When investors think of initial public offerings (IPOs), they often think of the impressive first-day gainers. Box, Inc. (NYSE: BOX), for example, surged 66% on its first day of trading last week.   Yet, it’s unwise to focus all of your attention on buzzworthy IPOs. Some just need time to gain traction and while they are slow to get out of the starting gate, clear opportunities emerge.   Take Papa Murphy’s Holdings, Inc. (Nasdaq: FRSH), as an example. The popular Washington-based premium pizza chain debuted in May 2014 to a tepid investor reception.   #-ad_banner-#Shares, which had been priced… Read More

  When investors think of initial public offerings (IPOs), they often think of the impressive first-day gainers. Box, Inc. (NYSE: BOX), for example, surged 66% on its first day of trading last week.   Yet, it’s unwise to focus all of your attention on buzzworthy IPOs. Some just need time to gain traction and while they are slow to get out of the starting gate, clear opportunities emerge.   Take Papa Murphy’s Holdings, Inc. (Nasdaq: FRSH), as an example. The popular Washington-based premium pizza chain debuted in May 2014 to a tepid investor reception.   #-ad_banner-#Shares, which had been priced at $11 at the offering, eventually slumped roughly 25% by July. Since then, shares have begun to build a following and now trade nearly 20% above the IPO price.   That’s not bad at all, but it pales in comparison to other, hotter IPOs. Since going public in September, Chinese e-commerce giant Alibaba Holding Group (NYSE: BABA) has seen its stock soar more than 50% above the initial offering price.   Papa Murphy’s might have gotten off to a better start were it not for a considerable debt burden and a $23 million lawsuit by disgruntled franchisees.   The key… Read More

When Jonas Salk introduced a vaccine for the polio virus in 1957, scientists widely assumed that cures would soon be found for many other common but lethal ailments. Yet, nearly six decades later, we’re still talking about the dreadful impact of Ebola, influenza and many other viruses. #-ad_banner-#It would seem as if medical researchers remain in the dark in their search for cures, but behind the scenes, substantial progress is being made. We may just be a few years away from a major breakthrough that will lead to end of lethal viruses. A wide range of companies are focusing on… Read More

When Jonas Salk introduced a vaccine for the polio virus in 1957, scientists widely assumed that cures would soon be found for many other common but lethal ailments. Yet, nearly six decades later, we’re still talking about the dreadful impact of Ebola, influenza and many other viruses. #-ad_banner-#It would seem as if medical researchers remain in the dark in their search for cures, but behind the scenes, substantial progress is being made. We may just be a few years away from a major breakthrough that will lead to end of lethal viruses. A wide range of companies are focusing on the problem, and for investors, that spells opportunity. In April 2014, I looked at the small- and micro-cap companies focusing on vaccines for viruses.  Since then, shares of Novavax, Inc. (Nasdaq: NVAX) surged 70%, while NanoViricides, Inc. (Nasdaq: NNVC) has largely treaded water and Inovio Pharmaceuticals, Inc. (NYSE: INO) slumped roughly 30%. Why is Novavax garnering greater investor affection? These small biotech firms live and die by the results of clinical trials and FDA approval. The company’s RSV vaccine, which treats viruses in infants, earned a fast-track approval designation from the FDA. This is a clear message from regulators that… Read More

Today’s pick is what I like to call an “extreme growth stock.” It’s a pharmaceutical company seeing significant advances in sales and earnings with huge momentum. Shares are up nearly 150% in the past two years, and they look ready to move even higher in the weeks and months to come.  First, it’s part of a very strong group that continues to outperform. The pharmaceutical sector was hot in 2014, with iShares US Pharmaceuticals (NYSE: IHE) gaining 28.2% last year, more than double the S&P 500’s 11.4% rise. And just this month, IHE is up another 3.8% while… Read More

