After the financial and economic implosion of 2008, many companies were forced to implement drastic operational changes to stay competitive and profitable. That included increasing productivity, reducing labor resources and lowering capital spending to build cash and liquidity. These strategies had a big effect on earnings, and now the S&P 500 is on the cusp of returning to peak earnings last seen in 2007. #-ad_banner-#But while that big… Read More

After the financial and economic implosion of 2008, many companies were forced to implement drastic operational changes to stay competitive and profitable. That included increasing productivity, reducing labor resources and lowering capital spending to build cash and liquidity. These strategies had a big effect on earnings, and now the S&P 500 is on the cusp of returning to peak earnings last seen in 2007. #-ad_banner-#But while that big rebound in earnings has been great for stocks (the S&P 500 has more than doubled from its low in March 2009) it also has the private sector sitting at the top of a multi-year expansion in margins and record profitability. Take Coca-Cola Co. (NYSE: KO), for example. The company’s operating margin exploded higher out of the recession in 2009 all the way through 2011, climbing from a 10-year average of 21% to an all-time high above 33% in July of 2011.  What Coke… Read More

One way to put less money at risk to play Apple (Nasdaq: AAPL) is via its suppliers. When deciding which one, traders need to be selective and choose one with a decent positive correlation to Apple’s stock price.#-ad_banner-# iPhone chip supplier Skyworks Solutions (Nasdaq: SWKS) is one such stock and my pick for playing Apple with more leverage. The stock has a beta of 1.46 versus the S&P… Read More

One way to put less money at risk to play Apple (Nasdaq: AAPL) is via its suppliers. When deciding which one, traders need to be selective and choose one with a decent positive correlation to Apple’s stock price.#-ad_banner-# iPhone chip supplier Skyworks Solutions (Nasdaq: SWKS) is one such stock and my pick for playing Apple with more leverage. The stock has a beta of 1.46 versus the S&P 500, whereas Apple more or less is the market with a beta closer to 0.93. On the charts, the stock looks eerily similar to Apple and has reached or breached several key Fibonacci retracement levels that currently offer good risk/reward for a short-side trade for a 12% gain. A simple look at the correlation between Skyworks (yellow line) and Apple (blue line) pretty much sums up all we need to know. Read More

William O’Neil, known as one of the best stock pickers of all time, is credited with pioneering the use of computers for analysing stocks. O’Neil became famous as the publisher of the newspaper Investor’s Business Daily and author of the book “How to Make Money in Stocks: A Winning System in Good Times and Bad,” which identified seven factors all top-performing companies possess. Created after an exhaustive study of eight different market cycles during 40 years of data, O’Neil named his new… Read More

William O’Neil, known as one of the best stock pickers of all time, is credited with pioneering the use of computers for analysing stocks. O’Neil became famous as the publisher of the newspaper Investor’s Business Daily and author of the book “How to Make Money in Stocks: A Winning System in Good Times and Bad,” which identified seven factors all top-performing companies possess. Created after an exhaustive study of eight different market cycles during 40 years of data, O’Neil named his new investing tactic CANSLIM, an anagram for the seven traits stocks tend to have before their biggest gains.  CANSLIM has stood the test of time: the American Association of Individual Investors (AAII) has even ranked it as one of the best portfolio strategies, with a 10-year average return of 13.2% and a nice 28.7% year-to-date return.  This strategy is not a one-trick pony relying on a single niche stock-picking technique. CANSLIM combines technical and fundamental factors when choosing companies for investment. It basically covers all the bases for what creates a… Read More

Whatever deal gets struck to resolve the imminent “fiscal cliff,” the U.S. budget mess will be far from fixed. There will still be a yawning gap between government revenue and government spending, let alone the fact that we still have an existing $16 trillion debt load we need to start whittling down. One of the most vulnerable arms of the federal government will be the Department of Defense (DoD). Our current military is so large — more than… Read More

