I’d like to preface this issue by saying today’s essay might prove uncomfortable for some. At StreetAuthority, our job is to present you with the very best investing opportunities. To ignore an opportunity just because it might be morally objectionable would be doing you — as well as the rest of our subscribers — a grave injustice. With those disclaimers in mind, today I want to tell you about the current investment opportunities in the United States’ burgeoning marijuana industry. As you may know, 20 states have already made cannabis legal for medicinal purposes, while several others have recently added… Read More

I’d like to preface this issue by saying today’s essay might prove uncomfortable for some. At StreetAuthority, our job is to present you with the very best investing opportunities. To ignore an opportunity just because it might be morally objectionable would be doing you — as well as the rest of our subscribers — a grave injustice. With those disclaimers in mind, today I want to tell you about the current investment opportunities in the United States’ burgeoning marijuana industry. As you may know, 20 states have already made cannabis legal for medicinal purposes, while several others have recently added a medical marijuana provision to their statewide ballots. Voters in both Colorado and Washington state have even gone so far as to legalize the drug for recreational use. As a result, legal marijuana operations like Cannabis Science (OTC: CBIS) — a purveyor of some of the country’s finest grown hemp (or so I’ve been told) — have been popping up in “green” states all over the country. These dispensaries — or “compassion clubs,” as they’re sometimes called — have created a very interesting phenomenon… That’s because according to federal law, the possession and distribution of marijuana is still considered a… Read More

Would you pay $1,225 for a gift card worth $400? It sounds ridiculous. No one should be willing to exchange over a grand in cash for nothing more than a few hundred dollars worth of company merchandise — regardless of what store it is. Yet despite the absurdity, that’s exactly what die-hard customers are willing to pay for a highly-coveted Starbucks (Nasdaq: SBUX) limited-edition gift card. #-ad_banner-#The rose-gold covered card, which comes pre-loaded with $400 in Starbucks credit, sold out in seconds when the company first released them early last month — less time than it takes the average barista… Read More

Would you pay $1,225 for a gift card worth $400? It sounds ridiculous. No one should be willing to exchange over a grand in cash for nothing more than a few hundred dollars worth of company merchandise — regardless of what store it is. Yet despite the absurdity, that’s exactly what die-hard customers are willing to pay for a highly-coveted Starbucks (Nasdaq: SBUX) limited-edition gift card. #-ad_banner-#The rose-gold covered card, which comes pre-loaded with $400 in Starbucks credit, sold out in seconds when the company first released them early last month — less time than it takes the average barista to prepare one of the Seattle-based coffee chain’s signature lattes. Don’t worry though. If you’re interested in buying this “limited-edition” piece of Starbucks’ history, you can pick one up for just $1,225 on eBay — more than double what the card is worth in venti Americanos. It’s that kind of brand loyalty that makes Starbucks such a great company… and an even better investment. In fact, Starbucks’ customers are so loyal to their brand that we at StreetAuthority have come to call them some of the “most loyal customers in the world.” They don’t care that… Read More

Many corporate executives place a lot of faith in the rational behavior of the markets. If they deliver on the promises they’ve set out for investors, the market should reward them with a sufficiently higher share price. But sometimes, the market fails to respond, even when management delivers. The executives at DVR pioneer TiVo (Nasdaq: TIVO) have surely done what they promised, yet shares remain remarkably undervalued. Roughly two years ago, I laid out a series of catalysts that would help boost this stock by 50%. #-ad_banner-#Shares have risen 40% since then, but that’s cold comfort for investors… Read More

Many corporate executives place a lot of faith in the rational behavior of the markets. If they deliver on the promises they’ve set out for investors, the market should reward them with a sufficiently higher share price. But sometimes, the market fails to respond, even when management delivers. The executives at DVR pioneer TiVo (Nasdaq: TIVO) have surely done what they promised, yet shares remain remarkably undervalued. Roughly two years ago, I laid out a series of catalysts that would help boost this stock by 50%. #-ad_banner-#Shares have risen 40% since then, but that’s cold comfort for investors who have seen the S&P 500 rise 52% in that time. Shares of cable TV companies have more than doubled in that time, making TiVo a relative loser in this industry. But if you are looking to apply fresh money to this industry now, forget the cable giants. It’s simply hard to see any more upside for them. Instead, refocus your sights on TiVo, which holds appeal to both value and growth investors. Let’s start with the value part of the equation. In my late 2011 profile of the company, I noted that TiVo stood to greatly gain from a… Read More

Ultra Petroleum Corp. (NYSE: UPL) is an independent oil and gas company. It is actively engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The energy sector has underperformed the broader market in the past year, with the Energy Select Sector SPDR (NYSE: XLE) up less than 14% compared with the S&P 500’s 22% gain. Yet, as you can see in the chart below, UPL has drastically outperformed its sector (and the overall market), gaining 53% in the past 52 weeks. This is in stark comparison to some of its biggest peers… Read More

