As the economy continues to slide, regional banks are failing at an alarming rate. So far, in 2010, 109 banks have failed. This brings the total number of bank failures since 2007 to 277. As a result, many regional banks… Read More

After Dell (Nasdaq: DELL) and Hewlett-Packard (NYSE: HPQ) started their bidding for data storage firm 3PAR (NYSE: PAR), investors quickly went in search of possible other deals, bidding up names of several rivals that may soon be bought out themselves. [Read: This Company’s 10-Day, +169% Run is Heating up an Entire Sector] So as Intel (Nasdaq: INTC) announces plans to acquire the wireless chip division of Germany-based Infineon Technologies, it makes sense to see what other firms might be in play. (We made a similar review when Intel announced plans to buy McAfee (NYSE: MFE).) [See:… Read More

After Dell (Nasdaq: DELL) and Hewlett-Packard (NYSE: HPQ) started their bidding for data storage firm 3PAR (NYSE: PAR), investors quickly went in search of possible other deals, bidding up names of several rivals that may soon be bought out themselves. [Read: This Company’s 10-Day, +169% Run is Heating up an Entire Sector] So as Intel (Nasdaq: INTC) announces plans to acquire the wireless chip division of Germany-based Infineon Technologies, it makes sense to see what other firms might be in play. (We made a similar review when Intel announced plans to buy McAfee (NYSE: MFE).) [See: Why Today’s Intel Deal Makes Tech Even More Appealing] The untethered revolution Intel’s decision to wade further into wireless technology is completely understandable. Smart phones and tablet computers are paving the way for a tech revolution that untethers us from cable modems and other desk-bound Internet connections. Industry watchers expect to see desktop-PC sales shrink and tablet sales rise in coming years. Inifineon can boast of customers such as Nokia (NYSE: NOK), Research in Motion (Nasdaq: RIMM) and LG, but has barely made any profits on these chips that transmit wireless signals. Intel… Read More

The BRICs are out-of-style. Brazil, Russia, India and China are already yesterday’s investing theme. And as it becomes increasingly apparent that the United States and Europe will be growth-constrained in the near future, investors are now checking out a new bloc of emerging economies called the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). Growth in these countries has started to catch the attention of globally-focused money managers and, conveniently, there is an exchange-traded fund (ETF) focusing on each country that allows individual investors to own a piece. The… Read More

The BRICs are out-of-style. Brazil, Russia, India and China are already yesterday’s investing theme. And as it becomes increasingly apparent that the United States and Europe will be growth-constrained in the near future, investors are now checking out a new bloc of emerging economies called the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). Growth in these countries has started to catch the attention of globally-focused money managers and, conveniently, there is an exchange-traded fund (ETF) focusing on each country that allows individual investors to own a piece. The question is, are these countries suitable for your portfolio? #-ad_banner-#Looking under the hood Over the years, I have had the good fortune to travel extensively and have brought back a few investing perspectives from my trips to Colombia, Indonesia, Vietnam, Egypt and Turkey (I’ve never been to South Africa). And after consulting with Nathan Slaughter, our resident ETF expert at StreetAuthority, here are my cursory thoughts: Vietnam — I was extremely impressed by this country during my visit in 2007. It is blessed with a low-cost but… Read More

For years, market strategists have tried to explain that investor bullishness is bad for future stock returns, and when investors are very bearish, it’s a great time to buy. They’re right. I’ve gone over 25 years of data compiled by the American Association of Individual Investors (AAII), and found this investing maxim to be remarkably accurate. And guess what? The AAII’s weekly survey has just revealed another low in investor sentiment. First, let’s take a look at what happened in the late 1980s when investors had just come out of a sharp market crash (the infamous… Read More

