As spring morphs into summer, many stocks are starting to move sideways. The summer doldrums often spell lackluster demand for stocks — unless they are really deep value plays. Value investors will wade in, even when most other buyers take a break. These folks tend to rummage through the waste basket, looking for discarded stocks that have been tossed out by the crowd. Value investors love to focus on two key points: stocks that are well off of their 52-week high and sport price-to-earnings (P/E) ratios well below the market… Read More

As spring morphs into summer, many stocks are starting to move sideways. The summer doldrums often spell lackluster demand for stocks — unless they are really deep value plays. Value investors will wade in, even when most other buyers take a break. These folks tend to rummage through the waste basket, looking for discarded stocks that have been tossed out by the crowd. Value investors love to focus on two key points: stocks that are well off of their 52-week high and sport price-to-earnings (P/E) ratios well below the market average. Many of the names they’ll encounter are in the table below. The table holds four names that I’ve mentioned in the past, each of which looks quite appealing if you can ride out the problems of 2011.   1. Central European Distribution (Nasdaq: CEDC) This purveyor of wine and spirits is glad to be looking ahead and not behind. The last six quarters have been an exercise in frustration as Russian authorities threatened to revoke its licenses, key rivals started price wars, its bonds were downgraded, and wheat, rye and other… Read More

In early 2008, falling home prices and a declining stock market caused consumer spending to plummet. This lasted for about 18 months. But soon consumers started to realize that the economy wasn’t going to remain in freefall forever. Today, the retailing industry has recovered quickly, is on much more solid footing, and certain players are set for a big move forward in terms of sales and earnings. In 2011, higher food, fuel and commodity costs are keeping consumers focused on more basic necessities, including food, gas and… Read More

In early 2008, falling home prices and a declining stock market caused consumer spending to plummet. This lasted for about 18 months. But soon consumers started to realize that the economy wasn’t going to remain in freefall forever. Today, the retailing industry has recovered quickly, is on much more solid footing, and certain players are set for a big move forward in terms of sales and earnings. In 2011, higher food, fuel and commodity costs are keeping consumers focused on more basic necessities, including food, gas and clothing. But the fact that demand has recovered from the recession a couple of years ago means customers are again paying up for more fashionable and pricey merchandise. Near term, gas prices have already moderated recently, and the consumer spending climate is likely to continue to improve in the next couple of years along with the overall economy. With that, below are three retailers that offer a decent combination of fashionable merchandise but also focus on selling products that consumers will need no… Read More

There’s nothing like being punished twice for something, which is sort of what happened to one big technology firm recently. On May 16, the company’s stock fell nearly 5% ahead of a scheduled earnings report, thanks to a leaked internal memo from the CEO forewarning of a tough third quarter. The CEO’s concerns officially became public the following day, and the stock resumed its slide for a total loss of about 10% since the initial leak. Sound familiar? I’m describing the latest of several recent setbacks suffered by the world’s No. 1 PC… Read More

There’s nothing like being punished twice for something, which is sort of what happened to one big technology firm recently. On May 16, the company’s stock fell nearly 5% ahead of a scheduled earnings report, thanks to a leaked internal memo from the CEO forewarning of a tough third quarter. The CEO’s concerns officially became public the following day, and the stock resumed its slide for a total loss of about 10% since the initial leak. Sound familiar? I’m describing the latest of several recent setbacks suffered by the world’s No. 1 PC maker, Hewlett-Packard Co (NYSE: HPQ).  Two straight quarters of reduced full-year earnings guidance from management have also weighed on HP. The bad news hit before the stock even had a chance to fully recover from the scandal last August in which prior CEO Mark Hurd abruptly resigned amidst allegations of sexual harassment — a situation that led to the replacement of a third of HP’s board of directors. Considering these recent troubles and the fact that the PC business in general has been struggling with soft consumer demand, you might assume HP is a stock to avoid. You’d be… Read More

America’s greatest turnaround story looks like it’s stuck in the mud. Shares of Ford Motor Co. (NYSE: F) raced from under $2 in early 2009 to above $18 in early 2011. A move toward the $25 mark started to become the next target for many analysts, myself included. Instead, shares have drifted steadily lower and now trade below $15. Even at that lower level, shares are heavily shorted. Many analysts clearly expect the stock to fall even further, but their logic looks flawed. A… Read More

America’s greatest turnaround story looks like it’s stuck in the mud. Shares of Ford Motor Co. (NYSE: F) raced from under $2 in early 2009 to above $18 in early 2011. A move toward the $25 mark started to become the next target for many analysts, myself included. Instead, shares have drifted steadily lower and now trade below $15. Even at that lower level, shares are heavily shorted. Many analysts clearly expect the stock to fall even further, but their logic looks flawed. A commodity drag After losing a cumulative $7.5 billion in 2008 and 2009, Ford earned a hefty $6.7 billion ($1.91 a share) in 2010. By late last year, analysts started to wonder if $2.50 a share or even $3 a share in profits might be possible by 2012. Now a series of headwinds have altered that view. Short sellers increasingly aver that Ford’s profits may actually drop in 2011 and 2012. They note that commodity prices are rising even faster than Ford can increase prices. What these bears are missing… Read More

According to recent figures, U.S. companies hold an astounding $1 trillion in overseas bank accounts. The reason for holding this ungodly amount of money overseas? Because bringing the cash back to the United States would require a rather significant tax hit. So what are these companies doing with all this cash? Well, up until recently, not a lot. But that’s beginning to change and it’s one reason why individual investors should pay very close attention to this phenomenon… First, some background… This $1 trillion is a result of profits earned from overseas subsidiaries of… Read More

