Analyst Articles

During the past 18 months, Microsoft’s (Nasdaq: MSFT) army of software engineers worked feverishly to prepare for the tablet revolution. The company’s newest version of Windows was aimed at taking back lost market share from the likes of Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG). Yet as I noted in this article, the launch for Windows 8 has been underwhelming. Nearly three months later, this view still holds. Still, Microsoft has many other core strengths outside of operating software. Management should shift focus and ensure that each of these divisions has the right growth… Read More

During the past 18 months, Microsoft’s (Nasdaq: MSFT) army of software engineers worked feverishly to prepare for the tablet revolution. The company’s newest version of Windows was aimed at taking back lost market share from the likes of Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG). Yet as I noted in this article, the launch for Windows 8 has been underwhelming. Nearly three months later, this view still holds. Still, Microsoft has many other core strengths outside of operating software. Management should shift focus and ensure that each of these divisions has the right growth drivers to take market share. With more than $60 billion in net cash just sitting in the bank, it’s foolhardy to stand back and do nothing. Here’s a look at three Microsoft niches and how the company can strengthen them through acquisitions of young, fast-growing firms that are gaining relevant traction. History has shown that the fast-changing technology landscape often produces tomorrow’s top-performing investments. And these are the kind of opportunities no investor should ignore. Server and tools It’s easy to overlook this division as it… Read More

You know interest rates are low when your most conservative customers are looking to move out of the safety that certificate of deposits (CDs) provide and into dividend-paying stocks, which provide higher yields, but may not be completely risk-free. The past few years there has been a “buzz” surrounding dividend-paying stocks, and rightly so. Consider the average retiree who needs more income, for example. It’s possible to choose the negligible 1-2% yields Treasury bonds… Read More

You know interest rates are low when your most conservative customers are looking to move out of the safety that certificate of deposits (CDs) provide and into dividend-paying stocks, which provide higher yields, but may not be completely risk-free. The past few years there has been a “buzz” surrounding dividend-paying stocks, and rightly so. Consider the average retiree who needs more income, for example. It’s possible to choose the negligible 1-2% yields Treasury bonds or CDs are offering, but there’s a lot more assets that offer higher yields right now. In fact, StreetAuthority Co-Founder Paul Tracy has already gone on record saying that we’re headed for a “Dividend Decade” — a period where ALL of the market‘s returns in the next decade will come from dividends. He’s convinced that shares of companies that are… Read More

Groupon (Nasdaq: GRPN) has been hit hard during the past year, but a price bottom may have formed with extreme lows below $3 a share. As of this writing, Groupon is trading around $5.36 a share. The unfilled gap down in August from $6.35 to the 52-week low at $2.60 has midpoint support at about $4.50 to lean on. “Cheap” is a relative term, but with the downside risk of zero and unlimited upside potential, I’d say Groupon… Read More

Groupon (Nasdaq: GRPN) has been hit hard during the past year, but a price bottom may have formed with extreme lows below $3 a share. As of this writing, Groupon is trading around $5.36 a share. The unfilled gap down in August from $6.35 to the 52-week low at $2.60 has midpoint support at about $4.50 to lean on. “Cheap” is a relative term, but with the downside risk of zero and unlimited upside potential, I’d say Groupon stock qualifies. Due to volatility, another word for opportunity, the options on the stock offer many strategies with mathematical advantages over a straight purchase of the shares. If you are comfortable holding on to this inexpensive stock to wait for a potential recovery, then selling put options could allow you to collect income while you wait to get into the stock at a 16% discount. Cash-Secured Put Selling Strategy While the typical investor might use… Read More

We are finally seeing signs of life in this critical U.S. industry. Rocked by overspending, hubris and economic crisis, this once mighty segment of the economy was reduced to a mere shadow of itself.  Fortunately, things are quickly changing for the better in this nearly left-for-dead sector.#-ad_banner-# In fact, January 2013 was the industry’s best January since 2008. U.S. sales soared 14% to more than 1 million units compared with the year-ago period, while individual companies reported between 16-27% sales gains during the same period. Total unit sales hit more than 15 million in… Read More

We are finally seeing signs of life in this critical U.S. industry. Rocked by overspending, hubris and economic crisis, this once mighty segment of the economy was reduced to a mere shadow of itself.  Fortunately, things are quickly changing for the better in this nearly left-for-dead sector.#-ad_banner-# In fact, January 2013 was the industry’s best January since 2008. U.S. sales soared 14% to more than 1 million units compared with the year-ago period, while individual companies reported between 16-27% sales gains during the same period. Total unit sales hit more than 15 million in the first month of the year, signalling an even better year than 2012, granted sales continue on this trajectory.  The surging stock market, with the S&P 500 posting its top-performing January in more than 12 years, combined with a slow-but-steady improvement in the U.S. employment picture have fuelled the rebound. Clearly, this industry rises and falls in lock step with the U.S. economy, so it’s often viewed as a proxy for the entire domestic economy.  In case you haven’t guessed it… Read More

A deep-pocketed mining conglomerate has just anted up $9 billion to make a high-stakes wager on energy.  Freeport McMoRan (NYSE: FCX) is best known for its massive metals hoard, most notably the Grasberg complex in Indonesia, which is the largest gold mine and third biggest copper mine on the planet. With operations on four continents, the company holds 102 billion pounds of copper reserves, 40 million ounces of gold, 266 million ounces of silver, 2.5 billion pounds of molybdenum, and 700 million pounds of cobalt.#-ad_banner-# Starting soon, this world-class… Read More

A deep-pocketed mining conglomerate has just anted up $9 billion to make a high-stakes wager on energy.  Freeport McMoRan (NYSE: FCX) is best known for its massive metals hoard, most notably the Grasberg complex in Indonesia, which is the largest gold mine and third biggest copper mine on the planet. With operations on four continents, the company holds 102 billion pounds of copper reserves, 40 million ounces of gold, 266 million ounces of silver, 2.5 billion pounds of molybdenum, and 700 million pounds of cobalt.#-ad_banner-# Starting soon, this world-class asset portfolio will be joined by millions of barrels of crude oil and trillions of cubic feet of gas.  On Dec. 5, Freeport McMoRan extended a bold $9 billion buyout offer ($20 billion including the assumption of debt) for two mid-tier exploration and production (E&P) firms.  The first target is McMoRan Exploration (NYSE: MMR), which, as you might guess, once belonged to Freeport McMoRan. MMR gained its independence via spin-off in the mid-1990s. After amassing 255 billion cubic… Read More