Investing Basics

The markets are red hot this year, fueled by promising headlines about euro-zone stability and Federal Reserve interventions like Quantative Easing 3 (QE3). But is it a false sense of security? Are markets unknowingly about to be crushed by economic realities that are simply hiding in the closet?  While a… Read More

Handbag and accessory maker Coach (NYSE: COH), one of the best-known names in high-end fashion, has also been one of the best-performing stocks in the bull market that started in 2009. From its bear market lows, Coach gained 599% before peaking in March. Since then, the stock has pulled back and is trading 30% below its all-time highs. The chart below shows that the price could be headed even lower in the short term. Despite the stock’s recent struggles, Coach is still a… Read More

Handbag and accessory maker Coach (NYSE: COH), one of the best-known names in high-end fashion, has also been one of the best-performing stocks in the bull market that started in 2009. From its bear market lows, Coach gained 599% before peaking in March. Since then, the stock has pulled back and is trading 30% below its all-time highs. The chart below shows that the price could be headed even lower in the short term. Despite the stock’s recent struggles, Coach is still a great company for the long term. And at the right price, this stock is a buy. But right now it looks like it is a little too early. I think the holiday shopping season could lead to an additional sell-off in the stock that would push Coach shares down to where I would like to buy them. As you can see in the chart below, since Coach peaked, competitor Michael Kors (NYSE: KORS) has been a market leader. The two companies are… Read More

Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on… Read More

Investors looking to score big gains should always pay attention to the retail sector. Not the top retail stocks that seem to pound out modest sales gains each year, but the weaker retailers that have hit a rough patch. These retail firms could see shares slide far below prior peaks once same-store sales weaken and investors shun them. Yet these broken retailers can also become vastly oversold — and great bargain-hunting fodder. For example, I suggested that women’s apparel retailer Christopher & Banks (NYSE: CBK) was far too cheap — based on tangible book value and sure enough, the stock eventually took off like a rocket. In fact, a number of oversold retailers make up the list of leading gainers in the just completed third quarter. In almost every instance, these retailers had traded sharply lower in prior quarters, which is precisely the time that you should be focusing on them. Whether it’s a buyout offer, or simply a… Read More

(Editor’s note: Yesterday, we took a look at how to invest if Obama wins the election in November. To read that article, go here.) Though President Barack Obama leads the latest polls, it’s too soon to write Mitt Romney off as a winning candidate. And if Romney… Read More