In January, I declared that Japanese companies had the most undervalued stocks in the world. A calamitous magnitude 9.0 earthquake and subsequent tsunami have inflicted severe damage on the eastern part of the country, the most disastrous of which has been severe and potentially permanent damage to the Fukushima Daiichi… Read More
Value Investing
The year surely got off on the wrong foot for travel site operator Expedia.com (Nasdaq: EXPE). On New Year’s Day, AMR (NYSE: AMR), parent of American Airlines, announced it was pulling its flight information from Expedia’s listing service. AMR’s move was just the latest twist in an airline vs. website… Read More
Investors are feeling a bit whip-sawed these days. An improving U.S. economy and troubling events abroad make it hard to know where the market will head next. In times like these, it may pay to de-emphasize growth stocks, as these types of investments need a really… Read More
Every two weeks, data is released on the level of short interest in specific stocks. You can find this data in places like the Wall Street Journal, for example. It can clue you into possible problems ahead, but it can also spell opportunity. If the short-sellers are wrong, you can… Read More
About 20% of the world’s energy supply comes from 440 nuclear power plants, located in 25 countries around the world. About 12% of these nuclear reactors are in Japan. As the headlines describe, the devastating earthquake and tsunami that struck Japan on March 11 triggered a series of explosions, leading to the partial meltdown of a nuclear plant, located 150 miles outside of Tokyo. The impact of the meltdown has spread far beyond Japan, affecting nuclear-power companies worldwide. Observers suspected plans for many of the world’s 60 new nuclear plants could be stopped, or at the very least halted, for… Read More
About 20% of the world’s energy supply comes from 440 nuclear power plants, located in 25 countries around the world. About 12% of these nuclear reactors are in Japan. As the headlines describe, the devastating earthquake and tsunami that struck Japan on March 11 triggered a series of explosions, leading to the partial meltdown of a nuclear plant, located 150 miles outside of Tokyo. The impact of the meltdown has spread far beyond Japan, affecting nuclear-power companies worldwide. Observers suspected plans for many of the world’s 60 new nuclear plants could be stopped, or at the very least halted, for some time to come. This week, the Swiss government announced the suspension of approvals for new nuclear plants. The German government followed suit. Furthermore, Germany’s seven nuclear facilities, built prior to 1980, will be shut down until at least May. This step leaves the country with only 10 operating nuclear facilities. In France — where 80% of the country’s electricity comes from nuclear power — the Green Party has called for a referendum on the future of nuclear power. And even China, which has had big ambitions for nuclear power-expansion, announced Wednesday, March 16, that it was… Read More
There are many investing maxims, but my favorite one will always be “love stocks when they’re hated.” That usually refers to bear markets being great buying opportunities, as we saw in early 2009 when the market finally began to turn around. Yet, the… Read More
The unfolding events in Japan are distressing and saddening. We all hope that the social, environmental and economic impact of the recent earthquake will prove to be not as bad as is currently feared. In times like this, one can become a bit squeamish talking about investing. The sheer notion… Read More
Large pharmaceutical companies are facing a crisis. The industry spent a record $65 billion on research and development (R&D) in 2009, but approval rates for new drugs have fallen 44% during the past decade and continue to drop. Also in 2009, drugs launched in the previous five years accounted for… Read More
I got to know one company on my current watch list very well one summer, while working in the mail room of my father’s law firm. This was the mid 1980s. E-mail wasn’t even a Jetson’s fantasy. The computers that were around at the time were as big as a… Read More
When oil prices surged through 2007 and into 2008, many airlines ran for the hills, taking many planes out of service, cancelling orders for new planes and gearing up to conserve cash in case oil prices failed to fall back down. Boeing Co. (NYSE: BA), the world’s largest aircraft manufacturer,… Read More