Although the market often looks to the world’s top investors for direction on highly-publicized stocks, investing gurus can also lead us to great companies we might never hear about otherwise. #-ad_banner-#​Take the famous hedge fund manager David Einhorn, founder and president of Greenlight Capital, which manages an investment portfolio of more than $7 billion. In Greenlight’s latest 13-f filing for the second quarter, Einhorn revealed he’d more than doubled his position in what most investors would consider a relatively obscure and rather boring technology stock: Lam Research… Read More

Although the market often looks to the world’s top investors for direction on highly-publicized stocks, investing gurus can also lead us to great companies we might never hear about otherwise. #-ad_banner-#​Take the famous hedge fund manager David Einhorn, founder and president of Greenlight Capital, which manages an investment portfolio of more than $7 billion. In Greenlight’s latest 13-f filing for the second quarter, Einhorn revealed he’d more than doubled his position in what most investors would consider a relatively obscure and rather boring technology stock: Lam Research Corp. (Nasdaq: LRCX). At this point, he owns 2.6 million shares with a market value of approximately $189 million based on a recent stock price of about $72. With a 2.5% weighting in Einhorn’s long portfolio –Greenlight makes short bets, too — the expanded position is now quite substantial. And it’s already paying off. Shares are up by about 7% since the end of the Q2. Einhorn first established a position in the stock in Q1. Since then, the stock has risen by more… Read More

​​​​​​We’re now more than a half decade into the shale revolution, which has completely changed the energy industry and the U.S. economy. #-ad_banner-#The surging production of crude oil and natural gas equates to huge profits for drillers and energy service providers, a boost in tax receipts for Uncle Sam and a taming effect on our country’s onerous trade deficits. The good news: output in shale regions keeps on rising, which may eventually enable the U.S to become a net exporter of crude oil. But not quite yet. The U.S. still maintains a multi-decade restriction against the export of… Read More

​​​​​​We’re now more than a half decade into the shale revolution, which has completely changed the energy industry and the U.S. economy. #-ad_banner-#The surging production of crude oil and natural gas equates to huge profits for drillers and energy service providers, a boost in tax receipts for Uncle Sam and a taming effect on our country’s onerous trade deficits. The good news: output in shale regions keeps on rising, which may eventually enable the U.S to become a net exporter of crude oil. But not quite yet. The U.S. still maintains a multi-decade restriction against the export of crude oil and policy makers have also been applying the brakes on plans to make a massive push into natural gas exports. However, crude oil export restrictions don’t apply to refined energy products, such as diesel and gasoline. And the numbers bear out a growing niche: Back in 2008, our nation exported roughly 63 million barrels of gasoline. Fast forward to 2013, and that figure exceeded 140 million barrels, according to the Energy Information Administration.  Surging Gasoline Exports Year 2008 2013 2013 (First Five Months) 2014 (First Five Months) (Millions of Barrels) 62,840 143,176 57,654 65,905 Source: EIA Through the… Read More

Many stocks these days seem to live and die by their most recent quarterly results. What if I said I found a stock whose customers are virtually guaranteed not to go out of business, a client that will be around forever? What’s more, the customers are likely to generate more revenues every year no matter what, and the more the client grows, which it seems to always be growing, the more the stock naturally benefits. If the stock sounds too good to be true, it’s not. If it sounds like the government, you’re getting warm. NIC, Inc. (Nasdaq: EGOV) is… Read More

Many stocks these days seem to live and die by their most recent quarterly results. What if I said I found a stock whose customers are virtually guaranteed not to go out of business, a client that will be around forever? What’s more, the customers are likely to generate more revenues every year no matter what, and the more the client grows, which it seems to always be growing, the more the stock naturally benefits. If the stock sounds too good to be true, it’s not. If it sounds like the government, you’re getting warm. NIC, Inc. (Nasdaq: EGOV) is a long established company that provides services to local, state and federal government agencies. Specifically, it builds and maintains official websites, online services and secure payment processing solutions for more than 3,500 government customers in 29 states across the United States. The United States government tends not to get smaller from year to year. Even in the maw of the Great Recession, in most cases, it was only the rate of growth in government spending that declined, not the level of spending itself. And, now that the recession is over, business is booming. #-ad_banner-#NIC is ranked No. 20 on Forbes… Read More

