After nine months of fruitless negotiations, the International Longshore and Warehouse Union and the Pacific Maritime Association agreed to a tentative agreement to re-open 29 West Coast ports.   The deal, which came three days after the arrival of Labor Secretary Thomas Perez, must still be ratified by both sides. It will be a huge relief for importers, with nearly half of all U.S. maritime trade and 70% of Asian imports offloading at the ports.   Economists may also be breathing a sigh of relief. A prior 10-day shutdown in 2002 cost the economy $1 billion per day, or… Read More

  After nine months of fruitless negotiations, the International Longshore and Warehouse Union and the Pacific Maritime Association agreed to a tentative agreement to re-open 29 West Coast ports.   The deal, which came three days after the arrival of Labor Secretary Thomas Perez, must still be ratified by both sides. It will be a huge relief for importers, with nearly half of all U.S. maritime trade and 70% of Asian imports offloading at the ports.   Economists may also be breathing a sigh of relief. A prior 10-day shutdown in 2002 cost the economy $1 billion per day, or nearly 4% of the nation’s output over the period.   Yet it’s too soon to celebrate the news: Clearing out the backlog of shipments will take several months, which likely portends weak results for many firms in the first and second quarters.     Not Soon Enough Even when the ports have been cleared of delayed freight and operations return to normal, serious problems will remain. The increase in super-sized freighters has overwhelmed dock workers and bottlenecks for rail and truck transportation are becoming a persistent theme.   That issue played a direct role in the contract… Read More

The nation’s leading hedge fund managers tend to target mid-to-large-sized companies. An investment in small caps often requires too much trading finesse, and too little returns, to be worthwhile. Yet it’s always intriguing to spot that rare moment when big game hunters go after small targets. #-ad_banner-#Oftentimes, these smaller companies offer the kind of compelling combination of growth and value that even the top fund managers can’t ignore. Here’s a look at three small companies that the nation’s top guru investors have bought into. Chicago Bridge & Iron Co. NV (NYSE: CBI) This infrastructure builder sported a mid-cap valuation… Read More

The nation’s leading hedge fund managers tend to target mid-to-large-sized companies. An investment in small caps often requires too much trading finesse, and too little returns, to be worthwhile. Yet it’s always intriguing to spot that rare moment when big game hunters go after small targets. #-ad_banner-#Oftentimes, these smaller companies offer the kind of compelling combination of growth and value that even the top fund managers can’t ignore. Here’s a look at three small companies that the nation’s top guru investors have bought into. Chicago Bridge & Iron Co. NV (NYSE: CBI) This infrastructure builder sported a mid-cap valuation roughly a year ago, exceeding $10 billion. A subsequent sell-off, which has cut the market value by more than half, threatens to send CBI into the small-cap camp. The dramatic plunge in shares has caught the eye of activist investor David Einhorn. The fund manager’s firm, Greenlight Capital, bought $150 million of CBI stock in the fourth quarter of 2014, though a 15% drop from his $49.25 buy-in price means that stake is now worth a bit less. Notably, seven other gurus also established new positions in CBI during the most recent quarter, as tracked by gurufocus.com. Warren Buffett’s Berkshire… Read More

I recently returned from a week of travels along the Caribbean coast of Colombia. #-ad_banner-#The sights were unbelievable… but the sounds were even more impeccable. You see, the region loves its music, particularly a type of music known locally as Vallenato (pronounced “ba-ji-an-ato”). From dawn until dusk you could hear the music being played from somewhere off in the distance. And though I enjoyed it all, as some of the locals informed me, the old singers are really the best because “they took the time to craft great songs.” You’ll probably… Read More

I recently returned from a week of travels along the Caribbean coast of Colombia. #-ad_banner-#The sights were unbelievable… but the sounds were even more impeccable. You see, the region loves its music, particularly a type of music known locally as Vallenato (pronounced “ba-ji-an-ato”). From dawn until dusk you could hear the music being played from somewhere off in the distance. And though I enjoyed it all, as some of the locals informed me, the old singers are really the best because “they took the time to craft great songs.” You’ll probably laugh when I tell you this, but this type of logic is exactly what has helped me succeed in the markets for years. It’s all about studying something so deeply that you really get to the bottom of what it’s all about. Because beating the market really just comes down to having discipline. Let me show you what I mean… Skimming the markets occasionally can help you find some decent investments. But if you really take the time to study and look carefully at all the options, there are some excellent opportunities that others… Read More

  The global economy can deliver a jolt to stock markets at any moment. These “Black Swan” events are hard to predict or anticipate, but are always on the back of our minds.     #-ad_banner-#Sometimes, we can even develop a vague sense that something is brewing. For example, investors could sense that market trouble was coming in 2000 and 2008, but the likelihood of trouble was so far outside of market sentiment that few were prepared.   With central banks and investors around the world completely preoccupied with deflation, could rising price pressures be the next unexpected event for… Read More

