​I like to track all the stocks I write about, maintaining watch lists by various categories. One of my favorite categories, “small cap stocks under $10” has been a tried-and-true group for me over the years.  Here are four of these stocks I’m focusing on right now. Each of them appears to have solid upside in the year ahead. 1. Maxwell Technologies (Nasdaq: MXWL )​ In the face of an air pollution epidemic, the Chinese government is finally getting serious. Any technologies that can sharply cut emissions from power plants and transportation are getting a fresh look, and this company… Read More

​I like to track all the stocks I write about, maintaining watch lists by various categories. One of my favorite categories, “small cap stocks under $10” has been a tried-and-true group for me over the years.  Here are four of these stocks I’m focusing on right now. Each of them appears to have solid upside in the year ahead. 1. Maxwell Technologies (Nasdaq: MXWL )​ In the face of an air pollution epidemic, the Chinese government is finally getting serious. Any technologies that can sharply cut emissions from power plants and transportation are getting a fresh look, and this company could be a clear beneficiary. Maxwell makes ultra-capacitors, which can deliver huge amounts of power in short bursts. The products are especially well-suited in transportation, in vehicles such as city buses. China has already been a strong customer in the past, as this article written by a sales executive at the company notes. But China has delayed renewing a subsidy program for hybrid buses. Shares have traded off a bit in the past few months in the face of such delays. I look at this stock’s performance in 2014 in a binary fashion. If China… Read More

With the U.S. economy a half-decade removed from its last recession, there are relatively few bankruptcies these days. But they still occur.#-ad_banner-#​ Every few quarters another publicly traded company calls a timeout from its creditors, often leaving a worthless stock in its wake. These companies aren’t hard to find. You can simply focus on firms with lots of debt and deeply negative cash flow.  That backdrop led me to predict back in the summer of 2011 that AMR, the parent company of American Airlines, would eventually need to file for bankruptcy. Six months later, that’s exactly what AMR did. Read More

With the U.S. economy a half-decade removed from its last recession, there are relatively few bankruptcies these days. But they still occur.#-ad_banner-#​ Every few quarters another publicly traded company calls a timeout from its creditors, often leaving a worthless stock in its wake. These companies aren’t hard to find. You can simply focus on firms with lots of debt and deeply negative cash flow.  That backdrop led me to predict back in the summer of 2011 that AMR, the parent company of American Airlines, would eventually need to file for bankruptcy. Six months later, that’s exactly what AMR did. I rarely go out on a limb with such predictions. After all, many companies in financially dire straits can snag a lifeline, avoiding bankruptcy. Indeed, OCZ Technology (Nasdaq: OCZ) raised fresh capital a few times after I suggested a year ago that it was headed for bankruptcy. “OCZ has a very short window to stop the bleeding,” I predicted at the time. Fast-forward to last week, and OCZ finally relented and declared bankruptcy. Shorting these kinds of stocks can deliver 100% upside if there shares eventually become worthless, but such a strategy can also cause real pain. Nearly two years ago,… Read More

The appeal of clean energy stocks is evident. Billions of dollars are at stake as the world tries to wean itself off fossil fuels.#-ad_banner-# There can be little doubt that clean energy will account for at least 20% to 30% of our total energy picture a few decades from now. But the road is bound to be bumpy. The sudden plunge in solar stocks in 2011 and 2012 — not to mention their remarkable rebound this year — highlights just how risky these clean energy stocks can be. Indeed, many investors have concluded that they just can’t stomach that degree… Read More

The appeal of clean energy stocks is evident. Billions of dollars are at stake as the world tries to wean itself off fossil fuels.#-ad_banner-# There can be little doubt that clean energy will account for at least 20% to 30% of our total energy picture a few decades from now. But the road is bound to be bumpy. The sudden plunge in solar stocks in 2011 and 2012 — not to mention their remarkable rebound this year — highlights just how risky these clean energy stocks can be. Indeed, many investors have concluded that they just can’t stomach that degree of risk. But there is a better way: a focus on companies that already derive significant revenue streams in support of clean energy projects. These stable firms don’t own breakthrough technologies, but they are helping the industry pioneers to scale up their production. And in light of the long-term future for clean energy, these firms face robust growth potential. My favorite pick in this group: Spain’s Abengoa (Nasdaq: ABGB), which derives more than $10 billion in annual sales by helping construct clean energy power plants, water desalination systems, biofuel production facilities and highly efficient energy transmission networks. Abengoa’s Steady… Read More

