Some of the most successful companies have taken iconic American brands and rolled them out internationally to generate incredible growth. Take Starbucks (Nasdaq: SBUX), for example. Starbucks first built its powerful brand in the United States, then famously rolled it out everywhere in the world. Investors who jumped on the Starbucks wagon in 1992 and held on for the long term have made 70 times their original investment. #-ad_banner-#When Starbucks went public in June 1992, the company had 140 outlets and revenue of $73 million. All of those 140 locations were in North America. The first Starbucks location… Read More

Some of the most successful companies have taken iconic American brands and rolled them out internationally to generate incredible growth. Take Starbucks (Nasdaq: SBUX), for example. Starbucks first built its powerful brand in the United States, then famously rolled it out everywhere in the world. Investors who jumped on the Starbucks wagon in 1992 and held on for the long term have made 70 times their original investment. #-ad_banner-#When Starbucks went public in June 1992, the company had 140 outlets and revenue of $73 million. All of those 140 locations were in North America. The first Starbucks location outside of North America didn’t even open until 1996, when the company opened a store in Tokyo. Today Starbucks covers much of the globe, operating in 63 countries with over 5,500 international stores. Since going international, shares of Starbucks have returned more than 2,500%. And even with thousands of international locations, Starbucks still has significant long-term expansion plans. There clearly is huge potential for companies that own highly recognizable American brands to compound their profits by going international. And I’ve found a company that I think is just about to start what could be a similarly long and lucrative growth… Read More

Based on a lot of the talk these days about people’s moviegoing habits, you might get the impression the cinema industry is barely surviving. #-ad_banner-#Granted, the industry’s best days may be behind it, thanks to hot competition from the many on-demand forms of video entertainment now available like Netflix (Nasdaq: NFLX), Roku (which may be going public sometime this year), tablets and mobile devices. But cinemas are far from dead. In fact, the industry is still growing — and quite briskly in some parts of the world. Growth in the mature U.S. market will probably remain tepid, though, with industrywide… Read More

Based on a lot of the talk these days about people’s moviegoing habits, you might get the impression the cinema industry is barely surviving. #-ad_banner-#Granted, the industry’s best days may be behind it, thanks to hot competition from the many on-demand forms of video entertainment now available like Netflix (Nasdaq: NFLX), Roku (which may be going public sometime this year), tablets and mobile devices. But cinemas are far from dead. In fact, the industry is still growing — and quite briskly in some parts of the world. Growth in the mature U.S. market will probably remain tepid, though, with industrywide revenue expansion of 2.3% in 2014, projects Australian research firm IBISWorld. That’s a touch slower than the 2.5% growth rate of 2011 through 2013. Latin America, on the other hand, has an especially robust movie theater industry with annual revenue growth in the 8% range. What’s more, this region should see much better growth at the box office for years because its middle class is expanding. As overall prosperity keeps rising, even more Latin Americans should be able to afford regular trips to the movies. This presents a particularly good chance at profits for one movie theater company with large… Read More

We’re in the midst of a wireless telecom revolution that promises to save consumers millions of dollars. The radical new pricing strategies adopted by wireless industry laggard T-Mobile (NYSE: TMUS) have led to all-out price wars, and things may only get worse for key rivals — and better for consumers.#-ad_banner-# T-Mobile’s aggressive pricing strategies aren’t merely a gimmick to rattle the competition: They’re aimed at building sales and profits. After digesting just-released fourth-quarter results, analysts now expect the carrier to boost revenue roughly 10% to 12% this year to around $29 billion. Operating cash flow is… Read More

We’re in the midst of a wireless telecom revolution that promises to save consumers millions of dollars. The radical new pricing strategies adopted by wireless industry laggard T-Mobile (NYSE: TMUS) have led to all-out price wars, and things may only get worse for key rivals — and better for consumers.#-ad_banner-# T-Mobile’s aggressive pricing strategies aren’t merely a gimmick to rattle the competition: They’re aimed at building sales and profits. After digesting just-released fourth-quarter results, analysts now expect the carrier to boost revenue roughly 10% to 12% this year to around $29 billion. Operating cash flow is now expected to move up around 25% to 30% this year, to around $4.6 billion, according to consensus forecasts. And the company is starting to get the attention of hedge fund managers, many of whom like to own companies that have a chance to shake up an industry. Third Point’s Daniel Loeb bought 7.6 million shares in the fourth quarter of 2013 at an average price of $27.41. And Leon Cooperman (who I profiled a year ago) also established a fresh 3 million-share position at the same buy-in price as Loeb. Here’s the unusual thing: This stock traded under $10… Read More

It’s not often that you see a monster company that has pulled back into the value buy zone. It’s even less often that this happens in combination with a special situation involving a marketing deal and an equity stake in a much smaller but rapidly growing company with a revolutionary patent. #-ad_banner-#The fundamental and technical pictures of both companies reveal a clear path of shorting the smaller company and buying the larger firm. Put simply, this setup has opportunity written all over it. First, the larger company in this pairs trade owns the most recognizable brand on Earth. In fact,… Read More

