Bear markets are painful but necessary. They rid the market of the “irrational exuberance” that fuels asset bubbles and allows stock pickers to better separate the wheat from the chaff. Bear markets can also take place in specific sectors, as is happening right now in the energy market.  Yet in such lean times, the best companies can actually turn headwinds into tailwinds. That’s exactly what’s happening at Helmerich & Payne, Inc. (NYSE: HP). #-ad_banner-#H&P owns and operates one of the world’s largest fleets of drilling rigs (primarily land-based). The rigs are typically contracted out to exploration and production companies looking… Read More

Bear markets are painful but necessary. They rid the market of the “irrational exuberance” that fuels asset bubbles and allows stock pickers to better separate the wheat from the chaff. Bear markets can also take place in specific sectors, as is happening right now in the energy market.  Yet in such lean times, the best companies can actually turn headwinds into tailwinds. That’s exactly what’s happening at Helmerich & Payne, Inc. (NYSE: HP). #-ad_banner-#H&P owns and operates one of the world’s largest fleets of drilling rigs (primarily land-based). The rigs are typically contracted out to exploration and production companies looking to extract oil and gas from various shale formations in the United States. Like the rest of the sector, H&P is beginning to feel the effects of low energy prices. In its recent earnings report, the company saw a 1% decline in revenue to $883 million and 14% drop in net income to $150 million. Underlying these declines were shrinking active rig counts and falling dayrates, the daily amount H&P can charge for the use of its rigs. There was also a huge drop in utilization, or the percentage of active rigs contracted out. In Q2, utilization was just 68%,… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to… Read More

If you are reading this article, then you are likely considered a “self-directed investor.” You like to perform your own investment research and make buy, sell and short decisions on your own. But you should still know about the radical battle being raged for the hearts and minds of investors that entrust wealth building to others. #-ad_banner-#In one corner, we have traditional financial services firms such as The Charles Schwab Corp. (NYSE: SCHW), Vanguard and Fidelity Investments. In the other corner, you’ll find industry upstarts with names like Wealthfront, FutureAdvisor, Motif Investing and Betterment. These firms are all scrambling to establish a position in the field of robo-advising, also known as “automated investment services.” Before weighing in on which firm has built the best mousetrap and if the entire concept holds real appeal, it helps to understand what robo-advisers are and are not. Robo-advisers ask clients to fill out a quick survey that identifies an investor’s goals. They then create ideal low-cost portfolios that hold a basket of diversified exchange-traded funds. Total fees often end up at less than 1% of assets under management, compared to fees of 1%-to-2% of assets under management offered by traditional financial advisors. (Robo-adviser upfront… Read More

Sometimes, nothing improves a company’s outlook like a smart, well-timed acquisition. When done right, these deals can transform companies with unexciting prospects into compelling growth stories. Mid-size defense firm Harris Corp. (NYSE: HRS) is set to make such a transformation this summer, when its $4.8-billion buyout of industry peer Exelis, Inc. (NYSE: XLS) is scheduled to close. Harris, known for secure tactical radio communication systems, wasn’t in trouble before the deal announcement, but it certainly wasn’t in expansion mode, either. By fiscal (June) 2014, annual sales had actually returned to the recession level of about $5 billion, despite a brief… Read More

Sometimes, nothing improves a company’s outlook like a smart, well-timed acquisition. When done right, these deals can transform companies with unexciting prospects into compelling growth stories. Mid-size defense firm Harris Corp. (NYSE: HRS) is set to make such a transformation this summer, when its $4.8-billion buyout of industry peer Exelis, Inc. (NYSE: XLS) is scheduled to close. Harris, known for secure tactical radio communication systems, wasn’t in trouble before the deal announcement, but it certainly wasn’t in expansion mode, either. By fiscal (June) 2014, annual sales had actually returned to the recession level of about $5 billion, despite a brief spike to nearly $6 billion a few years earlier. Earnings per share of $4.95 in 2014  weren’t much better than 2010 and 2011’s totals of $4.28 and $4.60, respectively. Harris has been a good dividend source, more than doubling its payout since 2010. If not for that, the stock probably wouldn’t have been able to deliver solid gains over the past five years. In all likelihood, shares were driven up mainly by income investors seeking higher yields than were typically available in bonds. To avoid shedding market value as the Federal Reserve raises interest rates, Harris will need… Read More

Over the past half decade, large biotechnology stocks have delivered robust gains across the board. These companies sell a range of very popular drugs and have been generating massive profits. At the other end of the spectrum, small biotechs, most of which are still in their developmental stage, have been a hit-or-miss proposition, with a lot more hits and misses. Yet one group of small biotechs has been on fire, and gains look set to continue. Investors are only now coming to realize that the young, recently-public companies working on gene therapy aren’t a flash in the pan, but a… Read More

