US ready for talks with Pakistan

NEW DELHI: Downplaying Pakistan’s refusal to disallow his visit, President Barack Obama’s Special Representative for AfPak Marc Grossman Friday said he will wait till the Pakistani parliament and government reassess and re-evaluate the relationship with the US.

Amidst political crisis in Pakistan, Grossman also said the US supports the civilian government and democracy there. “The Pakistan government has sought time to re-evaluate its relationship with the US. I respect that. I would be ready for talks when Pakistan is ready,” he told reporters after meeting Indian Foreign Secretary Ranjan Mathai here.

On whether Pakistan was discussed during his meeting with Mathai, Grossman said the Indian government can speak for itself on Pakistan. “What I would say is that of course we follow issues in Pakistan carefully.”

Grossman also said the US would continue to reinforce its conversation with Pakistan on the situation in Afghanistan and pitched the need for reviving trilateral dialogue. On the current confrontation in Pakistan, he said the US supports the civilian government and democracy in Pakistan. “This is a question for Pakistanis. This is an internal question for them. They have their own ways of going forward and I would not comment any further on internal developments,” he said.

MQM ready for elections at any time: Babar Ghauri

KARACHI: Federal Minister for Ports and Shipping Senator Babar Khan Ghauri on Friday said the Muttahida Qaumi Movement (MQM) is ready for the general elections even if these are held before time.

“If the elections are held before time or on schedule, the MQM is fully prepared to participate,” Babar Ghauri said while speaking at the inauguration ceremony of KPT’s desalination plant at Manora Island here.

He said MQM chief Altaf Hussain has directed the party’s elected representatives and workers to do their best in resolving the problems of the general public irrespective of caste, creed, colour or religion.

He said that real problems of the people are non-availability of water, electricity, unemployment and law and order situation. They are least interested in the memogate, etc, he remarked.

He said the country is very rich in natural resources and only one thing is needed which is that everybody should play his due role and do the right job in their capacity. “We will have to make the best use of our talented youth,” he emphasised.

Senator Babar Khan Ghauri urged the people to make wise and independent use of their votes and elect the right people who can work for their socio-economic uplift and for welfare of the country.

He said that MQM has also been struggling for bringing a real change in the country with elimination of feudal system. “Our party has been mobilising the people throughout the country with its slogan of cultural and political change. We will sweep the next elections under the slogan of “Badlo Pakistan,” he added. Later, in a media chat there, the minister said the MQM would be supporting and campaigning for the local government system in the country as it is the “soul of democracy.”

To a question, he said Ministry of Ports and Shipping has floated an open offer to the private sector to operate ferries from Karachi to Dubai. He said that his ministry has issued a license to a private company interested to transport pilgrims to Iraq from the Karachi Port.

2 Optionable Basic Material Stocks Ready To Breakout In 2012

With 2012 there are some stocks that looked poised to make a turn into bullish territory. One sector that offers some choice stocks to look at is the Basic Material sector. Here are two stocks that appear ready to break out in 2012 that an investor can research. Both stocks offer opportunity for long term investing or optionable strategies.

Dow Chemical (DOW)

The Dow Chemical Company manufactures and supplies products used as raw materials in the production of customer products and services worldwide. The company offers materials for chemical mechanical planarization pads and slurries, chemical processing aids and intermediates, electronic displays, food and pharmaceutical processing and ingredients, home and personal care ingredients, hygiene and infection control, photolithography materials, printed circuit board materials, process and materials preservation, and semiconductor packaging. It also provides sticking and bonding solutions; insulation, housewrap, sealant, and adhesive products and systems; construction chemical solutions and building-integrated photovoltaics; and as well as supplies various coatings.

As of this morning, DOW is trading at 28.91. With an Ascending triangle formation in place we have a good opportunity to invest in DOW either the stock or an option position. Analysts have targeted DOW in the median range of 33.50 and a high target of 40. This gives it a good opportunity to move. At the end of a bearish pattern, ascending triangles are considered strong reversal patterns.

One of the ventures DOW has put together to enhance its portfolio of lithium-ion battery components is a joint venture with Ube Industries. Together they will form "Advanced Electrolyte Technologies" that will manufacture electrolytes for lithium-ion battery cell manufacturers. This is expected to help DOW Energy Materials, a division of Dow Chemicals. This division was established in 2010 to develop what they call next-generation battery materials.

Investing in DOW

As DOW is set to grow in 2012, it looks like it is ready to break out on the bullish side and reverse direction. Here are two options: First, invest in the stock now solely. Second, invest in a long term option. A debit spread would be a good strategy at the median price range. Buy a June 2012 call (presently at $1.14) and sell a June 34 (presently at $0.87) for a debit of $.027

Georgia Gulf Corp (GGC)

Georgia Gulf Corporation manufactures and markets chlorovinyl and aromatics chemicals, and vinyl-based building and home improvement products in the United States and internationally. It operates through three segments: Chlorovinyls, Building Products, and Aromatics. The Chlorovinyls segment offers an integrated chain of electrovinyl products, which includes chlorine, caustic soda, ethylene dichloride, vinyl chloride monomer, vinyl resins, vinyl compounds, compound additives, and plasticizers. The Building products segment manufactures window and door profiles, including frames, sashes, trims, and other components; mouldings, sidings, and pipes and pipe fittings. The Aromatics segment offers cumene, and the co-products, phenol and acetone.

Presently trading at 19.16 GGC is also set for a breakout with this Ascending triangle reversal pattern in place. Analysts have its median target range set for 26.50 so it has plenty of room to move for a profit for the savvy investor.

In a year plagued by near global recession, GGC had an operating income 57% higher in 2011 than in 2010. This is phenomenal news, but they were not immune to the bad economy. With the construction industry lagging, so did its exports into the end of 2011. Its Aromatics segment also had to lower its inventory because of falling benzene and propylene prices this year. But overall, its performance in 2011 increase almost 20% over 2010 and with 2012 around the corner, it is ready to breakout.

Investing in GGC

There are two strategies that we can take with GGC. If we invest in the stock, we have a nice profit level to ride for it just to reach the median forecast. Another strategy using options would be a debit spread using the median price as a reference point. Going into May, buy a May 2012 call (presently at $2.00) then sell a may 25 (presently at $1.35) for a debit of $0.65.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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