Warren Buffett may well be the most-watched man in the world. No paparazzi are camped outside his house, but there’s a huge cult of investors that hangs on the famed Oracle of Omaha’s every word. So news that Richard Santulli had stepped down as the head of Berkshire Hathaway’s (NYSE:… Read More
Analyst Articles
Five Strategies to Profit from the Dollar’s Demise
The recession has it on life support, but it won’t last forever. Trillion-dollar deficits, low interest rates and weak growth are all going to spell trouble for the dollar once risk-averse investors get some confidence back in the markets and start moving out of ultra-safe, low-yielding treasuries. But before we… Read More
Benjamin Graham, the father of value investing, once described his strategy as “buying dollars for 50 cents.” He would have loved this market. Graham had several tricks to determine whether a company was undervalued. One of them was assessing its book value, a figure… Read More
Whether dividends are safe is on most income investors’ minds, and for good reason. The final quarter of 2008 was the worst for dividends in a half-century, according to Standard & Poor’s. The first half of 2009 has seen even more cuts: 367 companies have reduced dividends since Jan. 1. Read More
Brokers Ban New Kind of “Dangerous” ETF
In a bid to protect investors from an often misunderstood financial instrument, UBS, Edward Jones and Ameriprise Financial banned clients from purchasing leveraged ETFs this week. Company Available Broker Sales Merrill… Read More
The Dow recently crossed the 9,000 mark on the back of a solid start to the second-quarter earnings season, while the S&P is up +10% for the year. The market couldn’t have made it to this point without a few stocks seeing substantial gains. Here are three stocks that have posted triple-digit gains this year. After analyzing how they did it, I’ll tell you three more companies that will follow suit. OshKosh (NYSE: OSK) YTD Gain: +191.5% Industrial equipment maker OshKosh faced major headwinds due to the economic downturn,… Read More
The Dow recently crossed the 9,000 mark on the back of a solid start to the second-quarter earnings season, while the S&P is up +10% for the year. The market couldn’t have made it to this point without a few stocks seeing substantial gains. Here are three stocks that have posted triple-digit gains this year. After analyzing how they did it, I’ll tell you three more companies that will follow suit. OshKosh (NYSE: OSK) YTD Gain: +191.5% Industrial equipment maker OshKosh faced major headwinds due to the economic downturn, and its shares sank as low as $4.95 in March. But just when things seemed to be at their worst, OSK posted strong growth, and the shares began to climb. The catalyst was a $1.05 billion contract to build military vehicles for use in Afghanistan that protect against roadside bombs. The contract, initially for 2,000 vehicles, could lead to as many as 10,000 vehicles and $4 billion to $5 billion in revenue. The shares are now trading near $27. How it Got There: A major catalyst thanks to Uncle Sam. General Cable (NYSE: BGC)… Read More
Talk about a rough ride: The nation’s nine major airlines lost -$671 million in the second quarter. We’ve all heard plenty of talk about how no one is flying anymore. Maybe it feels that way, but the airlines are still bringing in plenty of revenue. The total top line for… Read More
Capture Nearly 5% Yields… from Your Checking Account?
Stocks and bonds too dicey? Commodities out of reach? Options too complex? Then forget about all those investments. Right now, you can earn up to 4.5% with FDIC protection. Now, 4.5% isn’t too tough to beat with other investment classes, but each of them… Read More
The Securities and Exchange Commission has issued new rules about short selling, a strategy investors employ when they think a security’s price is going to fall. The two new rules don’t restrict short selling and won’t affect individuals or “short” or “ultrashort” exchange traded funds, at least not yet. The SEC plans an industry roundtable in September to discuss other proposals that could limit the practice, which has come under scrutiny after criticism that it drives down stock prices. Short and ultrashort (read: “leveraged”) exchange-traded funds allow… Read More
The Securities and Exchange Commission has issued new rules about short selling, a strategy investors employ when they think a security’s price is going to fall. The two new rules don’t restrict short selling and won’t affect individuals or “short” or “ultrashort” exchange traded funds, at least not yet. The SEC plans an industry roundtable in September to discuss other proposals that could limit the practice, which has come under scrutiny after criticism that it drives down stock prices. Short and ultrashort (read: “leveraged”) exchange-traded funds allow an investor to bet on a price drop. The funds are popular because they can be held in a typical brokerage account rather than transacted through a margin account, the vehicle through which short sales typically take place. One new rule calls for more reporting of short sales to increase the amount of information available to the public. Wall Street’s self-regulatory agencies will publish daily short-sale transaction reports that detail the total number of a company’s shares were shorted. After a month, the data would be… Read More
In a perfectly efficient market, we could never buy a stock at a discount or sell one at a premium. Every security would be perfectly priced, all the time. It’s only through irrational, emotion-driven selling that value investors will occasionally get the chance to pick up a $50 stock for… Read More