Over the past few years, the notion of Murphy’s law comes to mind for Freeport-McMoRan (NYSE: FCX), the world’s largest copper miner. In that time, the company has witnessed: A sharp drop in copper prices as China worked off overbuilt stockpiles A similar plunge in gold prices (which accounts for roughly a fourth of the company’s revenues) A mining accident that took 28 lives in Indonesia A pair of major acquisitions in the oil and gas industry that were greeted by a chorus of boos from shareholders and… Read More

Over the past few years, the notion of Murphy’s law comes to mind for Freeport-McMoRan (NYSE: FCX), the world’s largest copper miner. In that time, the company has witnessed: A sharp drop in copper prices as China worked off overbuilt stockpiles A similar plunge in gold prices (which accounts for roughly a fourth of the company’s revenues) A mining accident that took 28 lives in Indonesia A pair of major acquisitions in the oil and gas industry that were greeted by a chorus of boos from shareholders and analysts A rapid spike in the debt load to above $20 billion that raised alarms at a time when revenue and cash flow forecasts were being trimmed The net result, this stock has lost nearly 40% of its value over the past 2 1/2 years, even as the S&P 500 has moved higher by a similar amount. The fact that this stock recently tested support… Read More

What do Warren Buffett and Sir John Templeton have in common? They both made billions by following one simple maxim: Find stocks or industries that are absolutely loathed. These are the only areas you… Read More

In any given year, Standard & Poor’s must find a dozen or so new companies to include in its vaunted S&P 500 index.#-ad_banner-# Existing components invariably get acquired, or stumble so badly that they are disinvited from this select group. Getting a tap on the shoulder from S&P is great news, simply because the billion-dollar S&P 500 index funds must immediately buy their shares to give them a proper weighting. Read More

In any given year, Standard & Poor’s must find a dozen or so new companies to include in its vaunted S&P 500 index.#-ad_banner-# Existing components invariably get acquired, or stumble so badly that they are disinvited from this select group. Getting a tap on the shoulder from S&P is great news, simply because the billion-dollar S&P 500 index funds must immediately buy their shares to give them a proper weighting. Analysts at Credit Suisse recently gave the topic some thought, highlighting 10 strong candidates. Later on, I’m going to add another eight of my own in a moment. And in part two of this series, I’ll cite the three most appealing stocks in the group on a purely fundamental basis.  What’s In The S&P 500? Many might suspect that Standard & Poor’s simply chooses companies with the largest market values for inclusion in the index. But… Read More

Here at StreetAuthority, we love companies that have a wide moat around their operations and possess powerful long-term growth characteristics. Investing in these companies is often quite simple. You buy shares — and put them on the shelf. Year after year, they appreciate in value. Over the course of many decades, they deliver substantial investment returns. We call these “Forever… Read More

Here at StreetAuthority, we love companies that have a wide moat around their operations and possess powerful long-term growth characteristics. Investing in these companies is often quite simple. You buy shares — and put them on the shelf. Year after year, they appreciate in value. Over the course of many decades, they deliver substantial investment returns. We call these “Forever Stocks.” Yet the ride isn’t always quite so smooth for some “Forever Stocks.” Even companies like GE (NYSE: GE) or IBM (NYSE: IBM) hit a rough patch, temporarily falling deeply out of favor with investors. And when that happens, savvy investors know to pounce, buying shares at marked-down prices. Such an opportunity exists now with a company headquartered 5,000 miles south of the New York Stock Exchange. Brazil’s CPFL Energia (NYSE: CPL) is a very good company having a very bad year. Shares are far from their recent… Read More

Thanks to a dome of cool air that is enveloping much of the eastern United States, natural gas prices are back in freefall, falling roughly $1 per thousand cubic feet (Mcf) since just the start of May to a recent $3.36 per Mcf. Meanwhile, oil prices have been on a tear, rising more than $10 a barrel in that time to a recent $108 a barrel for West Texas Intermediate crude. For companies that produce a considerable amount of both oil and gas, it’s hard to know if the good (oil) outweighs the bad (gas). Yet… Read More

Thanks to a dome of cool air that is enveloping much of the eastern United States, natural gas prices are back in freefall, falling roughly $1 per thousand cubic feet (Mcf) since just the start of May to a recent $3.36 per Mcf. Meanwhile, oil prices have been on a tear, rising more than $10 a barrel in that time to a recent $108 a barrel for West Texas Intermediate crude. For companies that produce a considerable amount of both oil and gas, it’s hard to know if the good (oil) outweighs the bad (gas). Yet insiders at certain energy companies have no such confusion. They are aggressively buying company stock while share prices meander. Perhaps their bullishness stems from the fact that their companies aren’t really dependent on energy prices and instead are focused on providing services and equipment to the industry. 1. Nabors Industries (NYSE: NBR ) Make no mistake, many energy insiders long for the good old days of 2007 and 2008, when triple-digit oil prices fueled a vigorous amount of… Read More

