It’s important to keep track of the moves by insiders, as they can point you in the direction of undervalued (or overvalued) stocks. I like to scan the recent buying and selling lists from insiders either daily or weekly, but a monthly look is… Read More

It’s been a nutty summer for the nation’s largest operator of book stores. Soon after Memorial Day, Barnes & Noble (NYSE: BKS) delivered the sobering news that sales and profit targets would not be met. By late July,… Read More

During the course of 2010, investors have continually fretted that the solar power industry was headed for severe slump. They worried that too many new factories were set to produce far more solar panels than the industry could absorb. And that supply increase was coming right at a time when… Read More

If you had a crystal ball in the 1960s, you probably would have seen that Japan would turn out to be a great investment. The country’s economy was growing nicely, family birth rates were high enough to ensure a young workforce, its education… Read More

In the debate between growth and value investors, it’s usually a contest between high growth and higher valuations and low growth and very low valuations. But what should investors do with a company that is seeing revenue and cash flow actually shrink? It’s been a longstanding question dogging the newspaper industry. In a worst-case scenario, cash flow turns outright negative and bankruptcy has been the only option. For the New York Times Co. (NYSE: NYT) and Gannett (NYSE: GCI), things have not been quite that… Read More

In the debate between growth and value investors, it’s usually a contest between high growth and higher valuations and low growth and very low valuations. But what should investors do with a company that is seeing revenue and cash flow actually shrink? It’s been a longstanding question dogging the newspaper industry. In a worst-case scenario, cash flow turns outright negative and bankruptcy has been the only option. For the New York Times Co. (NYSE: NYT) and Gannett (NYSE: GCI), things have not been quite that dire, and bankruptcy is quite unlikely. But is there any reason to search for value in these industry survivors? The short answer: a qualified yes. In this piece, I’ll focus squarely on the New York Times, although many of the conclusions may apply to Gannett as well. There’s no need to re-hash all of the twists and turns at the Times, but it’s helpful to pit the positives against the negatives. The positives: Rising national market share as regional rivals sharply re-trench and cede important national coverage… Read More

After a sharp plunge in 2009, many companies are reporting vastly improved results this year. But until the economy is firmly in growth mode, further profit gains may be hard to come by. But a small minority of… Read More

Even as the national economy manages to stay above water, the local picture is more complex. A number of states are starting to bounce back while other local economies remain under duress. Compared to a year ago, the employment picture has gotten even worse… Read More

In tough economic times, a high debt load can cripple a company. But when business is good, that debt can actually be a real benefit. That’s because equity comprises just a small part of the company’s total enterprise value (… Read More

Gold is on the march. The yellow metal is spiking to a new all time (non inflation-adjusted) highs of nearly $1,300 per ounce on renewed speculation that the Federal Reserve’s next moves will only strengthen the case for higher gold prices down the road. Let’s take a closer look at some key questions to see if gold is set to shine even brighter or eventually lose its luster. Q: What is the Fed concerned about? A: In its most recent statement after Federal Reserve Open Market Committee (FOMC)… Read More

Gold is on the march. The yellow metal is spiking to a new all time (non inflation-adjusted) highs of nearly $1,300 per ounce on renewed speculation that the Federal Reserve’s next moves will only strengthen the case for higher gold prices down the road. Let’s take a closer look at some key questions to see if gold is set to shine even brighter or eventually lose its luster. Q: What is the Fed concerned about? A: In its most recent statement after Federal Reserve Open Market Committee (FOMC) meetings, the Fed noted that potential deflation is of increasing concern. (Core annual inflation has been running at 0.9% for five months in a row, its lowest pace since 1966.) Any drop in prices could spell real trouble for the economy and would imperil borrowers that are seeing lower income but constant debt levels. Q: What might the Fed do? A: To help support prices, the Fed can inject money… Read More

Cyclical stocks have always been tricky for investors. At the bottom of an economic cycle, they can appear to have fairly high price-to-earnings (P/E) ratios as investors look ahead to better times. When the cycle improves and approaches a peak, the P/E multiple… Read More