Over the past decade, several national radio station operators have declared bankruptcy, and those that remain are on the ropes.  Shares of Cumulus Media (Nasdaq: CMLS), for example, traded for $20 a decade ago, but now fetch less than $5. These radio firms have been hit by the double-barreled assault of satellite radio and audio streaming  services. Indeed, the next generation of car stereos is more likely to feature buttons for Pandora (NYSE: P), Sirius XM (Nasdaq: SIRI) or Spotify. The number of listeners inclined to peruse the AM and FM dials will dwindle. Still, it’s an industry in flux… Read More

Over the past decade, several national radio station operators have declared bankruptcy, and those that remain are on the ropes.  Shares of Cumulus Media (Nasdaq: CMLS), for example, traded for $20 a decade ago, but now fetch less than $5. These radio firms have been hit by the double-barreled assault of satellite radio and audio streaming  services. Indeed, the next generation of car stereos is more likely to feature buttons for Pandora (NYSE: P), Sirius XM (Nasdaq: SIRI) or Spotify. The number of listeners inclined to peruse the AM and FM dials will dwindle. Still, it’s an industry in flux and even Sirius XM and Pandora have had their share of controversy. My longer-term concerns around Sirius XM have not gone away.  The company’s satellite radio service is popular now, but with firms like Apple, Google and Microsoft aiming to control in-car entertainment systems, Sirius can no longer count on strong direct relationships with auto makers to pre-install its platform. The balance is already titling towards streaming audio services such as Pandora, Spotify and others. Pandora, for its part, has had plenty of detractors. As I noted back in May, Pandora’s Q1 results raised concerns about growth and margins. Second-quarter results were slightly better,… Read More

Let me tell you, if you are a contrarian investor and looking for a place to hunt for bargains, this is it. Are you familiar with the S&P/TSX Venture Composite Index?  Standard and Poors describes this index as “a broad market indicator of Canadian micro cap securities in Canada.”  This index of stocks has been beaten down relentlessly. Check out the performance for the index over its recent history. It is truly a chart that only a bargain hunter could love. Read More

Let me tell you, if you are a contrarian investor and looking for a place to hunt for bargains, this is it. Are you familiar with the S&P/TSX Venture Composite Index?  Standard and Poors describes this index as “a broad market indicator of Canadian micro cap securities in Canada.”  This index of stocks has been beaten down relentlessly. Check out the performance for the index over its recent history. It is truly a chart that only a bargain hunter could love. This entire index of stocks needs to increase by 250% just to get back to where it was in early 2011. The performance of this index has been so miserable that today a full five years after the global financial crisis stock prices are back near the lows seen in those dark days. #-ad_banner-#​This performance is terrible on its own. When you compare it with the S&P 500 (which has nearly tripled from the March 2009 lows) it is almost indescribably bad. It almost goes without saying — given how beaten down these stocks are… Read More

Even the world’s greatest stock pickers make mistakes, including the famous activist investor Carl Icahn. At the end of 2012, Icahn closed his position in one of the world’s leading heavy-duty truck and specialized construction equipment manufacturers. The decision to sell followed a failed hostile takeover attempt in which Icahn offered to buy out current shareholders for almost $3 billion, excluding the nearly 10% stake he already owned. #-ad_banner-#​Had Icahn been successful, he would have pushed for the election of six new board… Read More

Even the world’s greatest stock pickers make mistakes, including the famous activist investor Carl Icahn. At the end of 2012, Icahn closed his position in one of the world’s leading heavy-duty truck and specialized construction equipment manufacturers. The decision to sell followed a failed hostile takeover attempt in which Icahn offered to buy out current shareholders for almost $3 billion, excluding the nearly 10% stake he already owned. #-ad_banner-#​Had Icahn been successful, he would have pushed for the election of six new board members who supported his vision for the company — to spinoff of its JLG subsidiary that makes aerial work platforms and tow-behind trailers. However, not enough shareholders accepted Icahn’s tender offer, and he ended up walking away from the stock entirely. While hindsight is always 20/20, there must be some degree of seller’s remorse on Icahn’s part. Since he jettisoned the stock nearly 20 months ago, the price has spiked 68% — and that’s with a 10% pullback following a third-quarter earnings miss reported on… Read More

