On Sept. 24, I invested in one of the world’s leading automakers.#-ad_banner-# I liked that its valuation was cheap, that the stock had been keeping up with the market while offering about 30% less volatility, and that future growth prospects looked well above average. At about 2%, the dividend yield was a nice bonus. Of course, there are no guarantees with any stock, but I had hoped shares would at least continue pacing the market after I bought them. Well, if you invested when I did, you know that hasn’t been the case. Since then, the stock has been disappointing,… Read More

On Sept. 24, I invested in one of the world’s leading automakers.#-ad_banner-# I liked that its valuation was cheap, that the stock had been keeping up with the market while offering about 30% less volatility, and that future growth prospects looked well above average. At about 2%, the dividend yield was a nice bonus. Of course, there are no guarantees with any stock, but I had hoped shares would at least continue pacing the market after I bought them. Well, if you invested when I did, you know that hasn’t been the case. Since then, the stock has been disappointing, dropping about 7% versus about a 7% gain for the market.  I’m not worried, though, because the stock’s problems are related to an ongoing concern management is perfectly capable of resolving. Once it does, I expect the stock’s bullish run — shares are up 31% this year and more than 17% a year for the past three years — to resume. I’m talking about Toyota (NYSE: TM), and the company’s main issue now is recalls. You probably know recalls have plagued Toyota for some time now. One of the most publicized episodes occurred between 2009 and 2010, when more than… Read More

As we close the books on 2013, one clear theme has emerged. Investors have flocked to developed economies and shunned emerging markets. The S&P 500 Index is on track for a nearly 30% gain this year, but many emerging markets have tumbled by double digits.#-ad_banner-# That kind of massive performance gap only emerges every decade or so, and for farsighted investors willing to look past near-term headwinds, emerging markets now represent tremendous relative value. You don’t need to tell that to the executives at major U.S. companies. They already know that emerging markets have generated — and will continue to… Read More

As we close the books on 2013, one clear theme has emerged. Investors have flocked to developed economies and shunned emerging markets. The S&P 500 Index is on track for a nearly 30% gain this year, but many emerging markets have tumbled by double digits.#-ad_banner-# That kind of massive performance gap only emerges every decade or so, and for farsighted investors willing to look past near-term headwinds, emerging markets now represent tremendous relative value. You don’t need to tell that to the executives at major U.S. companies. They already know that emerging markets have generated — and will continue to generate — robust growth rates, thanks in large part to ever-rising middle classes. While developed economies are growing at a 2% pace, emerging-market economies are growing at a 4% to 5% pace. Asian emerging markets are rising an even more impressive 6%, according the International Monetary Fund (IMF). The key takeaway: Even if you’re wary of investing in volatile emerging markets directly, you can focus on the U.S. companies that are positioned to derive a rising level of sales and profits in these countries. Thankfully, the strategists at Citigroup have already done the heavy lifting. In a recent report, Citi’s… Read More

It may seem like a long time ago, but the epic stock market meltdown of half a decade ago is again worth pondering.#-ad_banner-# From around 1,300 in August 2008, the S&P 500 Index plummeted to 1,100 by late September and below 900 by the end of November. By the time we hit bottom in March 2009, the index had tumbled below the 700 mark. A nearly 50% plunge in just seven months is virtually unprecedented. Now, with the S&P back up to around 1,800, we’ve seen a five-year rebound that should make us all quite thankful. This year has been… Read More

It may seem like a long time ago, but the epic stock market meltdown of half a decade ago is again worth pondering.#-ad_banner-# From around 1,300 in August 2008, the S&P 500 Index plummeted to 1,100 by late September and below 900 by the end of November. By the time we hit bottom in March 2009, the index had tumbled below the 700 mark. A nearly 50% plunge in just seven months is virtually unprecedented. Now, with the S&P back up to around 1,800, we’ve seen a five-year rebound that should make us all quite thankful. This year has been especially fruitful, as the S&P 500 has tacked on more value this year (on the basis of market cap) than in any year in its history. The market hasn’t even needed any breather this year on its path to record heights. S&P 500 By Quarter But such success can breed hubris. As Warren Buffett said back in 2011, “Once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits but simply to the fact… Read More

One thing about the stock market is that it is never boring.#-ad_banner-# Just last month, casino operator Wynn Resorts (Nasdaq: WYNN) broke down below a rising trendline, and within days it changed its mind. This week, the stock not only moved higher to break out from a bullish flag pattern, but it is once again challenging all-time highs. With Lady Luck smiling on Wynn once again, it is time to buy this recovered sector and WYNN in particular. Last month’s false breakdown below both the rising July trendline and the 50-day moving average did indeed look bearish. After all, the… Read More