Today’s pick is what I like to call an “extreme growth stock.” It’s a pharmaceutical company seeing significant advances in sales and earnings with huge momentum. Shares are up nearly 150% in the past two years, and they look ready to move even higher in the weeks and months to come.  First, it’s part of a very strong group that continues to outperform. The pharmaceutical sector was hot in 2014, with iShares US Pharmaceuticals (NYSE: IHE) gaining 28.2% last year, more than double the S&P 500’s 11.4% rise. And just this month, IHE is up another 3.8% while the S&P 500 is down 2.5% year to date. #-ad_banner-# Second, the company has rock-solid fundamentals, largely due to its development and acquisition of numerous strong brands.  Although you may not have heard of Valeant Pharmaceuticals (NYSE: VRX), it’s a massive pharma company with a market cap over $50 billion. It manufactures branded drugs for the treatment of dermatological, neurological and oral health issues.  One of its most well-known drugs is Wellbutrin XL for the treatment of depression. Its over-the-counter brands… Read More

Now is the time to invest in the housing market, but you must be selective. As my colleague Ian Floyd recently noted, the collapse in oil prices will bring renewed pressure to homebuilders, especially those in oil-rich states such as Texas. That state had been one of the few bright spots on the housing landscape. Not anymore. In the upcoming earnings season, Texas-focused homebuilders will likely give a very cautious view, and analysts are already anticipating the headwinds. Case in point: JMP Securities recently downgraded Forestar Group, Inc. (NYSE: FOR) from outperform to market perform, thanks to the company’s considerable… Read More

Now is the time to invest in the housing market, but you must be selective. As my colleague Ian Floyd recently noted, the collapse in oil prices will bring renewed pressure to homebuilders, especially those in oil-rich states such as Texas. That state had been one of the few bright spots on the housing landscape. Not anymore. In the upcoming earnings season, Texas-focused homebuilders will likely give a very cautious view, and analysts are already anticipating the headwinds. Case in point: JMP Securities recently downgraded Forestar Group, Inc. (NYSE: FOR) from outperform to market perform, thanks to the company’s considerable exposure to Texan real estate.  Ian cites D.R. Horton, Inc. (NYSE: DHI), Pulte Group, Inc. (NYSE: PHM) and Lennar Corp. (NYSE: LEN), the state’s number one, four and five largest homebuilders, respectively, as companies to avoid at current oil prices and to watch closely as earnings season kicks into high gear. But the drop in oil prices can be seen in an entirely different light. Consumers are now reaping a major windfall from lower energy prices and for homebuilders with exposure to other parts of the country, the stars may be aligning for a robust rebound. In fact, a few… Read More

  Despite strong resistance from the Republican party,  President Obama has been surprisingly adroit in moving his agenda through the legislative process. From healthcare to environmental policy, the President has crafted his legacy over the last six years.   #-ad_banner-#For adept investors that were able to  stay ahead of policy, profitable opportunities have abounded. For example, David Goodboy cited Centene Corp. (NYSE: CNC) as a key  beneficiary of Obamacare in July 2012, and shares went on to surge more than 250%.   That same month, Nathan Slaughter highlighted Alcoa, Inc. (NYSE: AA) as a rebound story on Obama’s Corporate Average Fuel… Read More

  Despite strong resistance from the Republican party,  President Obama has been surprisingly adroit in moving his agenda through the legislative process. From healthcare to environmental policy, the President has crafted his legacy over the last six years.   #-ad_banner-#For adept investors that were able to  stay ahead of policy, profitable opportunities have abounded. For example, David Goodboy cited Centene Corp. (NYSE: CNC) as a key  beneficiary of Obamacare in July 2012, and shares went on to surge more than 250%.   That same month, Nathan Slaughter highlighted Alcoa, Inc. (NYSE: AA) as a rebound story on Obama’s Corporate Average Fuel Economy (CAFE) standards, suggesting it would have a major impact on demand for aluminum. Shares of the metal giant have beaten the S&P 500 by 35% since that article first appeared.   If you were paying attention when the President gave his State of the Union Address last week, then you might have caught another stock tip from the Commander-in-Chief.   In fact, of the proposals the President laid out in his address, I think this stands the best chance at bipartisan support.   And it could throw a lifeline to one struggling industry.   From The Environmental To The… Read More

