Before I get into today's issue let me just apologise...
It seems that no matter how technologically advanced we're getting these days, nothing's foolproof yet.
If you didn't receive Tuesday and Wednesday's Penny Sleuth, don't worry, it's not just you. We didn't either.
But the blip in the system is ironed out now and our unique service will go forth as normal.
You have my word.
So, what's been happening in the markets?
The greenback has hit a 14-year low of $1.98 against the pound...
It marks the US currency's lowest point in 2 years.
It may spell disaster for some... for others it presents another opportunity.
As Bill Bonner noted in Tuesday's Daily Reckoning: " For an American, London has gotten even more expensive. But for a Londoner, Florida has become an even greater bargain."
The decline knocked the FTSE 100 off its peg, but it certainly hasn’t deterred investors from taking advantage in other ways.
How to profit from the tumbling dollar...
Spread betting firms are having a field day.
One firm reports a 50% rise in two weeks where clients are betting on ‘cable’ i.e. the exchange rate between the dollar and the pound.
One investor made a magnificent £150,000 in a little over a week!
But don't just pile into spread betting because of this news.... it's a very risky trading tool. If you're contemplating spread betting, please make sure you are aware of the risks first.
Some investors saw a great opportunity to cash in on the US property market.
Florida estate agents reported a significant jump in interest from British buyers.
And no wonder...
A property worth $250,000 would have cost £126,000 on Friday against £145,000 at the start of the year.
The other way to profit from a tumbling dollar is of course investing in gold.
Being denominated in dollars, British buyers are obviously getting more bullion for their pound.
As a result they've been piling in, consequently pushing the price over $600 yet again. Right now an ounce of the yellow metal will set you back $647.
But it's not ALL good news...
You may be aware that many of the blue chips pay their dividends in dollars, and also have a chunk of their sales in the US.
If you're an investor receiving dividends converted from dollars you may well be hit in the pocket.
But what about this...?
One way to profit as the herd has their backs turned
Being the Sleuth that I am I always like to spot an opportunity when the rest of the investment herd are turned the other way.
So here's my idea on how to make a quick buck...
You see, I'm not so much concerned with the pursuit of the falling greenback...
I have my eye on making some cash from an American small cap company. Get this... it's listed in good ol’ Blighty and is currently seeking a listing on NASDAQ.
The slumping dollar certainly doesn’t seem to be holding these guys back. This little gem is up 4.08% on the day.
Potential to make some seriously big waves
The company's involved in wave power. It generates electricity by harnessing the renewable energy of ocean waves. Luckily the energy is predictable and can be produced on a consistent basis.
Their sites are worldwide, and all near major populated areas. They believe they are the leading wave energy company.
They currently have two products... two different types of buoys. The rising and falling motion of the waves move the two buoys creating mechanical energy. And by using their unique (and patented!) technology, this company is able to convert this energy into electricity.
At first I was a little sceptical. I mean, what would happen to this technology if a storm hit?
After a little digging, it seems they’ve got that one covered...
When the waves are larger than 13 feet, the control system of the buoy automatically locks down and the electricity generation is suspended. The system automatically unlocks as soon as the waves return to the system's normal operating range.
The company already has significant relationships with governments and commercial entities and seem well placed for the future.
There's still a lot of research to do before I'd be fully convinced and prepared to part with my money in this share, but it looks very promising.
When I find out more, you can be sure you'll be the first to know.
Until tomorrow,
Melissa Carroll
for The Penny Sleuth
P.S. If you want to follow the tales of a small company investor, and uncover the hidden gems of the stock market, then sign up for the Penny Sleuth e-letter. It won’t cost you a penny…