For years, market strategists have tried to explain that investor bullishness is bad for future stock returns, and when investors are very bearish, it’s a great time to buy. They’re right. I’ve gone over 25 years of data compiled by the American Association of Individual Investors (AAII), and found this investing maxim to be remarkably accurate. And guess what? The AAII’s weekly survey has just revealed another low in investor sentiment. First, let’s take a look at what happened in the late 1980s when investors had just come out of a sharp market crash (the infamous Black Friday of October, 1987) and sentiment was fairly bearish. This table shows the annual low point for investor sentiment from 1987 through 1993 and how the market subsequently fared. Throughout this period, investors were very bearish, and less than one in five investors considered themselves to be bullish. Those lonely bulls sure made some money, though. Reported Date Bullish Neutral Bearish 1-Mo. Return 6-Mo. Return 1-Year Return 2-Year Return 3-Year Return 12/11/87 23.0% 45.0% 32.0% +3% +9% +18% +48% +40% 07/22/88 16.0% 58.0% 26.0% -1% +9% +30% +34% +45% 03/10/89 13.0%… Read More

In this tough market environment, many stocks have seen their value fall by -30% or even -40%. But I came across a foursome of stocks that have fallen a whopping -70% since the end of February. But don’t blame the bad economy: these stocks are stumbling for company-specific reasons. For… Read More

Heading off early next week ahead of the Labor Day weekend? So are many others, including Wall Street traders. As they leave their trading desks, trading volumes can get awfully light. That makes the markets vulnerable — on the upside or the downside — to any news items that are unexpected. With a dearth of corporate news but a boatload of economic releases next week, investors need to stay vigilant. Here’s a look at four key items to watch: 1) On Tuesday, August 30th, we’ll get the latest reading from the monthly Case-Shiller home… Read More

Heading off early next week ahead of the Labor Day weekend? So are many others, including Wall Street traders. As they leave their trading desks, trading volumes can get awfully light. That makes the markets vulnerable — on the upside or the downside — to any news items that are unexpected. With a dearth of corporate news but a boatload of economic releases next week, investors need to stay vigilant. Here’s a look at four key items to watch: 1) On Tuesday, August 30th, we’ll get the latest reading from the monthly Case-Shiller home price index. The data reflects June prices, and this report is coming off a surprisingly robust tally the prior month that showed a +4.6% gain in home prices in May. In fact, this report has looked a tad better for 15 straight months, after bottoming with an -18% drop in February, 2009. Many of those ensuing months were still negative, but less so as time passed. Now, with a string of three straight positive readings, can we keep it up? Any reading above +5.0% would be a real positive for the markets and could boost housing stocks. Then again,… Read More

The energy industry has been especially turbulent recently, and investors looking for opportunity in companies afflicted by the offshore rig explosion and subsequent oil spill in the Gulf of Mexico are positioned right in the middle of the hurricane. I’ve spent some time in the hurricane and… Read More

Retirees and others that rely on income from their investments will be the first to tell you that interest rates are not what they used to be. Prior to the credit crisis, an individual with $2 million saved up could achieve a six-figure income just by holding a diversified basked… Read More

Investors that look to short stocks seek out two kinds of investments: those that are simply overvalued, and those that may go out of business. The latter are known as a “terminal short,” (as in terminally ill), and though they are rare, they can be very profitable. Parsing TiVo’s (Nasdaq: TIVO) fiscal second quarter results that were released Wednesday evening, you’ll find a company that is beginning to lose altitude. And as you look out into the future of TV and Internet programming, it’s hard to see how the company will… Read More

Investors that look to short stocks seek out two kinds of investments: those that are simply overvalued, and those that may go out of business. The latter are known as a “terminal short,” (as in terminally ill), and though they are rare, they can be very profitable. Parsing TiVo’s (Nasdaq: TIVO) fiscal second quarter results that were released Wednesday evening, you’ll find a company that is beginning to lose altitude. And as you look out into the future of TV and Internet programming, it’s hard to see how the company will remain as a compelling choice for either consumers or its media partners. Back in the red As young companies like TiVo are in growth mode, they are excused from the need to show positive cash flow. The company’s sales rose nicely through the middle of the past decade, but growth sharply slowed in fiscal (January) 2008 and has since turned negative. Trouble is, the company was only able to generate positive cash flow in fiscal 2009, but is once again back in negative cash flow mode. That’s worrisome enough. TiVo’s… Read More