By now, many investors have heard about the massive gambling mecca in the Chinese protectorate of Macau. Billions of dollars have poured into the strip, creating a similar amount of profits for investors.  Yet investors may not have heard of the prologue to this story. The “Macau story” is played out: growth has sharply slowed and investment opportunities have dried up. Or so the financial press would have you believe.  The truth is quite different. For far-sighted investors, a fresh chance at upside has emerged, especially for my favorite Macau gaming stock, Melco Crown… Read More

By now, many investors have heard about the massive gambling mecca in the Chinese protectorate of Macau. Billions of dollars have poured into the strip, creating a similar amount of profits for investors.  Yet investors may not have heard of the prologue to this story. The “Macau story” is played out: growth has sharply slowed and investment opportunities have dried up. Or so the financial press would have you believe.  The truth is quite different. For far-sighted investors, a fresh chance at upside has emerged, especially for my favorite Macau gaming stock, Melco Crown Entertainment (Nasdaq: MPEL). A nearly 40% plunge since early March, paired with a still-robust growth outlook, means it’s time to buy.    I first looked at Melco Crown four years ago and I encourage you to read what I wrote back then before continuing. The expansion strategy laid out then exceeded my wildest expectations. Shares went on to deliver a nearly 1,000% gain.   #-ad_banner-#​Maturing, not slowing The era of rapid growth for Macanese casinos is nearing an end. Chinese citizens — especially the high-rollers — are feeling more… Read More

In the board rooms of Best Buy (NYSE: BBY), Barnes & Noble (NYSE :BKS), Bed, Bath & Beyond (Nasdaq: BBBY) and many other retailers, the same two concerns exist: Consumers aren’t spending.  Retail sales grew just 2.9% in the first six months of 2014, according to the National Retail Federation.  And whatever sales growth that can be had is often sucked up by Amazon.com (Nasdaq: AMZN), which is expected to boost revenue $15 billion this year and another $20 billion in 2015 to nearly $110 billion in sales.   #-ad_banner-#​It’s… Read More

In the board rooms of Best Buy (NYSE: BBY), Barnes & Noble (NYSE :BKS), Bed, Bath & Beyond (Nasdaq: BBBY) and many other retailers, the same two concerns exist: Consumers aren’t spending.  Retail sales grew just 2.9% in the first six months of 2014, according to the National Retail Federation.  And whatever sales growth that can be had is often sucked up by Amazon.com (Nasdaq: AMZN), which is expected to boost revenue $15 billion this year and another $20 billion in 2015 to nearly $110 billion in sales.   #-ad_banner-#​It’s only once you realize that shares of Amazon.com are off 20% this year, that you begin to understand that every corner of the retail sector is hurting. Many retailers now realize that they should have devoted more resources to their e-commerce portals. Bed, Bath & Beyond, for example, is just now taking its web presence seriously — and that came only after its shares were pummeled.  While some firms such as Walmart are spending hundreds of millions of dollars to internally boost their online sales platforms, others lack the money or skill to create a world-class website. Read More

From time to time we at StreetAuthority propose investments in “controversial” stocks that many of our readers may feel uneasy about. I’m talking about so-called “sin” stocks like tobacco, gambling and the like.  Make no mistake, these companies are often profitable for investors. Studies show that these stocks often beat the market. And it’s our job to identify the most profitable opportunities out there — no matter what they are.  #-ad_banner-#​But we always try to make it clear that if you’re not comfortable investing in these companies, that’s perfectly fine. … Read More

From time to time we at StreetAuthority propose investments in “controversial” stocks that many of our readers may feel uneasy about. I’m talking about so-called “sin” stocks like tobacco, gambling and the like.  Make no mistake, these companies are often profitable for investors. Studies show that these stocks often beat the market. And it’s our job to identify the most profitable opportunities out there — no matter what they are.  #-ad_banner-#​But we always try to make it clear that if you’re not comfortable investing in these companies, that’s perfectly fine.  Today, however, I’d like to turn that idea on its head and talk about an investment that helps fight the sin. In her May issue of Stock of The Month, Amy Calistri wrote about an unsettling trend regarding heroin use in the United States. Specifically, Amy’s research found that the number of heroin users in the U.S. is rising… and quickly.                On April 29, Fletcher Allen Health Care admitted 8 patients for heroin overdoses. In other words, it was… Read More

Marijuana needs to be legalized… At least that’s what the editorial board at the New York Times thinks. On July 27, the newspaper published an op-ed titled “Repeal Prohibition, Again.” In the piece, the board provided a laundry list of reasons the United States government should make pot… Read More