Growth Investing

You’ve seen the headlines. At least once a month, there’s news of a medical breakthrough that promises to extend the lives of terminally ill cancer patients, reduce suffering for people with serious illnesses or improve recovery times for folks who have surgery. #-ad_banner-#The miracles of medical science have become so commonplace that we take them for granted. These enormous advances have extended average lifespans and made centenarians commonplace. In fact, some people live well beyond 100: I just read that exactly one person born in the 19th century is still alive. (Think of the stories she could tell, or the… Read More

You’ve seen the headlines. At least once a month, there’s news of a medical breakthrough that promises to extend the lives of terminally ill cancer patients, reduce suffering for people with serious illnesses or improve recovery times for folks who have surgery. #-ad_banner-#The miracles of medical science have become so commonplace that we take them for granted. These enormous advances have extended average lifespans and made centenarians commonplace. In fact, some people live well beyond 100: I just read that exactly one person born in the 19th century is still alive. (Think of the stories she could tell, or the stocks she could have bought and held since then!) Medical miracles aren’t the only phenomenon we take for granted when it comes to healthcare. Even though most investors are familiar with the “aging of America” theme — the Baby Boom generation’s slow and steady advancement into its golden years — the scope of it is easy to overlook. Let’s revisit the facts: by 2050, the population aged 65 or older will be an estimated 84 million, vs. 43.1 million in 2012. The population of Americans 85 or older will be an estimated 18 million by 2050, vs. 5.9 million in… Read More

In all honesty, I don’t know where I stand in the genetically-modified crops argument. On one hand, it’s not pleasant to think about eating a food that could technically be classified as a pesticide… But on the other hand, I really like baked goods. #-ad_banner-#(In fact, I once opened my presentation at an international investment conference by talking about cake, but that’s a story for another time.) In the end, though, it doesn’t matter what our personal beliefs are. One of the biggest “health” trends is non-GMO. And food companies are jumping on the bandwagon with both feet. And in… Read More

In all honesty, I don’t know where I stand in the genetically-modified crops argument. On one hand, it’s not pleasant to think about eating a food that could technically be classified as a pesticide… But on the other hand, I really like baked goods. #-ad_banner-#(In fact, I once opened my presentation at an international investment conference by talking about cake, but that’s a story for another time.) In the end, though, it doesn’t matter what our personal beliefs are. One of the biggest “health” trends is non-GMO. And food companies are jumping on the bandwagon with both feet. And in a recent NPR story I learned that this shift is causing major changes in the sugar industry, of all places. Here’s a bit of background. The United States gets a lot of its sugar from sugar beets. These beets can be grown in colder climates, and it’s a major agricultural product. About half of the sugar produced in the United States comes from sugar beets. But in 2008, farmers decided to switch their crops from regular sugar beets to genetically-modified sugar beets. The GMO beets were engineered to tolerate a weed killer called glyphosate. You probably know it better as… Read More

As you may know, my job as Chief Investment Strategist for Game-Changing Stocks means I’m always searching for what I call “The Next Big Thing” that can deliver triple-digit gains for investors. That means, along with a highly dedicated research team, I spend hundreds of hours every year poring through financial journals, SEC filings, earnings releases, trade publications and many other resources to try to find the next great investment opportunity. #-ad_banner-#Sometimes it’s a revolutionary new piece of technology that could change the world. Other times it’s just an innovative new company that makes… Read More

As you may know, my job as Chief Investment Strategist for Game-Changing Stocks means I’m always searching for what I call “The Next Big Thing” that can deliver triple-digit gains for investors. That means, along with a highly dedicated research team, I spend hundreds of hours every year poring through financial journals, SEC filings, earnings releases, trade publications and many other resources to try to find the next great investment opportunity. #-ad_banner-#Sometimes it’s a revolutionary new piece of technology that could change the world. Other times it’s just an innovative new company that makes life easier for consumers. Still, other times we will venture into somewhat risky territory. This is what I would characterize as “beer money” plays. You should invest carefully in these plays, and only with money that you can afford to lose. These sorts of investments are high-risk allocations that should not comprise a major portion of your aggressive growth portfolio. But if you carefully find one or two of these “beer money” plays that pan out every year, it can dramatically alter the performance of your overall portfolio. I’d like to… Read More

They’re some of the most talked-about and well-known stocks on the market. But I wouldn’t touch them with a 10-foot pole. That’s because according to the most successful indicator in StreetAuthority’s history, they’re all rated as a “sell.” #-ad_banner-#We spend a lot of time here at StreetAuthority talking about which stocks to buy — and rightfully so. We also dedicate these pages to our thoughts on what it takes to be successful at investing. And knowing what to stay away from is oftentimes just as important as knowing what to buy. So today,… Read More

