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

When executives at Tivo (Nasdaq: TIVO), a recent addition to my $100,000 Real-Money Portfolio, decided to start hurling lawsuits at some of the country’s biggest cable and telecom companies a few years ago, many investors figured this industry’s “David” simply couldn’t prevail in court against the industry’s Goliaths. Well, with… Read More

Chief Financial Officers (CFOs) at some of the nation’s biggest companies have a problem on their hands. They’re tasked with watching over billions, tens of billions or even hundreds of billions of dollars every day, making sure to find ways to deliver the best returns to shareholders while keeping enough aside for a rainy day. With interest rates sitting at multi-decade lows, these executives can’t afford to let the money just sit there. That’s why more of them are looking at share buybacks, dividends, acquisitions or higher levels of capital spending to take some of that cash off of the… Read More

Chief Financial Officers (CFOs) at some of the nation’s biggest companies have a problem on their hands. They’re tasked with watching over billions, tens of billions or even hundreds of billions of dollars every day, making sure to find ways to deliver the best returns to shareholders while keeping enough aside for a rainy day. With interest rates sitting at multi-decade lows, these executives can’t afford to let the money just sit there. That’s why more of them are looking at share buybacks, dividends, acquisitions or higher levels of capital spending to take some of that cash off of the sidelines and put it into action. This is good news for investors. Because the more cash a company deploys, the better the chances of bolstering the stock price. We took a look at the cash balances of leading corporations and were stunned to find how much some companies were sitting on. In some instances, these companies have such a large amount of cash that it equals or surpasses what some countries produce in terms of annual economic activity (GDP). Here are the top ten profitable companies sitting on stunning amounts of cash (we excluded traditional… Read More

The sole purpose of the Federal’s Reserve’s recent moves and commentary is to inspire the economy‘s “animal spirits.” The most recent action, known as QE3, or the third round of quantitative easing, is simply an effort to provide a spark where none… Read More

When a company announces a quarterly shortfall and lowers guidance, investors have been known to shoot first and ask questions later. That lesson was painfully brought home to the insiders at Maxwell Technologies (Nasdaq: MXWL), who were initially stunned to see the company’s stock tumble from about $20 in late… Read More

The search for income-producing investments keeps getting harder. Uncle Sam continues to deliver paltry payouts on government bonds and notes, which has forced many investors to seek out dividend-paying common stocks. Trouble is, the popularity of these investments has pushed their stock prices up — and their dividend yields down. The average dividend-paying stock in the S&P 500 yields just 2.5%. Even investment-grade corporate bonds offer little help. The average payout (with a duration… Read More

The search for income-producing investments keeps getting harder. Uncle Sam continues to deliver paltry payouts on government bonds and notes, which has forced many investors to seek out dividend-paying common stocks. Trouble is, the popularity of these investments has pushed their stock prices up — and their dividend yields down. The average dividend-paying stock in the S&P 500 yields just 2.5%. Even investment-grade corporate bonds offer little help. The average payout (with a duration of 2-5 years) is just 3.5%, which is well below the historical average yield of around 5%. That’s why preferred stocks are getting a fresh look from many investors. Not only do their payouts often exceed 5%, but they offer the chance of solid capital appreciation if the stock market moves higher. Preferred stocks are a favorite vehicle for companies with steady, predictable cash flows. If the going gets tough, these companies can temporarily defer payments to preserve cash. This… Read More