Growth Investing

Intel (Nasdaq: INTC) beat the Street’s estimates when it announced its third-quarter results last week. The company reported earnings of $0.58 a share, beating the consensus estimate of $0.53. Revenue for the quarter was $13.5 billion, in line with analysts’ expectations.#-ad_banner-#​ Intel also said it expects fourth-quarter revenue of about $13.7 billion, compared with analysts’ expectations of $14 billion.  Intel CEO Brian Krzanich was upbeat about the company’s third-quarter performance and strategy execution: “We’re executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we… Read More

Intel (Nasdaq: INTC) beat the Street’s estimates when it announced its third-quarter results last week. The company reported earnings of $0.58 a share, beating the consensus estimate of $0.53. Revenue for the quarter was $13.5 billion, in line with analysts’ expectations.#-ad_banner-#​ Intel also said it expects fourth-quarter revenue of about $13.7 billion, compared with analysts’ expectations of $14 billion.  Intel CEO Brian Krzanich was upbeat about the company’s third-quarter performance and strategy execution: “We’re executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet of Things to data centers, with an increasing focus on ultra-mobile devices and two-in-one systems.”  Intel is ramping up investments in its TV service project, hiring talent from the likes of Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL) and Netflix (Nasdaq: NFLX) earlier this year. Whether all of this will play out as planned remains to be seen, but from a technical perspective, the stock’s chart looks enticing. The day after the company reported its earnings, the stock rallied 1.3% as investors and traders alike seemed to take… Read More

Biotechnology is a notorious minefield for investors. For every successful drug that survives the approval process, dozens more simply flame out. Millions of dollars of capital evaporate every time a clinical trial fails to produce positive results. #-ad_banner-# Yet a select group of biotech visionaries manage to strike it big — time and again. They have a knack for spotting biotechnologies that ultimately prove their mettle through the Food and Drug Administration’s rigorous process. And few have shown the gift of biotech insights like Randal J. Kirk. Kirk has built his fortune by focusing on drugs that have blockbuster potential. Read More

Biotechnology is a notorious minefield for investors. For every successful drug that survives the approval process, dozens more simply flame out. Millions of dollars of capital evaporate every time a clinical trial fails to produce positive results. #-ad_banner-# Yet a select group of biotech visionaries manage to strike it big — time and again. They have a knack for spotting biotechnologies that ultimately prove their mettle through the Food and Drug Administration’s rigorous process. And few have shown the gift of biotech insights like Randal J. Kirk. Kirk has built his fortune by focusing on drugs that have blockbuster potential. And he’s shown the patience to stick with them — for years, if needed — until his vision is realized. The payoff: He netted a $1.2 billion profit in 2007 when Shire (Nasdaq: SHPG) acquired New River Pharmaceuticals for $2.6 billion. New River had developed Vyvanse, a key drug in the treatment of attention deficit hyperactivity disorder (ADHD). Four years later, Kirk struck gold again as Forest Labs (NYSE: FRX) paid him $600 million for his majority stake in Clinical Data, which had developed Viibryd, an anti-depressant drug that hit the market in 2011. Since then, Kirk has remained off… Read More

Polyester-draped family photos aside, being a child of the 1970s was pretty cool in some ways. There were many things to dislike — bad hair, bad clothes and a lot of terrible music — but the TV shows weren’t too bad. For several years in the mid-’70s, my family used to sit down faithfully on Tuesday nights in front of our ridiculous console TV set to watch “Happy Days.” The series ran well into the ’80s, but most viewers gave up on it after the famous episode in which the Fonz jumped a shark while waterskiing. The series… Read More

Polyester-draped family photos aside, being a child of the 1970s was pretty cool in some ways. There were many things to dislike — bad hair, bad clothes and a lot of terrible music — but the TV shows weren’t too bad. For several years in the mid-’70s, my family used to sit down faithfully on Tuesday nights in front of our ridiculous console TV set to watch “Happy Days.” The series ran well into the ’80s, but most viewers gave up on it after the famous episode in which the Fonz jumped a shark while waterskiing. The series went downhill fast after that, giving rise to the awesome phrase “jumped the shark,” which is used to describe when something has peaked and rolled over.  Stocks, of course, are highly capable of jumping the shark. Let me be upfront. I’ve never been to a Chipotle Mexican Grill (NYSE: CMG) — but being in the investing biz, I’m familiar with the brand, thanks to the financial media’s nonstop gushing about the company and its stock. Clearly, Chipotle is a bona fide rock star. A double in two years is impressive, but these numbers are unsustainable. I don’t care… Read More