For many folks in Latin America, 2011 seems like an awfully long time ago. Just two years ago, regional economies were booming, and growth in middle-class consumption was off the charts. That proved to be a fortuitous time for Arcos Dorados (NYSE: ARCO) to go public.#-ad_banner-#​ At the time, the company operated more than 1,700 McDonald’s (NYSE: MCD) franchises in 19 countries across Latin America and the Caribbean, and in many respects was firing on all cylinders. Sales, earnings and net income were all rising at an impressive clip, and analysts expected more of the same in the… Read More

For many folks in Latin America, 2011 seems like an awfully long time ago. Just two years ago, regional economies were booming, and growth in middle-class consumption was off the charts. That proved to be a fortuitous time for Arcos Dorados (NYSE: ARCO) to go public.#-ad_banner-#​ At the time, the company operated more than 1,700 McDonald’s (NYSE: MCD) franchises in 19 countries across Latin America and the Caribbean, and in many respects was firing on all cylinders. Sales, earnings and net income were all rising at an impressive clip, and analysts expected more of the same in the years to come. And then the wheels fell off. Many Latin American economies eventually hit an air pocket, most notably in Brazil, which accounts for more than half of this company’s sales and EBITDA (earnings before interest, taxes, depreciation and amortization). And as these economies have slowed, analysts have repeatedly lowered their profit forecasts. Shares, which surged after the April 2011 IPO, now remain in a deep funk. How badly has the economic slump affected financial results? Let’s examine a pair of 2013 forecasts by Brazilian investment firm Itau: one made in June 2011, the other issued Aug. Read More

A still-slow economy is making it quite hard for companies to grow. As I noted earlier this week, just a few dozen companies in the S&P 500 are expected to boost sales more than 20% in 2014, and many of those firms are doing so only with the aid of… Read More

Let the jockeying begin. Strategists are predicting a major change in interest rates in 2014 and 2015, and have already begun to identify the fallout — positive and negative — on a wide range of stocks. As long as you follow the game plan, your portfolio is likely to benefit.#-ad_banner-#​ There are two extremely likely scenarios for 2014. First, the Federal Reserve is expected to keep the federal funds rate near zero, which will keep interest rates on shorter-term lending rates very low. Second, the Fed will ease off its massive stimulus program (known as quantitative easing, or… Read More

Let the jockeying begin. Strategists are predicting a major change in interest rates in 2014 and 2015, and have already begun to identify the fallout — positive and negative — on a wide range of stocks. As long as you follow the game plan, your portfolio is likely to benefit.#-ad_banner-#​ There are two extremely likely scenarios for 2014. First, the Federal Reserve is expected to keep the federal funds rate near zero, which will keep interest rates on shorter-term lending rates very low. Second, the Fed will ease off its massive stimulus program (known as quantitative easing, or QE), which is likely to allow long-term rates to rise to levels that truly reflect global economic activity. (The QE program has kept a lid on long-term rates.) I discussed this notion a few weeks ago in my look at the soon-to-change yield curve. Historical trends suggest that certain sectors are likely to benefit while other sectors are likely to lose some appeal with investors. And even within sectors, clear winners and losers will emerge. Not All Yield Plays Are The Same First, let’s get the obvious impacts out of the way. Any income-producing investments such as utilities, real estate… Read More

As company executives sit down to establish their 2014 strategies, they’re faced with a sobering prospect: The U.S. economy is likely headed for yet another year of subpar growth. It’s a theme I discussed a few weeks ago and the prospects of deeper government cutbacks, as a result of the current “sequester” policy, could even lead to even more anemic growth. #-ad_banner-#Indeed, more than half of the companies in the S&P 500 are expected to boost 2014 sales by less than 5%. Still, there are nearly two-dozen firms capable of defying economic gravity. Each of these firms… Read More

As company executives sit down to establish their 2014 strategies, they’re faced with a sobering prospect: The U.S. economy is likely headed for yet another year of subpar growth. It’s a theme I discussed a few weeks ago and the prospects of deeper government cutbacks, as a result of the current “sequester” policy, could even lead to even more anemic growth. #-ad_banner-#Indeed, more than half of the companies in the S&P 500 are expected to boost 2014 sales by less than 5%. Still, there are nearly two-dozen firms capable of defying economic gravity. Each of these firms is expected to boost sales at least 20% in the year ahead. To be sure, some of these companies are resorting to acquisitions to boost sales. These include: • InterContinental Exchange (NYSE: ICE), which is expected to more than double in size thanks to a merger with the NYSE. • Tenet Healthcare (NYSE: THC), which is expected to see a 46% jump in revenue thanks to a recently-completed acquisition of Vanguard Health Services. • NRG Energy’s (NYSE: NRG) recent move to acquire assets from the bankrupt Edison Mission Energy will also lead to a sizable 29% spike… Read More

