Analyst Articles

Many top companies issue an overlooked type of payment back to their shareholders… They work like traditional dividends, but with one major difference — these “dividends” are completely tax-free. These under-the-radar “dividends” are a favorite of Warren Buffett and many other billionaire investors.#-ad_banner-# There’s a good chance you’ve received one of these “tax-free dividends” before and didn’t even realize it. That’s because companies don’t issue these “dividends” in the normal way.  They “issue” them by buying back shares of their own… Read More

Many top companies issue an overlooked type of payment back to their shareholders… They work like traditional dividends, but with one major difference — these “dividends” are completely tax-free. These under-the-radar “dividends” are a favorite of Warren Buffett and many other billionaire investors.#-ad_banner-# There’s a good chance you’ve received one of these “tax-free dividends” before and didn’t even realize it. That’s because companies don’t issue these “dividends” in the normal way.  They “issue” them by buying back shares of their own stock. You see, when a company buys back its own stock, it’s similar to paying you a tax-free dividend. A buyback makes every share you own worth a larger piece of the company pie, but you don’t have to pay taxes on your new portion of ownership. On top of that, studies have shown that the share price usually rises afterward. A study by U.K.-based investment group Shore Capital Group found that… Read More

Hedge funds have been lining up on both sides of the fence regarding nutritional supplement multi-level marketing company Herbalife Ltd. (NYSE: HLF). The stock made a 52-week high of $73 last spring before shares took a huge hit following accusations from hedge fund investor William Ackman that the company was nothing more than a pyramid scheme. The seven-month trading range between $56 and $42 a share projected a downside target of $28 ($14 height of… Read More

Hedge funds have been lining up on both sides of the fence regarding nutritional supplement multi-level marketing company Herbalife Ltd. (NYSE: HLF). The stock made a 52-week high of $73 last spring before shares took a huge hit following accusations from hedge fund investor William Ackman that the company was nothing more than a pyramid scheme. The seven-month trading range between $56 and $42 a share projected a downside target of $28 ($14 height of the pattern subtracted from the breakdown level of $42). A volatility spike occurred when the downside channel support at $42 was broken in December, and as often happens at price extremes, the selling pressured the stock to $24 before a rebound.  Recent action has seen the price rally back above breakdown point at $42, which acts as the pivot point, to about $44. As the battle between short sellers and value buyers continues, traders can use a different approach to profit from Herbalife. Because of the high volatility (another word for… Read More