  The global economy can deliver a jolt to stock markets at any moment. These “Black Swan” events are hard to predict or anticipate, but are always on the back of our minds.     #-ad_banner-#Sometimes, we can even develop a vague sense that something is brewing. For example, investors could sense that market trouble was coming in 2000 and 2008, but the likelihood of trouble was so far outside of market sentiment that few were prepared.   With central banks and investors around the world completely preoccupied with deflation, could rising price pressures be the next unexpected event for which you should be preparing?   The clues are all there and we may be in for a trend of low growth, high unemployment and increasing prices. That combination, last seen several decades ago, is referred to as “stagflation.”   Disco Fever And The Great Stagflation The last time stagflation reared its ugly head, bell bottoms were all the rage and Richard Nixon was just starting his second term in the White House. Economic growth — adjusted for inflation — was an anemic 3% for the rest of that decade. Indeed ample price pressures meant that  the… Read More

Few investors have heard about China’s Winland Ocean Shipping Corp. or Denmark’s Copenship A/S. But these firms are the proverbial “canary in the coal mine.” #-ad_banner-#Both have declared bankruptcy in recent weeks, and they may soon have plenty of company. That’s what happens when heavily-indebted companies square up against deep industry distress. That industry: dry bulk shipping, which involves everything from iron ore and other commodities to processed industrial materials. The major shippers build massive (and expensive) boats and then hope that those boats can garner sufficiently high daily lease rates. Those rates,… Read More

Few investors have heard about China’s Winland Ocean Shipping Corp. or Denmark’s Copenship A/S. But these firms are the proverbial “canary in the coal mine.” #-ad_banner-#Both have declared bankruptcy in recent weeks, and they may soon have plenty of company. That’s what happens when heavily-indebted companies square up against deep industry distress. That industry: dry bulk shipping, which involves everything from iron ore and other commodities to processed industrial materials. The major shippers build massive (and expensive) boats and then hope that those boats can garner sufficiently high daily lease rates. Those rates, as measured by the Baltic Dry Index, have just moved to levels not seen since the 1980s. The index typically had support in the 650 range during past downturns, but we’ve now shot past that mark. (Remarkably, this index hit almost 12,000 back in 2008.) Why is this index plumbing fresh lows with each passing week? Demand for dry goods, especially in China, appears to be quickly slowing. Moreover, dry bulk shippers ordered a lot of new ships in 2013, many of which started plying the waters in the past 12 months. Too many ships chasing too little… Read More

All major U.S. indices closed higher for the third consecutive week, led by the tech-heavy Nasdaq 100, which gained 1.4% and is now up 4.9% for the year. As I’ve stated in previous reports, this is particularly important because technology issues, ideally with some help from small-cap stocks, typically lead the broader market both higher and lower. #-ad_banner-#From a sector standpoint, last week’s rally was led by health care and industrials, with the recently rejuvenated energy sector the only one in negative territory. Meanwhile, materials, which were extremely weak during the fourth quarter, have quietly been the strongest sector year… Read More

All major U.S. indices closed higher for the third consecutive week, led by the tech-heavy Nasdaq 100, which gained 1.4% and is now up 4.9% for the year. As I’ve stated in previous reports, this is particularly important because technology issues, ideally with some help from small-cap stocks, typically lead the broader market both higher and lower. #-ad_banner-#From a sector standpoint, last week’s rally was led by health care and industrials, with the recently rejuvenated energy sector the only one in negative territory. Meanwhile, materials, which were extremely weak during the fourth quarter, have quietly been the strongest sector year to date, up 6.9%. This suggests the opportunity I pointed to in copper futures and PowerShares DB Base Metals ETF (NYSE: DBB) in the Dec. 8 Market Outlook could begin to get some traction in the marketplace. I continue to watch the materials sector and copper as emerging investment opportunities in 2015. Cisco Leading Technology Higher In the previous report, I highlighted an emerging breakout in the Nasdaq 100 following 10 weeks of investor indecision that targeted a 5% rise to 4,600. In the past week alone, the index gained 1.4% to… Read More

For sufferers of Rheumatoid Arthritis, Crohn’s Disease, psoriasis, colitis and other auto-immune diseases, AbbVie, Inc.’s (Nasdaq: ABBV) Humira has been an utter godsend. The drug has proven so successful in reducing inflammation associated with these maladies that it is now the world’s third-largest best-seller. #-ad_banner-#But success doesn’t come cheap. AbbVie charges thousands per dose, which can have a costly impact on insurers and their clients’ insurance premiums. AbbVie, which makes more than $12 billion a year from sales of Humira, is able to charge so much for a simple reason — at least in the United States: It has limited… Read More