I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.#-ad_banner-# I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs then built technical support and rebounded above their 50-day simple moving averages.  Once the screen has found suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks experience a rebound from their lows, only to drop back down to those lows or even… Read More

I love finding little stocks that have a strong possibility of doubling or even tripling in a short period of time.#-ad_banner-# I uncover them by running technical screens on stocks trading under $10. My screens search for companies that have been knocked off their highs then built technical support and rebounded above their 50-day simple moving averages.  Once the screen has found suitable candidates, I drill down into fundamentals, economic conditions and potential catalysts that could power the little stock higher. Many beaten-down stocks experience a rebound from their lows, only to drop back down to those lows or even further — the so-called dead cat bounce. My fundamental, economic and catalyst screen, which I call Price Drivers, adds support to the technical picture.  I firmly believe that technical analysis plays a powerful role in stock analysis, but it cannot stand on its own as a decision-making tool. Traders need to understand what’s behind the price moves to make profitable decisions. Price alone isn’t adequate for the vast majority of situations.  The latest stock to pass my technical and fundamental Price Drivers screens is Brazilian telecommunications company Oi (NYSE: OIBR), which trades on the New York Stock Exchange as an… Read More

There is little doubt that Hollywood loves 3-D. According to the website BoxOfficeQuant, 3-D movies make an average of $3.69 at the box office for every dollar of production costs. That is almost 50% more than the $2.51 in box office sales for 2-D films.#-ad_banner-#​ But lately it seems that some of 3-D’s luster has worn off. “Pacific Rim” was a flop, and would-be blockbuster “The Lone Ranger” attracted possibly one lone moviegoer. Growth in worldwide 3-D screens slowed to just 27% last year — respectable, but well off 2009’s growth of 255%.  With few real… Read More

There is little doubt that Hollywood loves 3-D. According to the website BoxOfficeQuant, 3-D movies make an average of $3.69 at the box office for every dollar of production costs. That is almost 50% more than the $2.51 in box office sales for 2-D films.#-ad_banner-#​ But lately it seems that some of 3-D’s luster has worn off. “Pacific Rim” was a flop, and would-be blockbuster “The Lone Ranger” attracted possibly one lone moviegoer. Growth in worldwide 3-D screens slowed to just 27% last year — respectable, but well off 2009’s growth of 255%.  With few real blockbusters this year, 3-D or otherwise, cinema operators are looking like a bust. But that is exactly when you should start looking at the sector for the best of breed.  Like Warren Buffett, I like to be greedy when others are fearful. In fact, the best company in the industry is down more than 8% from its 52-week high and almost a quarter off its 2011 peak. After looking through Hollywood stocks like Lions Gate Entertainment (NYSE: LGF) and Cinemark Holdings (NYSE: CNK), I found a company that doesn’t have to stake its future on a blockbuster movie. Nor does… Read More

Billionaires go to jail for it. Money managers have fled the country and faked suicides when it’s suggested. Hedge funds have paid billions in fines and been harassed by the Securities and Exchange Commission (SEC) on little more than a hint of its occurrence.  Flickr/DannyB ​Celebrity investor and high-tech titan Mark Cuban recently fought and secured a courtroom victory after being accused of violating insider trading laws. Most recently, celebrity investor and high-tech titan Mark Cuban fought and secured a courtroom victory when accused of violating this regulation. Famed entrepreneur and TV personality Martha… Read More

Billionaires go to jail for it. Money managers have fled the country and faked suicides when it’s suggested. Hedge funds have paid billions in fines and been harassed by the Securities and Exchange Commission (SEC) on little more than a hint of its occurrence.  Flickr/DannyB ​Celebrity investor and high-tech titan Mark Cuban recently fought and secured a courtroom victory after being accused of violating insider trading laws. Most recently, celebrity investor and high-tech titan Mark Cuban fought and secured a courtroom victory when accused of violating this regulation. Famed entrepreneur and TV personality Martha Stewart wasn’t as fortunate as Cuban — she spent time behind bars in 2004 for what amounted to be a relatively small amount of money. The strangest thing is, this action is considered a legitimate edge in the commodity markets. It’s only in the stock market where it’s considered a mortal sin. If you haven’t guessed, I am talking about insider trading.  Insider trading offers an unfair advantage to those with the information and capacity to profit from it. It is the desire to level the playing field that motivates the authorities to clamp down on insider trading. It truly… Read More

