Were you one of the approximately 4 in 10 Americans who made a New Year’s resolution this year? By any chance, was your resolution to lose weight? If so, that’s not surprising. Shedding pounds is one of the most popular goals of those who make resolutions, particularly after holiday feasting.#-ad_banner-# Wonder how your resolution could lead to a profitable trade? The stock is Herbalife (NYSE: HLF). Shares posted triple-digit gains in 2013, and the stock is poised to provide outstanding returns again this year. One main reason for its performance is a global obesity epidemic that has created a multi-billion-dollar… Read More

Were you one of the approximately 4 in 10 Americans who made a New Year’s resolution this year? By any chance, was your resolution to lose weight? If so, that’s not surprising. Shedding pounds is one of the most popular goals of those who make resolutions, particularly after holiday feasting.#-ad_banner-# Wonder how your resolution could lead to a profitable trade? The stock is Herbalife (NYSE: HLF). Shares posted triple-digit gains in 2013, and the stock is poised to provide outstanding returns again this year. One main reason for its performance is a global obesity epidemic that has created a multi-billion-dollar market for its weight loss products. According to Transparency Market Research, the global weight management market is estimated to reach $650.9 billion in 2015, with weight management services being the fastest-growing segment. Herbalife, which uses a network of independent distributors to sell its products in over 80 countries, appears ripe to profit from this growing market. For the past 19 quarters, Herbalife has posted results that surpassed analyst expectations. In October, the company reported record third-quarter earnings and its 16th consecutive quarter of double-digit revenue growth. Revenue for the period increased 19% from the year-ago period, to $1.2 billion, and… Read More

A popular investment strategy is to buy quality stocks and plan to hold them forever. The buy-and-hold strategy became popular because it works well — sometimes.#-ad_banner-# From 1982 to 2000, buying and holding delivered exceptional returns. At other times, the results are nothing short of disastrous. Bank stocks offer an example of the latter case. In 2006, Bank of America (NYSE: BAC) was one of the world’s largest banks, with a profitable mortgage originating division. It seemed like the perfect company for a buy-and-hold investor, with the ability to earn steady profits from mortgage servicing rights and other banking operations. Read More

A popular investment strategy is to buy quality stocks and plan to hold them forever. The buy-and-hold strategy became popular because it works well — sometimes.#-ad_banner-# From 1982 to 2000, buying and holding delivered exceptional returns. At other times, the results are nothing short of disastrous. Bank stocks offer an example of the latter case. In 2006, Bank of America (NYSE: BAC) was one of the world’s largest banks, with a profitable mortgage originating division. It seemed like the perfect company for a buy-and-hold investor, with the ability to earn steady profits from mortgage servicing rights and other banking operations. BAC began trading down as home prices peaked despite assurances from many analysts and policymakers that the housing market did not present a risk to the overall economy. BAC has gained 500% since March 2009. Despite that gain, the stock remains more than 65% below its 2006 high, and long-term buy-and-hold investors are still showing losses. Anyone who bought the stock before May 2010 still has a loss on their position. Investors who bought in 2008 or earlier are also likely to be showing a loss. Some buy-and-hold investors will point out that the dangers of individual stocks… Read More

In the three months since Alcoa (NYSE: AA) kicked off the third-quarter earnings season, much has happened:#-ad_banner-# • U.S. consumers moved further into hibernation, leading to another period of weakness for major retailers (at least those not named Amazon.com (Nasdaq: AMZN)). • The U.S. government botched a much-anticipated rollout of the Affordable Care Act, aka Obamacare. • Natural gas prices surged to multi-year highs on the back of an unusually cold winter. • Companies began picking up the pace of hiring, leading the Federal Reserve to begin tapering its stimulus program. Read More

In the three months since Alcoa (NYSE: AA) kicked off the third-quarter earnings season, much has happened:#-ad_banner-# • U.S. consumers moved further into hibernation, leading to another period of weakness for major retailers (at least those not named Amazon.com (Nasdaq: AMZN)). • The U.S. government botched a much-anticipated rollout of the Affordable Care Act, aka Obamacare. • Natural gas prices surged to multi-year highs on the back of an unusually cold winter. • Companies began picking up the pace of hiring, leading the Federal Reserve to begin tapering its stimulus program. • And the S&P 500 Index delivered a 9.8% quarterly gain, which works out to more than 35% on an annualized basis. With Alcoa set to once again kick off earnings season this week on Jan. 9, it’s time to look ahead and ponder what the quarter ahead holds for investors. Here are four key themes you should be tracking as you digest the raft of quarterly conference calls set to take place over the next month. 1. More Buybacks And Dividends One of the hallmarks of this bull market (which will hit the five-year mark in… Read More

As investors roll into 2014 with the wind at their backs, one thing is certain (or as certain as can be expected in the investment business): America is back.#-ad_banner-#​ Pundits and pessimists may grumble about lack of leadership in Washington, rising interest rates and a tepid economic recovery. But the nation has adapted in the aftermath of the financial crisis.  Corporate America got lean and mean, cleaned up its balance sheets and learned how to operate in the new and challenging environment. Households followed suit by shedding debt and consuming more responsibly (much to the disappointment of many… Read More

