The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and… Read More

The Dow Jones Industrial Average (DJIA) is clearly in fighting shape. The heavyweight index has already pounded out 17% gains this year, on top of gains of 10% to 11% in 2010, 2011 and 2012 as well. Yet a quick look at what’s not working in the Dow gives a glimpse of the index’s weak points. Four of the Dow’s 30 stocks are lagging behind the broader index by a wide margin. Yet only one of those can simply be seen as having an off year due to cyclical economic factors. The other three simply lack the strength and stamina to duke it out for the long haul, and you might want to reconsider their place in your portfolio. The four big laggards: 1. AT&T (NYSE: T ) Ma Bell’s shares were generating a small loss for the year before the recent Washington fiscal agreement pushed it slightly into the black. If the market retreats from the current euphoria by year’s end, AT&T will surely end up posting a down year.  In fact, short sellers are anticipating such a move.  As I noted last month, both AT&T and Sprint (NYSE: S) have seen rising short interest in recent months. Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all… Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all break down from time to time.  And while some people choose to take their vehicles to an auto parts servicer — a strategy known colloquially as DIFM, short for “do it for me” — others prefer to get their hands dirty with a DIY (“do it yourself”) approach. Regardless, it has to get done.  Enter Motorcar Parts of America (Nasdaq: MPAA). This company is one of the nation’s top manufacturers of aftermarket auto parts. And a company that caters to both sides of the very large replacement parts market, DIYers and DIFMers alike. One of the big tailwinds for Motorcar… Read More

Ken Griffin, a wunderkind of Wall Street, was managing a million dollars while still in college. After launching Citadel Investment Group with just over $4 million, Griffin’s fund is now among the largest in the world, with over $40 billion under management. His fund is among my favorites for investment ideas. Griffin recently made an unusual investment: He just took a nearly 6% stake in the newly public Global Brass and Copper Holdings (NYSE: BRSS).#-ad_banner-# The company specializes in fabricating, processing and distributing specialized brass and copper products. While the company has existed since 2007, its books have been open… Read More

Ken Griffin, a wunderkind of Wall Street, was managing a million dollars while still in college. After launching Citadel Investment Group with just over $4 million, Griffin’s fund is now among the largest in the world, with over $40 billion under management. His fund is among my favorites for investment ideas. Griffin recently made an unusual investment: He just took a nearly 6% stake in the newly public Global Brass and Copper Holdings (NYSE: BRSS).#-ad_banner-# The company specializes in fabricating, processing and distributing specialized brass and copper products. While the company has existed since 2007, its books have been open for scrutiny only since its May IPO.  Global Brass, which recently posted impressive second-quarter results, appears solid, and Citadel’s investment increases my confidence. However, whenever I consider investing in a base metal fabricating company, I am reminded of my first experience in the field.  I made my first copper fabrication investment at 9 years old. I lost 99% of my capital, not counting transaction costs, on the investment. This experience was the first of many in the never-ending learning curve of the financial markets. Here’s what happened: At that age, I was a voracious reader of pulp magazines and comic… Read More

Exactly 100 years after Henry Ford launched Ford Motor (NYSE: F), Elon Musk launched Tesla Motors (Nasdaq: TSLA). Despite the massive head start, Ford is now seen as the laggard. By a wide variety of measures, Tesla is held in far higher esteem by investors. Depending on your view, Tesla’s lack of an extensive operating history is either the company’s greatest virtue — enabling engineers to start with a blank slate, so to speak — or its greatest risk, as the company has miles to go before it becomes a high-volume automaker, capable of making money in any economic climate. Read More

Exactly 100 years after Henry Ford launched Ford Motor (NYSE: F), Elon Musk launched Tesla Motors (Nasdaq: TSLA). Despite the massive head start, Ford is now seen as the laggard. By a wide variety of measures, Tesla is held in far higher esteem by investors. Depending on your view, Tesla’s lack of an extensive operating history is either the company’s greatest virtue — enabling engineers to start with a blank slate, so to speak — or its greatest risk, as the company has miles to go before it becomes a high-volume automaker, capable of making money in any economic climate. In effect, shares of Ford are valued in the context of where the company has been and where it now stands. Shares of Tesla are valued on where the company is headed. Before we look down the road, let’s see how these two stocks compare based on projected 2013 results. #-ad_banner-#This is truly a breakout year for Tesla, as sales are likely to rise from $400 million in 2012 to more than $2 billion this year. And that figure could approach $4 billion by 2015. Of course, investors are paying up for that scorching growth. Shares trade for more… Read More

Tesla Motors (Nasdaq: TSLA) has been one of the best ways to cash in on the growing demand for electric cars. After climbing steadily for three years, shares have shot higher this year, surging 390% in just the past nine months.#-ad_banner-# But despite that very bullish move, shareholders got a… Read More

The fearmongers are having a field day with the notion of the Affordable Care Act (also known as Obamacare) being implemented. These fears have become so strong that Obamacare’s opponents have effectively shut down the U.S. government since the majority of the law took effect Oct. 1. The purpose of… Read More

The fearmongers are having a field day with the notion of the Affordable Care Act (also known as Obamacare) being implemented. These fears have become so strong that Obamacare’s opponents have effectively shut down the U.S. government since the majority of the law took effect Oct. 1. The purpose of this article isn’t to argue for or against Obamacare. It isn’t perfect, and it will likely undergo a difficult evolution before being fully implemented. However, in contrast to the political posturing going on in Washington, a group of investors have been booking substantial profits over the past year due to… Read More

The fearmongers are having a field day with the notion of the Affordable Care Act (also known as Obamacare) being implemented. These fears have become so strong that Obamacare’s opponents have effectively shut down the U.S. government since the majority of the law took effect Oct. 1. The purpose of this article isn’t to argue for or against Obamacare. It isn’t perfect, and it will likely undergo a difficult evolution before being fully implemented. However, in contrast to the political posturing going on in Washington, a group of investors have been booking substantial profits over the past year due to the implementation of the new law. While some of these profitable avenues are obvious, others remain under the radar of all but the most sophisticated investors. Obvious names such as hospital operators like Community Health Systems (NYSE: CYH) and HCA Holdings (NYSE: HCA) have seen their shares advance by nearly 50% over the past 52 weeks. In addition, the Health Care Sector Select SPDR (NYSE: XLV) exchange-traded fund (ETF) is nearly 30% higher during the past 10 months.#-ad_banner-# One of the main reasons for the outperformance of health care and hospital stocks is the fact that revenues will increase for… Read More

When I was a kid, it was a privilege to be allowed to mow the lawn. I recall the enjoyment of using the walk-behind lawn mower to tackle our half-acre of grass in 100-degree heat.#-ad_banner-# Nowadays, mowing the lawn is a chore, often outsourced to landscaping companies… Read More

I received an interesting email recently from John R., who writes to say that he desires “something that I can profit from within six months instead of two years. I am looking for not only a unique company, but one that is off the ground floor and is zooming upward… Read More

Even if you don’t own a SodaStream (Nasdaq: SODA), chances are you’ve heard the name. These magical machines turn their users into “beverage engineers.” Users can create nearly every imaginable soft drink (and various other beverages), right from their kitchen. Knowing that, why would anyone ever buy… Read More