All major U.S. indices closed in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 3.3%. However, all others remain in negative territory for 2015 as stocks continue to drift sideways.  Although this recent sideways movement tends to lull investors to sleep, it is important and worth keeping a close eye on because it represents the probable springboard for the market’s next multi-month trend. #-ad_banner-#​All S&P 500 sectors posted gains last week, led by technology, industrials and energy. The recent strength in technology bodes well for an eventual bullish resolution to the current sideways market… Read More

All major U.S. indices closed in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 3.3%. However, all others remain in negative territory for 2015 as stocks continue to drift sideways.  Although this recent sideways movement tends to lull investors to sleep, it is important and worth keeping a close eye on because it represents the probable springboard for the market’s next multi-month trend. #-ad_banner-#​All S&P 500 sectors posted gains last week, led by technology, industrials and energy. The recent strength in technology bodes well for an eventual bullish resolution to the current sideways market activity as this sector tends to lead the broad market both higher and lower.   My own ETF-based asset flow metric shows that investor assets are slowly moving back into energy, suggesting that a new investment opportunity is emerging in this beleaguered sector. This metric also indicates that the materials sector is historically under-invested, which may lead to a buying opportunity later this year. Market Leaning Toward a Bullish Resolution One clue as to how the market will resolve its December-January malaise may be found in Dow Theory. The chart below shows the January decline to a… Read More

Biotech stocks had a banner year in 2014. Agios Pharmaceuticals, Inc. (Nasdaq: AGIO), Avanir Pharmaceuticals, Inc. (Nasdaq: AVNR) and OvaScience, Inc. (Nasdaq: OVAS), for example, each rose roughly 400%. #-ad_banner-#Indeed, each year brings another set of home run stock picks in this sector, thanks to the twin pillars of FDA approval and promising clinical trial results. Trying to handicap the next big biotech winner can be tricky. My current favorites include Synergy Pharmaceuticals, Inc. (Nasdaq: SGYP) and Threshold Pharmaceuticals, Inc. (Nasdaq: THLD). They have compelling drugs in development and possess impressive potential catalysts in 2015. Outside of biotech, stocks with… Read More

Biotech stocks had a banner year in 2014. Agios Pharmaceuticals, Inc. (Nasdaq: AGIO), Avanir Pharmaceuticals, Inc. (Nasdaq: AVNR) and OvaScience, Inc. (Nasdaq: OVAS), for example, each rose roughly 400%. #-ad_banner-#Indeed, each year brings another set of home run stock picks in this sector, thanks to the twin pillars of FDA approval and promising clinical trial results. Trying to handicap the next big biotech winner can be tricky. My current favorites include Synergy Pharmaceuticals, Inc. (Nasdaq: SGYP) and Threshold Pharmaceuticals, Inc. (Nasdaq: THLD). They have compelling drugs in development and possess impressive potential catalysts in 2015. Outside of biotech, stocks with 100% potential upside are even trickier to spot. I spent the holidays looking at a wide range of stocks that could deliver such a return. Many candidates, as it turns out, also carry too much risk. Of course predicting triple-digit gains is more of a guidepost that a specific prediction. When I looked at three 100% potential gainers, in September 2013, only Novavax, Inc. (Nasdaq: NVAX) rose that much (128%), while Merge Healthcare, Inc. (Nasdaq: MRGE) rose 39% and Lionbridge Technologies, Inc. (Nasdaq: LIOX) rose 53%. In other words, a basket approach would have served you well.  Instead, I like to… Read More

  Although legendary stock picker Peter Lynch hasn’t been in the spotlight for many years now, his insights and experience are still very relevant.   Lynch, famous for guiding the Fidelity Magellan fund to market-beating returns from 1977 to 1990, excelled at identifying stocks with a long runway of growth ahead of them. It didn’t matter to him if a stock’s value had already increased sharply. If he thought it could still deliver the goods, then he’d buy it — even if the prevailing market sentiment was to take profits and look elsewhere for outsized gains.   If Lynch was… Read More