They’re some of the most talked-about and well-known stocks on the market. But I wouldn’t touch them with a 10-foot pole. That’s because according to the most successful indicator in StreetAuthority’s history, they’re all rated as a “sell.” #-ad_banner-#We spend a lot of time here at StreetAuthority talking about which stocks to buy — and rightfully so. We also dedicate these pages to our thoughts on what it takes to be successful at investing. And knowing what to stay away from is oftentimes just as important as knowing what to buy. So today, I’m going to share with you a list of 10 stocks you should absolutely stay away from. And if you own any of them, consider getting out as soon as possible. According to our indicators, tough times are likely ahead for any investor that owns these stocks. Sure, they won’t underperform forever. Things can change over time. But as of right now, all signs point to more pain ahead. Before I show the list to you, you should know that these numbers come straight from my colleague Jimmy Butts, who runs StreetAuthority’s Maximum Profit system. Jimmy, along… Read More

If the economic growth attributed to the use of data were a country, it would be the fourth largest economy in the world, just behind Japan in terms of GDP. According to McKinsey & Co., the flow of data has directly contributed to global GDP growth. In fact, the consultancy firm estimates that from 2004 through 2014, “the openness to global flows has raised world GDP by at least 10%. That’s worth $7.8 trillion alone.” #-ad_banner-#In other words, without the virtual flow of data, the world would be $7.8 trillion poorer. In real-world measurements, the number of terabits per second… Read More

If the economic growth attributed to the use of data were a country, it would be the fourth largest economy in the world, just behind Japan in terms of GDP. According to McKinsey & Co., the flow of data has directly contributed to global GDP growth. In fact, the consultancy firm estimates that from 2004 through 2014, “the openness to global flows has raised world GDP by at least 10%. That’s worth $7.8 trillion alone.” #-ad_banner-#In other words, without the virtual flow of data, the world would be $7.8 trillion poorer. In real-world measurements, the number of terabits per second — a measure of data flows — is 45 times higher now than it was less than a decade ago. This means that data is not only an efficiency, but a good, with a tangible value. And while you can’t trade it on the CME like gold or soybeans, you can trade its leveraging effect by selecting the companies making the most of using data to boost efficiencies and reach customers… or by investing in the digital infrastructure itself. For example, we’ve seen a huge jump in the number of ecommerce companies and transactions. By some estimates 10-15% of the… Read More

It’s been a tough year for investors. The S&P 500 tanked more than 11% by the middle of February on crashing oil prices, concerns over China and Europe’s health, and a “hawkish” Federal Reserve that planned to hike short-term interest rates. Then the market pivoted faster than basketball superstar LeBron James inside the key. The rebound rally that followed was one of the fastest in history, but the S&P 500 is still up just 1% year to date. #-ad_banner-#However, in the midst of all this volatility, there have been some clear outperformers. Read More

It’s been a tough year for investors. The S&P 500 tanked more than 11% by the middle of February on crashing oil prices, concerns over China and Europe’s health, and a “hawkish” Federal Reserve that planned to hike short-term interest rates. Then the market pivoted faster than basketball superstar LeBron James inside the key. The rebound rally that followed was one of the fastest in history, but the S&P 500 is still up just 1% year to date. #-ad_banner-#However, in the midst of all this volatility, there have been some clear outperformers. Nine of the 12 open positions in the Alpha Trader portfolios are up double digits year to date. That’s more than 10 times better than the S&P 500. For those of you who aren’t familiar with it, Alpha Trader is an exclusive research service that uses a proprietary indicator known as the Alpha Score, delivering the highest-ranked stocks across 10 different types of investments that range from small caps to blue chips. While I don’t want to give out all the names of this year’s top performers, here are three… Read More

Shares of Twitter (NYSE: TWTR) have been slammed lately after weak user growth and an inability to monetize its platform led investors to question the future.  The big move in shares of the 140-character social giant is nothing new. Shares have moved higher or lower by 20% or more in one week three times in the past year. The concern is that Twitter has yet to effectively monetize its massive user base and that growth in monthly active users (MAUs) may be slowing.  #-ad_banner-#The concern over social media monetization is also a familiar story. It was the same issue that… Read More

Shares of Twitter (NYSE: TWTR) have been slammed lately after weak user growth and an inability to monetize its platform led investors to question the future.  The big move in shares of the 140-character social giant is nothing new. Shares have moved higher or lower by 20% or more in one week three times in the past year. The concern is that Twitter has yet to effectively monetize its massive user base and that growth in monthly active users (MAUs) may be slowing.  #-ad_banner-#The concern over social media monetization is also a familiar story. It was the same issue that led a 53% nightmare in shares of Facebook (Nasdaq: FB) during its post-IPO 2012 plunge, but has turned into 550% return since August of that year. Can Twitter do the same or should investors be worried? Turns out, higher revenue might not be far away, and the company may be hiding a secret user base that dwarfs reported users. Shares could be set to jump as early as this fall with the potential to double.  Twitter’s Secret Users And Real Power Of The Platform Even as the company reported a 36% increase in quarterly revenue and adjusted EBITDA growth… Read More

