The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house… Read More

The broader market’s powerful “V” recovery off its mid-October lows recouped all of last month’s losses and then some, with the S&P 500 hitting new all-time highs this week. But not all sectors have kept pace, and it is in these underperforming areas where traders should look for rebound candidates that have the biggest upside potential left. Casino stocks are well off their yearly highs, made in early 2014. Investors jumped shipped as Chinese gaming revenue slowed thanks to Beijing’s anti-corruption crackdown. But I think the China fears have been greatly exaggerated, and I’m willing to bet on the house at these depressed levels. Specifically, I like the risk/reward on Las Vegas Sands (NYSE: LVS). It trades with a current P/E ratio of 19, which is in line with the S&P 500 and below its peers. Plus, its 3.2% dividend yield should help put a floor under the shares. On the charts, there was a bullish divergence early this month with a new price low under $58 but no new highs in volatility. This likely signals a bottom. In addition, the sideways action between $58 and $65 over the past two and a half months appears to be forming a… Read More

Here at StreetAuthority, we’re big fans of Real Estate Investment Trusts (REITs).  They provide solid income backed by real assets that people will always need. #-ad_banner-#And one of our favorite REITs has long been known for great dividend yields and a very stable tenant. Better still, management at this REIT has put the wheels in motion to deliver an even higher payout in coming years. I’m talking about Government Properties Income Trust (NYSE: GOV), which is one of the largest publicly-traded landlords for the U.S. government.  Of the REIT’s 82 properties, 32 are leased to the Federal government, 18 to… Read More

Here at StreetAuthority, we’re big fans of Real Estate Investment Trusts (REITs).  They provide solid income backed by real assets that people will always need. #-ad_banner-#And one of our favorite REITs has long been known for great dividend yields and a very stable tenant. Better still, management at this REIT has put the wheels in motion to deliver an even higher payout in coming years. I’m talking about Government Properties Income Trust (NYSE: GOV), which is one of the largest publicly-traded landlords for the U.S. government.  Of the REIT’s 82 properties, 32 are leased to the Federal government, 18 to state and local branches and one to the United Nations. Almost all (93%) of the REIT’s revenue is tied to the public sector, and Government Properties sports a vacancy rate of just 4.6%, well under the 14.8% vacancy for office buildings nationally. That kind of stability has helped generate  a compound annual revenue growth of 21%  since 2007. I first looked at GOV in February 2013, which was a great time to enter the stock. Although shares subsequently rallied following my article, they’ve recently pulled back and again hold clear value. The stable tenant and solid yield remain key… Read More

The market sell-off in September and October was especially tough on small cap stocks. They often suffer from a flight to quality as investors seek the safe haven of blue chips when the seas get rough. Since the market’s trough, some oversold small caps began to rebound, but many remain closer to the 52-week low than the 52-week high. Indeed among stocks in the S&P 600 small-cap index, you can find dozens of stocks trading well below the forward broader market multiple of 15.5.  Here’s a list of 10 small-cap stocks (trading in that index) that now trade for less… Read More

The market sell-off in September and October was especially tough on small cap stocks. They often suffer from a flight to quality as investors seek the safe haven of blue chips when the seas get rough. Since the market’s trough, some oversold small caps began to rebound, but many remain closer to the 52-week low than the 52-week high. Indeed among stocks in the S&P 600 small-cap index, you can find dozens of stocks trading well below the forward broader market multiple of 15.5.  Here’s a list of 10 small-cap stocks (trading in that index) that now trade for less than 10 times earnings. The key trait these firms share: All of them are expected to post higher earnings per share, or EPS, in 2015, and yet-higher EPS in 2016. Company 2014 EPS 2015 EPS 2016 EPS 2015 P/E Cash America Int’l (CSH) $4.42 $4.54 $4.78 5.4 AK Steel (AKS) $ (0.21) $1.07 $1.20 6.1 EZCORP (EZPW) $1.33 $1.59 $1.67 6.9 Microsemi (MSCC) $2.78 $3.20 $3.53 8.4 Encore Capital Group (ECPG) $4.46 $5.13 $5.76 8.7 TTM Technologies (TTMI) $0.44 $0.78 $0.98 8.8 Hornbeck Offshore Services (HOS) $2.52 $3.30 $3.57 9.4 General Cable (BGC) $0.73 $1.48 $1.89 9.4 Synaptics (SYNA) $4.85… Read More

Today’s essay is a little personal for me. The opportunity I’m about to tell you about stems from a condition I suffer from, along with millions of other Americans. But as I’ll explain in a moment, there are several companies quietly working on game-changing treatments that could not only offer relief — but also a windfall of profits to investors. If you don’t take care of yourself, they keep telling me, you can’t take care of anyone else. #-ad_banner-#And lately, I’ve been thinking about my own personal medical condition, diabetes mellitus, also commonly referred to as “Type I,” “insulin-dependent” or… Read More