One thing about the stock market is that it is never boring.#-ad_banner-# Just last month, casino operator Wynn Resorts (Nasdaq: WYNN) broke down below a rising trendline, and within days it changed its mind. This week, the stock not only moved higher to break out from a bullish flag pattern, but it is once again challenging all-time highs. With Lady Luck smiling on Wynn once again, it is time to buy this recovered sector and WYNN in particular. Last month’s false breakdown below both the rising July trendline and the 50-day moving average did indeed look bearish. After all, the stock already failed at resistance supplied by its all-time highs set by the 2007 and 2011 peaks. And with momentum indicators also heading south, things did not look so good. But two days after its breakdown, WYNN suddenly surged with exceptionally heavy volume. It also set a low in place that helped define a newly emerging and bullish flag pattern. Flags are simply countertrend moves that usually provide a period of rest in a rally. If and when the upper border is pierced, the buy signal is triggered as the bulls are back in control. That breakout arguably… Read More

When the Dow Jones Industrial Average was reformulated in September, former technology leader Hewlett-Packard (NYSE: HPQ) was quietly replaced. It was yet another tough blow for a firm that is on track for its third straight year of sales declines. CEO Meg Whitman, who was just celebrating her second full year at the company’s helm, could not have been pleased. But Whitman is surely getting the last laugh. Because against the odds, Hewlett-Packard has turned out to be one of the top-performing tech stocks of 2013. Shares have doubled in value, putting the S&P 500 Index’s 25% gain to shame. Read More

When the Dow Jones Industrial Average was reformulated in September, former technology leader Hewlett-Packard (NYSE: HPQ) was quietly replaced. It was yet another tough blow for a firm that is on track for its third straight year of sales declines. CEO Meg Whitman, who was just celebrating her second full year at the company’s helm, could not have been pleased. But Whitman is surely getting the last laugh. Because against the odds, Hewlett-Packard has turned out to be one of the top-performing tech stocks of 2013. Shares have doubled in value, putting the S&P 500 Index’s 25% gain to shame. More than $25 billion in market value has been added, and Whitman has less need to worry about job security. #-ad_banner-#Yet a deeper look reveals a company that remains mired in a deep slump, and a stock price that is now sharply overvalued. As UBS’ Steve Milunovich noted in a recent report, “The stock has rebounded as fundamentals improved from very poor to mediocre,” adding that “HP appears secularly challenged with too much hardware and a paucity of software revenue.” Indeed, the only good news for Hewlett-Packard is that it isn’t performing as poorly as many had expected. Read More

Data sets are getting larger and larger, and there’s a lot of useful information just waiting to be made sense of. Nowhere is this truer than in the health care industry.#-ad_banner-#       Different hospitals have different platforms for managing data, which makes it exceedingly difficult to exchange information. Although it has been a slow process, the U.S. is moving toward a health care market that provides care more efficiently. Part of this includes implementing electronic health records and managing hospital costs. The American Recovery and Reinvestment… Read More

Data sets are getting larger and larger, and there’s a lot of useful information just waiting to be made sense of. Nowhere is this truer than in the health care industry.#-ad_banner-#       Different hospitals have different platforms for managing data, which makes it exceedingly difficult to exchange information. Although it has been a slow process, the U.S. is moving toward a health care market that provides care more efficiently. Part of this includes implementing electronic health records and managing hospital costs. The American Recovery and Reinvestment Act allocated about $20 billion for electronic health records. This portion of the act offers financial incentives to hospitals and physicians to adopt and use health care information technology. The other positive is that many organizations face penalties for non-compliance, starting in 2015. With all this “reform” coming to the health care industry, one of the best ways to invest in the coming health care data boom is Allscripts Healthcare Solutions (Nasdaq: MDRX). Yet the stock hasn’t been all that great to investors over the past couple of years. Thanks to a botched acquisition, MDRX is still down nearly 50%… Read More

I’m often asked how I come up with a consistent stream of investment ideas. There is really no single answer to this question.#-ad_banner-# I have been immersed in the financial markets since my first trade back in 1990. Since that time, my investing library has grown so large that it has overwhelmed my bookshelves and spread into attic storage boxes. I am also a voracious reader of the financial media, reading several magazines and newspapers on a near-daily basis — not to mention subscribing to real-time news services to stay up on what’s happening. While my investing library has provided… Read More

