It really shouldn’t matter a lick what price a stock is trading at. There is no fundamental difference between a stock with 1 million shares trading at $50 and a stock with 10 million shares trading at $5. Then again, there are people whose interest is piqued when they see a low price tag. It’s one of the reasons why many companies will split their stock. The lower price tag will sometimes entice more buying.#-ad_banner-# When you consider the rule… Read More

It really shouldn’t matter a lick what price a stock is trading at. There is no fundamental difference between a stock with 1 million shares trading at $50 and a stock with 10 million shares trading at $5. Then again, there are people whose interest is piqued when they see a low price tag. It’s one of the reasons why many companies will split their stock. The lower price tag will sometimes entice more buying.#-ad_banner-# When you consider the rule of large numbers, the phenomenon of lower-priced stocks rising faster than their higher-priced brethren does make a little sense. After all, for a stock trading at $5 to gain 50%, it has to only rise $2.50. But for a $100 stock, the same move takes $50. Investors aren’t always rational, and that $2.50 move seems a lot smaller than a $50 rise, even though they are the exact same in percentage terms. With this… Read More

Can an apparel company that built its success on catering to women participating in a “touchy-feely” activity repeat that success by marketing to men? Although this Canadian company has marketed its products to men since it was founded in 1998 — and earns a surprising 12% of its revenue from that segment — it is looking to attract men in the U.S. and overseas. However, the company had an embarrassing setback earlier this year when it was forced to recall some of its women’s… Read More

Can an apparel company that built its success on catering to women participating in a “touchy-feely” activity repeat that success by marketing to men? Although this Canadian company has marketed its products to men since it was founded in 1998 — and earns a surprising 12% of its revenue from that segment — it is looking to attract men in the U.S. and overseas. However, the company had an embarrassing setback earlier this year when it was forced to recall some of its women’s yoga pants because a manufacturing flaw had made them too revealing for some activities. The fiasco sent its stock price reeling to $65 in March from a high above $75 last year. If you haven’t guessed, I’m talking about Lululemon Athletica (Nasdaq: LULU).#-ad_banner-# The company is now looking to replace CEO Christine Day, who has been at the helm for more than five years. Lululemon’s best days may still be ahead, considering that more people worldwide are becoming attuned to maintaining a… Read More

The notorious bank robber Willie Sutton said he robbed banks “because that’s where the money is.” His words came to mind while I was thinking about which companies might benefit from rising interest rates. Certainly, banks have large cash balances, and for that reason, along with others — many of which were laid out recently by my colleague David Sterman — those institutions could be among the prime beneficiaries of soon-to-come higher interest rates. I… Read More

The notorious bank robber Willie Sutton said he robbed banks “because that’s where the money is.” His words came to mind while I was thinking about which companies might benefit from rising interest rates. Certainly, banks have large cash balances, and for that reason, along with others — many of which were laid out recently by my colleague David Sterman — those institutions could be among the prime beneficiaries of soon-to-come higher interest rates. I realized there are other pockets of hidden cash, less obvious than banks, that might benefit as much or more than banks when it comes to profiting from rising interest rates.#-ad_banner-# What other businesses have been sitting on huge sums of cash they can’t spend? Which companies have been forced to earn next to nothing in the form of interest — but should see a significant boost in their income streams as rates rise? Two came to mind. The first category you probably do business with often —… Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I want to share some of that… Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I want to share some of that wisdom. I’m featuring insights and top picks from each of our experts over the next couple of weeks as a way of saying thanks for being a StreetAuthority.com reader.             Elliott Gue   Today’s pick comes courtesy of Elliott Gue. The real-money portfolio in StreetAuthority’s Top 10… Read More

In the summer of 1990, the U.S. economy was quickly losing altitude. By the fourth quarter, the nation’s GDP had fallen by nearly 4%. Unemployment began to rise, and the economic weakness would eventually cost George H.W. Bush a chance for a second term. By Oct. 1 of that year, the Russell 2000 small-cap index had fallen to just 119. Yet just 16 months… Read More