A recent move by one of the world’s largest online retailers points to an increasing war that could change the way you and I shop for just about everything. And while I think the shift will be a good thing for consumers, the looming battles in this space could create vast amounts of wealth for investors who jump in early. First, let me give you a little background… At the end of September, eBay (Nasdaq: EBAY) bought Chicago-based payment processor Braintree for $800 million in cash and folded the company into its PayPal division. Braintree says it handles $12 billion… Read More

A recent move by one of the world’s largest online retailers points to an increasing war that could change the way you and I shop for just about everything. And while I think the shift will be a good thing for consumers, the looming battles in this space could create vast amounts of wealth for investors who jump in early. First, let me give you a little background… At the end of September, eBay (Nasdaq: EBAY) bought Chicago-based payment processor Braintree for $800 million in cash and folded the company into its PayPal division. Braintree says it handles $12 billion in transactions a year, and works with clients like OpenTable (restaurant reservations), Uber (arranging a driver) and Rovio (creator of the inane but ubiquitous Angry Birds franchise, a popular gaming app). It also owns Venmo, which lets individuals text payments to one another. The purchase is part of a string of recent deals: eBay also recently acquired a social shopping site, the recommendation site Hutch, and Red Laser, which scans bar codes. Taken together, it appears eBay is gearing up to go mobile and vie to be the king of e-commerce, a spot now held by Amazon.com. This fits right… Read More

The death of cash has been fueling a gold rush for payment processors. Industry leaders Visa (NYSE: V), MasterCard (NYSE: MA) and Heartland Payment Systems (NYSE: HPY) have all posted market-beating gains of at least 29% this year. But while these well-known blue chips have been surging, one of their lesser-known industry peers has been struggling. After losing market share and reporting a disappointing quarter early in the year, shares are down 50% in the past 18 months.  VeriFone Systems (NYSE: PAY) is a global leader… Read More

The death of cash has been fueling a gold rush for payment processors. Industry leaders Visa (NYSE: V), MasterCard (NYSE: MA) and Heartland Payment Systems (NYSE: HPY) have all posted market-beating gains of at least 29% this year. But while these well-known blue chips have been surging, one of their lesser-known industry peers has been struggling. After losing market share and reporting a disappointing quarter early in the year, shares are down 50% in the past 18 months.  VeriFone Systems (NYSE: PAY) is a global leader in the electronic payments industry, making point-of-sale (POS) machines that consumers use to swipe credit and debit cards. Its clients include some of the biggest and most successful retailers in the world, including Costco (Nasdaq: COST), Lowe’s (Nasdaq: LOWE) and McDonald’s (NYSE: MCD).#-ad_banner-# But despite that market-leading position, VeriFone has struggled in the past year and a half. And that’s exactly why it’s a great time to check out the payment systems leader and recent industry laggard: Shares and sentiment are low, but the seeds of a turnaround are beginning to sprout. One of the biggest factors weighing on VeriFone’s… Read More

In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often… Read More

In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often the case with huge moves from stocks and indices, doubts started to set in about the sustainability of the Baltic Dry Index’s new price levels, and these stocks started to wane just as quickly as they’d heated up.  However, the rise from the Baltic Dry Index wasn’t the result of a little volatility. A handful of other data indicate the supply/demand balance in the dry bulk shipping sector has finally found a happy medium, making DryShips, Eagle Bulk, FreeSeas (Nasdaq: FREE), Diana Shipping (NYSE: DSX) and a few other names in the group worth a closer long-term look. The Perfect… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value investment. What value investors can do is buy the company that owned and distributed PennySaverUSA, Harte-Hanks (NYSE: HHS). This marketing company appears to be a great value, and it has a near-term catalyst to boot.  In an effort to focus on higher-growth markets, Harte-Hanks agreed last month to sell its PennySaverUSA business for $22.5 million. The sale will leave Harte-Hanks with an international direct and targeted marketing business that generates a tremendous amount of cash. The sell-off of PennySaverUSA — which had been a drag on financials and a distraction for management — gives new investors the chance… Read More