I’m often asked how I come up with a consistent stream of investment ideas. There is really no single answer to this question.#-ad_banner-# I have been immersed in the financial markets since my first trade back in 1990. Since that time, my investing library has grown so large that it has overwhelmed my bookshelves and spread into attic storage boxes. I am also a voracious reader of the financial media, reading several magazines and newspapers on a near-daily basis — not to mention subscribing to real-time news services to stay up on what’s happening. While my investing library has provided the foundation, and the daily financial media torrent turns the knowledge actionable, my favorite fresh idea source is other investors. New ideas can come from anyone, from the most naive beginner to the most sophisticated hedge fund manager and everyone in between. This is the reason I make it a point to talk to every trader and investor I meet about what’s working and what’s not working in their investing. Another way to learn from others is by following the big-money players. There are several large hedge fund managers who have earned my respect, and I watch their every publicly… Read More

Getting in shape is no longer just a New Year’s resolution.#-ad_banner-# In its annual Topline Report, the Physical Activity Council, a coalition of sports-related trade groups, found that more than 60% of Americans frequently engaged in fitness sports in 2012. That growing interest in health and fitness has led to a huge surge in the number of people joining fitness clubs. According to the International Health, Racquet and Sportsclub Association, health club and gym memberships jumped to 51 million in 2012, up from 41 million in 2005. And looking forward, with Americans increasingly fighting back against… Read More

Getting in shape is no longer just a New Year’s resolution.#-ad_banner-# In its annual Topline Report, the Physical Activity Council, a coalition of sports-related trade groups, found that more than 60% of Americans frequently engaged in fitness sports in 2012. That growing interest in health and fitness has led to a huge surge in the number of people joining fitness clubs. According to the International Health, Racquet and Sportsclub Association, health club and gym memberships jumped to 51 million in 2012, up from 41 million in 2005. And looking forward, with Americans increasingly fighting back against obesity and diabetes, and with baby boomers focused on staying in shape as they retire, the $21 billion domestic health and fitness industry is growing quickly. That’s one of the reasons I’m bullish on an industry-leading fitness club company. With 106 locations and more than 800,000 members, it’s already a juggernaut. But with plans to double its expansion rate in the next two years, it’s in a great position to capitalize on America’s growing interest in health and fitness. That has shares up nearly 300% in the past five years. Life Time Fitness (NYSE: LTM) is a $1.9… Read More

​I like to track all the stocks I write about, maintaining watch lists by various categories. One of my favorite categories, “small cap stocks under $10” has been a tried-and-true group for me over the years.  Here are four of these stocks I’m focusing on right now. Each of them appears to have solid upside in the year ahead. 1. Maxwell Technologies (Nasdaq: MXWL )​ In the face of an air pollution epidemic, the Chinese government is finally getting serious. Any technologies that can sharply cut emissions from power plants and transportation are getting a fresh look, and this company… Read More

​I like to track all the stocks I write about, maintaining watch lists by various categories. One of my favorite categories, “small cap stocks under $10” has been a tried-and-true group for me over the years.  Here are four of these stocks I’m focusing on right now. Each of them appears to have solid upside in the year ahead. 1. Maxwell Technologies (Nasdaq: MXWL )​ In the face of an air pollution epidemic, the Chinese government is finally getting serious. Any technologies that can sharply cut emissions from power plants and transportation are getting a fresh look, and this company could be a clear beneficiary. Maxwell makes ultra-capacitors, which can deliver huge amounts of power in short bursts. The products are especially well-suited in transportation, in vehicles such as city buses. China has already been a strong customer in the past, as this article written by a sales executive at the company notes. But China has delayed renewing a subsidy program for hybrid buses. Shares have traded off a bit in the past few months in the face of such delays. I look at this stock’s performance in 2014 in a binary fashion. If China… Read More

If you were a kid in the 1970s and ‘80s like I was, then you may have noticed just how much better household pets generally have it these days.#-ad_banner-#​ Years ago, pets were more often treated like disposable possessions. People often acquired them without thinking much about how to keep them safe or healthy. And once the novelty of having them wore off, they were often cared for grudgingly, ignored, or simply gotten rid of. But today, people are much more likely to pamper their pets and treat them like indispensable family members. As… Read More

If you were a kid in the 1970s and ‘80s like I was, then you may have noticed just how much better household pets generally have it these days.#-ad_banner-#​ Years ago, pets were more often treated like disposable possessions. People often acquired them without thinking much about how to keep them safe or healthy. And once the novelty of having them wore off, they were often cared for grudgingly, ignored, or simply gotten rid of. But today, people are much more likely to pamper their pets and treat them like indispensable family members. As a result, the pet products and services industry has become enormous. Total spending on pets in the U.S. should top $55 billion this year, up from about $51 billion in 2011. It has nearly doubled during the past 10 years. With a 40% market share, one leading pet products and services company has taken major advantage of this trend. Since 2004, its sales have grown 8.5% annually and more than doubled, from $3 billion to $6.8 billion.  Not even the Great Recession could slow this company down much, suggesting its customers are highly loyal and tend to see pet-related spending… Read More