In the summer of 1990, the U.S. economy was quickly losing altitude. By the fourth quarter, the nation’s GDP had fallen by nearly 4%. Unemployment began to rise, and the economic weakness would eventually cost George H.W. Bush a chance for a second term. By Oct. 1 of that year, the Russell 2000 small-cap index had fallen to just 119. Yet just 16 months later, it surged past the 200 mark, reaching 250 by September 1993. Investors shouldn’t have been surprised. Small-cap stocks always do well when the economy is in a funk, but investors sense that better days lie ahead. Well, it’s happening again. Although the U.S. economy has posted a halting and unimpressive recovery, investors have again embraced seemingly risky small caps. The 200% gain in the Russell 2000 since the markets bottomed out in March 2009 surpasses the S&P 500’s gain by a whopping 50 percentage points. Read More

Stock prices reached new highs last week as headlines warned of a weak economy. This might be an illustration of the old saying that “bull markets climb a wall of worries.”… Read More

How do you catch a falling safe? As a physics student, I was taught that the simplest solution is usually the right one, and I have a simple answer to this question. I’ll tell you in a moment, but it’s so obvious that it may seem worthless, even though the opposite is true, and critically important during times of extreme market volatility. Consider the old saying: You can’t judge a book by its cover. “Everyone” knows this truth, but people judge books by their covers every day. This is important for investors, because… Read More

How do you catch a falling safe? As a physics student, I was taught that the simplest solution is usually the right one, and I have a simple answer to this question. I’ll tell you in a moment, but it’s so obvious that it may seem worthless, even though the opposite is true, and critically important during times of extreme market volatility. Consider the old saying: You can’t judge a book by its cover. “Everyone” knows this truth, but people judge books by their covers every day. This is important for investors, because while “everyone” knows something is true, they don’t always act accordingly. The fact that so many people will follow the herd rather than think for themselves is what creates opportunities for independent thinkers to make a lot of money. Given that investors in many market sectors are suffering shock from recent volatility and feeling as though they’ve been trying to catch a falling safe, it’s a good time to share my simple but almost universally neglected solution: don’t! If you try,… Read More

The saying that a rising tide lifts all boats is doubly true for the economy.  As the Federal Reserve’s loose monetary policy pours fuel on an already combustible economy, the stock market spirals higher and higher. The Dow Jones Industrial Average surged to a high of 15,604 recently before consolidating in a tight channel near the highs. Meanwhile, the S&P 500 and Nasdaq indexes are flirting with new… Read More

The saying that a rising tide lifts all boats is doubly true for the economy.  As the Federal Reserve’s loose monetary policy pours fuel on an already combustible economy, the stock market spirals higher and higher. The Dow Jones Industrial Average surged to a high of 15,604 recently before consolidating in a tight channel near the highs. Meanwhile, the S&P 500 and Nasdaq indexes are flirting with new highs on a near-daily basis.#-ad_banner-# As the fireworks continue on Wall Street, Main Street is also reaping the rewards of low interest rates and supportive governmental policy. I have noticed local high-end restaurants packed to the gills with diners not afraid to drop a few hundred dollars for dinner and drinks for two couples. I tried to get reservations at a nearby hotspot and was told they were taking reservations for September and were completely booked during the month of August. Read More

After the markets steadily fell over the second half of 2008, the first trading day of 2009 brought a dose of investor optimism, with the S&P 500-stock index rising 3% to close at 932. Hopes of a sustained rebound were quickly dashed as the index went on to finish below 700 just a couple of months later. Even the boldest investors, piling their final funds into the market in search of deep value, were about ready to throw… Read More

After the markets steadily fell over the second half of 2008, the first trading day of 2009 brought a dose of investor optimism, with the S&P 500-stock index rising 3% to close at 932. Hopes of a sustained rebound were quickly dashed as the index went on to finish below 700 just a couple of months later. Even the boldest investors, piling their final funds into the market in search of deep value, were about ready to throw in the towel. And then, the clouds suddenly parted on the morning of March 10, 2009, and stocks began to climb and climb. A little more than four years later, the S&P 500 has racked up a stunning 150% gain. Yet as the market moves ever higher, investors have grown antsy. The rally hasn’t come on the heels of a robust economic expansion. Instead, the U.S. economy… Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I… Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I want to share some of that wisdom. I’m featuring insights and top picks from each of our experts over the next couple of weeks as a way of saying thanks for being a StreetAuthority.com reader. Today’s pick comes courtesy of Michael J. Carr.             Michael J. Carr   Michael… Read More