Over the past half decade, large biotechnology stocks have delivered robust gains across the board. These companies sell a range of very popular drugs and have been generating massive profits. At the other end of the spectrum, small biotechs, most of which are still in their developmental stage, have been a hit-or-miss proposition, with a lot more hits and misses. Yet one group of small biotechs has been on fire, and gains look set to continue. Investors are only now coming to realize that the young, recently-public companies working on gene therapy aren’t a flash in the pan, but a vanguard in the fight against many maladies. Since I profiled these stocks a year ago, they have exploded higher. On average, they have risen 191% over the past 12 months. (For more background, please read the April 2014 article.)  The catalysts for these stocks are quite clear: either they have announced impressive clinical advances, or secured the endorsement (and financial backing) of the big drug makers. For example: In December 2014, bluebird bio, Inc. (Nasdaq: BLUE) announced that patients in early stage trial were given the company’s LentiGlobin355 drug, and their need for chronic blood transfusions simply ceased. Read More

Health care stocks rank among the biggest winners of the current bull market, and one subsector that has shown significant outperformance in the past six months is medical equipment makers. Since many of the stocks in this group have already made big runs, I am on the lookout for fresh chart pattern breakouts. Aesthetic and medical device maker Cynosure (NASDAQ: CYNO) fits that bill. The company makes devices to treat various skin and vascular conditions, including tattoo removal and cellulite treatments. On the charts, Cynosure has been trading in a very wide long-term trading range between $21… Read More

Health care stocks rank among the biggest winners of the current bull market, and one subsector that has shown significant outperformance in the past six months is medical equipment makers. Since many of the stocks in this group have already made big runs, I am on the lookout for fresh chart pattern breakouts. Aesthetic and medical device maker Cynosure (NASDAQ: CYNO) fits that bill. The company makes devices to treat various skin and vascular conditions, including tattoo removal and cellulite treatments. On the charts, Cynosure has been trading in a very wide long-term trading range between $21 and $31.50, in round numbers.  On the last short-term leg up within the pattern, shares stalled at the upper border, but unlike previous attempts, they only pulled back by a small margin. This behavior leans bullish as it shows the bears could not drive the stock back down as they had done before. #-ad_banner-#​Earlier this month, CYNO poked its head above the upper border of the range and spent a few more days rallying, but then once again pulled back. It found support at the old range top.  What was once considered to be expensive was… Read More

Although new consumer technologies can capture a great deal of buzz, they are often just the tip of the tech iceberg. Many of the sector’s most lucrative developments occur completely behind the scenes. For instance, many investors are unaware of the groundbreaking advances being made in machine vision systems. These relatively new, camera-based technologies essentially endow robots with the superhuman vision necessary for high-speed manufacturing, often with extremely small components. Coupled with the appropriate software, the technology enables robots to identify, assemble and inspect products far too fast for the human eye to follow. The development of machine vision systems… Read More

Although new consumer technologies can capture a great deal of buzz, they are often just the tip of the tech iceberg. Many of the sector’s most lucrative developments occur completely behind the scenes. For instance, many investors are unaware of the groundbreaking advances being made in machine vision systems. These relatively new, camera-based technologies essentially endow robots with the superhuman vision necessary for high-speed manufacturing, often with extremely small components. Coupled with the appropriate software, the technology enables robots to identify, assemble and inspect products far too fast for the human eye to follow. The development of machine vision systems began more than half a century ago, but has only taken off in the past decade or so. In 2005, it was a $1.3 billion industry. Since then, machine vision has ballooned into a $4.5 billion market and is projected to more than double to $9.5 billion by 2020. The best way to play the trend: Cognex Corp. (Nasdaq: CGNX). Shares of this technology leader have posted robust gains and still have plenty of room left to run. Founded in 1981, Cognex sells machine vision systems that facilitate the production of cars, mobile devices, drugs and packaged foods,… Read More

Talk about a lousy way to start the day. Each morning, even when he’s on vacation, the President of the United States sits with top intelligence officials to review the President’s Daily Brief, a comprehensive list of new intelligence on threats and international crises affecting the country. These bureaucrats literally have to sit around a conference table every day and ask, “What could go wrong?” Sure there are hurricanes, earthquakes or volcanic eruptions. But as they say in the insurance industry, these are known as “acts of God.” They don’t include violent crimes or acts of terrorism, which are studied… Read More

Talk about a lousy way to start the day. Each morning, even when he’s on vacation, the President of the United States sits with top intelligence officials to review the President’s Daily Brief, a comprehensive list of new intelligence on threats and international crises affecting the country. These bureaucrats literally have to sit around a conference table every day and ask, “What could go wrong?” Sure there are hurricanes, earthquakes or volcanic eruptions. But as they say in the insurance industry, these are known as “acts of God.” They don’t include violent crimes or acts of terrorism, which are studied by other agencies. But thousands of dedicated Americans are working all over the world to keep U.S. citizens safe from an entirely different threat altogether. And in order to address it, the government will need to rely on a burgeoning industry that investors like you can capitalize on today. Let me explain. The order of the President’s Daily Brief has changed from year to year — counterintelligence jumped two spots to No. 2 this year, while weapons of mass destruction dropped a spot to No. 3. But one risk in particular — the No. 1 threat facing America — has… Read More

