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Cyberonics: A ‘Neglected’ Health Technology Company Built For Future Growth
Investing success has many routes, but none are as good at regularly reducing risk and increasing potential return than selecting a “neglected” growth stock. These wallflowers need not be ugly, but can be the hidden gem that so many want to find, with the company succeeding and the stock languishing. Cyberonics (CYBX) appears to... »
Bondholder Alert: Fed Runs Out Of Gas And Wall Street Takes Over
The Fed admits its loss of control in Fed’s Stein Sees Risks for Credit Markets: “Federal Reserve Board Governor Jeremy Stein said there isn’t an imminent threat to the wider financial system, but highlighted several markets-including junk bonds, mortgage real-estate investment trusts and commercial banks’ securities holdings-as areas where potentially troubling developments are emerging,... »
Dell’s Stock ‘Too High’ – Board On Hot Seat
In “It’s Time To Shadow Invest In Dell”, I laid out reasons for buying Dell (DELL), even at a price above Michael Dell’s offer of $13.65. Today’s (Tuesday, 2/12) developments add significant weight to the proposition that Michael’s bid is too low, so DELL looks to be a good buy. Here’s what’s happened… This... »
It’s Time To Shadow Invest In Dell
Dell’s (DELL) 50% drop from $18 to $9 finally reversed as the Windows 8 effect began to take effect. Then Michael Dell offered to buy the entire company at $13.65 per share. Are investors saved? Or is Michael taking advantage, taking the long-term opportunity from current shareholders for himself and his partners? I believe... »
Demystifying Investors’ Preference For Bonds And Why It Could Be Changing
The sudden increase of flows into U.S. stock mutual funds is producing articles warning that investors are once again chasing performance — and that’s a danger sign. It seems plausible, now that the market is at all-time high levels and up 100%. But is that really all there is to it? A 3 year,... »
Cyberonics Jumps As Short Sellers Come Up Empty
Cyberonics (CYBX) is up sharply on large volume today (Monday, 2/4). Why? The short seller article (Blowing The Whistle On Cyberonics) that produced the sharp drop (described in my article, Cyberonics – Short-Selling Creates Buying Opportunity) just lost its foundation. Here is what’s happened and how we should view the events… This article is... »
Optimism’s Re-Emergence Could Shake Up 2013’s Performance
On Friday, March 9, we will “celebrate” the 4-year anniversary of the Great Recession’s 2009 stock market bottom. Back then, the Dow Jones Industrial Average (DJIA) was below 7,000, a level first reached in 1997. Now its back to its all-time high of about 14,000, up 100% (and that excludes dividends). What makes optimism... »
Cyberonics – Short-Selling Creates Buying Opportunity
Cyberonics (CYBX) just tanked, dropping 25% in eleven days, from its all-time high of $57+ to under $43. The apparent cause? Blowing The Whistle On Cyberonics – a short-seller report that criticizes the company on many levels, including fraud. While the company countered that the report was incorrect, that rebuttal fell on deaf ears,... »
PPG Executives’ Actions Wave Red Flag – Time To Sell
Previously, in “PPG Shareholders: Beware Of Georgia Gulf Exchange Offer,” I suggested that the confusing, uncertain exchange offer carried risks that warranted saying “No.” That conclusion may seem questionable when reading PPG’s expectations. The original 7/19/12 press release, in addition to CEO Charles Bunch’s positive observations, stated that, “The transaction is highly complementary to... »
PPG Shareholders: Beware Of Georgia Gulf Exchange Offer
In my 49 years of investing, including a 30-year institutional investment career, I cannot recall seeing such a convoluted, contrived, shareholder-unfriendly corporate action. What started last year as a simple sale by PPG (PPG) of its commodity chemicals business to Georgia Gulf (GGC) for $2.1 billion has become a complicated, uncertain exchange offer –... »
Want Timely, Accurate Election Predictions? Look To The Betting Markets, Not Polls Or Pundits
Are you putting election results into your investment thinking? Betting markets provide excellent insights that are better than polls and pundits. Here’s my experience… Many years ago, I read (I believe in The Wall Street Journal) about betting’s accuracy in making election predictions. It turns out that, once again, watching what people are doing... »
Wall Street Hits PC Escape Key – Or Is It A Ploy?
“The PC Is Dead!” screams Barron’s, with an RIP headstone on the cover, adding: “As the PC era wanes, Dell and HP will fade from view.” “Already, tech investors, long accustomed to a lift from Windows, are primed for disappointment.” Talk about a premature announcement of death. In only a few days, we will... »
Why The Approaching Stock Market’s New High Matters A Lot
Recent articles note that the stock market is nearing its all-time high. So how should we view this news? Is a new all-time high important information, or is it just a media tidbit, similar to the Dow Jones Industrial Average (DJIA) crossing some seemingly important value like 10,000? Here’s why the new high matters…... »
3rd Quarter Earnings Storm Warnings: Don’t Believe Them
Alcoa may have beat analysts’ estimates, but forecasters say it’s not a sign of good things to come. Instead, they have hoisted warning flags throughout Wall Street. Earnings reports will disappoint, they say, and managements will give forecasts of weak growth ahead. The implication is that stocks, likewise, will weaken due to poorer than... »
This Market’s Gift: 3 Unloved Tech Stocks With Upside Potential
Rare is a contrarian play on the eve of a major development. Yet that is what is happening in this stock market. Investors, seemingly tired of waiting, are abandoning boring Microsoft (MSFT), underperforming Intel (INTC) and disappointing Dell (DELL). All three stocks are well below their recent highs, and Intel and Dell are even... »
John Tobey on Seeking Alpha