Today’s essay is a little personal for me. The opportunity I’m about to tell you about stems from a condition I suffer from, along with millions of other Americans. But as I’ll explain in a moment, there are several companies quietly working on game-changing treatments that could not only offer relief — but also a windfall of profits to investors. If you don’t take care of yourself, they keep telling me, you can’t take care of anyone else. #-ad_banner-#And lately, I’ve been thinking about my own personal medical condition, diabetes mellitus, also commonly referred to as “Type I,” “insulin-dependent” or “juvenile-onset” diabetes. Diabetes is a metabolic disorder characterized by a malfunctioning pancreas. All food turns into sugar through digestion, but diabetics are unable to absorb the sugar the body needs to feed itself. Insulin, a hormone secreted by the pancreas’ beta cells, helps usher glucose through the cell’s semi-permeable membrane. Without insulin, sugar builds up in the bloodstream, causing a condition called hyperglycemia. Too much insulin (or not enough sugar) and the blood sugar goes too low, which is known as hypoglycemia. Type I diabetics must carefully monitor their carbohydrate intake and inject insulin to keep their blood sugar in… Read More

Newton’s First Law of Motion states, “An object at rest stays at rest, and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” This, of course, applies to physical objects, but there is a similar principle in the markets known as relative strength. Relative strength, or RS, is a way to rank a stock’s performance relative to all other stocks in the market. Specifically, it assigns a numerical score from 0 to 100 to a stock based on its performance over a certain period of time,… Read More

Newton’s First Law of Motion states, “An object at rest stays at rest, and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” This, of course, applies to physical objects, but there is a similar principle in the markets known as relative strength. Relative strength, or RS, is a way to rank a stock’s performance relative to all other stocks in the market. Specifically, it assigns a numerical score from 0 to 100 to a stock based on its performance over a certain period of time, typically six months. RS is one of the few indicators that have been proven to predict the future direction of a stock’s price. Research uncovered that stocks that are outperforming — thereby commanding a high RS rank — are more likely to continue outperforming than those that are underperforming. #-ad_banner-#In other words, a stock in upward motion is likely to stay in upward motion. It’s a simple concept — and a profitable one. One stock sporting a high RS rank that caught my eye is computer network services firm Level 3 Communications (NASDAQ: LVLT).  In August,… Read More

While hot new stock offerings such as Alibaba Group (NYSE: BABA) and news-rocked fads such as Ebola-proof hazmat suit maker Lakeland Industries (NASDAQ: LAKE) may get your juices flowing, who says making money has to be so exciting?  Indeed, I found an investor guide from 1960 saying just that. Clearly, investors over the decades keep forgetting that slow and steady really can pay off. Take women’s clothing retailer Cato Corporation (NYSE: CATO). Many of its peers sport high levels of volatility, yet most of these “exciting” stocks are either chopping around in ranges or in actual… Read More

While hot new stock offerings such as Alibaba Group (NYSE: BABA) and news-rocked fads such as Ebola-proof hazmat suit maker Lakeland Industries (NASDAQ: LAKE) may get your juices flowing, who says making money has to be so exciting?  Indeed, I found an investor guide from 1960 saying just that. Clearly, investors over the decades keep forgetting that slow and steady really can pay off. Take women’s clothing retailer Cato Corporation (NYSE: CATO). Many of its peers sport high levels of volatility, yet most of these “exciting” stocks are either chopping around in ranges or in actual bear markets.  For example, in the first half of this year, Urban Outfitters (NASDAQ: URBN) soared and then abruptly gave up all of its gains and then some. That is not the kind of excitement that I want in my portfolio. But CATO has been above the fray. Since mid-April, it is up over 45%, but it was absent in financial media until making a breakout move Wednesday. The stock peaked in early September near $36, and then settled into a sideways range until this week’s breakout. We can argue whether the pattern traced out was… Read More

All major U.S. stock indices finished in positive territory for the fourth consecutive week, led by the tech-heavy Nasdaq 100, which gained 1.6% and is now up 17.6% for the year. This index has been a major focus of mine since the Aug. 25 Market Outlook. Its move above major overhead resistance at 4,147 this month was an important catalyst for the recent strength in the broader market. #-ad_banner-#​On a sector basis, technology, consumer discretionary and materials led. Utilities, energy and financials trailed the pack and finished the week in negative territory. Read More

