Analyst Articles

Everyone knows fashion retailing is a cyclical business. The better the economy is, the more consumers spend. Conversely, when the economy is weak, people tend to stay at home and keep their purse strings tied tight. As a result, when it looks an economic rough patch is on the horizon, investors steer clear of retailers that sell anything but the basic necessities of life. After all, looking good isn’t quite as important during tough times. But there’s just one problem with that strategy: Sometimes that mindset doesn’t quite work to investors’ advantage. Right… Read More

Everyone knows fashion retailing is a cyclical business. The better the economy is, the more consumers spend. Conversely, when the economy is weak, people tend to stay at home and keep their purse strings tied tight. As a result, when it looks an economic rough patch is on the horizon, investors steer clear of retailers that sell anything but the basic necessities of life. After all, looking good isn’t quite as important during tough times. But there’s just one problem with that strategy: Sometimes that mindset doesn’t quite work to investors’ advantage. Right now, for example, there’s one retailer that’s managed to grow its top and bottom line for years now, no matter what kind of economic environment. Better yet, the stock has shrugging off bear markets on its way to becoming one of top-performing stocks for the past 10 years, rising more than 650%. And the next several years don’t look like they’re going to be any different. Amazing stats The Buckle (NYSE: BKE) is… Read More

Each week, one of our investing experts answers a reader’s question in our the Q&A column at our sister site, InvestingAnswers.com. It’s all part of our mission to help consumers build and protect their wealth through education. This week’s question will be answered by Investment Analyst David Sterman: Many of us invest for one reason: to build a big enough nest egg for retirement. Good old-fashioned stock picking is the preferred route for many investors but… Read More

Each week, one of our investing experts answers a reader’s question in our the Q&A column at our sister site, InvestingAnswers.com. It’s all part of our mission to help consumers build and protect their wealth through education. This week’s question will be answered by Investment Analyst David Sterman: Many of us invest for one reason: to build a big enough nest egg for retirement. Good old-fashioned stock picking is the preferred route for many investors but can be a bit daunting for the novice investor. This reader’s question addresses another type of investment that can provide you with a solid retirement strategy. Q. “I’m a long way away from it, but I’m starting to think about investing for retirement. I’ve heard of these mutual funds with a year attached to them and you pick the one that’s closest to the year that you expect to retire. How do those work exactly? And are they good?” — Paul, Manhattan, Kan. A. Paul, you’re talking about “target-date” funds, and the short… Read More

For as long as I can remember, I have always questioned the status quo and the established way of looking at things.#-ad_banner-# If the majority is doing one thing, then it’s my natural state to think the opposite. But as you likely know, a contrarian attitude isn’t generally perceived in a positive way. But I was happy to find out I’m not alone in the investment world. Many successful investors are contrarians by nature. In fact, being an investment contrarian… Read More

For as long as I can remember, I have always questioned the status quo and the established way of looking at things.#-ad_banner-# If the majority is doing one thing, then it’s my natural state to think the opposite. But as you likely know, a contrarian attitude isn’t generally perceived in a positive way. But I was happy to find out I’m not alone in the investment world. Many successful investors are contrarians by nature. In fact, being an investment contrarian can provide a huge edge. This is because the majority of investors is often wrong. Once the crowd gets excited about a particular stock, investment or tactic, it’s often a signal to do the opposite. The stock market has an uncanny knack for attracting the most possible money into an idea or stock right before a sharp change in direction causes many to take a loss. And one way I… Read More

In the late 1980s, Japan’s economy was the envy of the world. The country’s meteoric rise to become the world’s second-largest economy coupled with the dominance of Japanese brands such as Sony, Toyota and Kubota gave rise to the term “Japanese Economic Miracle.” Managers around the world sought to emulate the nation’s manufacturing techniques. Japanese companies and consumers, enriched by their nation’s rapid economic growth, bought up prime real estate and other assets in the United… Read More

In the late 1980s, Japan’s economy was the envy of the world. The country’s meteoric rise to become the world’s second-largest economy coupled with the dominance of Japanese brands such as Sony, Toyota and Kubota gave rise to the term “Japanese Economic Miracle.” Managers around the world sought to emulate the nation’s manufacturing techniques. Japanese companies and consumers, enriched by their nation’s rapid economic growth, bought up prime real estate and other assets in the United States, Europe and elsewhere. #-ad_banner-#But Japan’s miracle was built in part on a bubble. In 1989, at the height of the property bubble, choice commercial property in Tokyo sold for more than $20,000 per square foot. Average Japanese homes near the nation’s six largest cities cost the equivalent of 30 to 50 times the median Japanese income, an unsustainable level. Gains in residential and office properties between 1986 and the top of the property bubble in 1991 were even more dramatic than home price gains in the United States during the mid-2000s. The economic miracle came to an abrupt end… Read More

You don’t often find a stock with a 7.7% dividend yield in this income starved environment. When it’s supported by a bullish technical outlook and solid fundamentals, you know it’s likely a winning trade! Shares of Rentech Nitrogen Partners (NYSE: RNF) are on a tear. So far in 2013, the stock is up more than 15%, and, as I explain below, the technicals point to further price… Read More

You don’t often find a stock with a 7.7% dividend yield in this income starved environment. When it’s supported by a bullish technical outlook and solid fundamentals, you know it’s likely a winning trade! Shares of Rentech Nitrogen Partners (NYSE: RNF) are on a tear. So far in 2013, the stock is up more than 15%, and, as I explain below, the technicals point to further price appreciation ahead.#-ad_banner-# The master-limited partnership (MLP), which went public in 2011, makes nitrogen fertilizer and industrial chemicals. With a rising global population, and a decrease in arable land, their fertilizer is in high demand. Rentech operates two nitrogen fertilizer plants: one in Illinois, the other in Texas. The Illinois property is located in the heart of the Midwest Corn Belt — the largest consuming area of nitrogen fertilizers in the United States. This past November, Rentech acquired a Texas-based ammonium sulfate fertilizer plant, previously owned by Agrifos. It’s expected that the $158 million… Read More