In any given year, an up-and-coming fund manager is able to make some great investment moves, propelling him to the top of the annual leaderboard. But only a select few have the vision and the skill to lead the pack for decades at a time. The Oracle of Omaha might be the best of them all.#-ad_banner-# Over many decades, Warren Buffett has made his clients huge sums of money —… Read More

In any given year, an up-and-coming fund manager is able to make some great investment moves, propelling him to the top of the annual leaderboard. But only a select few have the vision and the skill to lead the pack for decades at a time. The Oracle of Omaha might be the best of them all.#-ad_banner-# Over many decades, Warren Buffett has made his clients huge sums of money — and equally important — has helped them to avoid losing lots of money when the broader market slumps. Just how awesome has he been for shareholders? His portfolio has outperformed the S&P 500 in 24 of the past 30 years. In that time, he’s garnered an 18% annualized return, compared to an 11% annualized return for the S&P 500. Most impressive of all, Buffett doesn’t rely on some secret formula. While other investment pros talk about their “black box” approach to… Read More

In the summer of 1990, the U.S. economy was quickly losing altitude. By the fourth quarter, the nation’s GDP had fallen by nearly 4%. Unemployment began to rise, and the economic weakness would eventually cost George H.W. Bush a chance for a second term. By Oct. 1 of that year, the Russell 2000 small-cap index had fallen to just 119. Yet just 16 months… Read More

In the summer of 1990, the U.S. economy was quickly losing altitude. By the fourth quarter, the nation’s GDP had fallen by nearly 4%. Unemployment began to rise, and the economic weakness would eventually cost George H.W. Bush a chance for a second term. By Oct. 1 of that year, the Russell 2000 small-cap index had fallen to just 119. Yet just 16 months later, it surged past the 200 mark, reaching 250 by September 1993. Investors shouldn’t have been surprised. Small-cap stocks always do well when the economy is in a funk, but investors sense that better days lie ahead. Well, it’s happening again. Although the U.S. economy has posted a halting and unimpressive recovery, investors have again embraced seemingly risky small caps. The 200% gain in the Russell 2000 since the markets bottomed out in March 2009 surpasses the S&P 500’s gain by a whopping 50 percentage points. Read More

After the markets steadily fell over the second half of 2008, the first trading day of 2009 brought a dose of investor optimism, with the S&P 500-stock index rising 3% to close at 932. Hopes of a sustained rebound were quickly dashed as the index went on to finish below 700 just a couple of months later. Even the boldest investors, piling their final funds into the market in search of deep value, were about ready to throw… Read More

After the markets steadily fell over the second half of 2008, the first trading day of 2009 brought a dose of investor optimism, with the S&P 500-stock index rising 3% to close at 932. Hopes of a sustained rebound were quickly dashed as the index went on to finish below 700 just a couple of months later. Even the boldest investors, piling their final funds into the market in search of deep value, were about ready to throw in the towel. And then, the clouds suddenly parted on the morning of March 10, 2009, and stocks began to climb and climb. A little more than four years later, the S&P 500 has racked up a stunning 150% gain. Yet as the market moves ever higher, investors have grown antsy. The rally hasn’t come on the heels of a robust economic expansion. Instead, the U.S. economy… Read More

As earnings season reaches the halfway point, we’re once again seeing stunningly large share buyback announcements. Yet investors are scratching their heads. These buybacks are often seen in tandem with share prices hitting fresh multi-year lows. Gone are the days when companies would… Read More

A few years after the global economy emerged from the economic crisis of 2008, commodity prices began to surge, thanks to ongoing robust demand from China. Chief financial officers at mining firms quickly realized that firm commodity prices implied robust future profit streams, and a broad range of new mining projects were put into motion. To pay for those projects, billions of dollars were borrowed, and investors began to anticipate impressive… Read More

A few years after the global economy emerged from the economic crisis of 2008, commodity prices began to surge, thanks to ongoing robust demand from China. Chief financial officers at mining firms quickly realized that firm commodity prices implied robust future profit streams, and a broad range of new mining projects were put into motion. To pay for those projects, billions of dollars were borrowed, and investors began to anticipate impressive cash flow returns from all of that borrowing. Just a few years later, that optimism has evaporated. Slumping commodity prices have hurt potential returns from these expansion plans. Of greater concern, some mining firms are now carrying too much debt, and unless commodity prices rebound, they could be looking at a cash crisis in the next year or two. The Reuters/Jefferies CRB Index (INDX: CRB), which tracks… Read More