There are few things in the stock market as exciting as a mergers and acquisitions (M&A) announcement, which refers in this case to a consolidation of publicly-held companies.  Shares can soar or dive in price depending on how the market views the news. Investors try to gauge how effectively the combined company will be able to address its market, and whether the cost of the acquisition was worth it.  There are always multiple M&A opportunities pending, but at the moment there are only a few that everyday investors need to be keeping an eye on. Today’s Most Important M&A Deals … Read More

There are few things in the stock market as exciting as a mergers and acquisitions (M&A) announcement, which refers in this case to a consolidation of publicly-held companies.  Shares can soar or dive in price depending on how the market views the news. Investors try to gauge how effectively the combined company will be able to address its market, and whether the cost of the acquisition was worth it.  There are always multiple M&A opportunities pending, but at the moment there are only a few that everyday investors need to be keeping an eye on. Today’s Most Important M&A Deals  1. Bass Pro Shops’ Acquisition Of Cabela’s (NYSE: CAB) As an avid fisherman, I know both these firms and was quite surprised to learn of the buy-out. #-ad_banner-#The two heavyweights in the outdoor sporting goods market have decided to merge. Cabela’s shareholders recently voted to sell itself to privately held Bass Pro Shops for $5.5 billion or $65.50 per share.  The deal was approved by the FTC in early July and includes Cabela’s stores, website, and catalog business. There remains a hurdle to the deal closing. Cabela’s banking unit is agreed to be sold to Synovus Financial (NYSE: SNV)… Read More

What a fantastic year in the U.S. stock market. Bullish investors are jumping with joy as the bear brigade has gone into hibernation. The Federal Reserve, showing signs of slowing down its interest rate hike program, has removed a significant headwind to continued advances.  Despite the naysayers trying to tell you otherwise, I think the market will continue surging this year and the top performers will keep pushing higher. Even better, there’s a proven strategy for capturing profits from soaring stocks. What Is Trend Following? Trend Following is a simple yet highly effective method of earning huge returns in… Read More

What a fantastic year in the U.S. stock market. Bullish investors are jumping with joy as the bear brigade has gone into hibernation. The Federal Reserve, showing signs of slowing down its interest rate hike program, has removed a significant headwind to continued advances.  Despite the naysayers trying to tell you otherwise, I think the market will continue surging this year and the top performers will keep pushing higher. Even better, there’s a proven strategy for capturing profits from soaring stocks. What Is Trend Following? Trend Following is a simple yet highly effective method of earning huge returns in the stock market.  At its most elementary, trend following is buying new highs and technical breakouts with the expectation that the upside momentum will continue.  #-ad_banner-#The idea behind trend following is a lot like Newton’s first law of motion. That is, an object in motion tends to remain in motion unless acted upon by an outside force.  The object in this case is price, and the higher it goes, the more investment it attracts, reinforcing the upside momentum.  Buying breakouts and new highs are not the only way to trend follow. Many trend followers believe in waiting for a short… Read More

German automaker Volkswagen briefly rocketed to become the most valuable company on earth in a single day. Another stock soared from around $9 per share to over $170 per share in under a year. These crazy bullish moves wiped out a wide swath of investors; while a savvy minority made fortunes during the same timeframe.  Shares, in both examples, were heavily shorted as many investors were betting on the stock to continue lower. However, bullish news took the shorts by surprise, resulting in the infamous short squeeze.  What Is A Short Squeeze? A short squeeze occurs when a stock’s… Read More

German automaker Volkswagen briefly rocketed to become the most valuable company on earth in a single day. Another stock soared from around $9 per share to over $170 per share in under a year. These crazy bullish moves wiped out a wide swath of investors; while a savvy minority made fortunes during the same timeframe.  Shares, in both examples, were heavily shorted as many investors were betting on the stock to continue lower. However, bullish news took the shorts by surprise, resulting in the infamous short squeeze.  What Is A Short Squeeze? A short squeeze occurs when a stock’s outstanding shares are comprised of a significant percentage of short positions. When an unexpected bullish change occurs, the shorts hurry to cover their positions by purchasing back shares.  #-ad_banner-#The resulting buying pressure rapidly pushes the share price higher while trapping the shorts. The climbing price forces greater numbers of short positions to cover, creating a vicious cycle of massive upside momentum. This punishes short sellers while rewarding those few lucky or smart enough to have taken on long positions.  How To Locate Possible Short Squeezes The way to find potential short squeezes is to scan and rank stocks by… Read More

1000%, 2000%, 3000%, and higher returns are common in the emerging cryptocurrency market. Just last week, a trader posted screen shots showing him turning a $380 speculative bet into over $1 million in less than an hour. While this was a one-in-a-billion stroke of luck, other truly massive longer-term returns are easier to obtain and are making many investors wealthy.  And now there is a way for stock market investors like you to participate in this crazy market without leaving the comfort of your existing broker.  Once thought of as the province of hackers, cyber-pirates, and radical libertarians, cybercurrencies are… Read More