Dividend yield or dividend growth? Investors are often asked to choose between one of these two types of yield plays. But it’s not the right question to ask. Instead, you want to find stocks with fast-growing dividends that will eventually sport high yields. But let’s face it, so many companies in the S&P 500 were content to aggressively boost their dividends a few years back, and now seem to simply nudge the payout just a bit higher each year. Here are some examples: Indeed, the outlook for dividend growth in the S&P 500 is… Read More

Dividend yield or dividend growth? Investors are often asked to choose between one of these two types of yield plays. But it’s not the right question to ask. Instead, you want to find stocks with fast-growing dividends that will eventually sport high yields. But let’s face it, so many companies in the S&P 500 were content to aggressively boost their dividends a few years back, and now seem to simply nudge the payout just a bit higher each year. Here are some examples: Indeed, the outlook for dividend growth in the S&P 500 is likely to be much more muted in coming years, with earnings per share (EPS) growth — not rapidly rising payout ratios — becoming the prime determinant. But as with any rule, there are clear exceptions. Some companies appear poised for robust dividend growth in coming years, thanks to still-low payout ratios, and by the time the process is done, dividend yields (based on today’s prices) are likely to be stellar. Here are three companies poised for great dividend growth. 1. Boeing (NYSE: BA ) Roughly a decade ago, when demand for airplanes began to surge, this aircraft maker decided to… Read More

This is a great time to be running a public company.#-ad_banner-#​ The surging stock market has created billions in wealth for the leading officers and directors, as previously granted stock options are now deep in the money. Of course, companies don’t like to publicize the fact that executives are reaping huge gains while leading the share count to bloat. Add all of their shares into the current base of stock, and investors would really be up in arms. That’s why many companies offset these lush stock options programs with share buybacks. As long as they are able to keep the… Read More

This is a great time to be running a public company.#-ad_banner-#​ The surging stock market has created billions in wealth for the leading officers and directors, as previously granted stock options are now deep in the money. Of course, companies don’t like to publicize the fact that executives are reaping huge gains while leading the share count to bloat. Add all of their shares into the current base of stock, and investors would really be up in arms. That’s why many companies offset these lush stock options programs with share buybacks. As long as they are able to keep the share count flat, investors are unlikely to grumble too loudly. But it also means that you should be skeptical when you hear about buyback announcements. Case in point: Regional bank KeyCorp (NYSE: KEY), which conducted a pair of buyback plans over the past two years totaling nearly $800 million. That equated to nearly 5% of shares outstanding. But in a study conducted by Deutsch Bank, KeyCorp actually shrank its share count by just 1%. In effect, most of that $800 million went toward enriching executives, not shareholders. That’s why it’s crucial to track companies to see if they are really… Read More

What do Ray Kroc and Jack Welch have in common? Both of these men ran very different businesses, McDonalds (NYSE: MCD) and General Electric (NYSE: GE), respectively, yet they repeatedly hammered home the most important lesson for their management teams. “Market share is everything.”  It holds the key to great financial results, which can provide the capital for yet more growth. Or as Jack Welch once put it, if you aren’t going to dominate your niche, then don’t even bother. He was likely inspired by a 1… Read More

What do Ray Kroc and Jack Welch have in common? Both of these men ran very different businesses, McDonalds (NYSE: MCD) and General Electric (NYSE: GE), respectively, yet they repeatedly hammered home the most important lesson for their management teams. “Market share is everything.”  It holds the key to great financial results, which can provide the capital for yet more growth. Or as Jack Welch once put it, if you aren’t going to dominate your niche, then don’t even bother. He was likely inspired by a 1975 study in the Harvard Business Review that found that “as market share increases, a business is likely to have a higher profit margin, a declining purchases-to-sales ratio, a decline in marketing costs as a percentage of sales, higher quality, and higher-priced products.” Need proof? Simply look at the hamburger chains. According to QSR (quick-service restaurant) magazine, McDonald’s had as much domestic market share in 2010 as Burger King (NYSE: BKW), Wendy’s (Nasdaq: WEN), Sonic (Nasdaq: SONC), Jack in the Box (Nasdaq: JACK), and the next seven burger sellers — combined.  And look at what that meant… Read More