It seems like every six months or so, I turn on financial news television and see hordes of hipsters and students camping out overnight in front of the Apple (Nasdaq: AAPL) store on Fifth Avenue in Manhattan. On Friday, that line of hundreds was waiting to get their nerdy paws… Read More
Growth Investing
The recent decade-long-plus highs in technology stocks have left out some old standbys that need to tweak and reinvent their business plan. Hewlett-Packard (NYSE: HPQ) has dropped from highs near $50 in 2011 to trade at the lowest levels since 2004. The three-month trading channel shown on the chart below… Read More
When executives at Tivo (Nasdaq: TIVO), a recent addition to my $100,000 Real-Money Portfolio, decided to start hurling lawsuits at some of the country’s biggest cable and telecom companies a few years ago, many investors figured this industry’s “David” simply couldn’t prevail in court against the industry’s Goliaths. Well, with… Read More
Chief Financial Officers (CFOs) at some of the nation’s biggest companies have a problem on their hands. They’re tasked with watching over billions, tens of billions or even hundreds of billions of dollars every day, making sure to find ways to deliver the best returns to shareholders while keeping enough aside for a rainy day. With interest rates sitting at multi-decade lows, these executives can’t afford to let the money just sit there. That’s why more of them are looking at share buybacks, dividends, acquisitions or higher levels of capital spending to take some of that cash off of the… Read More
Chief Financial Officers (CFOs) at some of the nation’s biggest companies have a problem on their hands. They’re tasked with watching over billions, tens of billions or even hundreds of billions of dollars every day, making sure to find ways to deliver the best returns to shareholders while keeping enough aside for a rainy day. With interest rates sitting at multi-decade lows, these executives can’t afford to let the money just sit there. That’s why more of them are looking at share buybacks, dividends, acquisitions or higher levels of capital spending to take some of that cash off of the sidelines and put it into action. This is good news for investors. Because the more cash a company deploys, the better the chances of bolstering the stock price. We took a look at the cash balances of leading corporations and were stunned to find how much some companies were sitting on. In some instances, these companies have such a large amount of cash that it equals or surpasses what some countries produce in terms of annual economic activity (GDP). Here are the top ten profitable companies sitting on stunning amounts of cash (we excluded traditional… Read More
As we head into earnings season, this $100,000 Real-Money Portfolio holding, also one of my first picks, is due for an update. The stock has already risen by 19% since I bought it in January, and could have a lot more upside —… Read More
It’s easy to fall in love with a big, high-profile stock like Apple (Nasdaq: AAPL) or General Electric (NYSE: GE). Odds are good that you use a product either one or both of the companies make, and the media’s constant coverage of them sure makes it easy to get comfortable… Read More
The financial press has gotten great mileage out of the hottest stock in the dining sector — Chipotle Mexican Grill (NYSE: CMG). And why not? It’s been a great growth story as sales shot up from $315 million in 2003 to roughly $1.83 billion in 2010. Yet some investors are… Read More
Stock market traders have seen a strong bull market push prices up by more than 20% since the start of the year. Grain markets have delivered even bigger gains, with soybeans up more than 45% and corn up about 33% in a little more than nine months. One of the worst droughts in history is behind the move in grain prices, but those markets appear to have topped and the news has turned more optimistic. As farmers started harvesting their crops, many seem to be… Read More
Stock market traders have seen a strong bull market push prices up by more than 20% since the start of the year. Grain markets have delivered even bigger gains, with soybeans up more than 45% and corn up about 33% in a little more than nine months. One of the worst droughts in history is behind the move in grain prices, but those markets appear to have topped and the news has turned more optimistic. As farmers started harvesting their crops, many seem to be surprised that the yield is better than expected. Reports also indicate that farmers are harvesting the crop quicker than usual, and that could lead to supply building up in the short term and driving prices lower. In addition to the fundamentals, there is a bearish technical picture building in corn. Commercials, the insiders of the futures markets, have been bearish while speculators have been buying while the price has formed a topping pattern. Read More
In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank. In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be… Read More
In recent years, many Asian economies have been booming while European and North American ones struggle. But the tables may soon turn, according to data from the Asian Development Bank. In its July 2012 Asian Development Outlook Supplement, the financial and policy institution forecasts 6.6% GDP growth in the region, down from 7.2% in 2011. The forecast also represents a downward revision from the ADB’s initial 2012 GDP growth estimates of 6.9% in July for the 44 Asian countries that belong to the bank. #-ad_banner-#The translation is that things seem to be slowing down in Asia. But why? The answer is lower demand for Asia’s exports and unwinding policy stimulus programs in the region. In short, consumers have less money to spend in Asia. Many investors might take this as a cue to move toward stocks that rely on U.S. consumers for growth, but be careful: many All-American stocks actually rely on revenue from Asian consumers, though you wouldn’t really know it. Here are a few: 1. J.M. Smucker Company (NYSE: SJM) This classic American food brand is more than just jelly on your toast; Smucker also owns many food brands… Read More
In the small town of Coffeyville, Kansas (population 10,000), I found two explosive investment opportunities that could skyrocket during the next two years. One pays a 9% dividend, while the other has incredible capital… Read More