1000%, 2000%, 3000%, and higher returns are common in the emerging cryptocurrency market. Just last week, a trader posted screen shots showing him turning a $380 speculative bet into over $1 million in less than an hour. While this was a one-in-a-billion stroke of luck, other truly massive longer-term returns are easier to obtain and are making many investors wealthy.  And now there is a way for stock market investors like you to participate in this crazy market without leaving the comfort of your existing broker.  Once thought of as the province of hackers, cyber-pirates, and radical libertarians, cybercurrencies are quickly moving into the mainstream. Names like Bitcoin, Etherium, and Ripple are being bandied about, not only on the internet and financial press, but by major banks and financial institutions as they explore ways of utilizing these borderless forms of money. What Is Cryptocurrency? Cryptocurrency is a catchall term that refers to digital or virtual means of exchanging or storing money. Cryptocurrency functions under a decentralized model, meaning that it does not require a central bank or government entity to create or regulate it.  Instead, it is self-governing via a system known as the blockchain, which is a public… Read More

There are many reasons to love the Chinese e-commerce darling Alibaba Group (NYSE: BABA). The stock has captured the imagination of investors around the world from its IPO in September 2014 to today. But the question is, does this behemoth still make sense as an investment? I, for one, firmly believe that the company has tremendous upside potential. Here are seven reasons to love BABA right now. 1. The Chinese Economy A barrage of negative press has caused many investors to sour on the Chinese economy. Talk of slowdowns and the possible implosion of the Chinese economy have dominated… Read More

There are many reasons to love the Chinese e-commerce darling Alibaba Group (NYSE: BABA). The stock has captured the imagination of investors around the world from its IPO in September 2014 to today. But the question is, does this behemoth still make sense as an investment? I, for one, firmly believe that the company has tremendous upside potential. Here are seven reasons to love BABA right now. 1. The Chinese Economy A barrage of negative press has caused many investors to sour on the Chinese economy. Talk of slowdowns and the possible implosion of the Chinese economy have dominated the discussion on Chinese investment in recent years. While it’s true that the massive economic expansion has settled down, the growth story remains as exciting as ever. Pay no attention to the naysayers! The Chinese economy began its expansion in 1978 after the government shifted to a market-based economy from a struggling, centrally-planned one. Since this time, China has averaged GDP increases of around 10% annually. That growth cements China’s claim to the fastest sustained development of any major economy ever. Since the 2008 financial crisis, the nation has quickly becomes the largest contributor to global fiscal growth. Despite its… Read More

“Three dollars for a cup of coffee, I would short that stock now!” said the grizzled old stock trader at the 1992 IPO of the coffee chain.  Believing that high-priced coffee and a company that encourages customers to hang out in a relaxed atmosphere was nothing but a fad, the market veteran, like many investors of his time, saw only a bleak future for Starbucks (Nasdaq: SBUX).   As we all know, the shorts were crushed as SBUX exceeded all expectations. A $100,000 investment at the IPO price of $17.00 per share would have grown to over $10… Read More

“Three dollars for a cup of coffee, I would short that stock now!” said the grizzled old stock trader at the 1992 IPO of the coffee chain.  Believing that high-priced coffee and a company that encourages customers to hang out in a relaxed atmosphere was nothing but a fad, the market veteran, like many investors of his time, saw only a bleak future for Starbucks (Nasdaq: SBUX).   As we all know, the shorts were crushed as SBUX exceeded all expectations. A $100,000 investment at the IPO price of $17.00 per share would have grown to over $10 million when splits and dividends are taken into consideration. That’s an amazing return no matter how you look at it.  But the question on every investor’s mind is what does the future hold for the stock? Has the company reached its potential or will the outsized performance continue long into the future?  The World’s Coffee Shop As I sit here in Starbucks writing this article, I can’t help but marvel at the steady stream of customers that has fueled an incredible growth story.  #-ad_banner-#The coffee chain has become a behemoth, with 26,000 stores spread across 75 countries that employ… Read More

What an ideal time to be in the market! Long-term stock investors are reaping the benefits of a massive, eight-year-long bull market. Driven by ultra-low interest rates, fiscal stimulus, economic growth, and a pro-business White House, equities just keep pushing higher.  No one knows how long these glory days will last. Investors are scrambling to find the safest way to invest right amid mounting uncertainty. Despite the bullish environment, there are a wide variety of bearish pressures that could quickly quash the bullish advance.  Anything from terrorism fears, geopolitical worries, or overly aggressive Federal Reserve actions could bring the bull… Read More

