Benjamin Franklin was a Founding Father, statesman and signer of the Declaration of Independence. He was also a brilliant inventor — creating bifocals, the lightning rod and the odometer. #-ad_banner-# But his greatest invention has been shrouded in mystery for more than 250 years… It involves controlling one of the most important resources known to man: energy. In 1749, through a revolutionary experiment, Franklin created a device that could capture and harness energy. Then, 150 years later, Thomas Edison picked up where Franklin left off. Since then, many others have carried forward this work. But a few months ago, a… Read More

Benjamin Franklin was a Founding Father, statesman and signer of the Declaration of Independence. He was also a brilliant inventor — creating bifocals, the lightning rod and the odometer. #-ad_banner-# But his greatest invention has been shrouded in mystery for more than 250 years… It involves controlling one of the most important resources known to man: energy. In 1749, through a revolutionary experiment, Franklin created a device that could capture and harness energy. Then, 150 years later, Thomas Edison picked up where Franklin left off. Since then, many others have carried forward this work. But a few months ago, a band of scientists — backed by an eccentric billionaire — took Franklin’s dream to new heights. They finally broke through — and now it has the potential to make early investors a fortune. From Franklin, Tesla, Edison — And Now Musk We’ve all heard the first part of the folk tale… Ben Franklin was convinced that lightning bolts contain energy, and he wanted to prove it. So during a thunderstorm, he flew a kite with a metal key attached, hoping the kite would get hit. And it worked. The kite was struck by lightning, and the key produced a… Read More

Global pharmaceutical sales hit a record $1 trillion in 2014, and forecasts expect another $300 billion in growth by 2018 according to Thomson Reuters. If you watch TV, read magazines, or even go out in public, this probably doesn’t surprise you. We are constantly bombarded with advertisements for various drugs. In an industry dominated by big money and marketing, it can be hard for small-cap companies to thrive. There are a few approaches, though, that can help smaller companies succeed: 1. Create a ground-breaking product that cannot be copied 2. Partner with a larger pharmaceutical company to help with… Read More

Global pharmaceutical sales hit a record $1 trillion in 2014, and forecasts expect another $300 billion in growth by 2018 according to Thomson Reuters. If you watch TV, read magazines, or even go out in public, this probably doesn’t surprise you. We are constantly bombarded with advertisements for various drugs. In an industry dominated by big money and marketing, it can be hard for small-cap companies to thrive. There are a few approaches, though, that can help smaller companies succeed: 1. Create a ground-breaking product that cannot be copied 2. Partner with a larger pharmaceutical company to help with marketing and distribution In today’s Project Alpha, we’ve found a company that does both. A Misunderstood Acquisition Has Left This Pharma Leader Undervalued Sucampo Pharmaceuticals (Nasdaq: SCMP) is a global biopharmaceutical company primarily focused on the Research and Development (R&D) of drugs. Its main product, AMITIZA, is the first chloride channel activator developed for the treatment of chronic constipation. It may not be the sexiest product, but the most successful drugs rarely are. Since 2006, AMITIZA, also known as lubiprostone, has been dispensed over 10 million times. Currently, it is available as a small oral gelcap taken twice a day and… Read More

After years of analyzing the markets and doling out investing advice, I’ve been asked thousands of questions. Some are seasonal. When can I expect a correction? What do you expect from earnings season? Some are topical. Are you worried about China’s economy? How will this overseas conflict affect my investments? But time has taught me there is one burning question that people wrestle with more than any other in the financial world. Where do I start? I recently received such a query from a new subscriber to my Game-Changing Stocks newsletter. #-ad_banner-#It would be easy for me to assume this… Read More

After years of analyzing the markets and doling out investing advice, I’ve been asked thousands of questions. Some are seasonal. When can I expect a correction? What do you expect from earnings season? Some are topical. Are you worried about China’s economy? How will this overseas conflict affect my investments? But time has taught me there is one burning question that people wrestle with more than any other in the financial world. Where do I start? I recently received such a query from a new subscriber to my Game-Changing Stocks newsletter. #-ad_banner-#It would be easy for me to assume this is the only one of my subscribers to ever have this question. But, it’s like your third grade teacher taught you: If you have a question, there’s probably a few others in the room wondering the same thing who were just too shy to put their hands in the air. So, to someone asking how to even begin investing, the first thing I’d like to say is: Congratulations! The most valuable thing you have is not money. It is time. So starting now is a good idea. Game-Changing Stocks has a unique approach to investing. We invest 80% of our… Read More

The U.S. stock market put in another strong performance last week, led by the small-cap Russell 2000, which gained 2.4% and is now up 6.1% for the year. More importantly, the benchmark S&P 500 has spiked higher by 170 points or 8.5% since the June 27 Brexit low, which keeps my 20,400 upside target in the bellwether Dow industrials alive. Moreover, both the S&P 500 and Dow industrials set new all-time highs next week, which should help to grease the skids for even more strength once the market deals with its latest investor complacency problem, which I will discuss later. Read More

The U.S. stock market put in another strong performance last week, led by the small-cap Russell 2000, which gained 2.4% and is now up 6.1% for the year. More importantly, the benchmark S&P 500 has spiked higher by 170 points or 8.5% since the June 27 Brexit low, which keeps my 20,400 upside target in the bellwether Dow industrials alive. Moreover, both the S&P 500 and Dow industrials set new all-time highs next week, which should help to grease the skids for even more strength once the market deals with its latest investor complacency problem, which I will discuss later. #-ad_banner-# Materials led all sectors of the S&P 500 last week with a 3.9% gain, as only utilities (-1%) finished the week with a loss. I have been pointing out scattered but consistent strength in the commodity space for much of this year, most recently in steel prices. In the July 5 Market Outlook I pointed out an emerging buying opportunity in the VanEck Vectors Steel ETF (NYSE: SLX), which has already gained 13.2% since July 5 and is well on its way to meeting my $33 upside target.  … Read More

