It’s an old investing axiom that that many of the companies with the highest growth potential are private and thus out of reach for investors of the public markets. Venture Capital (VC) firms are the ones making investments in early stage growth companies, but it usually takes big bucks to get in on the action. GSV Capital Corp. (Nasdaq: GSVC) is a publicly traded VC that allows regular investors to invest in hyper-growth companies. Better yet, the firm’s stock trades at a discount and has several potential catalysts that could send shares higher. In early-stage investing, there are going to… Read More

It’s an old investing axiom that that many of the companies with the highest growth potential are private and thus out of reach for investors of the public markets. Venture Capital (VC) firms are the ones making investments in early stage growth companies, but it usually takes big bucks to get in on the action. GSV Capital Corp. (Nasdaq: GSVC) is a publicly traded VC that allows regular investors to invest in hyper-growth companies. Better yet, the firm’s stock trades at a discount and has several potential catalysts that could send shares higher. In early-stage investing, there are going to be hits and misses, that’s just the nature of the beast. However, GSV has shown it has a knack for picking winners. It invested in Facebook, Inc. (Nasdaq: FB) and Twitter, Inc. (NYSE: TWTR) prior to their initial public offerings (IPOs). This is a company that’s done very well for investors, steadily growing its net asset value per share over the last three years. Despite the company steadily growing assets per share, the stock price hasn’t followed suit. Despite trading for a slight premium to net asset value during the first few years of its existence, it now… Read More

While most investors tend to focus on large and stable companies with decent growth prospects, some investors only seek out undiscovered stocks that have the potential to double, triple or even quadruple your investment. The companies underpinning such potential gains are often known as “game-changers” because they possess a new technology that can completely alter existing industry dynamics. My colleague, Andy Obermueller, who pen’s StreetAuthority’s Game-Changing Stocks, has shown an uncanny knack for revealing such companies over the years. Yet as you seek out such companies, don’t just focus on their income statements. Instead, keep a close eye on the… Read More

While most investors tend to focus on large and stable companies with decent growth prospects, some investors only seek out undiscovered stocks that have the potential to double, triple or even quadruple your investment. The companies underpinning such potential gains are often known as “game-changers” because they possess a new technology that can completely alter existing industry dynamics. My colleague, Andy Obermueller, who pen’s StreetAuthority’s Game-Changing Stocks, has shown an uncanny knack for revealing such companies over the years. Yet as you seek out such companies, don’t just focus on their income statements. Instead, keep a close eye on the company’s levels of cash. The best time to own such stocks is often right after the balance sheet has been bolstered. Let me give an example. Back in September 2013, I saw huge potential upside for Novavax, Inc. (Nasdaq: NVAX), which had been developing a range of treatments for various viruses. Considering that this stock had moved sideways in prior years made it seem foolish to predict robust imminent upside. But Novavax did something that instantly changed sentiment. It raised a lot of money.  Novavax typically finished every year with $30-to-$40 million in the bank. Investors rightly understood… Read More

Airline stocks have been a popular investing theme over the past few years, as many of them have tripled, quadrupled or even quintupled in the past few years. Yet investors are overlooking a crucial and highly successful behind-the-scenes industry player. Netherlands-based AerCap Holdings NV (NYSE: AER), the world’s largest aircraft lessor, is a stock that should be on your radar. AerCap has been handily beating Wall Street earnings estimates, delivering as much as 65% upside during the past four quarters. Its stock, too, has been generating profits that make the S&P 500’s performance look meager. Despite this stock’s… Read More

Airline stocks have been a popular investing theme over the past few years, as many of them have tripled, quadrupled or even quintupled in the past few years. Yet investors are overlooking a crucial and highly successful behind-the-scenes industry player. Netherlands-based AerCap Holdings NV (NYSE: AER), the world’s largest aircraft lessor, is a stock that should be on your radar. AerCap has been handily beating Wall Street earnings estimates, delivering as much as 65% upside during the past four quarters. Its stock, too, has been generating profits that make the S&P 500’s performance look meager. Despite this stock’s massive gains, trailing and forward price-to-earnings ratios of only about 11 and 9, respectively, suggesting most investors still don’t have the stock on their radar. That’s unfortunate. Without companies like AerCap, the airlines might not be looking at record profits. They’d have to own all of their own aircraft, and the added cost would hold them back. #-ad_banner-#That’s why most airlines choose to lease at least a portion of their fleet. And for this, they’re turning increasingly to AerCap. The company vaulted to the top of its industry a year ago with a $7.6-billion buyout of International Lease Finance Corp.,… Read More

Scientists and environmentalists have been talking about climate change for more than a decade, but the topic has thus far had minimal impact on our daily lives.   That is until the last few years, as an historic drought has spread across most of California. More than two-thirds of the state is in “extreme” drought conditions as it enters its fourth year of low rainfall. Regulators have recently instituted the first-ever mandatory cuts to water usage for residential and commercial customers. The problem may not be California’s alone. Elsewhere in the United States, and around the globe, water crises have… Read More