Whatever deal gets struck to resolve the imminent “fiscal cliff,” the U.S. budget mess will be far from fixed. There will still be a yawning gap between government revenue and government spending, let alone the fact that we still have an existing $16 trillion debt load we need to start whittling down. One of the most vulnerable arms of the federal government will be the Department of Defense (DoD). Our current military is so large — more than 10 times bigger than its nearest rival — that a bit of shrinkage seems inevitable. Nobody is calling for plans to gut our nation’s military in an extreme fashion, but a DoD that is 5% or 10% smaller than current levels seems increasingly inevitable. And that spells top-line weakness for many defense contractors. A wide range of multibillion contracts with firms such as Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD) are coming under tighter scrutiny, as the DoD seeks ways to find less-expensive solutions to fielding a more nimble military. Out with the bath water Simply being… Read More

It’s hard to remember, but today’s leading large-cap stocks were once just fast-growing small businesses. Years of double-digit annual sales growth turned these acorns into mighty oak trees. And if you glance across the 600 stocks comprising the S&P’s SmallCap 600 Index, then you’ll come across tomorrow’s stars as well. Several dozen firms are in the midst of a long-term growth spurt that will likely have them characterized as mid-cap stocks before long. And well down the road, these stocks could be solid citizens in… Read More

It’s hard to remember, but today’s leading large-cap stocks were once just fast-growing small businesses. Years of double-digit annual sales growth turned these acorns into mighty oak trees. And if you glance across the 600 stocks comprising the S&P’s SmallCap 600 Index, then you’ll come across tomorrow’s stars as well. Several dozen firms are in the midst of a long-term growth spurt that will likely have them characterized as mid-cap stocks before long. And well down the road, these stocks could be solid citizens in the S&P 500 Large Cap Index. Here are four to keep your eye on… 1. 3D Systems 3D Systems (NYSE: DDD), along with Stratasys (Nasdaq: SSYS), was one of the early pioneers of “rapid prototyping,” which allows designers to make a three-dimensional model of virtually any small item. NASA even used a machine to create spare parts in mid-flight if necessary. For many years, this industry was more about hype than reality: 3D Systems’ sales hit $126 million in 2004 and by 2009, had actually shrank to $113 million. Since then, you can see this company… Read More

A number of the world’s best investors have said something to the effect that stocks don’t know where they’ve been, only where they’re headed.   So if a stock has doubled, tripled, quadrupled or more, shareholders shouldn’t assume there’s little or no further gain potential and that it’s time to sell. Indeed, they shouldn’t assume anything. Rather, they should ask themselves where the stock is most likely to go from here.   #-ad_banner-#It’s a question many investors probably have about one highly popular, very fast-growing stock that’s up an amazing 440% in past the five years. Read More

A number of the world’s best investors have said something to the effect that stocks don’t know where they’ve been, only where they’re headed.   So if a stock has doubled, tripled, quadrupled or more, shareholders shouldn’t assume there’s little or no further gain potential and that it’s time to sell. Indeed, they shouldn’t assume anything. Rather, they should ask themselves where the stock is most likely to go from here.   #-ad_banner-#It’s a question many investors probably have about one highly popular, very fast-growing stock that’s up an amazing 440% in past the five years. I’m sure you’ve heard of the company and its products — the best-known being its high-powered and sometimes controversial carbonated energy drinks. The firm also sells noncarbonated beverages like natural soft drinks and iced teas.   It got its latest boost in mid-August when management announced that Coca-Cola (NYSE: KO) planned to acquire nearly a 17% stake for $2.2 billion in cash. Assuming the deal closes by year-end or in early 2015 as expected, the company will also take over Coke’s energy drink lineup (this includes several brands like Full Throttle and Burn) in exchange for its noncarbonated… Read More

There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market?… Read More

There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market? It just so happens that the world’s largest hotel operator went public at the end of last year. Since its December 2013 IPO, Hilton Worldwide Holdings, Inc. (NYSE:HLT) has outperformed the S&P 500, rising nearly 25% compared to the market’s 10% increase. The company aims to continue its strong performance by reducing debt, increasing its global presence and unlocking existing shareholder value. HLT is the world’s largest hotel operator by market cap, revenues and room count. And for savvy investors, it looks like the biggest might be the… Read More

Somehow, a lot of the best stocks manage to slip right by individual investors. There the company is, posting massive gains, supposedly right in front of our eyes. Yet, by and large, they go unnoticed by the average Joe. Institutions are often onto them, though. For instance, one compelling stock most individual investors probably haven’t heard of is owned almost entirely by institutions. And these big investors have certainly profited. During the past five years, the stock delivered a gain of more than 240%, or about 28% a year, besting the S&P 500 by nearly 11% per year. Read More