The truth will make you sick. Technically it’s public knowledge, but I can tell you — it’s Congress’ dirty little secret. #-ad_banner-#Congress is rich. Unbelievably rich. And until just recently, insider trading laws didn’t apply to Congress. So, what are the most popular stocks owned by Congress? I’ll tell you! I don’t know which is worse: The fact that insider trading was legal for some of our nation’s wealthiest politicians… or that Congress refused to do anything about it for decades.  “A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on… Read More

The truth will make you sick. Technically it’s public knowledge, but I can tell you — it’s Congress’ dirty little secret. #-ad_banner-#Congress is rich. Unbelievably rich. And until just recently, insider trading laws didn’t apply to Congress. So, what are the most popular stocks owned by Congress? I’ll tell you! I don’t know which is worse: The fact that insider trading was legal for some of our nation’s wealthiest politicians… or that Congress refused to do anything about it for decades.  “A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on nonpublic information they obtain. The legislation has languished since 2006,” according to The Wall Street Journal.  That was, the legislation languished until 60 Minutes — one of the most-respected investigative journalism programs on television — dedicated a segment to the issue. Here’s a portion of what they had to say…        “In mid-September 2008, with the Dow Jones Industrial Average still above 10,000, Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke were holding closed-door briefings with congressional leaders, and privately warning them that a global financial meltdown could occur within a few days. One of those… Read More

President Obama hasn’t come out with his own “crisis of confidence” speech as did President Carter, but there is definitely an air of economic malaise that is holding the country back.  Even as unemployment has dropped to below 5% and job numbers have risen, the U.S. economy has continued to struggle to post any kind of substantial growth. Four of the past five quarters have seen GDP growth of 2% or less, which is not the kind of progress you would expect in a bull market. #-ad_banner-#But there is a glass-is-half-full perspective to this new normal of slow growth. One… Read More

President Obama hasn’t come out with his own “crisis of confidence” speech as did President Carter, but there is definitely an air of economic malaise that is holding the country back.  Even as unemployment has dropped to below 5% and job numbers have risen, the U.S. economy has continued to struggle to post any kind of substantial growth. Four of the past five quarters have seen GDP growth of 2% or less, which is not the kind of progress you would expect in a bull market. #-ad_banner-#But there is a glass-is-half-full perspective to this new normal of slow growth. One sector may be in an economic sweet spot where it benefits from low input costs and enjoys pricing power that will help margins expand. There is one company within this sector not only benefits from the economic outlook but also from the potential for several big catalysts that could play out before the end of the year. Is The New Normal Of Weak Economic Growth Bad For All Stocks? The advance estimate for U.S. second quarter GDP growth will be released on July 29, with market expectations for 2.3% on a seasonally adjusted annual rate. That would be more… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly,… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly, with employment rising and personal incomes starting to inch up. That’s a bullish sign for consumption of oil and gas. But around the world, economic indicators are flashing yellow, not green. China, Brazil, Japan, Europe? Don’t look for strong demand growth there. And the UK’s shocking exit from the European Union has only made analysts more jittery. But economic factors explain only part of what drives energy prices — and the related, but not identical, earnings of energy companies. As with any commodity, energy prices tend to move in cycles that are driven not only by demand but by supply. Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus… Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus means I now have the freedom to leave no stone unturned in the search for income. That means my subscribers can now rely on one source to build a well-rounded portfolio and truly earn the highest dividends the world has to offer.  The Case For International Income For a variety of reasons, the average publicly traded large-cap U.S. firm carries a lower dividend yield than those in many other countries. That doesn’t mean you can’t find plenty of excellent high-yield opportunities on American soil; some of the world’s best high-income stocks are U.S.-based. But to truly maximize the income-generating… Read More

My friends all know that I’m not a new car buyer. I can’t rationalize the instant depreciation signing new car paperwork creates. It would probably keep me up at night. Recently, a client came to me dead set on buying a new Lexus ES. Then she asked my opinion. She wasn’t pleased with my answer, which ended with me saying “… a complete waste of money you and I have worked so hard together to preserve and grow.” It was clear she had made up her mind on a new car. So I suggested and alternative: why not by a… Read More

My friends all know that I’m not a new car buyer. I can’t rationalize the instant depreciation signing new car paperwork creates. It would probably keep me up at night. Recently, a client came to me dead set on buying a new Lexus ES. Then she asked my opinion. She wasn’t pleased with my answer, which ended with me saying “… a complete waste of money you and I have worked so hard together to preserve and grow.” It was clear she had made up her mind on a new car. So I suggested and alternative: why not by a brand new Toyota Avalon? It’s the same car. #-ad_banner-#Everyone knows that Lexus is the luxury brand of Toyota Motor Corp. (NYSE: TM). And, like their American counterparts, Toyota builds its brands on the same basic platform. A 2016 Lexus ES 350, built on the Avalon platform, has a base price of around $39,000. The Toyota Avalon has a base price of around $33,000. An 18% premium for basically the same automobile. Not a good way to deploy money. I’m also seeing similar behavior as equity markets grind higher. As markets hiccupped recently with the Brexit crisis, cautious investors who wanted… Read More