Scientists and environmentalists have been talking about climate change for more than a decade, but the topic has thus far had minimal impact on our daily lives.   That is until the last few years, as an historic drought has spread across most of California. More than two-thirds of the state is in “extreme” drought conditions as it enters its fourth year of low rainfall. Regulators have recently instituted the first-ever mandatory cuts to water usage for residential and commercial customers. The problem may not be California’s alone. Elsewhere in the United States, and around the globe, water crises have begun to emerge with increasing frequency. Might we all be subject to wide-scale water rationing one day? Even if we don’t experience the nightmare desert scenes portrayed in so many post-apocalyptic movies, we will surely need more efficient monitoring and treatment of our water resources in the future. Depleting water resources could mean huge sales for two companies in particular. Is California The Future For Everyone? California’s historic drought has led to the state’s first ever mandatory water conservation law. One of the state’s 10 largest reservoirs, the New Melones, may be dry by this fall and nine reservoirs are… Read More

Even great companies can see their stock prices sink on short-term factors and negative headlines. If you want to outperform the market, then you have to be ready to avoid these near-term catalysts, take profits and wait to take advantage of lower prices down the road. I warned investors in late 2013 that one such company could be hit by the outcry for higher wages despite a strong business model and an excellent brand. Within a month of the article, shares were 20% lower. Since then, however, the share price has jumped 45% in about 18 months. Now that very… Read More

Even great companies can see their stock prices sink on short-term factors and negative headlines. If you want to outperform the market, then you have to be ready to avoid these near-term catalysts, take profits and wait to take advantage of lower prices down the road. I warned investors in late 2013 that one such company could be hit by the outcry for higher wages despite a strong business model and an excellent brand. Within a month of the article, shares were 20% lower. Since then, however, the share price has jumped 45% in about 18 months. Now that very same stock could be facing near-term catalysts to the downside. Another plunge in the shares could offer another great buying opportunity or it could wipe out all of your returns if you don’t take profits beforehand. This Company Is Juiced For Profits Jamba, Inc. (Nasdaq: JMBA), based in California, is the top retailer of the growing freshly-squeezed juice and smoothie market, with 100 million annual visitors to its 862 Jamba Juice stores. The company rolled out four grocery products to 300 stores in California through the last quarter of 2014 and plans on a national… Read More

When seeking market-beating stocks, few investors would probably consider a category as pedestrian as heating, ventilation, air conditioning (HVAC). And that would be a missed opportunity. Some HVAC stocks have been beating the market handily and not just lately but for years. One especially stellar performer: Lennox International Inc. (NYSE: LII), an industry leader with annual sales of $3.4 billion. Lennox’s stock is up 190% in the past three years, handily outpacing the S&P 500. Stocks typically only crush the market like this when the underlying company enjoys major long-term competitive advantages. And Lennox surely does. At the… Read More

When seeking market-beating stocks, few investors would probably consider a category as pedestrian as heating, ventilation, air conditioning (HVAC). And that would be a missed opportunity. Some HVAC stocks have been beating the market handily and not just lately but for years. One especially stellar performer: Lennox International Inc. (NYSE: LII), an industry leader with annual sales of $3.4 billion. Lennox’s stock is up 190% in the past three years, handily outpacing the S&P 500. Stocks typically only crush the market like this when the underlying company enjoys major long-term competitive advantages. And Lennox surely does. At the macro level, it’s one of the five core players in the HVAC market, and the market outlook is bright due to continued strength in real estate. Lennox focuses much more on residential than commercial real estate. So data like rising housing starts, increased filings for single-family home construction permits and spiking homebuilder confidence all bode especially well for the firm’s future. Another key macro indicator favoring Lennox is the Contractor Comfort Index, a measure of near-term growth expectations among HVAC contractors. April’s Index reading of 82 reflects very strong expectations (anything greater than 50 indicates a positive growth outlook). The… Read More

SodaStream International Ltd. (Nasdaq: SODA) is a classic case of a widely anticipated initial public offering that didn’t pan out.  Since bursting onto the scene in a late-2010 IPO, the carbonated soda machine maker received considerable investor buzz before eventually succumbing to unrealistic growth expectations.  On many occasions, the firm’s stock rallied on turnaround hopes or buyout rumors. Yet as the chart below shows, SodaStream never evolved into a profitable long-term investment. But more than just an unfortunate tale, SodaStream provides a crucial lesson on how to avoid repeating history by being alert for other stocks… Read More

SodaStream International Ltd. (Nasdaq: SODA) is a classic case of a widely anticipated initial public offering that didn’t pan out.  Since bursting onto the scene in a late-2010 IPO, the carbonated soda machine maker received considerable investor buzz before eventually succumbing to unrealistic growth expectations.  On many occasions, the firm’s stock rallied on turnaround hopes or buyout rumors. Yet as the chart below shows, SodaStream never evolved into a profitable long-term investment. But more than just an unfortunate tale, SodaStream provides a crucial lesson on how to avoid repeating history by being alert for other stocks headed down a similar path — such as The Container Store Group, Inc. (NYSE: TCS). Like SodaStream, the Container Store is a once-hot IPO that has become a perilous value trap. After much pre-IPO hype, The Container Store saw its shares double in its trading debut in 2013. The stock tacked on further gains in ensuing months, but has since fallen more than 60% from the January 2014 high.  As a business, The Container Store bears no resemblance to SodaStream, offering a range of household storage containers and organization systems. But it has the same problem. Read More