According to recent figures, U.S. companies hold an astounding $1 trillion in overseas bank accounts. The reason for holding this ungodly amount of money overseas? Because bringing the cash back to the United States would require a rather significant tax hit. So what are these companies doing with all this cash? Well, up until recently, not a lot. But that’s beginning to change and it’s one reason why individual investors should pay very close attention to this phenomenon… First, some background… This $1 trillion is a result of profits earned from overseas subsidiaries of global giants like Microsoft (Nasdaq: MSFT), GE, (NYSE: GE), PepsiCo (NYSE: PEP) and others and were already taxed by a foreign government. Corporations often don’t repatriate most of these funds, as it would result in double taxation. Current U.S. tax laws require paying a corporate tax rate as high as 35% — regardless of whether taxes have already been paid in another country. As a result, many companies are choosing to keep the cash outside of the United States, and it’s hard to blame them. In many cases, the cash… Read More

The S&P 500 Index — the benchmark used to indicate the health of the overall market — has declined from a peak of 1,370.58 scored in late April to near the 1,320 level, a decline of about 4%. In doing so, it has breached its… Read More

In 1851, Prince Albert organized the Great Exhibition at the Crystal Palace in London’s Hyde Park. Not only was the building itself a wonder but attendees could also see the most fantastic products available, from an early version of the fax machine to American photographer Michael Brady’s daguerreotypes. Another exhibit was of an unusual photograph of Prince Albert’s wife, Queen Victoria. The image was presented in 3-D. Attendees were shocked by the technology. #-ad_banner-#Yet it was almost another 100 years before movie studios came up with the first generation of 3-D… Read More

In 1851, Prince Albert organized the Great Exhibition at the Crystal Palace in London’s Hyde Park. Not only was the building itself a wonder but attendees could also see the most fantastic products available, from an early version of the fax machine to American photographer Michael Brady’s daguerreotypes. Another exhibit was of an unusual photograph of Prince Albert’s wife, Queen Victoria. The image was presented in 3-D. Attendees were shocked by the technology. #-ad_banner-#Yet it was almost another 100 years before movie studios came up with the first generation of 3-D technology in an attempt to lure audiences away from their living-room televisions and back into the theater. A generation later, the advent of digital projection, computer-generated animation and other technological advancements culminated in “Avatar,” which was the first film to be devised specifically for 3-D technology. This was a game-changer. It’s the kind of watershed moment that gets me in research mode for Game-Changing Stocks. One of the biggest gambles of the project was Avatar’s producers James Cameron and Jon Landau’s pitch to movie theaters about the advent of a new… Read More

Investors need to be on guard against “the sideways churn.” This happens when a market that had been steadily rising is now see-sawing back and forth. Such a shift is often a sign that buyers are slowly pulling back and sellers are starting to take root. The sideways churn often presages the next move: a market downturn, where the sellers get even bolder and buyers lose interest. With that in mind, it’s time to focus on five companies that could see sharp pullbacks in the months ahead. #-ad_banner-# 1. Sprint Nextel (NYSE: S)… Read More

Investors need to be on guard against “the sideways churn.” This happens when a market that had been steadily rising is now see-sawing back and forth. Such a shift is often a sign that buyers are slowly pulling back and sellers are starting to take root. The sideways churn often presages the next move: a market downturn, where the sellers get even bolder and buyers lose interest. With that in mind, it’s time to focus on five companies that could see sharp pullbacks in the months ahead. #-ad_banner-# 1. Sprint Nextel (NYSE: S) Shares of this wireless phone service provider have risen nearly 50% since early December as optimism spreads that faster phone networks will lead consumers to justify ever-higher phone bills. Indeed, Sprint has been able to push through recent price hikes as it rolls out 4G service in more markets. But investors seem to be forgetting a few important facts. First, Sprint’s network remains inferior to its rivals, especially Verizon (NYSE: VZ). That may explain why Verizon continues to steal market share: it added 907,000 net new subscribers in the… Read More

As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are… Read More

As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are expected to repeat this performance by again producing the highest REIT dividend payout in the first half of this year, according to Bloomberg data. #-ad_banner-#Health care REITs are poised to grow dividends because of more than $11 billion of industry acquisitions last year. During the real estate meltdown, these REITs were able to acquire properties at bargain prices from private sellers and grow their stream of rental income. As REIT income rises, dividends go up, since these companies are required by law to distribute the majority of their income to shareholders as dividends. An added benefit is that health care… Read More

#-ad_banner-#The challenge for great investors is to do a regular reality-check on each stock you own, assessing whether it still holds value every time it moves up a few points. When shares of Couer D’Alene Mines (NYSE: CDE) started to rally, soon after I recommended it, I noted that a quick upward move was taking place. [See: “The 3 Best Stocks to Own Now”] The silver-mining firm was riding the back of a powerfully rally in the underlying metal. Shares moved up from $22 in mid-January to $35 by mid-April. Read More

#-ad_banner-#The challenge for great investors is to do a regular reality-check on each stock you own, assessing whether it still holds value every time it moves up a few points. When shares of Couer D’Alene Mines (NYSE: CDE) started to rally, soon after I recommended it, I noted that a quick upward move was taking place. [See: “The 3 Best Stocks to Own Now”] The silver-mining firm was riding the back of a powerfully rally in the underlying metal. Shares moved up from $22 in mid-January to $35 by mid-April. The 60% gain in just two months gave me pause, especially as the precious metal itself was showing all the signs of a manic buying spree that would end badly. The logical move then was to take profits, as I suggested in April. But it’s time to shift course yet again. Those who missed out on the 60% upward move have just been given a second chance, though this move could take many quarters to play out. Most importantly, Couer D’Alene doesn’t need to ride the back of another powerful silver rally — it needs to simply… Read More