The economic slowdown was especially pronounced in the media and advertising industries as companies grew weary of promoting products to cash-strapped customers who weren’t going to buy their products anyway. But consumer spending has started to perk up, leading ad budgets to re-open. Large media companies are now speaking of… Read More
David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon
Analyst Articles
Apple’s (Nasdaq: AAPL) iPhone has become a handy tool for driving directions. And Google’s (Nasdaq: GOOG) new Android phones actually gives away GPS directions for free. But anything that’s free is a real problem for anyone trying to charge for a product. So we shouldn’t be surprised to see Garmin… Read More
Market volatility has recently moved to multi-year lows, leading to investor complacency. But it’s time to sit up and pay attention again: the Dow Jones is registering its third straight session of 150-point swings. That’s great for day traders and options players, but nerve-wracking for the buy-and-hold crowd. Read More
Tuesday Losers: A Winner in Disguise?
May 4, 2010
If you simply looked at the -20% drop in shares of Leapfrog (NYSE: LF) this morning, you’d think that the educational toy maker had lost its way. Yes, the company’s quarterly sales and profit results trailed forecasts, but they still represented a sharp improvement from year-ago results. Considering many investors had written this company off as a goner just 18 months ago when sales were in freefall and operating losses were seemingly open-ended, +42% year-over-year sales growth in the first quarter has to be considered a victory. Read More
If you simply looked at the -20% drop in shares of Leapfrog (NYSE: LF) this morning, you’d think that the educational toy maker had lost its way. Yes, the company’s quarterly sales and profit results trailed forecasts, but they still represented a sharp improvement from year-ago results. Considering many investors had written this company off as a goner just 18 months ago when sales were in freefall and operating losses were seemingly open-ended, +42% year-over-year sales growth in the first quarter has to be considered a victory. Of course, some of the shareholder base exiting the stock this morning jumped in when Leapfrog posted scorching results last quarter, which is the company’s seasonally most important period. But make no mistake, management has helped fuel a remarkable turnaround by maintaining investments in R&D that are now paying off. Rivals such as Mattel (NYSE: MAT) and Hasbro (NYSE: HAS) have had a number of years now to try and dethrone Leapfrog and its various “edutaining” platforms (the nexus of entertainment and education). Now that Leapfrog looks healthier – and not… Read More
Goldman Sachs: Oversold or Value Trap?
May 4, 2010
The plot thickens. Investors have even more to chew on regarding Goldman Sachs (NYSE: GS) as possible criminal charges hit the rumor mill, and the Oracle of Omaha expresses his unabashed support. Shares fell about -20% after the Securities and Exchange Commission… Read More
It’s fun to be courted by two suitors. Rental-car firm DollarThrifty (NYSE: DTG) is back in play just days after Hertz (NYSE: HTZ) agreed to acquire the firm. Not so fast, says Avis Budget (NYSE: CAR), which hopes to top Hertz’s bid. Dollar Thrifty is no belle of the ball,… Read More
Until emergency crews can stem the flow of oil that is leaking from the broken well-head in the gulf, other drilling firms will continue to see their shares under pressure. The Obama administration has signaled that additional drilling permits may not be issued in… Read More
We all like to stock our portfolio with some high-growth/high-potential names along with some more conservative investments to sleep well at night. With the stock market now approaching the 14-month point of a remarkable bull run, it may be time to add another conservative… Read More
The whole DVD rental business has befuddled short-sellers. For several years, Netflix (NASDAQ: NFLX) disproved its detractors, and its shares have steadily climbed, forcing short-sellers to eat big losses. The same appears to be happening for Netflix’s rival Coinstar (Nasdaq: CSTR), which rents… Read More
In cost-competitive markets, managements often need to decide to pursue either market share or firm pricing. One approach can preclude the other. Management at MEMC Electronic Materials (NYSE: WFR), which had been smarting from lost market share in recent years, chose to win… Read More