Yngve Slyngstad and Peter Ballon aren’t well-known names in the U.S. investment community, but their decisions are having a multi-billion dollar effect on a key asset class. These men head up organizations that manage Sovereign Wealth … Read More

The pullback this week in Teva Pharmaceutical Industries Limited (NYSE: TEVA) is an opportunity to use the power of options for a capital-preserving, stock substitution strategy. We’re seeing bullish divergence in Teva stock options‘ implied volatility with less fear on the latest price decline to new lows. This can mark a price bottom, as the emotional selling extreme may have been exhausted sellers. A failed test of the multi-year lows from 2009 and 2011 has formed a bullish base over the past… Read More

The pullback this week in Teva Pharmaceutical Industries Limited (NYSE: TEVA) is an opportunity to use the power of options for a capital-preserving, stock substitution strategy. We’re seeing bullish divergence in Teva stock options‘ implied volatility with less fear on the latest price decline to new lows. This can mark a price bottom, as the emotional selling extreme may have been exhausted sellers. A failed test of the multi-year lows from 2009 and 2011 has formed a bullish base over the past few weeks. The extreme low at $35 a share from two years ago is a point the stock can lean on for support.  A range has been established between $42 a share and $38 since May, which targets $46 on a breakout of the trading channel. That level is near the stock’s 52-week high and the technical breakdown point. As a rule, markets often return to breakouts to test trends. The $46 target is about 21% higher than current prices, but traders who use a stock substitution strategy could make more… Read More

Many top companies issue an overlooked type of payment back to their shareholders… They work like traditional dividends, but with one major difference — these “dividends” are completely tax-free. These under-the-radar “dividends” are a favorite of Warren Buffett… Read More

Did you know the United States is projected to be the world’s top oil producer within the next five to seven years? At least that’s what the International Energy Agency has projected. This means the United States is on pace to beat Russia and Saudi Arabia in daily crude output.#-ad_banner-#… Read More

For decades, analysts have heralded small-cap stocks as the real growers in the stock market. And they’re right to some extent; a study that tracked stock returns from 1926 to 2008… Read More

Shorting a stock is considered one of the sexiest and most complex moves on the Street.#-ad_banner-# Investors are dazzled by stories of hedge fund titans such as David Einhorn and John Paulson raking in billions, going against the grain and taking aim at companies they believe are overvalued or headed for a nose dive. But in spite of the psychological attraction of being a contrarian and bucking the masses, even the smartest… Read More

Shorting a stock is considered one of the sexiest and most complex moves on the Street.#-ad_banner-# Investors are dazzled by stories of hedge fund titans such as David Einhorn and John Paulson raking in billions, going against the grain and taking aim at companies they believe are overvalued or headed for a nose dive. But in spite of the psychological attraction of being a contrarian and bucking the masses, even the smartest money on the Street struggles with short investments. Take Herbalife (NYSE: HLF) for example. Short interest in the stock exploded higher from 20 million shares in mid-December to an eye-popping 37 million shares in the last week of 2012. This came after it was revealed that a number of billion-dollar hedge funds, led by Bill Ackman, had initiated a massive short position in the multi-level marketing company.  As you can see in the chart below, the surge in short interest coincided with the… Read More

Hedge funds have been lining up on both sides of the fence regarding nutritional supplement multi-level marketing company Herbalife Ltd. (NYSE: HLF). The stock made a 52-week high of $73 last spring before… Read More

Many top companies issue an overlooked type of payment back to their shareholders… They work like traditional dividends, but with one major difference — these “dividends” are completely tax-free. These under-the-radar “dividends” are a favorite of Warren Buffett and many other billionaire investors.#-ad_banner-# There’s a good chance you’ve received one of these “tax-free dividends” before and didn’t even realize it. That’s because companies don’t issue these “dividends” in the normal way.  They “issue” them by buying back shares of their own… Read More

Many top companies issue an overlooked type of payment back to their shareholders… They work like traditional dividends, but with one major difference — these “dividends” are completely tax-free. These under-the-radar “dividends” are a favorite of Warren Buffett and many other billionaire investors.#-ad_banner-# There’s a good chance you’ve received one of these “tax-free dividends” before and didn’t even realize it. That’s because companies don’t issue these “dividends” in the normal way.  They “issue” them by buying back shares of their own stock. You see, when a company buys back its own stock, it’s similar to paying you a tax-free dividend. A buyback makes every share you own worth a larger piece of the company pie, but you don’t have to pay taxes on your new portion of ownership. On top of that, studies have shown that the share price usually rises afterward. A study by U.K.-based investment group Shore Capital Group found that… Read More

Hedge funds have been lining up on both sides of the fence regarding nutritional supplement multi-level marketing company Herbalife Ltd. (NYSE: HLF). The stock made a 52-week high of $73 last spring before shares took a huge hit following accusations from hedge fund investor William Ackman that the company was nothing more than a pyramid scheme. The seven-month trading range between $56 and $42 a share projected a downside target of $28 ($14 height of… Read More

Hedge funds have been lining up on both sides of the fence regarding nutritional supplement multi-level marketing company Herbalife Ltd. (NYSE: HLF). The stock made a 52-week high of $73 last spring before shares took a huge hit following accusations from hedge fund investor William Ackman that the company was nothing more than a pyramid scheme. The seven-month trading range between $56 and $42 a share projected a downside target of $28 ($14 height of the pattern subtracted from the breakdown level of $42). A volatility spike occurred when the downside channel support at $42 was broken in December, and as often happens at price extremes, the selling pressured the stock to $24 before a rebound.  Recent action has seen the price rally back above breakdown point at $42, which acts as the pivot point, to about $44. As the battle between short sellers and value buyers continues, traders can use a different approach to profit from Herbalife. Because of the high volatility (another word for… Read More