More than a year after it was first proposed, the $45 billion  merger between Comcast Corp. (Nasdaq: CMCSA) and Time Warner Cable, Inc. (NYSE: TWC) was canceled last month. The deal would have been the answer to an aging cable communications industry, creating a giant with sufficient scale to withstand the slow decline of cable and satellite subscriptions. It turns out, the giant may have been too large for regulators to allow, and Comcast pulled its bid before Washington could kill it. #-ad_banner-#But it won’t stop the wave of industry consolidation. That’s because of rising competition from firms like Netflix,… Read More

More than a year after it was first proposed, the $45 billion  merger between Comcast Corp. (Nasdaq: CMCSA) and Time Warner Cable, Inc. (NYSE: TWC) was canceled last month. The deal would have been the answer to an aging cable communications industry, creating a giant with sufficient scale to withstand the slow decline of cable and satellite subscriptions. It turns out, the giant may have been too large for regulators to allow, and Comcast pulled its bid before Washington could kill it. #-ad_banner-#But it won’t stop the wave of industry consolidation. That’s because of rising competition from firms like Netflix, Inc. (Nasdaq: NFLX) and others, which has led to a 13% drop in live television viewership over the past year, according to Nomura Research.   Broadband Is The Future Of The Industry Regulators made it no secret that control over the broadband market was a big factor in their expected disapproval of the proposed Comcast-TWC deal. Comcast served 21 million internet customers and TWC had 11.4 million customers at the end of the first quarter. The combined entity  would have controlled 55% of the domestic broadband market, along with 30% of the cable TV market. (Though analysts had been comparing… Read More

For an investor looking to bolster their portfolio, there’s no better time than the start of a new mega-trend. Imagine if you could go back and invest in computers or smartphones before their demand skyrocketed to unprecedented levels. #-ad_banner-#That’s the kind of opportunity we’re are sitting on today, but many investors haven’t even realized it yet. See, I’ve uncovered a burgeoning new industry that has returned more than double the S&P 500 in the past few years. And the numbers say this trend is only just getting started. Read More

For an investor looking to bolster their portfolio, there’s no better time than the start of a new mega-trend. Imagine if you could go back and invest in computers or smartphones before their demand skyrocketed to unprecedented levels. #-ad_banner-#That’s the kind of opportunity we’re are sitting on today, but many investors haven’t even realized it yet. See, I’ve uncovered a burgeoning new industry that has returned more than double the S&P 500 in the past few years. And the numbers say this trend is only just getting started. Let me explain. Since the end of 2010, the S&P 500 has earned investors an 81% return. On the other hand, companies in the cybersecurity industry have helped investors earn a whopping 163% — more than double the S&P’s return. Some might look at that chart and worry that they’ve missed the boat; that all of the biggest gains have already been made. But that just isn’t the case. Markets and Markets — a market research firm based… Read More

When Applied Materials, Inc. (Nasdaq: AMAT), the world’s largest semiconductor equipment manufacturer announced plans in 2011 to acquire Varian Semi for more than $4 billion, many industry participants cried foul. After all, AMAT, as the company is known, was already so dominant in the industry that it seemed unfair for it to grow yet larger. So when AMAT announced in 2014 that it planned to absorb rival Tokyo Electron, for more than $9 billion, competitors pleaded with regulators to nix the deal. Six months later, those regulators indeed expressed serious anti-trust concerns, and AMAT’s management has quietly canceled its proposed… Read More

When Applied Materials, Inc. (Nasdaq: AMAT), the world’s largest semiconductor equipment manufacturer announced plans in 2011 to acquire Varian Semi for more than $4 billion, many industry participants cried foul. After all, AMAT, as the company is known, was already so dominant in the industry that it seemed unfair for it to grow yet larger. So when AMAT announced in 2014 that it planned to absorb rival Tokyo Electron, for more than $9 billion, competitors pleaded with regulators to nix the deal. Six months later, those regulators indeed expressed serious anti-trust concerns, and AMAT’s management has quietly canceled its proposed merger. Simply put, with roughly $10 billion in annual revenues, this company is now too large to make any more deals. And that’s a good thing. Management has a new plan, which could fuel 40% upside for this slumping stock. In a moment, I’ll explain the perfect entry point for this stock. One hint: it’s coming very soon. Go-It-Alone Makes Sense While management likely wishes the Tokyo Electron deal could have been consummated, not all investors think it made complete sense. Tokyo Electron has seen recent market share losses, and AMAT’s core growth rate would likely have dimmed once… Read More