The rules of a paired trade are quite simple. Find a good company and make a bullish investment while also finding a lousy company in the same industry and make a bearish short investment against it. That logic surely applies when two companies appear comparably valued. But… 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
Use This Unique Twist on an Old Income Strategy
I once had a subscriber write in response to some questions I asked about readers’ long-term investing goals. “At this age, I don’t buy green bananas,” he said. I had to laugh; my father used the same line for years. But it does bring up a great point. I’m willing… Read More
After an impressive two-year surge that has seen its stock rise more than +200%, shares of Apple (Nasdaq: AAPL) appear to have stalled. The stock has been stuck in a tight range between $300 and $320 for the past six weeks, as bulls and bears have at it. Yet this stock is far too popular and far too controversial to stay stuck in a trading range for very long. The key question for investors now: Will Apple resume its upward climb toward the $400 mark? Or is the long-awaited pullback that brings… Read More
After an impressive two-year surge that has seen its stock rise more than +200%, shares of Apple (Nasdaq: AAPL) appear to have stalled. The stock has been stuck in a tight range between $300 and $320 for the past six weeks, as bulls and bears have at it. Yet this stock is far too popular and far too controversial to stay stuck in a trading range for very long. The key question for investors now: Will Apple resume its upward climb toward the $400 mark? Or is the long-awaited pullback that brings shares down to somewhere near $250 close at hand? Here are six catalysts to monitor that could move shares this winter. [Read more about catalysts and how they shape the market’s biggest winners] The positives. There’s no shortage of reasons to like Apple. Just ask Wall Street analysts. They universally sing the company’s praises, and most expect shares to eventually climb to $375 or higher. That’s not a huge stretch, as $375 reflects a price-to-earnings (P/E) ratio of just 15 on… Read More
How to Buy Gold for Only $159 an Ounce
Since reaching a multi-decade low of $251.70 in August 1999, gold has been a top performing investment. Even during the 2008 financial crisis, it was only one of the few assets that increased in value (up +5.8%). While top-notch investors like John Paulson are still bullish, gold… Read More
Email Alert: A Bonus Paycheck From The Chile Fund (CH)
As always, I keep my readers up to date on all of our holdings. One of our holdings issued a special distribution, find out what to do by reading this email alert. Read More
My 3 Favorite Small Cap Stocks for 2011
Off the radar — but only for a little while longer. That’s the investment thesis I look for when searching for stock ideas. Good companies, doing all the right things, getting set to pop up on more investors’ radars in the coming year. These three companies look… Read More
The Federal Reserve Just Green-lit This Sector for 2011
Eight times a year in Washington, D.C., a dozen men and women sit down to vote on the economic fate of the United States. They come representing regions around nation — rural and urban, rich and poor — and the power they wield is unmatched. Together, they make decisions that… Read More
The Last Remaining Bargains in the S&P 500
With the S&P 500 touching another 52-week high on Monday, investors need to be increasingly careful. Any new stock buys could be coming in the later stages of a mini-rally that began around Labor Day weekend. So it pays to move down the risk curve by focusing on cheaper stocks… Read More
This Could be the First $1 Trillion Stock
The day will come when a public company becomes worth $1 trillion. It’s a big number to swallow, but I think it’s possible… When I say a company will one day become “worth $1 trillion,” I’m referring to when a company reaches a… Read More
Don’t Miss These 3 Solar Stocks on Sale
Even with all of the hype around clean energy, a wide number of solar stocks have never been able to find much affection on Wall Street, settling for single-digit price-to-earnings (P/E) multiples. Blame it on Germany. The country has been such a huge supporter… Read More