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Homebuilders Up, But It’s Not Too Late To Buy
New homebuyers apparently ignored the winter weather. The January sales report shows a large increase and pushed the homebuilder stock uptrend further ahead. However, we need to avoid placing too much emphasis on that one number, as discussed below. More importantly is the underlying upward trend and the potential for excellent growth in new... »
Divesting For Growth – Think Chevron And GE, Not Coke
The Wall Street Journal today (2/19) noted that the Wall Street divestiture cycle is in full swing, spurred on by activist shareholders (“New Push to Throw Assets Overboard”). Companies ranging from chemical giants to restaurant chains have come under fire from shareholders wanting to break them apart, arguing that businesses perform better when they... »
1929-Style Crash Coming? 4 Steps For Dealing With Doomsday Prophecies
Here they go again. The self-anointed prophets of doom are trying to scare us as they make a name for themselves. Their egotistical aims are base, their analyses are false and their methods are despicable. Yet, their message of the disaster that will befall nonbelievers inevitably gains new disciples time and again. Fear mongers... »
K-Cup + Coke = Huge Green Mountain Potential — Today’s Rise Likely Just The First Step
Coca-Cola’s (KO) 10-year contract with Green Mountain Coffee Roasters (GMCR), along with an investment in the firm, is one of those unusual game changer announcements. Similar to an oil company discovering a large reserve or, perhaps even better, Steve Jobs announcing the iPad, GMCR’s fundamentals changed overnight. Better yet, those fundamentals cannot be calculated... »
Stock Market’s Plunge Lights Up Two ‘Buy’ Indicators – Now What?
That was fast. In one day, the market and the media triggered the two indicators discussed in “Stock Market Support Is Fragile – 2 Indicators And 2 Strategies For Success If 2nd Shoe Falls.” All it took was a 326-point drop in the DJIA. The question now is whether to act on the flashing... »
Stock Market Support Is Fragile – 2 Indicators And 2 Strategies For Success If 2nd Shoe Falls
From January’s negative stock market performance comes the pursuit for the answer to “Why?” The search has produced the usual suspects: Overvaluation, reaction to 2013’s high return, long overdue “correction,” and sales/earnings disappointments (actual and/or outlook). Then there are the coincidental events: Fed confirming its taper policy and emerging markets/currencies raising havoc once again.... »
2014 Conundrum: Stocks Down, Bonds Up — 4 Reasons Why
With 2013’s market trends (stocks up, bonds down) seemingly established, and year-end fundamentals pointing to improvement and growth, the forecast was for 2014 to be more of the same – perhaps even better. Anticipating happy news, investors jiggered their portfolios, then sat back to watch the “January effect” launch the New Year’s bull market,... »
Best Buy Stock Adrift Without Growth Or Value Lifelines — Traders Circle
Best Buy’s shocking 2014 news negated its 2013 growth status. Management’s strategy stumbled, turning hoped-for sales and earnings growth into confirmed declines in both. Last year’s resurrected growth story evaporated and with it, almost two-thirds of 2013’s outstanding rise (from $12 to $44, now down to $24). Analysts, fund managers and individual investors alike... »
Best Buy’s ‘Shocking’ Drop Provides Reality Check For All Investors
No one can say the risk was hidden. Best Buy cautioned last November about the risks in the coming holiday season. The accompanying 10% stock drop back then signaled management’s comments were a serious concern. Now falls the other shoe: A huge 28+% stock plunge following Best Buy’s confirmation of risk becoming reality. (This... »
Ditch ‘Dogs Of The Dow’ – The Mutts Have Bad Genes, Improper Breeding And False Papers
The ‘Dogs of the Dow’ reasoning sounds sensible, the process is simple and the result are being reported as proof that it works. However, appearances are not what they seem. The basis (genes) is bad, the process (breeding) is improper and the results (papers) are false. Here’s the explanation… This article is published on... »
Apple’s Missing Ingredient Dulls Its Outlook
All analysts and investors agree on one thing: Innovation created Apple (AAPL). But innovation has two forms: revolutionary and evolutionary. Revolutionary innovation is what Steve Jobs did so well. His creations shook up the status quo and produced new markets with his dramatically new, must-have products. But he also was expert at the follow-on... »
The Great Recession Is Dead: 10 Steps For Success In 2014
It’s over. The Great Recession is officially relegated to Wikipedia and academic studies. The financial problems are fixed. Even Bernanke is looking for historical analysis of his efforts as Yellen arrives and the Fed shifts gears. Kiplinger’s employment/unemployment analysis shows an advancing U.S. economy with large, new and exciting growth needs. The past few... »
Five Reasons It’s Time To Buy Bonds Again
Bonds in 2013 finally got their comeuppance. After a long, pleasing ride of income + price gains, the bond market decided the party was over. It only took four months for the 10-year U.S. Treasury note to drop the equivalent of over five years’ interest. All but the shortest maturities suffered similar fates. So... »
Don’t Put Your Portfolio On Autopilot For The Next Two Weeks
Prior to the 1982 holiday season, I was having lunch with one of Bank of America’s top pension fund managers, Frank Husic, then at Alliance Capital. (I was the VP in charge of the pension and savings plans’ investments.) When I asked about his holiday plans, he surprised me, saying he would be at... »
Gogo’s Downer PR News Is Actually A Sign Of Upward Progress
Today’s PR announcement was received badly, pushing Gogo (GOGO) down 15%. The stock is now over 25% below its recent high. While such performance is evidence of something seriously amiss, the news is actually a sign of growth and maturity, not trouble and concern. Here’s the explanation… This article is published on Forbes.com »
John Tobey on Seeking Alpha