It’s not often that you see a monster company that has pulled back into the value buy zone. It’s even less often that this happens in combination with a special situation involving a marketing deal and an equity stake in a much smaller but rapidly growing company with a revolutionary patent. #-ad_banner-#The fundamental and technical pictures of both companies reveal a clear path of shorting the smaller company and buying the larger firm. Put simply, this setup has opportunity written all over it. First, the larger company in this pairs trade owns the most recognizable brand on Earth. In fact, this brand name is the second most commonly understood term in the world, behind only the word “OK.” The company has a presence in 200 countries, and it sells 75 million drinks an hour worldwide. In addition to its flagship product, the company also owns a portfolio of 3,500 beverages and 500 brands. As you’ve probably guessed, I’m talking about Coca-Cola (NYSE: KO). It’s said that the Coke name alone has a value of over $80 billion. Despite its booming successes, things have slowed a little at Coca-Cola. Last year, global sales volume rose just 2% while revenue slipped 2%… Read More

When it comes to IPOs, you can either be fortunate enough to buy into a deal on the offering price… or you must wait for shares to drop back to earth. #-ad_banner-#In recent years, many new issues have busted out of the starting gate and never looked back, leaving shares trading at valuations that can only be justified with a very long time horizon. Of further concern, many of these hot IPOs hold real risk when insiders are freed from holding shares as part of the lockup expiration. As an example, I recently cautioned that 465 million shares of Twitter… Read More

When it comes to IPOs, you can either be fortunate enough to buy into a deal on the offering price… or you must wait for shares to drop back to earth. #-ad_banner-#In recent years, many new issues have busted out of the starting gate and never looked back, leaving shares trading at valuations that can only be justified with a very long time horizon. Of further concern, many of these hot IPOs hold real risk when insiders are freed from holding shares as part of the lockup expiration. As an example, I recently cautioned that 465 million shares of Twitter (NYSE: TWTR) will be hitting the market in May — a powerful headwind for a cooling IPO. Instead of following hot IPOs, it makes better sense to follow the laggards. These are the companies that have either already fallen below their offering price, or fallen sharply from their post-IPO peaks. To be sure, many of these new issues deserve the drubbing they have received, but some companies just need to deliver better and more consistent results to build a shareholder base. Here are three 2013 IPOs that have fallen out of bed but show solid turnaround potential. 1.  SFX Entertainment… Read More

Buying stocks that are surrounded by negativity is not fun — but the best deals are often found in companies that are undergoing turnarounds yet still mired in bearish sentiment. #-ad_banner-#This should come as no surprise. After all, the reverse is true — as Warren Buffett has said, “You pay a very high price in the stock market for a cheery consensus.” The market is full of stories about struggling companies that were able to turn around difficult situations and become profitable — companies like Apple (Nasdaq: AAPL), General Motors (NYSE: GM) and Citibank (NYSE: C). Investors in those companies… Read More

Buying stocks that are surrounded by negativity is not fun — but the best deals are often found in companies that are undergoing turnarounds yet still mired in bearish sentiment. #-ad_banner-#This should come as no surprise. After all, the reverse is true — as Warren Buffett has said, “You pay a very high price in the stock market for a cheery consensus.” The market is full of stories about struggling companies that were able to turn around difficult situations and become profitable — companies like Apple (Nasdaq: AAPL), General Motors (NYSE: GM) and Citibank (NYSE: C). Investors in those companies who recognized and acted upon their turnarounds reaped large profits. To be sure, not every struggling company returns to profitability. Many wither and die on the vine, leaving investors with little to nothing to show for their trust and investment. There is no question that investing in turnaround candidates is risky. However, the substantial potential upside, combined with tactics to control risk, can make turnaround investing a profitable strategy. A prime example of profiting from a company that is mired in negativity but is in the process of turning things around is YRC Worldwide (Nasdaq: YRCW), a Kansas-based company that… Read More

In today’s market, there are no shortage of ways to invest in the rebounding housing market. However, it’s tough to find one that’s still cheap. #-ad_banner-#The major homebuilders have already had a solid rebound, along with banks and home improvement retailers, but there is still one overlooked play on the housing market and rebounding economy. This particular retailer was a great investment last year, up 45% — but after hitting its 52-week high earlier this year, it’s down 20% year to date. Given the recent pullback, this company is no longer just a growth story, but a value play at… Read More

In today’s market, there are no shortage of ways to invest in the rebounding housing market. However, it’s tough to find one that’s still cheap. #-ad_banner-#The major homebuilders have already had a solid rebound, along with banks and home improvement retailers, but there is still one overlooked play on the housing market and rebounding economy. This particular retailer was a great investment last year, up 45% — but after hitting its 52-week high earlier this year, it’s down 20% year to date. Given the recent pullback, this company is no longer just a growth story, but a value play at that. Trading at just 13 times earnings, more than 25% below its historical average, Bed Bath & Beyond (Nasdaq: BBBY) has proven to be one of the more resilient retailers in the brick-and-mortar space. At a time when the likes of Amazon.com (Nasdaq: AMZN) is taking market share from brick-and-mortar stores, Bed Bath & Beyond has seen its sales grow at an annualized rate of 12% over the past three fiscal years. BBBY fell off a cliff after third-quarter results came in below consensus expectations for both the top and bottom lines. Although revenue and earnings missed estimates, it’s worth… Read More