All major U.S. stock indices finished in positive territory for the fourth consecutive week, led by the tech-heavy Nasdaq 100, which gained 1.6% and is now up 17.6% for the year. This index has been a major focus of mine since the Aug. 25 Market Outlook. Its move above major overhead resistance at 4,147 this month was an important catalyst for the recent strength in the broader market. #-ad_banner-#​On a sector basis, technology, consumer discretionary and materials led. Utilities, energy and financials trailed the pack and finished the week in negative territory. Cisco Systems Resuming 2011 Uptrend? The recent strength and leadership shown by the technology sector resulted in a potential buying opportunity in Cisco Systems (NASDAQ: CSCO). I discussed the topic Wednesday on CNBC, just before the tech bellwether announced its fiscal first-quarter earnings. CSCO, which is the 10th largest constituent stock comprising 3.3% of the technology sector index, broke out to the upside on Friday from 15 months of sideways action that indicated investor indecision. This breakout indicates that CSCO’s larger August 2011 advance has resumed and targets a move to $32, 22% above… Read More

Let’s face it, there are good buyback programs and bad buyback programs. The bad ones generally fall into the category of “we just want to offset the generous stock options packages for our executives,” or “we have no other uses for our cash, even though our shares are very richly valued.” On the flip side, my favorite kind of buyback program has one simple factor: shares trade below tangible book value. #-ad_banner-#Buying back shares when they trade at a discount to book value is a no brainer. That’s because the share count can be cut by an even greater percentage… Read More

Let’s face it, there are good buyback programs and bad buyback programs. The bad ones generally fall into the category of “we just want to offset the generous stock options packages for our executives,” or “we have no other uses for our cash, even though our shares are very richly valued.” On the flip side, my favorite kind of buyback program has one simple factor: shares trade below tangible book value. #-ad_banner-#Buying back shares when they trade at a discount to book value is a no brainer. That’s because the share count can be cut by an even greater percentage than shareholder’s equity, which means that the price-to-book value will actually move lower. One of my favorite insurance stocks is putting this strategy into action. Municipal bond insurer Assured Guaranty Ltd (NYSE: AGO) is using its massive cash hoard to buy its own shares on the cheap and will likely keep doing so until shares have risen 35% from current levels. I wrote about this company nearly a year ago when management had just moved its headquarters to the United Kingdom — solely to speed the way to a faster pace of buybacks. Read More

We all like to see rising dividend yields. And that only happens for one of two reasons: either the quarterly payout increases or the share price decreases. The first cause is typically met with shareholder applause. The second… not so much. #-ad_banner-#Yet, temporary dips in share price can be far more effective in sending yields quickly skyward — turning a normal 2% payer into a 3% payer, juicing a 3% yield to 4%, and bumping a 5% payout to 6%, 7% or even more. And they can do so in a matter of days or weeks — expediting a process… Read More

We all like to see rising dividend yields. And that only happens for one of two reasons: either the quarterly payout increases or the share price decreases. The first cause is typically met with shareholder applause. The second… not so much. #-ad_banner-#Yet, temporary dips in share price can be far more effective in sending yields quickly skyward — turning a normal 2% payer into a 3% payer, juicing a 3% yield to 4%, and bumping a 5% payout to 6%, 7% or even more. And they can do so in a matter of days or weeks — expediting a process that can take years through the “preferred” route of dividend hikes. Take SeaDrill Ltd (Nasdaq: SDRL), a former member of my High-Yield Investing portfolio that I sold back in January for a 47% profit. Since then, the stock has plunged from $40 to $22.51 at the time this article was written. Back then, the annualized dividend of $3.92 per share was throwing off a yield of 9.8%. Nothing wrong with that. But today, thanks to market panic (and a minor two-cent hike in the quarterly payment), the yield has been driven into the stratosphere at 17.5%. How long would it… Read More

Unless you’re not much into tech, you’ve probably heard of GoPro, Inc. (Nasdaq: GRPR), a young firm gaining fame for its wearable high-definition cameras designed for extreme action video photography. The stock has taken investors on a rough ride recently, falling more than 20% below its early October peak of about $94. Still, the price is up nearly 140% since GoPro’s June 26 initial public offering. While analysts project fast growth for GoPro in the next few years and the stock could still have lots more upside, it’s not the only choice for investors seeking profits… Read More

Unless you’re not much into tech, you’ve probably heard of GoPro, Inc. (Nasdaq: GRPR), a young firm gaining fame for its wearable high-definition cameras designed for extreme action video photography. The stock has taken investors on a rough ride recently, falling more than 20% below its early October peak of about $94. Still, the price is up nearly 140% since GoPro’s June 26 initial public offering. While analysts project fast growth for GoPro in the next few years and the stock could still have lots more upside, it’s not the only choice for investors seeking profits from the growing popularity of wearable video cameras. In fact, I’ve got my eye on another such company, a recent startup based in Florida that has some unique offerings of its own. #-ad_banner-#Now, I don’t see this simply as a GoPro knockoff. GoPro is geared mainly toward the action enthusiast, and its small video cameras can be mounted in several ways — like to a helmet, a pair of goggles or a remote-controlled aircraft — to get shots that would be impossible or unsafe to attempt otherwise. This other firm’s cameras are even smaller, maybe roughly half the size of… Read More