Ultra Petroleum Corp. (NYSE: UPL) is an independent oil and gas company. It is actively engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The energy sector has underperformed the broader market in the past year, with the Energy Select Sector SPDR (NYSE: XLE) up less than 14% compared with the S&P 500’s 22% gain. Yet, as you can see in the chart below, UPL has drastically outperformed its sector (and the overall market), gaining 53% in the past 52 weeks. This is in stark comparison to some of its biggest peers like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), which are up 8% and less than 1%, respectively, during that time. #-ad_banner-#On Feb. 20, UPL rallied 4% after reporting better-than-expected fourth-quarter and full-year 2013 results. Q4 earnings of $0.42 per share bested Zacks consensus estimate of $0.37, and this was attributed to a 78% year-over-year decline in operating costs for the quarter and an increase in price realizations. The company saw 58% adjusted operating cash flow margin and a 29% adjusted net income margin. CEO Michael D. Watford commented on the results, saying: “For our company, 2013 was… Read More

In today’s world of high-frequency, short-term trading, many funds have sprung up that take positions based purely on statistics and for mere seconds (or less) at a time. Fundamentals get thrown out of the window; long-term appreciation and dividends are often never considered. #-ad_banner-#Traditional long/short hedge funds are still generating impressive returns using tried-and-true methods, however. Heavy research into valuation and commitment to investment ideas over a greater horizon will never go out of style. This type of investing mantra is suitable for the great majority of investors as well. Getting a peek into that research can be done each… Read More

In today’s world of high-frequency, short-term trading, many funds have sprung up that take positions based purely on statistics and for mere seconds (or less) at a time. Fundamentals get thrown out of the window; long-term appreciation and dividends are often never considered. #-ad_banner-#Traditional long/short hedge funds are still generating impressive returns using tried-and-true methods, however. Heavy research into valuation and commitment to investment ideas over a greater horizon will never go out of style. This type of investing mantra is suitable for the great majority of investors as well. Getting a peek into that research can be done each quarter when funds release their long positions in a filing called a Form 13F. While 13F data has its pros and cons, following managers who have demonstrated performance over a long-term horizon can lead to profitable investments. Warren Buffett, esteemed investor, founder and the largest stakeholder of Berkshire Hathaway (NYSE: BRK), is the polar opposite of a short-term trader. The Oracle of Omaha is a legendary buy-and-hold investor, which is why his filings can be so insightful. I’ve pored over Berkshire Hathaway’s 13Fs spanning the last 12 quarters with a few criteria in mind. First, find big-cap stocks that have… Read More

When assessing a company’s stock, many investors make it a point to check out its bonds, too. This can often provide insight into a firm’s financial health and where its stock price is headed. #-ad_banner-#Keeping an eye on credit ratings is especially smart if you’re thinking of buying stock in an out-of-favor company struggling to turn itself around. You certainly don’t want to sink hard-earned cash into a stock based on a nice-sounding turnaround story only to find out the hard way — by further decimation of the stock price — the firm was a financial wreck on the verge… Read More

When assessing a company’s stock, many investors make it a point to check out its bonds, too. This can often provide insight into a firm’s financial health and where its stock price is headed. #-ad_banner-#Keeping an eye on credit ratings is especially smart if you’re thinking of buying stock in an out-of-favor company struggling to turn itself around. You certainly don’t want to sink hard-earned cash into a stock based on a nice-sounding turnaround story only to find out the hard way — by further decimation of the stock price — the firm was a financial wreck on the verge of bankruptcy. If they don’t watch out, that’s just what could happen to shareholders in one struggling retailer. The company is the subject of much turnaround chatter. And its stock has shown the ability to post exciting returns recently, more than doubling from mid-November 2012 to mid-May 2013. After retreating over nearly a three-month period, it popped again, this time almost 60% from early August to mid-September 2013. Following another pullback, it was on the move yet again from mid-January to the end of February, rising 31% during that time. But despite these brief, intense updrafts, the stock is still… Read More

If you read StreetAuthority Daily on a regular basis, you know that we’ve been talking a lot about what we call “Legacy Assets” lately. We’ve shown you what they are, what they can do for your portfolio — and even shared a couple of our favorite Legacy Assets with you. Today, I want to tell you why they matter. #-ad_banner-#Warren Buffett, widely considered the greatest investor of all time and one of the world’s richest men, has said of his legacy: When you get to my age, you’ll really measure your success in life by how many of the… Read More

