David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon

Analyst Articles

Heading into a long holiday weekend, company-specific news may be light. But Washington is gearing up to release a slew of important data. Here’s a look at three economic items to watch: Home Prices look for a Floor Here’s a sobering stat: As of the first quarter of 2010, average home prices across the United States are at levels similar to what they were in the spring of 2003. They rose sharply in the middle of the decade, but have given back all of those gains during the past three years. On Tuesday,… Read More

Heading into a long holiday weekend, company-specific news may be light. But Washington is gearing up to release a slew of important data. Here’s a look at three economic items to watch: Home Prices look for a Floor Here’s a sobering stat: As of the first quarter of 2010, average home prices across the United States are at levels similar to what they were in the spring of 2003. They rose sharply in the middle of the decade, but have given back all of those gains during the past three years. On Tuesday, we’ll get the latest reading on housing prices from the S&P Case Shiller Home Price Index. So many potential home buyers are sitting on the sidelines waiting to see when housing prices will turn up. They know that prices are cheap, they just don’t want to see a newly acquired asset become even cheaper. But an upturn in housing prices could be a big motivator to get in the game, and trigger a long-awaited rebound in demand. Analysts at Case Shiller noted in their last report that “housing prices rebounded from crisis lows, but recently have… Read More

Each Friday we highlight the most compelling investment ideas that our research has uncovered from the 30 or so stocks that made it into our daily “winners” and “losers” write-ups during the week… Perfect World (Nasdaq: PWRD) Investors jumped into China-related stocks on Monday, looking for companies that would benefit from a stronger yuan and/or more robust Chinese consumer spending. Perfect World was seen as a play on that latter factor, and shares rose sharply Monday morning. #-ad_banner-#But after briefly touching $26 mid-day on Monday,… Read More

Each Friday we highlight the most compelling investment ideas that our research has uncovered from the 30 or so stocks that made it into our daily “winners” and “losers” write-ups during the week… Perfect World (Nasdaq: PWRD) Investors jumped into China-related stocks on Monday, looking for companies that would benefit from a stronger yuan and/or more robust Chinese consumer spending. Perfect World was seen as a play on that latter factor, and shares rose sharply Monday morning. #-ad_banner-#But after briefly touching $26 mid-day on Monday, they’ve been in freefall since, trading down to $22. There’s no good reason for the sell-off, though as we’ve noted before, Chinese gaming stocks may not be very timely as the industry is going through one of its once-every-few years no-growth modes. The industry — and Perfect World — are suffering from a dearth of hot new titles at the moment. The company’s quarterly earnings per share have been flat in the $0.70 to $0.80 range during the past four quarters. And it probably won’t be until the December quarter before they bust out… Read More

If someone told you two hundred years ago that an inherently worthless item would be hocked to generations of people, and that the asking price for this item would be several thousand dollars per gram, you probably wouldn’t believe it. But as an investor, you’d probably want a piece of… Read More

Among the biggest losers in Friday’s early trading are Research in Motion (Nasdaq: RIMM), Aerovironment (Nasdaq: AVAV) and BP (NYSE: BP). Top Percentage Losers — Friday, June 25, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Loss 52-Week High 52-Week Low Research in Motion (Nasdaq: RIMM) $25.90 -8.3% $88.08 $53.55 Aerovironment (Nasdaq: AVAV) $69.68 -3.9% $35.38 $20.90 BP (NYSE: BP) $39.87 -3.8% $62.38 $27.07 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000… Read More

Among the biggest losers in Friday’s early trading are Research in Motion (Nasdaq: RIMM), Aerovironment (Nasdaq: AVAV) and BP (NYSE: BP). Top Percentage Losers — Friday, June 25, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Loss 52-Week High 52-Week Low Research in Motion (Nasdaq: RIMM) $25.90 -8.3% $88.08 $53.55 Aerovironment (Nasdaq: AVAV) $69.68 -3.9% $35.38 $20.90 BP (NYSE: BP) $39.87 -3.8% $62.38 $27.07 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000 shares. All percentage returns are listed as of 11:29AM Eastern Standard Time. Click on ticker symbols for up-to-the-minute price quotes and percentage gain data. RIMM can’t Defy Critics Heading into Thursday evening’s earnings report, an increasing number of investors had been grumbling that Research in Motion’s (Nasdaq: RIMM) Blackberry line of smartphones is losing cachet, and that Apple’s (Nasdaq: AAPL) iPhone and Google’s (Nasdaq: GOOG) Android would start to steal market share. Quarterly results were… Read More