As investors roll into 2014 with the wind at their backs, one thing is certain (or as certain as can be expected in the investment business): America is back.#-ad_banner-#​ Pundits and pessimists may grumble about lack of leadership in Washington, rising interest rates and a tepid economic recovery. But the nation has adapted in the aftermath of the financial crisis.  Corporate America got lean and mean, cleaned up its balance sheets and learned how to operate in the new and challenging environment. Households followed suit by shedding debt and consuming more responsibly (much to the disappointment of many financial services companies). Doubters may think the market’s run-up since its bottom in 2009 is done. But as I wrote last month in the first part of this series, the American Renaissance has legs, and the run can continue.  Long-Term Transformation Johnson Controls (NYSE: JCI) is a textbook example of what I consider an American Renaissance stock. Best known for manufacturing automotive interior components and as the largest automotive battery operation in North America, Johnson Controls has morphed from an automotive industry-centric business into a multi-industrial global powerhouse. JCI spent most of last year on a certifiable tear:… Read More

Nothing lasts forever… This is especially true in the investing world where so many shifting factors come into play. So many things can affect a company’s performance — shifts, external factors such as in political leadership, consumer confidence, interest rates, international conflicts… the list goes on. So it makes sense that the safest place to start is with investments that have stood the test of time. #-ad_banner-#Think about it. If a company manages to survive through the Great Depression, two World Wars, and every possible economic and political situation under the sun — it’s a good bet this company stands… Read More

Nothing lasts forever… This is especially true in the investing world where so many shifting factors come into play. So many things can affect a company’s performance — shifts, external factors such as in political leadership, consumer confidence, interest rates, international conflicts… the list goes on. So it makes sense that the safest place to start is with investments that have stood the test of time. #-ad_banner-#Think about it. If a company manages to survive through the Great Depression, two World Wars, and every possible economic and political situation under the sun — it’s a good bet this company stands a better chance of surviving for generations to come. Heck, some of the U.S. companies we researched for our latest report, “The Top 11 Legacy Assets of All Time,” survived the Civil War. Others have been around longer than the U.S. has been a country. And there’s a powerful secret behind how they did it — one every investor should take to heart. Here it is…  Unlike popular tech companies such as Apple and Microsoft, “Legacy Assets” don’t have to come up with the next high-tech gadget or operating system every year. And unlike banks or insurance companies, “Legacy Assets”… Read More

Give credit where it’s due. Ever since China’s government pursued vigorous reforms 35 years ago, the country’s economic growth rate has been simply remarkable.#-ad_banner-# According to the World Bank, roughly half a billion Chinese people have been lifted out of poverty, and the economy is now 90 times larger than it was back in 1978.  Rumors of the imminent demise for this growth machine in recent years have been clearly premature. I noted these concerns more than two years ago, as have noted short seller Jim Chanos and others, and the Chinese economy has still managed… Read More

Give credit where it’s due. Ever since China’s government pursued vigorous reforms 35 years ago, the country’s economic growth rate has been simply remarkable.#-ad_banner-# According to the World Bank, roughly half a billion Chinese people have been lifted out of poverty, and the economy is now 90 times larger than it was back in 1978.  Rumors of the imminent demise for this growth machine in recent years have been clearly premature. I noted these concerns more than two years ago, as have noted short seller Jim Chanos and others, and the Chinese economy has still managed to grow more than 7% annually. In fact, the Chinese government believes that this economy will grow an impressive 7.5% in 2014 as well, which would still be the most impressive growth rate in the world. Trouble is, recent signs point to decelerating growth, perhaps closer to 5%, which would create a drag for the dozens of economies that consider China to be their major trading partner. The trouble spots include local government debt, an increasingly uncompetitive wage structure and a tricky set of adjustments that the government is making to shift toward domestic consumption. Document 107… Read More

During the financial crisis, the U.S. auto industry really took it on the chin. Two of the Big Three automakers filed for bankruptcy in 2009.#-ad_banner-#​ Since then, the industry has come roaring back, with 2013 expected to mark the fifth consecutive year of industrywide sales growth in the U.S.  Yet, what many investors in the sector are missing is that the industry’s true growth story lies beyond U.S. shores. I’m talking about the rise of the middle class in emerging markets.  One of the companies best positioned to take advantage of this also happens to be the only… Read More

During the financial crisis, the U.S. auto industry really took it on the chin. Two of the Big Three automakers filed for bankruptcy in 2009.#-ad_banner-#​ Since then, the industry has come roaring back, with 2013 expected to mark the fifth consecutive year of industrywide sales growth in the U.S.  Yet, what many investors in the sector are missing is that the industry’s true growth story lies beyond U.S. shores. I’m talking about the rise of the middle class in emerging markets.  One of the companies best positioned to take advantage of this also happens to be the only one of the Big Three to avoid bankruptcy in 2009. This automaker also happens to be well-positioned in emerging markets, namely China and India, and it also has a stronghold in Europe, which could be one of the best turnaround stories of 2014.  This company is Ford (NYSE: F), America’s second-largest automaker. Over the past three years, Ford and the largest U.S. automaker, GM (NYSE: GM), had essentially traded in lockstep — but there’s been a large deviance from the status quo in the past month. Ford’s growth prospects remain robust, but the stock is now trading at a hefty… Read More