Somehow, a lot of the best stocks manage to slip right by individual investors. There the company is, posting massive gains, supposedly right in front of our eyes. Yet, by and large, they go unnoticed by the average Joe. Institutions are often onto them, though. For instance, one compelling stock most individual investors probably haven’t heard of is owned almost entirely by institutions. And these big investors have certainly profited. During the past five years, the stock delivered a gain of more than 240%, or about 28% a year, besting the S&P 500 by nearly 11% per year. Well, I think it’s high time individual investors know about LKQ Corp. (Nasdaq: LKQ). Perhaps LKQ has gone unnoticed because of the decidedly “unsexy” business it’s in: replacement parts and systems for damaged cars and trucks. These include things like bumper covers, lights, engines and engine parts, wheels, steering and suspension systems, seats and seat components — pretty much anything you’d find in a car or truck. LKQ gets much of its inventory from severely damaged vehicles it buys at salvage auctions — in some cases, parts are refurbished or completely remanufactured. The firm also stocks so-called aftermarket inventory, consisting… Read More

Any time Apple (Nasdaq: AAPL) stages an event, it makes news. These events are always surrounded with speculation on what Apple will reveal. Will it be an iWatch, new iOS, a newer, bigger, faster iPhone? All eyes are focused what the company’s next hit product could be. #-ad_banner-#Apple’s highly-anticipated event yesterday morning was no different. This time around, Apple unveiled the iPhone 6, which will have a bevy of new and improved features, such as a larger iPhone, a sapphire crystal screen and a faster more efficient A8 chip. I can’t tell with absolute certainty what will happen to Apple’s… Read More

Any time Apple (Nasdaq: AAPL) stages an event, it makes news. These events are always surrounded with speculation on what Apple will reveal. Will it be an iWatch, new iOS, a newer, bigger, faster iPhone? All eyes are focused what the company’s next hit product could be. #-ad_banner-#Apple’s highly-anticipated event yesterday morning was no different. This time around, Apple unveiled the iPhone 6, which will have a bevy of new and improved features, such as a larger iPhone, a sapphire crystal screen and a faster more efficient A8 chip. I can’t tell with absolute certainty what will happen to Apple’s share price in light of the new iPhone. But in the days following the announcement, I can guarantee there will be constant chatter from every corner of the Earth analyzing the implications of Apple’s latest product launch. While all analysts will have their opinions, there’s something in particular that we will be watching for as CEO Tim Cook reveals Apple’s latest product offering… I’m talking about a new technology that could be featured in the new iPhone that has only recently started to surface. A technology that our own expert, Andy Obermueller of Game-Changing Stocks, predicted would come out for… Read More

The economy is just starting to work its way out of the funk brought by the historically cold winter last year. With still sluggish wage growth and retail demand, many consumer discretionary companies are trying to claw their way back from the dead. And that is why it is the best time to be buying. #-ad_banner-#While a bad selling season can wreck sentiment in a company’s shares, the institutional knowledge remains. Companies with a strong brand and a track record for surprising investors with innovative products are your best bet for a rebound to come. Not only are these best-in-class… Read More

The economy is just starting to work its way out of the funk brought by the historically cold winter last year. With still sluggish wage growth and retail demand, many consumer discretionary companies are trying to claw their way back from the dead. And that is why it is the best time to be buying. #-ad_banner-#While a bad selling season can wreck sentiment in a company’s shares, the institutional knowledge remains. Companies with a strong brand and a track record for surprising investors with innovative products are your best bet for a rebound to come. Not only are these best-in-class innovators a great long-term bet, but the mountain of cash on corporate balance sheets have made them classic buyout targets. From Darling to Dud LeapFrog Enterprises, Inc. (NYSE: LF) surged after its 2002 market debut, jumping 167% in the following 15 months. The company’s LeapPad, released in 1999, revolutionized children’s electronics. Then a drought in new releases and competition hit the company like a ton of bricks. No new major products were released in the five years to 2008, and other portable electronics started chipping away at the company’s market share. Sales growth slumped from an annualized… Read More