Among the biggest winners in Friday’s early trading are Oracle (Nasdaq: ORCL), Accenture (NYSE: ACN) and MannKind (Nasdaq: MNKD). Top Percentage Gainers — Friday, June 25, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Gain 52-Week High 52-Week Low Accenture (NYSE: ACN) $39.62 +5.5% $44.67 $17.74 MannKind (Nasdaq: MNKD) $42.06 +5.4% $12.30 $4.76 Oracle (Nasdaq: ORCL) $22.83 +2.7% $26.63 $19.79 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000 shares. All percentage returns… Read More

Among the biggest winners in Friday’s early trading are Oracle (Nasdaq: ORCL), Accenture (NYSE: ACN) and MannKind (Nasdaq: MNKD). Top Percentage Gainers — Friday, June 25, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Gain 52-Week High 52-Week Low Accenture (NYSE: ACN) $39.62 +5.5% $44.67 $17.74 MannKind (Nasdaq: MNKD) $42.06 +5.4% $12.30 $4.76 Oracle (Nasdaq: ORCL) $22.83 +2.7% $26.63 $19.79 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000 shares. All percentage returns are listed as of 10:49AM Eastern Standard Time. Click on ticker symbols for up-to-the-minute price quotes and percentage gain data. Oracle makes Quick Progress with Sun When software developer Oracle (Nasdaq: ORCL) announced plans to acquire Sun Microsystems last year, most thought that CEO Larry Ellison had finally gone too far with the company’s growth-through-acquisition strategy. After all, Oracle is a software giant, and had little experience selling the kinds of hardware that Sun Micro sold. Moreover, Sun had become a no-growth platform that was barely profitable. Read More

When Circuit City went bankrupt in 2008, it should have been immediately clear that rival Best Buy (NYSE: BBY) was set to win a whole bunch of new customers. But the economy was lousy, so investors were in no hurry to go after shares of Best Buy. They should have been. Just a few quarters later, Best Buy was delivering great results, and shares, which had fallen below $20 in the market swoon of early 2009, jumped past $40 by the middle of 2009. Read More

When Circuit City went bankrupt in 2008, it should have been immediately clear that rival Best Buy (NYSE: BBY) was set to win a whole bunch of new customers. But the economy was lousy, so investors were in no hurry to go after shares of Best Buy. They should have been. Just a few quarters later, Best Buy was delivering great results, and shares, which had fallen below $20 in the market swoon of early 2009, jumped past $40 by the middle of 2009. We’ve seen this all before. When Chrysler and GM had to radically shrink to survive, it was clear that Ford (NYSE: F) could pick up market share. It did, and shares, belatedly, quadrupled. Only recently, we saw Pier One (NYSE: PIR) boast that business has never been better, now that Linens & Things is out of business. But Linens & Things closed up shop more than a year ago, and any market share shift took a few quarters to become apparent. Investors may have a chance to… Read More

Warren Buffett — and Benjamin Graham before him — made their fortunes off of one simple strategy: buying assets at cheap, undervalued prices and then helping those assets realize their value. It’s a tried and true strategy that’s spawned generations of value investors. For an investor, it… Read More

Among the biggest winners in Thursday’s early trading are Hasbro (NYSE: HAS) and Discover Financial Services (NYSE: DFS). Top Percentage Gainers — Thursday, June 24, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Gain 52-Week High 52-Week Low Discover Financial (NYSE: DFS) $14.35 +2.4% $17.36 $9.00 Hasbro (NYSE: HAS) $42.06 +2.3% $43.39 $22.79 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000 shares. All percentage returns are listed as of… Read More

Among the biggest winners in Thursday’s early trading are Hasbro (NYSE: HAS) and Discover Financial Services (NYSE: DFS). Top Percentage Gainers — Thursday, June 24, 2010 Company Name (Ticker) Intra-Day Price Intra-Day % Gain 52-Week High 52-Week Low Discover Financial (NYSE: DFS) $14.35 +2.4% $17.36 $9.00 Hasbro (NYSE: HAS) $42.06 +2.3% $43.39 $22.79 *Table includes companies with minimum market capitalizations of $200 million and three month trading volumes of at least 100,000 shares. All percentage returns are listed as of 11:40AM Eastern Standard Time. Click on ticker symbols for up-to-the-minute price quotes and percentage gain data. Hasbro’s Cash Flow Appeal A leading private equity (PE) firm apparently asked to look under the hood at toy and game maker Hasbro (NYSE: HAS), according to The Wall Street Journal. Shares were up nearly +10% in pre-market trading. But right after the market opened, Hasbro issued a statement that it’s not for sale. So shares are settling for a modest +2% gain in Thursday trading in an otherwise down market. Read More