Analyst Articles

Although it doesn’t make for a very interesting story, providing replacement parts for consumers can be just as profitable as unlocking the creative innovation that launches a new industry. Case in point: Cooper Tire & Rubber (NYSE: CTB). This company makes replacement tires for cars and trucks. It is the ninth-largest tire maker in the world and markets directly to consumers rather than supplying the parts needed for new cars where profit margins can be smaller. Tariff protection for tires was dropped in 2011, and Cooper… Read More

Although it doesn’t make for a very interesting story, providing replacement parts for consumers can be just as profitable as unlocking the creative innovation that launches a new industry. Case in point: Cooper Tire & Rubber (NYSE: CTB). This company makes replacement tires for cars and trucks. It is the ninth-largest tire maker in the world and markets directly to consumers rather than supplying the parts needed for new cars where profit margins can be smaller. Tariff protection for tires was dropped in 2011, and Cooper fell sharply when traders became concerned that cheap imports from China could hurt the company’s business. Those fears proved to be misplaced and Cooper saw sales and earnings rise as the stock price recovered. Despite strong financial performance, Cooper is trading with a price-to-earnings (P/E) ratio of about 5, less than half the industry average and well below the market average of about 14. Earnings… 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

The stock market is a fickle beast. Driven by perception rather than reality, it can launch into a multi-day rally at the smallest bullish rumor, or plunge lower whenever a tiny bit of economic uncertainty arises.  Everyone has a different opinion of what the future holds for the stock market. But lately, the bearish specialists have been presenting a compelling case of why a market downturn is… Read More

The stock market is a fickle beast. Driven by perception rather than reality, it can launch into a multi-day rally at the smallest bullish rumor, or plunge lower whenever a tiny bit of economic uncertainty arises.  Everyone has a different opinion of what the future holds for the stock market. But lately, the bearish specialists have been presenting a compelling case of why a market downturn is way overdue.#-ad_banner-# Because the market acts as an anticipatory mechanism, all the pending good news and potential government stimulus have already been priced into the market, according to these bears. In other words, the market has already moved higher on the anticipation of all possible bullish news.  Another strong point they make is that many companies have only been able to achieve improved earnings by cutting costs, not revenue. This type of creative accounting only offers a… Read More

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