Thanks to an impressive recent rally, a number of stocks that had temporarily pulled back to bargain levels have already surged back to fresh highs. If you’re looking for solid bargains among companies that are at the top of their game… good luck. To find true bargains, you need to look at companies that have stumbled. Operational missteps are about the only reason for a stock to be out of favor these days. The key is to find the companies that have the ingredients to fix their problems. Here’s a look at three stocks trading well below recent highs —… Read More

Thanks to an impressive recent rally, a number of stocks that had temporarily pulled back to bargain levels have already surged back to fresh highs. If you’re looking for solid bargains among companies that are at the top of their game… good luck. To find true bargains, you need to look at companies that have stumbled. Operational missteps are about the only reason for a stock to be out of favor these days. The key is to find the companies that have the ingredients to fix their problems. Here’s a look at three stocks trading well below recent highs — each with catalysts to regain its footing in coming quarters. 1. Hercules Offshore (Nasdaq: HERO ) This provider of offshore drilling rigs and other equipment appears caught in a product cycle transition. The company is completing a new slate of rigs to put into service, but investors have grown concerned that those new rigs haven’t secured new long-term contracts. HERO, which traded up to nearly $8 last summer, now hovers around $4.50. That works out to be around six times projected 2015 profit forecasts. Shares of Hercules also trade well below book value, and have been a recent beneficiary of… Read More

Last fall, legendary investor Carl Icahn added a “sizable position” of Apple to his $16 billion holding company — Icahn Enterprises. Since he announced his purchase on Sept. 11, 2013, Apple is up 14.9%, handily outperforming the S&P’s 9.7% gain in that same time. After making the purchase, Icahn was quoted saying it was a “no-brainer” investment, citing that the company’s valuation was “extremely cheap” by the numbers. Icahn should know, too. Unlike most of today’s billionaires, he made his fortune entirely by investing in the stock market. Since he founded Icahn Enterprises less than 30 years ago, his company… Read More

Last fall, legendary investor Carl Icahn added a “sizable position” of Apple to his $16 billion holding company — Icahn Enterprises. Since he announced his purchase on Sept. 11, 2013, Apple is up 14.9%, handily outperforming the S&P’s 9.7% gain in that same time. After making the purchase, Icahn was quoted saying it was a “no-brainer” investment, citing that the company’s valuation was “extremely cheap” by the numbers. Icahn should know, too. Unlike most of today’s billionaires, he made his fortune entirely by investing in the stock market. Since he founded Icahn Enterprises less than 30 years ago, his company has enjoyed total returns in excess of 288,000%. #-ad_banner-#To put that in perspective, if you had invested $1,500 with him back in 1987, the size of your position would be worth over $4.3 million today. That kind of performance is one reason Chartered Market Technician Michael J. Carr recently designed a trading system to leverage the financial genius of investing gurus, like Icahn. By applying his proprietary trading system to stocks that are held by the market’s 20 most successful gurus — including Warren Buffett, George Soros and David Einhorn — Michael has earned big gains… Read More

When you hear of an investment opportunity you’re interested in, you might be drawn to something that can be described in a sexy way like “explosive” or “revolutionary.” #-ad_banner-#What you learn after a while, though, is that the most attractive adjective in investing is “consistency.” Stocks like Johnson & Johnson (NYSE: JNJ) don’t often make headlines, but they churn out steady results year after year. Since the beginning of 2012, JNJ is up 43%; with dividends reinvested, it’s up just over 50%. Call JNJ a boring stock if you want. I’ll take those types of returns all day long. But… Read More

When you hear of an investment opportunity you’re interested in, you might be drawn to something that can be described in a sexy way like “explosive” or “revolutionary.” #-ad_banner-#What you learn after a while, though, is that the most attractive adjective in investing is “consistency.” Stocks like Johnson & Johnson (NYSE: JNJ) don’t often make headlines, but they churn out steady results year after year. Since the beginning of 2012, JNJ is up 43%; with dividends reinvested, it’s up just over 50%. Call JNJ a boring stock if you want. I’ll take those types of returns all day long. But how about the best of both worlds — a consistent dividend-paying growth stock with plenty of upside? This stock has risen 110% since the beginning of 2012, and the company — which has being paying dividends since 1985 — recently increased its dividend by 15.8%. This month, the company beat fourth-quarter earnings estimates, bringing total 2013 earnings per share (EPS) to $5.93, up 14% from the previous year. The stock I’m talking about is Snap-on Inc. (NYSE: SNA), the eponymous maker of Snap-on tools and accessories for consumers ranging from do-it-yourselfers to oil workers in Alaska’s North Slope. Snap-on has… Read More