Many investors follow the Dogs of the Dow, a well-known trading strategy that is intended to buy value stocks. Originally, the Dogs of the Dow strategy consisted of buying the 10 highest-yielding stocks in the Dow Jones Industrial Average and rebalancing the portfolio once a year.#-ad_banner-#​ Every January, a new list of Dogs would be compiled and changes made to the portfolio to reflect them. Most years, at least some of the stocks remain on the list, and turnover is relatively low. Since the Dogs of the Dow strategy was first published, a number of variations have been… Read More

Many investors follow the Dogs of the Dow, a well-known trading strategy that is intended to buy value stocks. Originally, the Dogs of the Dow strategy consisted of buying the 10 highest-yielding stocks in the Dow Jones Industrial Average and rebalancing the portfolio once a year.#-ad_banner-#​ Every January, a new list of Dogs would be compiled and changes made to the portfolio to reflect them. Most years, at least some of the stocks remain on the list, and turnover is relatively low. Since the Dogs of the Dow strategy was first published, a number of variations have been developed. (Our colleague David Sterman offered his own take last month.) One of the variations of the strategy is to buy only the five lowest-priced stocks from the list of the 10 highest-yielding stocks. This is the approach Amber detailed last month. She suggests using call options to lower the purchase cost and increase the potential gains from the strategy. The stocks she identified as Dogs of the Dow using this strategy are Cisco (Nasdaq: CSCO), Intel (Nasdaq: INTC), Pfizer (NYSE: PFE), AT&T (NYSE: T) and Microsoft (Nasdaq: MSFT). The Dogs of the Dow strategy limits… Read More

Want to get rich quick? Invest in a technology IPO.#-ad_banner-#​ According to Dealogic, the average tech IPO in 2013 surged a stunning 41% in its first day of trading. The most impressive one-day gain came from Benefitfocus (Nasdaq: BNFT), which was priced at $26.50 when the deal was launched Sept. 23 and managed to close above $53. (Perhaps tellingly, shares have risen just 5% since then.) Twitter’s (NYSE: TWTR) 73% pop in its first day of trading was also quite impressive. The IPO market lifted many sectors last year, not just technology. The health care sector, led by… Read More

Want to get rich quick? Invest in a technology IPO.#-ad_banner-#​ According to Dealogic, the average tech IPO in 2013 surged a stunning 41% in its first day of trading. The most impressive one-day gain came from Benefitfocus (Nasdaq: BNFT), which was priced at $26.50 when the deal was launched Sept. 23 and managed to close above $53. (Perhaps tellingly, shares have risen just 5% since then.) Twitter’s (NYSE: TWTR) 73% pop in its first day of trading was also quite impressive. The IPO market lifted many sectors last year, not just technology. The health care sector, led by biotech stocks, generated nearly $10 billion in IPO proceeds through roughly 50 deals, according to Dealogic. More than a dozen deals in the energy sector raised nearly $10 billion.  Now that investment bankers are returning from their Caribbean villas, they’re gearing up for another banner year. According to CB Insights, there are more than 500 privately held tech companies that are believed to be already worth more than $100 million.  The 10 most anticipated IPOs of 2014 include: 1. Alibaba.com​ This Chinese e-commerce giant, which conducts more than $150 billion in transactions a year, is deciding whether… Read More

With 2014 off to a lackluster start, investors need to consider whether they should take action to avoid a likely sell-off. A Pullback is Not a Sell Signal On the first trading day of the year, SPDR S&P 500 (NYSE: SPY) fell 0.96% and extended its loss with a small decline on Friday. For the week, SPY fell 0.51%. The two-day sell-off at the end of the week was not a very significant event, but in a search for new indicators, some commentators are trying to compress the January Barometer into an… Read More

With 2014 off to a lackluster start, investors need to consider whether they should take action to avoid a likely sell-off. A Pullback is Not a Sell Signal On the first trading day of the year, SPDR S&P 500 (NYSE: SPY) fell 0.96% and extended its loss with a small decline on Friday. For the week, SPY fell 0.51%. The two-day sell-off at the end of the week was not a very significant event, but in a search for new indicators, some commentators are trying to compress the January Barometer into an ever shorter time frame.#-ad_banner-#​ The January Barometer claims that the market will end the year up if the S&P 500 moves up in January. A lower close for the index in January is bearish for the full year. Several years ago, a widely admired technical analyst, Louise Yamada, CMT, revealed she had found a way to improve the January Barometer. She told The New York Times that when there is a gain in the first five trading days of January and a further climb through the end of the month, “there is a 94% chance of the market being up… Read More