We all make mistakes, especially in the investment racket. But one great thing about this business, thanks to a fluid marketplace we often get second, sometimes third, even fourth chances. So, many times, it all works out. #-ad_banner-#Three years ago I sold all of my positions in AbbVie, Inc. (NYSE: ABBV) shortly after the company was spun off from Abbott Laboratories (NYSE: ABT). I had held Abbott Labs for many years. It was one of the most revered, steady, dividend growers out there. The stock performed consistently in my clients’ portfolios.  But the company decided to, basically, split in two. Read More

We all make mistakes, especially in the investment racket. But one great thing about this business, thanks to a fluid marketplace we often get second, sometimes third, even fourth chances. So, many times, it all works out. #-ad_banner-#Three years ago I sold all of my positions in AbbVie, Inc. (NYSE: ABBV) shortly after the company was spun off from Abbott Laboratories (NYSE: ABT). I had held Abbott Labs for many years. It was one of the most revered, steady, dividend growers out there. The stock performed consistently in my clients’ portfolios.  But the company decided to, basically, split in two. Abbott focuses on nutritionals, diagnostics, generic drugs, and medical devices while AbbVie is the research driven pharmaceuticals business. I was used to having all of those things in one bundle and, honestly, I didn’t understand the reasoning for the split or the complexion of the two new companies. I decided it was best to wait till the smoke cleared. So I sold my positions. Don’t get me wrong, I still made money. But I ended up leaving a lot of money on the table. Three years is long enough for the smoke to clear and I… Read More

We’ve all heard the trading adage, “Sell in May and go away.” This annual warning tells investors to pull all of their money out of stocks on May 1 and keep it out until Nov. 1. “Sell in May” isn’t a cliche or an old traders’ tale; it’s supported by data. According to the Stock Trader’s Almanac:       After decades of historical research, we discovered that most market gains occur during the months November through April. Investing in the Dow Jones Industrial Average between November 1st and April 30th each year and… Read More

We’ve all heard the trading adage, “Sell in May and go away.” This annual warning tells investors to pull all of their money out of stocks on May 1 and keep it out until Nov. 1. “Sell in May” isn’t a cliche or an old traders’ tale; it’s supported by data. According to the Stock Trader’s Almanac:       After decades of historical research, we discovered that most market gains occur during the months November through April. Investing in the Dow Jones Industrial Average between November 1st and April 30th each year and then switching into fixed income for the other six months has produced reliable returns with reduced risk since 1950. That being said, I know many traders, myself included, aren’t content to sit on the sidelines for half the year. So, to make money in these trickier summer months, they need an edge. #-ad_banner-#I have uncovered just such an edge that can help you land big winners year round, and I plan to share it with you. But first, I promised to alert you to four big-name stocks you most definitely should sell… Read More

Few companies have suffered a faster rise and fall lately than Theranos, Inc. The company got tons of attention in recent years based on a seemingly innovative technology: a hand-held blood-testing device that promised to replace dozens of traditional blood tests by analyzing a few drops of blood obtained via pinprick rather than using vials of blood drawn with a needle. Noninvasive blood tests are a holy grail of the medical lab industry, so it’s not surprising that the privately held company attracted investors — its valuation hit $9 billion in 2014 based on hundreds of millions raised from investors. Read More

Few companies have suffered a faster rise and fall lately than Theranos, Inc. The company got tons of attention in recent years based on a seemingly innovative technology: a hand-held blood-testing device that promised to replace dozens of traditional blood tests by analyzing a few drops of blood obtained via pinprick rather than using vials of blood drawn with a needle. Noninvasive blood tests are a holy grail of the medical lab industry, so it’s not surprising that the privately held company attracted investors — its valuation hit $9 billion in 2014 based on hundreds of millions raised from investors. A partnership with Walgreens (Nasdaq: WBA) that same year seemed likely to make Theranos a household name. But starting last fall, Theranos’ credibility was damaged by a series of negative reports about the effectiveness and accuracy of its device. Federal officials at more than one agency reportedly are probing the company, including a potential criminal investigation, and Walgreens has threatened to drop its relationship. Some analysts predict the company won’t survive.  #-ad_banner-#If this episode casts a pall over other medical lab testing companies, it will only obscure the investment potential of that rare gem: a surefire growth industry. Medical lab… Read More