Analyst Articles

Right now, Corporate America has a huge problem on its hands. I’m not talking about another banking crisis, real estate crash or hedge fund manager running a Ponzi scheme… And I’m not talking about any sort of ominous regulations being handed down by the U.S. government, either. I’m not even talking about the growing levels of debt being accumulated by Uncle Sam each and every day — not to mention the lack of progress from our leaders in Washington in finding a… Read More

Right now, Corporate America has a huge problem on its hands. I’m not talking about another banking crisis, real estate crash or hedge fund manager running a Ponzi scheme… And I’m not talking about any sort of ominous regulations being handed down by the U.S. government, either. I’m not even talking about the growing levels of debt being accumulated by Uncle Sam each and every day — not to mention the lack of progress from our leaders in Washington in finding a solution to fix it. Actually, the “problem” I’m about to tell you about is really a once-in-a-lifetime investing opportunity. The problem? Corporate America has spent the past few years hoarding money like it was going out of style, effectively creating what I call a “Dividend Vault.” It started back at the height of the 2007-2008 financial crisis. Acting out of fear, companies started hoarding cash as banks stopped lending… Read More

The American Energy Renaissance has gotten a lot of press. And it should. The prediction that the United States will surpass Saudi Arabia as the world’s largest oil and gas producer by 2020 is big news. But what’s truly amazing about this story is that the headlines just keep coming. Regular readers of StreetAuthority are by now probably familiar with the enormous and expanding reserves of oil and gas that have been discovered in the Bakken Shale of North Dakota, the Marcellus Shale in the Mid-Atlantic region… Read More

The American Energy Renaissance has gotten a lot of press. And it should. The prediction that the United States will surpass Saudi Arabia as the world’s largest oil and gas producer by 2020 is big news. But what’s truly amazing about this story is that the headlines just keep coming. Regular readers of StreetAuthority are by now probably familiar with the enormous and expanding reserves of oil and gas that have been discovered in the Bakken Shale of North Dakota, the Marcellus Shale in the Mid-Atlantic region and the Eagle Ford Shale in Texas. In fact, Scarcity and Real Wealth Editor Nathan Slaughter just gave his subscribers an in-depth analysis of a new discovery in his home state of Louisiana: the Tuscaloosa Shale Formation. And now another play is ramping up in the West Texas region, a find with so much potential that John Breyer, a geologist and technical consultant for Marathon Oil Corp. (NYSE: MRO), has said it could “dwarf” the reserves already discovered in North Dakota. “It’s like the Eagle Ford on steroids. They haven’t even begun. We’re just in the toe of this thing,”… Read More

With every passing month, we read another report about our nation’s fast-track path to energy independence. Our domestic production of oil and gas is growing so rapidly, that we may just be a half-decade away from ending our long addiction to imported energy. And this would be great news for our nation’s trade deficit, employment picture and national security.#-ad_banner-# Despite the ever-brightening energy picture, it’s still quite easy to find value-priced stocks in this sector. Dozens of stocks trade at reasonable levels in relation to their… Read More

With every passing month, we read another report about our nation’s fast-track path to energy independence. Our domestic production of oil and gas is growing so rapidly, that we may just be a half-decade away from ending our long addiction to imported energy. And this would be great news for our nation’s trade deficit, employment picture and national security.#-ad_banner-# Despite the ever-brightening energy picture, it’s still quite easy to find value-priced stocks in this sector. Dozens of stocks trade at reasonable levels in relation to their cash flow, asset base and long-term growth prospects. I ran a series of screens to help bring a sharper focus to these industry value plays.  By triangulating the results of several screens, it’s possible to see the deepest values in this steadily-growing sector. Single-digit multiples abound While stocks in many other industries are often assessed by their price-to-earnings (P/E) multiples, this metric isn’t quite as useful for energy-exploration firms. They have such intense capital requirements and… Read More

Biotech stocks have a history of volatile moves, but the swings in this issue could make the calmest trader seasick. Between April 2009 and April 2010, biotech stock Dendreon (Nasdaq: DNDN) surged nearly 2,000%, from a low near $2.60, to a peak near $54. By July 2011, as management cut sales estimates of its flagship product, the stock had given up 80% of its value and fell to a low near $10.40. There was a countertrend rally to the mid-teens,… Read More

Biotech stocks have a history of volatile moves, but the swings in this issue could make the calmest trader seasick. Between April 2009 and April 2010, biotech stock Dendreon (Nasdaq: DNDN) surged nearly 2,000%, from a low near $2.60, to a peak near $54. By July 2011, as management cut sales estimates of its flagship product, the stock had given up 80% of its value and fell to a low near $10.40. There was a countertrend rally to the mid-teens, but after falling to the mid-$3 range, shares can now be picked up in the low $6 range.#-ad_banner-# Here’s what makes me excited now about the stock technically. It has broken a major downtrend line going back to mid-2011. In December, Dendreon cut through resistance just above $5 like a knife through butter. True, there is some resistance in the $7.80 area, but if this barrier can be exceeded, then the stock could move quickly to between $10 and $12. The shares are volatile, but in this… Read More

Economic forecasting is known as “The Dismal Science”…and for good reason.  That’s because many economists look at a small slice of data and come up with bold forecasts. Sometimes they nail an economic forecast with dead-on accuracy, but they can also be profoundly wrong.#-ad_banner-# The only way to get it… Read More

About a month ago, I recommended traders consider buying Israeli soda-maker, Soda Stream International (Nasdaq: SODA). At the time, the stock was trading around $40.50. Shares have since soared to about $52.70 for a 22% gain in a few short weeks.#-ad_banner-# I’ve now spotted another international beverage company that has equally strong potential to bring traders double-digit returns in a short time. The stock is of Mexican beverage firm, Fomento Economico Mexican (NYSE: FMX), or FEMSA. It is the holding company for a number… Read More

About a month ago, I recommended traders consider buying Israeli soda-maker, Soda Stream International (Nasdaq: SODA). At the time, the stock was trading around $40.50. Shares have since soared to about $52.70 for a 22% gain in a few short weeks.#-ad_banner-# I’ve now spotted another international beverage company that has equally strong potential to bring traders double-digit returns in a short time. The stock is of Mexican beverage firm, Fomento Economico Mexican (NYSE: FMX), or FEMSA. It is the holding company for a number of profitable food and beverage operations, including Coca-Cola FEMSA, of which it owns more than a 50% stake. Coca-Cola FEMSA is the world’s largest bottler of Coke products with 37 bottling plants across nine countries in Latin America. Having a major stake in Coke products is good news for the Mexican holding company. On a per capita basis, Mexicans are the world’s largest consumers of Coca-Cola. FMX also has the beer industry covered. The company owns a 20% stake in Dutch brewer, Heineken. And for those who get the late-night munchies after a… Read More

Is Mexico the new China? Until recently, China was the “go-to” manufacturer of choice. Thanks largely to the country’s low wages, companies across the industrialized world were able to have their products produced cheaper in China than at home — or in Mexico. The advantage known as the “China price”… Read More