“Google” and the phrase “internet search” have become virtually synonymous. Google, Inc.’s (Nasdaq: GOOG) overwhelmingly dominant market share of web searches has helped the company to become the largest media company in the world, ranked by advertising revenue (as of 2013). The company’s projected 2015 sales of $65.8 billion mean that it will account for nearly 40% of the global digital advertising spend this year. With spending on digital advertising growing at 13% a year, well over the 3% growth in the broader marketing category, Google stands to continue posting great financial results. Its… Read More

“Google” and the phrase “internet search” have become virtually synonymous. Google, Inc.’s (Nasdaq: GOOG) overwhelmingly dominant market share of web searches has helped the company to become the largest media company in the world, ranked by advertising revenue (as of 2013). The company’s projected 2015 sales of $65.8 billion mean that it will account for nearly 40% of the global digital advertising spend this year. With spending on digital advertising growing at 13% a year, well over the 3% growth in the broader marketing category, Google stands to continue posting great financial results. Its shares trade for 25 times trailing earnings, which is not out of line with other fast-growth technology companies: If that was the entire story, then shares would be appealing. But a new patent filed by an up-and-coming competitor may mean trouble ahead. The patent applicant has already dominated one area of our virtual lives and could soon be taking huge market share from Google’s biggest money-maker. A Social Media Giant’s Strategic Advertising Plans Facebook, Inc. (Nasdaq: FB) recently filed for a patent that may underpin a lethal combination in internet data and advertising. The patent covers the use… Read More

We’re now officially in the age of cybercrime. And the problem is reaching epidemic proportions. Consider these statistics: — An estimated one-in-three computers have been attacked by viruses, spyware or phishing programs. — Companies spend more than $46 billion on IT equipment, software, services and personnel to protect data, according to Allied Business Intelligence, a technology market research firm. — 20,000. That’s the number of malicious “apps” that exist on Android smartphone devices. That’s 20,000 different ways for a skilled hacker to break into your smartphone and steal your personal information. These are mind-blowing numbers, which depict the level of… Read More

We’re now officially in the age of cybercrime. And the problem is reaching epidemic proportions. Consider these statistics: — An estimated one-in-three computers have been attacked by viruses, spyware or phishing programs. — Companies spend more than $46 billion on IT equipment, software, services and personnel to protect data, according to Allied Business Intelligence, a technology market research firm. — 20,000. That’s the number of malicious “apps” that exist on Android smartphone devices. That’s 20,000 different ways for a skilled hacker to break into your smartphone and steal your personal information. These are mind-blowing numbers, which depict the level of danger we’re dealing with. But with any crisis, there is a great investing opportunity. #-ad_banner-#James Clapper, the director of National Intelligence, put cybercrimes at the top of his annual list of threats facing the United States. He ranked it above natural disasters, violent crimes, viral pandemics and nuclear weaponry. The scary part? Many of these cyberattacks aren’t just happening to one or two victims at a time. A lot of them are happening on a massive scale. Just think about the financial destruction cyberterrorists caused corporations — and their customers — in 2014 alone. In January, Target announced that hackers… Read More

The banking industry is still in recovery mode after an era of heavy fines and a greatly-increased level of regulatory scrutiny. But the industry is also grappling with major technological shifts that are upending the old ways of doing business. Smaller, more nimble firms are taking non-traditional approaches to banking, which is creating headaches and headwinds for big banks. The Vast, Costly Branch Network The idea of a physical bank location on every street corner is dying. 30% of the U.S. population hasn’t visited a bank branch in more than six months, according to a study by Bankrate.com. As… Read More

The banking industry is still in recovery mode after an era of heavy fines and a greatly-increased level of regulatory scrutiny. But the industry is also grappling with major technological shifts that are upending the old ways of doing business. Smaller, more nimble firms are taking non-traditional approaches to banking, which is creating headaches and headwinds for big banks. The Vast, Costly Branch Network The idea of a physical bank location on every street corner is dying. 30% of the U.S. population hasn’t visited a bank branch in more than six months, according to a study by Bankrate.com. As a result, established banks are slowly adjusting to the new paradigm. The PNC Financial Services Group, Inc. (NYSE: PNC), the seventh largest bank by assets, reduced its number of retail branches by 6% over the last two years. JPMorgan Chase & Co. (NYSE: JPM) is spending millions to revamp current branches to be more automated and need fewer employees. Still, large retail banks can’t move quick enough to shrink their branch networks, which will result in additional costs for years to come. On the other end of the spectrum, the banks that never bothered to build a branch network now… Read More