For sufferers of Rheumatoid Arthritis, Crohn’s Disease, psoriasis, colitis and other auto-immune diseases, AbbVie, Inc.’s (Nasdaq: ABBV) Humira has been an utter godsend. The drug has proven so successful in reducing inflammation associated with these maladies that it is now the world’s third-largest best-seller. #-ad_banner-#But success doesn’t come cheap. AbbVie charges thousands per dose, which can have a costly impact on insurers and their clients’ insurance premiums. AbbVie, which makes more than $12 billion a year from sales of Humira, is able to charge so much for a simple reason — at least in the United States: It has limited competition. Humira is in a class of drugs, known as biologics, which are drugs that can’t be simply synthesized in a lab, but instead must be genetically engineered with living cells. The Food & Drug Administration (FDA) has always known that such biologic drugs are hard to engineer and as a result, has historically kept the door closed to generic competition. When the FDA established the ground rules for bioloigic production, it was a niche market. Such drugs now account for roughly 30% of the entire U.S. pharmaceutical industry. In light of the meteoric growth for these pricey drugs, the… Read More

Even if you never decide to pursue short selling, you still need to track the key actions of short sellers. These contrarian investors may be highlighting potential troubles for a stock that you own in a long-focused portfolio. And they also often provide key clues about the economy’s underlying changes. #-ad_banner-#As I recently noted, the year ahead is likely to be quite different from the recent past, impacting companies and industries in myriad ways. And you can add the impact of a strong U.S. dollar to the group of factors that are impacting business conditions. What do the shorts have… Read More

Even if you never decide to pursue short selling, you still need to track the key actions of short sellers. These contrarian investors may be highlighting potential troubles for a stock that you own in a long-focused portfolio. And they also often provide key clues about the economy’s underlying changes. #-ad_banner-#As I recently noted, the year ahead is likely to be quite different from the recent past, impacting companies and industries in myriad ways. And you can add the impact of a strong U.S. dollar to the group of factors that are impacting business conditions. What do the shorts have to say about these economic changes? Well, they are targeting several companies and industries that appear increasingly vulnerable to an economy-led pullback. Perhaps the most obvious example of an industry in flux, is the laser-like focus of short sellers on AT&T, Inc. (NYSE: T). As of the end of January, the short interest in this telecom giant stood at a whopping 303 million shares. For a bit of context, the short interest stood at roughly 100 million in September 2013 and has been steadily rising ever since. This stock now has nearly twice the short interest of the second most-heavily… Read More

In a recent article on StreetAuthority.com I told readers all about my new list of The Top 10 Stocks For 2015. I decided to do more than just listing off a few names and ticker symbols. I wanted readers, like you, to be able to go out and find similar stocks on your own. That’s why I revealed the three distinct characteristics I use to track down my collection #-ad_banner-#of the market’s best performing stocks for the coming year. Today, I’d like to highlight one of these categories a little more in depth. Because quite frankly,… Read More

In a recent article on StreetAuthority.com I told readers all about my new list of The Top 10 Stocks For 2015. I decided to do more than just listing off a few names and ticker symbols. I wanted readers, like you, to be able to go out and find similar stocks on your own. That’s why I revealed the three distinct characteristics I use to track down my collection #-ad_banner-#of the market’s best performing stocks for the coming year. Today, I’d like to highlight one of these categories a little more in depth. Because quite frankly, I’m not sure any one of my criteria is more important than this… The ability to retain a loyal customer base and keep them buying your products for years is a hallmark of the world’s best businesses. This trait has led my Top 10 Stocks subscribers and me to some exceptional investment opportunities over the years. Firms that can lock in a loyal group of followers are able to generate strong cash flows and superior profit margins, putting them in a better position to return money to shareholders through dividends and share buybacks. Read More

I’m going to do something today that I’ve never done before… #-ad_banner-#For those who don’t know, I’m the Co-Chief Investment Strategist of Maximum Profit — StreetAuthority’s proprietary trading system that’s designed to identify when a stock is about to deliver double- or even triple-digit gains in the coming days, weeks and months. Every two weeks we publish an issue telling readers exactly which stocks to buy and which stocks to sell in our premium advisory. Our readers pay good money for our research and so I can’t just give away all of our recent… Read More

I’m going to do something today that I’ve never done before… #-ad_banner-#For those who don’t know, I’m the Co-Chief Investment Strategist of Maximum Profit — StreetAuthority’s proprietary trading system that’s designed to identify when a stock is about to deliver double- or even triple-digit gains in the coming days, weeks and months. Every two weeks we publish an issue telling readers exactly which stocks to buy and which stocks to sell in our premium advisory. Our readers pay good money for our research and so I can’t just give away all of our recent trades to the public. It wouldn’t be fair to our paying subscribers. But today I’m breaking that rule. That’s because after delivering a string of winners to our paying subscribers, I wanted to share one of our recent recommended trades with the public — so you can have the chance of profiting alongside us. After discussing this with my editor, he gave me the go-ahead to let the cat out of the bag. I know this won’t always be the case, so make sure to pay close attention to the rest of this issue. Read More