  Although legendary stock picker Peter Lynch hasn’t been in the spotlight for many years now, his insights and experience are still very relevant.   Lynch, famous for guiding the Fidelity Magellan fund to market-beating returns from 1977 to 1990, excelled at identifying stocks with a long runway of growth ahead of them. It didn’t matter to him if a stock’s value had already increased sharply. If he thought it could still deliver the goods, then he’d buy it — even if the prevailing market sentiment was to take profits and look elsewhere for outsized gains.   If Lynch was working on Wall Street today, then I bet that’s exactly the way he’d feel about Under Armour, Inc. (NYSE: UA), the youth-oriented athletic wear retailer currently best known for stylish athletic pants, shirts, hoodies and other types of apparel.       While Under Armour is up a whopping 1000% since its NYSE debut in 2005, market sentiment could finally be turning against it. The stock is off 11% since peaking at more than $73 in late November, compared with less than a 3% drop in the S&P 500 during the same period.  … Read More

With the S&P 500 oscillating around the psychologically important 2,000 level, I remain cautiously optimistic about the market’s outlook. In this uncertain environment, I’m looking to go long growth stocks that are outperforming the broader market.   #-ad_banner-#One stock that has grabbed my attention is Whole Foods Market (NASDAQ: WFM). Since their October low near $36, shares have surged about 44%. In comparison, the S&P 500 has advanced about 12% during this period. You wouldn’t think the launch of a new grocery store would be the talk of the town. But recently, when Whole Foods opened its first… Read More

With the S&P 500 oscillating around the psychologically important 2,000 level, I remain cautiously optimistic about the market’s outlook. In this uncertain environment, I’m looking to go long growth stocks that are outperforming the broader market.   #-ad_banner-#One stock that has grabbed my attention is Whole Foods Market (NASDAQ: WFM). Since their October low near $36, shares have surged about 44%. In comparison, the S&P 500 has advanced about 12% during this period. You wouldn’t think the launch of a new grocery store would be the talk of the town. But recently, when Whole Foods opened its first store in Ottawa, Ontario, the capital of my native Canada, social media feeds blew up. Customers raved about the selection of natural and organic food options.   The Ottawa launch augers well for the planned expansion of the chain’s presence in Canada. At present, Whole Foods has only 10 Canadian stores. But the Austin, Texas-based grocer plans to open at least 40 more Canadian locations in the coming years — a strategy it believes will add an additional $1 billion in annual sales. The company generated more than $14 billion in revenue in the past 12 months. That annual sales… Read More

  Momentum, the tendency for rising stocks to soar higher and slumping ones to keep dropping, is a market anomaly investing theorists still don’t fully understand.   However, the fact remains: Once a popular growth stock gets going up, its ability to deliver big profits commonly far surpasses all expectations.   An excellent example of this is the Boston Beer Co., Inc. (NYSE: SAM), best known for its Samuel Adams brand and currently the leading domestic manufacturer of premium craft beers. Shares of Boston Beer climbed nearly 20% last year and are up about 500% in the past five years,… Read More

  Momentum, the tendency for rising stocks to soar higher and slumping ones to keep dropping, is a market anomaly investing theorists still don’t fully understand.   However, the fact remains: Once a popular growth stock gets going up, its ability to deliver big profits commonly far surpasses all expectations.   An excellent example of this is the Boston Beer Co., Inc. (NYSE: SAM), best known for its Samuel Adams brand and currently the leading domestic manufacturer of premium craft beers. Shares of Boston Beer climbed nearly 20% last year and are up about 500% in the past five years, compared with a 78% gain for the S&P 500 during the same period.                                                                                                   After such a meteoric rise and with its price-to-earnings ratio now pumped up to nearly 44, Boston Beer could pull back substantially in the near future. Ultimately, however, I think the stock is set for at least another year of outperformance, with a strong possibility of delivering double-digit gains in 2015.   One key reason: It still has… Read More