What an ideal time to be in the market! Long-term stock investors are reaping the benefits of a massive, eight-year-long bull market. Driven by ultra-low interest rates, fiscal stimulus, economic growth, and a pro-business White House, equities just keep pushing higher.  No one knows how long these glory days will last. Investors are scrambling to find the safest way to invest right amid mounting uncertainty. Despite the bullish environment, there are a wide variety of bearish pressures that could quickly quash the bullish advance.  Anything from terrorism fears, geopolitical worries, or overly aggressive Federal Reserve actions could bring the bull market to a screeching halt. Savvy investors are aggressively seeking to diversify and protect their gains. Protecting gains must be on the forefront of everyone’s mind as the market keeps climbing the wall of worry.  The Safest Places To Invest For The Days Ahead 1. Cash Most people do not consider money itself as an investment. However, cash is the one must-have for any and all investment strategies. As crazy as it might sound, you should consider selling highly profitable stock investments to build your cash reserves.  Nearly every stock brokerage offers the ability to hold cash in a… Read More

2017 will go down in history as a very unusual year for the stock market. Traditional rules appear to have been discarded, with the major indexes pushing higher in the face of macro-bearish pressure. The search for reliable investments that can carry a portfolio through the rest of 2017 has many investors scratching their heads. Time-tested market wisdom has been tossed out the window as the world changes at breakneck speed.  Finding the best stocks to buy and hold for the rest of 2017 requires identifying the major themes of the year. Then, you’ll need to locate stocks that are… Read More

2017 will go down in history as a very unusual year for the stock market. Traditional rules appear to have been discarded, with the major indexes pushing higher in the face of macro-bearish pressure. The search for reliable investments that can carry a portfolio through the rest of 2017 has many investors scratching their heads. Time-tested market wisdom has been tossed out the window as the world changes at breakneck speed.  Finding the best stocks to buy and hold for the rest of 2017 requires identifying the major themes of the year. Then, you’ll need to locate stocks that are most likely to benefit from these themes. Obviously, there will be multiple stocks that will profit from each theme, helping you to  diversify your portfolio while still hitching your boat to these all-important market movers. The 3 Leading Themes Of 2017 1. Donald Trump There is very little middle ground when it comes to our new president. People seem to either love him or hate him, and it is this dichotomy that’s signaling significant changes in our country.  So far, Trump’s largest contribution to the economy is his focus on deregulation. In his first 100 days in office, he… Read More

His portfolio is built on the largest companies in America. Giants like Apple, Deere, and Walmart dominate his holdings. Thanks to his long-term oriented, value-seeking investment method, Warren Buffett’s wealth has catapulted from a mere $6,000 when he was 15 years old to an astounding $73 billion-plus today.  While Buffett’s concentration is on the largest of the large-caps, he has a love for the potential of small-caps, defined as companies with market capitalizations between$300 million to $2 billion.  A little while ago he told Fortune Magazine, “It’s one thing to own stock in a Coca-Cola or… Read More

His portfolio is built on the largest companies in America. Giants like Apple, Deere, and Walmart dominate his holdings. Thanks to his long-term oriented, value-seeking investment method, Warren Buffett’s wealth has catapulted from a mere $6,000 when he was 15 years old to an astounding $73 billion-plus today.  While Buffett’s concentration is on the largest of the large-caps, he has a love for the potential of small-caps, defined as companies with market capitalizations between$300 million to $2 billion.  A little while ago he told Fortune Magazine, “It’s one thing to own stock in a Coca-Cola or something, but when you are actually in the business of making determinations about opening stores and pricing decisions, you learn from it. We have made a lot more money out of See’s than shows from the earnings of See’s, just by the fact that it has educated me.”  How Buffett Picks His Winners It’s safe to say Warren’s consultation fee is among the most expensive of all time. People routinely spend a million plus dollars just to have an informal lunch with the guru. Astoundingly, the latest bid posted at $2.7 million for an hour… Read More

Bill Miller is back on a winning streak. Once a hero of Wall Street with an enviable record of 15 straight years of beating the S&P 500, he suffered the same fate as everyday investors during the financial crisis, and has since failed to return to his former level of success.  But today, Bill Miller’s stock picks are earning back their stellar reputation for market outperformance.  A Truly Exceptional Track Record Most funds have difficulty just beating the S&P 500 in any given year. To do so for multiple years in a row is even more impressive. So it’s… Read More

Bill Miller is back on a winning streak. Once a hero of Wall Street with an enviable record of 15 straight years of beating the S&P 500, he suffered the same fate as everyday investors during the financial crisis, and has since failed to return to his former level of success.  But today, Bill Miller’s stock picks are earning back their stellar reputation for market outperformance.  A Truly Exceptional Track Record Most funds have difficulty just beating the S&P 500 in any given year. To do so for multiple years in a row is even more impressive. So it’s crazy to think that Bill Miller beat the index for 15 years straight while working at Legg Mason. These returns are simply unparalleled in the mutual fund world. His track record even outperformed Fidelity’s legendary Peter Lynch.  However, his well-tested value investing strategy of buying stocks at a discount was no match for the crashing stock market. Convinced his holdings would bounce back, Mr. Miller kept averaging into positions and the market kept proving him wrong.  From 2007 to 2011, his Legg Mason Opportunity Fund plunged over 50% as large bets on troubled financial stocks failed to turn a profit. Read More