width=\"240\" height=\"218\" \/><\/a><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Gold-up.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9370 alignright\" alt=\"Gold up\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Gold-up.jpeg\" width=\"240\" height=\"205\" \/><\/a><\/p>\n<p><strong><\/strong>Dear\u00a0<strong>PGM Capital\u00a0<\/strong>Blog readers,<br \/>\nIn this weekend&#8217;s blog edition, we want to discuss some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of January 20, 2014.<\/p>\n<ul>\n<li>Unilever reported better-than-expected full year 2013 results, on Tuesday, January 21st 2011.<\/li>\n<li>Venezuelan Bolivar in free fall<\/li>\n<li>Global Stock Market Rout, Gold rallies.<\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><strong>U<\/strong><strong>NILEVER REPORTED BETTER THAN EXPECTED FULL YEAR 2013 EARNINGS:<br \/>\n<\/strong><\/span>Unilever (AEX:UNA.AS or NYSE: UN), the Anglo-Dutch\u00a0Consumer goods maker, reported on Tuesday January 21st, 2014, better than expected earnings.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9396 aligncenter\" alt=\"Unilever Products\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo.png\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo-150x150.png 150w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo-73x73.png 73w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo-174x174.png 174w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-Logo-250x250.png 250w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>Full year 2013 highlights:<\/strong><\/p>\n<ul>\n<li>Turnover down (3.0)% to \u20ac49.8 billion with foreign exchange (5.9)% and net acquisitions &amp; disposals (1.1)%<\/li>\n<li>Underlying sales growth 4.3% with volume 2.5% and price 1.8%.<\/li>\n<li>Emerging markets underlying sales growth 8.7% with volume 4.8%.<\/li>\n<li>Core operating margin up 40bps at 14.1% driven by gross margin up 110bps.<\/li>\n<li>Advertising and promotions up 50bps an increase of around \u20ac460 million at constant currency.<\/li>\n<li>Free cash flow of \u20ac3.9 billion; core earnings per share up 3% to \u20ac1.58.<\/li>\n<li>The Boards have declared a quarterly interim dividend for Q4 2013, payable on March 12, 2014, with a record date of February 7, 2014 as follows:\n<ul>\n<li>\u20ac 0.2690 per Unilever N.V. ordinary share.<\/li>\n<li>\u00a3 0.2222\u00a0per Unilever PLC ordinary share<\/li>\n<li>US$ 0.3654\u00a0per Unilever N.V. New York share<\/li>\n<li>US$ 0.3654\u00a0per Unilever PLC American Depositary Receipt<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a title=\"Unilever -2013 FULL YEAR AND FOURTH QUARTER RESULTS-\" href=\"http:\/\/www.unilever.com\/images\/ir_Q4-2013-full-announcement_tcm13-380368.pdf\" target=\"_blank\">Source:<\/a><\/p>\n<p>Based on the above mentioned Q4-2013 dividend declaration and Unilever N.V. ordinary share\u00a0closing price of Friday, January 24th 2014, in Amsterdam of\u00a0\u20ac 28.98 a share, the company&#8217;s stock has a dividend yield of 3.71 percent.<\/p>\n<p><strong>About Unilever:<\/strong><br \/>\nUnilever N.V. which\u00a0was founded in 1927 and is based in Rotterdam,\u00a0operates through four segments: Personal Care, Foods, Refreshment, and Home Care.<\/p>\n<p>The Personal Care segment offers skincare and haircare products, deodorants, and oral care products. The Foods segment provides soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines, and spreads. The Refreshment segment offers ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples. The Home Care segment provides home care products, such as laundry tablets, powders and liquids, soap bars, and various cleaning products. Unilever N.V. offers its products under various brand names, such as Axe, Becel, Flora, Ben &amp; Jerry&#8217;s, Bertolli, Blue Band, Rama, Brylcreem, Cif, Clear, Comfort, Domestos, Dove, Fissan, Heartbrand, Hellmann&#8217;s, Amora, Knorr, Lifebuoy, Lipton, Lux, Omo, Pond&#8217;s, Radox, Rexona, Signal, Closeup, Simple, St Ives, Sunlight, Sunsilk, Surf, TRESemm\u00e9, Timotei, VO5, and Vaseline.<\/p>\n<p>As can be seen from below all time chart, the Unilever NV shares have appreciated from May 1985 up to Friday January 24th 2014,\u00a0with approx. 2,400 percent.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Unilever-all-time-chart.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9365 aligncenter\" alt=\"Unilever all time chart\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/Unilever-all-time-chart.png\" width=\"513\" height=\"226\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-all-time-chart.png 777w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-all-time-chart-300x132.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/Unilever-all-time-chart-768x337.png 768w\" sizes=\"auto, (max-width: 513px) 100vw, 513px\" \/><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>VENEZUELAN BOLIVAR IN FREE FALL:<br \/>\n<\/strong><\/span>Less than a year ago Venezuela shocked the world by devaluing its currency, the Bolivar, from 4.30 to the USD to 6.30 as can be seen from below chart.