The summer of 2008 was a brutal period for investors focused on micro-cap stocks (typically defined as companies with a market value below $200 million). Many of these stocks plunged sharply in a matter of months, even more profoundly than their large-cap peers. Yet the performance of this high-risk asset… Read More
Growth Investing
It’s not often you’ll come across a stock that has risen roughly 200% in the past year and is still valued at less than six times projected 2014 profits. Equally impressive: Those profits are expected to come on the heels of 450% revenue growth. Sounds too good to be true?… Read More
The road trip is one of the most popular American pastimes. Since the invention of the automobile, we have developed an entire culture around cars. Traveling across the country inspired generations of Americans and popularized colloquialisms like “get your kicks on Route 66.”#-ad_banner-# When I was growing… Read More
Many consumers are still ignoring the quickest way to lower their utility bills. Swapping out all of your older light bulbs for new light-emitting diode (LED) bulbs can save hundreds of dollars in power costs. And the fact that these bulbs can last up to 25,000 hours means you’re all set for the next decade. This new technology has been a notable success story for Home Depot (NYSE: HD), and its key LED supplier, Cree (Nasdaq: CREE). You would think that Wal-Mart (NYSE: WMT) would also like to have been a major vendor of this cutting-edge, cost-saving lighting technology. But… Read More
Many consumers are still ignoring the quickest way to lower their utility bills. Swapping out all of your older light bulbs for new light-emitting diode (LED) bulbs can save hundreds of dollars in power costs. And the fact that these bulbs can last up to 25,000 hours means you’re all set for the next decade. This new technology has been a notable success story for Home Depot (NYSE: HD), and its key LED supplier, Cree (Nasdaq: CREE). You would think that Wal-Mart (NYSE: WMT) would also like to have been a major vendor of this cutting-edge, cost-saving lighting technology. But the LEDs it sold from many manufacturers have always been a bit too pricey for Wal-Mart’s rank-and-file shoppers. Yet Wal-Mart’s new house-brand line of LEDs changes everything.#-ad_banner-# Wal-Mart’s Great Value LED lights, made by privately held TCP Inc., are priced under $10, which is crucial in two respects. It’s a price point that lures many more consumers to make the change, considering these bulbs can now pay for themselves in terms of power consumption in just two or three years. And it’s a nightmare price point for Cree, which appears hard-pressed to make profits at such a price. At least… Read More
Orphan drugs, those treating rare conditions for small segments of the population, do not normally get much attention compared with the likes of a $12.9 billion Lipitor — but their approval by regulators can still mean huge gains at small biopharmaceutical companies. One company in particular has… Read More
The business of data is growing bigger and bigger. An astounding 2.5 quintillion bytes of data are created every day, cluttering computer systems around the globe. As more and more companies clamor to find space for the new, archive the old, and analyze it all so it… Read More
A forest fire is extremely destructive in the short run. But in the long run, the few trees left standing are sitting pretty. Not only do they have a monopoly on the sun, they also have all the room they need to grow to new heights. That’s… Read More
To say the Affordable Care Act (better known as Obamacare) has been controversial is an understatement. So, as investors, what should we make of the latest political brinkmanship? How about we make some money? Remember: No matter what the situation, there… Read More
Obamacare may be on the defunding chopping block, but not every health care stock out there depends on the success — or even the existence — of the Affordable Care Act.#-ad_banner-# A law enacted in 2009 called the Health Information Technology for Economic and Clinical Health Act… Read More
Identifying a great turnaround opportunity can be hugely profitable. When investors become universally negative about a company’s prospects, you’ve got the chance to spot early signs of improvement, and latch on before the crowd does. Of course, it’s impossible to perfectly time a turnaround, even if your analysis is roughly… Read More