Last week, just about everything that could go wrong for Groupon’s pending IPO did. Friday, alone, had four dismal reports that could deflate Groupon’s IPO hopes. The week’s reports that punctured Groupon’s IPO prospects… This article is posted on SeekingAlpha.com »
Bank of America’s (BAC) situation is taking on the aspects of a Greek tragedy – or a farce. Despite Warren Buffett’s official statement that Bank of America is a well-run company, his way-too-small $5 billion in preferred stock with juicy terms is unfavorable to the bank. The realistic solution to BofA’s problems is shrinkage,... »
Hearing that Steve Jobs will no longer be Apple’s (AAPL) CEO can generate sadness on a personal level. The response is understandable and appropriate. The challenge is to shift to objective (i.e., emotionless) investment analysis. But that is what we need to do. Our goal as investors is to own securities that offer the... »
Watching the stock market move up nicely and perhaps confirming a double bottom (see “Double Bottom? This Powerful, Positive Indicator Could Be Forming”), I decided to do an unusual screening. With stocks having been beaten down and growth forecasts being dismissed, why not screen for the perfect growth stock–the company that makes an inordinate... »
Official “Quantitative Expansion” (i.e., the Federal Reserve’s increasing the money supply by buying bonds) is no longer necessary. The money supply is now growing through normal, homegrown forces, and the growth started just as the Fed’s QE2 ended. This article is posted on SeekingAlpha.com »
Jason Zweig’s excellent WSJ article, “Too Flustered to Trade: A Portrait of the Angry Investor,” paints an accurate portrait of today’s investor. Frustration and anger are not only strongly felt, they are affecting investors’ decisions still – even though the stock market bottomed 2-1/2 years ago. “They’re mad as hell, and they aren’t going... »
The exhibits below, from “Double Bottom? This Powerful, Positive Indicator Could Be Forming,” have been updated through Friday’s close. »
The formation of a double bottom (a second drop to, but not below, a previous low) is a well-liked, positive indicator. This price support in the face of previous weakness shows that buyers are stepping in and offsetting sellers. This sign, in turn, can produce confidence that the previous decline is ending, thereby bringing... »
Last fall, I discussed Verizon’s (VZ) investment prospects in “Verizon Communications: Income Plus Potential Growth.” The next six months produced good results, with Verizon outdistancing its key competitor, AT&T (T). Then came a stall, followed by what looked like a breakout in early July, then – surprise! Just as Ivan Seidenberg, Verizon’s long-time, strategically-focused... »
News reports, pundit predictions, radio talk shows and reader comments have reached loud, negative levels. Unbridled pessimism has sprung up regarding just about everything. Like last year at this time, events and facts have been blown out of proportion and only negative indicators are taken as the “truth” with which to forecast a trend.... »
Identifying the turning point of a runaway down market is nearly impossible. It requires figuring out when emotions and shares offered for sale will peter out. However, there are some signs that crop up when markets get ugly. August 8, was one of those days, and here is the picture. This article is posted... »
Often, a dramatic, weekly move that accentuates a previous trend is followed by an equally dramatic one in the opposite direction. Last week’s decline could be just such a move, setting us up for a possible stock market turnaround. One week’s action does not signify a trend Occasionally, we get dramatic and negative news... »