If you read StreetAuthority Daily on a regular basis, you know that we’ve been talking a lot about what we call “Legacy Assets” lately. We’ve shown you what they are, what they can do for your portfolio — and even shared a couple of our favorite Legacy Assets with you. Today, I want to tell you why they matter. #-ad_banner-#Warren Buffett, widely considered the greatest investor of all time and one of the world’s richest men, has said of his legacy: When you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you. I know people who have a lot of money, and they get testimonial dinners and they get hospital wings named after them. But the truth is that nobody in the world loves them. If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster. Buffett means what he says. And he backs up his words with action. In 2012, Buffett donated over $3 billion to charity, more than 3 times as… Read More

Imagine walking into a casino and taking a seat at the nearest roulette table. You set down a $100 bill, receive four green $25 chips, and proceed to stack them all on red. If the ball lands on a red number, you instantly double your money. If not, you lose it all and walk away with nothing. The croupier gives the wheel a spin, lets the ball fly, and waves his hand over the table to signal no more bets. The adrenaline starts pumping as you watch the ball bounce from slot to slot, finally settling on… 20 black. Your… Read More

Imagine walking into a casino and taking a seat at the nearest roulette table. You set down a $100 bill, receive four green $25 chips, and proceed to stack them all on red. If the ball lands on a red number, you instantly double your money. If not, you lose it all and walk away with nothing. The croupier gives the wheel a spin, lets the ball fly, and waves his hand over the table to signal no more bets. The adrenaline starts pumping as you watch the ball bounce from slot to slot, finally settling on… 20 black. Your chips are unceremoniously scooped up. That was fast. #-ad_banner-#But wait. This is no ordinary roulette wheel. The dealer decides to reimburse you for your play and gives you $40 back. Emboldened, you pocket the chips and lay down another Ben Franklin on the table for a second spin. This time Lady Luck smiles on you. The ball lands on 5 red. The dealer doubles your bet and pushes $100 toward you. But once again, he gives you an extra $40 bonus just for playing. The laws of mathematics say this is a “can’t-lose” proposition. Guess wrong, and you still get… Read More

Sometimes an investment idea is so strong, it bears repeating. #-ad_banner-#In late February, my colleague Michael Vodicka implored readers to give emerging market stocks a fresh look. Though he cautioned that these struggling markets may not have yet hit bottom, he added that “the MSCI Emerging Markets Index is trading at just 11 times earnings. Not only is that a massive 40% discount to the MSCI World Index, it’s the widest gap since the financial crisis of 2008 and a 10-year low.” As a potential catalyst, Michael noted that the recent price rebound for many commodities should help bolster a… Read More

Sometimes an investment idea is so strong, it bears repeating. #-ad_banner-#In late February, my colleague Michael Vodicka implored readers to give emerging market stocks a fresh look. Though he cautioned that these struggling markets may not have yet hit bottom, he added that “the MSCI Emerging Markets Index is trading at just 11 times earnings. Not only is that a massive 40% discount to the MSCI World Index, it’s the widest gap since the financial crisis of 2008 and a 10-year low.” As a potential catalyst, Michael noted that the recent price rebound for many commodities should help bolster a number of emerging market economies. But there’s another, even more powerful reason to own emerging markets, which merely strengthens the investment case: They reduce risk. That may seem counterintuitive, so let me explain. Risk-Adjusted Returns Back in November, S&P Capital’s Global Equity Strategist Alec Young took a look at historical market returns to identify how domestic and foreign stocks performed each year. If these two asset classes merely mirrored each other, then there would be no need to own foreign stocks. But as we saw in 2013, U.S. stocks soared, while emerging markets slumped. The advantage to owning asset… Read More

Successful short-term trading is a learnable skill. It takes a combination of a keen eye to identify changing fundamentals within the market or company and the ability to read price. By “reading price,” I mean the aptitude to study price changes on a spread sheet or chart in order to make an educated guess as to whether the price trend will continue or reverse.   #-ad_banner-#In addition, the ability to handle losses while not deviating from your trading plan is a key factor in short-term trading success. Using the above factors as a guide, I identified FuelCell Energy (NASDAQ: FCEL)… Read More

Successful short-term trading is a learnable skill. It takes a combination of a keen eye to identify changing fundamentals within the market or company and the ability to read price. By “reading price,” I mean the aptitude to study price changes on a spread sheet or chart in order to make an educated guess as to whether the price trend will continue or reverse.   #-ad_banner-#In addition, the ability to handle losses while not deviating from your trading plan is a key factor in short-term trading success. Using the above factors as a guide, I identified FuelCell Energy (NASDAQ: FCEL) as a very likely candidate for substantial short-term profits. Let’s take a closer look at this innovative company. FuelCell Energy is a Danbury, Conn.-based manufacturer and distributor of stationary fuel cell power plants. In other words, the company makes large batteries and markets them to electric utilities, independent power producers, and the education, health care and hospitality industries, among a variety of other sectors. FCEL boasts a market cap of around $640 million, revenue of nearly $188 million in the past 12 months, and just under $68 million in cash.   Things appear to be improving for the company, which… Read More