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/20130208_VEF.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9368 aligncenter\" title=\"Exchange rate Venezuelan Bolivar versus US-Dollars\" alt=\"\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/20130208_VEF.jpg\" width=\"503\" height=\"270\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/20130208_VEF.jpg 719w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/20130208_VEF-300x161.jpg 300w\" sizes=\"auto, (max-width: 503px) 100vw, 503px\" \/><\/a><\/p>\n<p>On Wednesday, January 22nd 2014, Venezuelan\u00a0Oil Minister Rafael Ramirez declared that the country was\u00a0revamping its 11-year-old currency controls with the creation of a dual-exchange system that authorities vowed would limit rampant embezzlement of oil dollars, but critics pilloried it as a disguised devaluation.<\/p>\n<p>The exchange rate for essential goods such as food and medicine will remain at the regular 6.3 bolivars per dollar. However, Venezuelans traveling or buying airline tickets will be faced with an extremely unfavourable rate of 11.3 bolivars.<\/p>\n<p>The move aims to crack down on the\u00a0black market\u00a0rate which now stands at about 10 times higher than the preferred rate, according to Oil Minister Rafael Ramirez. Billions of dollar in savings could be used for purchasing basic needs.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/venezuela-currency.si_.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9391 aligncenter\" alt=\"Oll Minister Ramirez and Bolivar devaluation\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/venezuela-currency.si_.jpg\" width=\"483\" height=\"272\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/venezuela-currency.si_.jpg 690w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/venezuela-currency.si_-300x169.jpg 300w\" sizes=\"auto, (max-width: 483px) 100vw, 483px\" \/><\/a><\/p>\n<p>Although this measure \u00a0looks like a devaluation, quacks like a devaluation, and hurts like a devaluation, because it is a devaluation, Oil Minister\u00a0Ramirez, however, insisted it was not a devaluation of the bolivar, but a measure to avoid a crisis, and boost the economy.<\/p>\n<p><span style=\"color: #0000ff;\"><strong>GLOBAL STOCK MARKET ROUT AND PRECIOUS METALS RALLY:<\/strong><\/span><br \/>\nOn Friday, January 24th 2014, U.S.\u00a0stocks\u00a0fell, pushing the\u00a0Dow Jones Industrial Average (INDU)\u00a0toward the biggest weekly decline since May 2012, as equities slumped worldwide amid a selloff in emerging-market currencies.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/iyzrZAyFePyA.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9373 aligncenter\" alt=\"Markets Down\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/iyzrZAyFePyA.jpg\" width=\"502\" height=\"334\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/iyzrZAyFePyA.jpg 627w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/iyzrZAyFePyA-300x200.jpg 300w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/a><\/p>\n<p>The\u00a0Standard &amp; Poor\u2019s 500 Index (SPX)\u00a0retreated 38.17 points or 2.09 percent to close the week at 1,709.29. The benchmark index has declined 2.89 percent this week to the lowest since Dec. 17. The Dow slid 318.24 points, or 1.96 percent, to close the week at 15,879.11.<\/p>\n<p>The 30-stock gauge is down 3.25 percent this week, as can be seen from below chart.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/DOW30-5days.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9378 aligncenter\" alt=\"DOW30 5days\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/DOW30-5days.png\" width=\"500\" height=\"217\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/DOW30-5days.png 793w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/DOW30-5days-300x131.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/DOW30-5days-768x334.png 768w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p><span style=\"font-size: 14px; line-height: 1.5em;\">Gold hit its highest in two months on Friday as the dollar fell, the yellow metal soared with USD 4.40 an ounce 0r 0.35 percent to close the week at USD 1,269.00 a Troy Ounce as can be seen from below chart.<\/span><\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/gold_3d_b_o_USD-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9383 aligncenter\" alt=\"\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/gold_3d_b_o_USD-1.png\" width=\"567\" height=\"360\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/gold_3d_b_o_USD-1.png 630w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/gold_3d_b_o_USD-1-300x190.png 300w\" sizes=\"auto, (max-width: 567px) 100vw, 567px\" \/><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>PGM CAPITAL COMMENTS:<br \/>\n<\/strong><\/span><strong>Unilever:<\/strong><\/p>\n<p>We weren&#8217;t surprised by earnings report of Unilever; since August of 2013 we have a\u00a0<strong>BUY<\/strong>\u00a0to\u00a0<strong>STRONG BUY<\/strong>\u00a0rating on the stock and are accumulating the stock in our own portfolio. We believe that based on the company&#8217;s fundamentals it will continu to outperform its peers.<\/p>\n<p><strong>Venezuela:<br \/>\n<\/strong>We believe that the move by \u00a0Venezuela to introduce an dual currency exchange rate will result to be largely meaningless and purely optical, because there is still an 85% differential between the official rate, and what one can get for a dollar on the black market.<\/p>\n<p>Below chart shows that currently on the black market people have to pay\u00a078.38 Bolivars for 1 US-Dollar.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/VZ-dollar-parallel.gif\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9381 aligncenter\" alt=\"VZ dollar parallel\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/VZ-dollar-parallel.gif\" width=\"462\" height=\"231\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Stock Market Rout and Gold Rally:<br \/>\n<\/strong>Since early December of last year we have been warning our readers based on fundamental research that all markets in the west are extremely overvalued and \u00a0that a stockmarket crash is imminent.<\/p>\n<p>We have also advised our clients to accumulate Gold, because the yellow metal is extremely oversold and undervalued.<\/p>\n<p>The questions most investors will be asking themselves are:<\/p>\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>How sharp will the correction in the markets be and how much upside potential does Gold have?<\/strong><\/span>\n<ul>\n<li><strong>PGM Reply:<\/strong><br \/>\nOur fundamental analysis combined with history is telling us, that we can expect a downward 20 percent correction in the USA markets and that Gold has an upside potential of approx. 50 percent from its current level.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Regarding Gold-miners stock we are even more bullish, as you can see from below <a title=\"Relative Strength Index - RSI\" href=\"http:\/\/www.investopedia.com\/terms\/r\/rsi.asp\" target=\"_blank\">RSI Technical Chart<\/a> for the Gold mining stocks. Since the beginning of 2014, there has been very much positive activity (green bars) in the gold mines. Moreover, the RSI indicator shows a positive divergence, which indicates a new upward trend with the next resistance at a Goldmine to Gold ratio of 0.3.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/RSI-Gold-Miners.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9392 aligncenter\" alt=\"RSI Gold Miners\" src=\"http:\/\/www.pgm-blog.com\/wp-content\/uploads\/2014\/01\/RSI-Gold-Miners.png\" width=\"434\" height=\"355\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/RSI-Gold-Miners.png 620w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2014\/01\/RSI-Gold-Miners-300x245.png 300w\" sizes=\"auto, (max-width: 434px) 100vw, 434px\" \/><\/a><\/p>\n<p>Last but not least we herewith want to stress once more the two following applicable quotes that describe the current market situation the best:<\/p>\n<blockquote><p>&#8220;<strong><span style=\"color: #0000ff;\">THE MARKET CAN REMAIN LONGER IRRATIONAL THAN YOU CAN REMAIN SOLVENT<\/span>!<\/strong>&#8221;<br \/>\n<em>John Maynard Keynes<\/em><\/p>\n<p>&#8220;<strong><span style=\"color: #0000ff;\">BE GREEDY WHEN OTHERS ARE FEARFUL AND FEARFUL WHEN OTHERS ARE GREEDY!<\/span>&#8221;<br \/>\n<\/strong><em>Warren Buffett<\/em><\/p><\/blockquote>\n<p>Until Next Time,<\/p>\n<p>Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear\u00a0PGM Capital\u00a0Blog readers, In this weekend&#8217;s blog edition, we want to discuss some of the most important events that happened in the global capital markets, the world economy and the world of money in the week of January 20, 2014. Unilever reported better-than-expected full year 2013 results, on Tuesday, January 21st 2011. Venezuelan Bolivar in<a href=\"https:\/\/www.pgmcapital.com\/nl\/highlight-of-the-week-of-january-20-2014\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,25,9,24,10,11,19,12,26,15,16,22,1,17,18],"tags":[],"class_list":["post-9362","post","type-post","status-publish","format-standard","hentry","category-commodities","category-dividend-declaration","category-emerging-markets","category-energy","category-eric-panneflek","category-euro","category-financial-news","category-inflation","category-logistic","category-pgm-capital","category-precious-metal","category-the-week-in-review","category-uncategorized","category-us-dollar","category-world-economic-outlook"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/9362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=9362"}],"version-history":[{"count":0,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/9362\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=9362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=9362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=9362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}