For those that don’t know, in addition to being the Chief Strategist behind StreetAuthority’s Stock of the Month newsletter, I’m also an avid poker player. I first picked up poker about a decade ago, well before it was all over television. But I wasn’t after the big jackpot like most of the people who’ve taken up the game. I simply thought poker could make me a better investor. Poker has a lot in common with investing — and no, I’m not talking about luck. In poker, you get only one move at a time. Read More

For those that don’t know, in addition to being the Chief Strategist behind StreetAuthority’s Stock of the Month newsletter, I’m also an avid poker player. I first picked up poker about a decade ago, well before it was all over television. But I wasn’t after the big jackpot like most of the people who’ve taken up the game. I simply thought poker could make me a better investor. Poker has a lot in common with investing — and no, I’m not talking about luck. In poker, you get only one move at a time. You don’t get the luxury of making your moves in a vacuum or without consideration for the dynamics other players bring to the game. It also takes patience and foresight to win consistently. And sometimes, it’s not about winning, but simply knowing when to cut your losses. When put in those terms, it’s easy to see how playing poker can make you a better investor. #-ad_banner-#It’s easy to spot an inexperienced player at a poker table. He’ll be the guy who plays nearly every hand. He’s probably grown up watching televised poker, where folded… Read More

I understand why people love good high-yielding securities. If you’re after a large income stream, then you hardly need me to explain the benefit of this elite group of stocks. As my longtime readers know, higher yielding securities make up roughly a third of my Daily Paycheck portfolio. I wouldn’t be able to collect more than $1551 every month without them. But when it comes to high-yielders, there’s one thing that many dividend-seekers don’t realize. And in the long run, this simple oversight could be costing you thousands… Read More

I understand why people love good high-yielding securities. If you’re after a large income stream, then you hardly need me to explain the benefit of this elite group of stocks. As my longtime readers know, higher yielding securities make up roughly a third of my Daily Paycheck portfolio. I wouldn’t be able to collect more than $1551 every month without them. But when it comes to high-yielders, there’s one thing that many dividend-seekers don’t realize. And in the long run, this simple oversight could be costing you thousands of dollars every year. #-ad_banner-#One of the things I often hear from income investors is, “I only invest in securities with more than X% yield.” Usually the “X” is 8% or higher. Here’s what many income-seeking investors forget: higher yield generally equates to higher risk. To commit your whole portfolio to high-yield assets — especially if you’re nearing retirement — may not be worth it. There’s a better, safer way to dramatically boost your income. Don’t Overlook Growth For Yield With a few years time, you… Read More

Ever rooted for the underdog when you knew it couldn’t win? In basketball — as in many sports — this happens all the time. In the recent NCAA tournament, for example, Hampton (17-17 in the regular season) was pit against Kentucky (34-0). The chance that Hampton would upset this perennial powerhouse was slim to none. And yet, millions of dollars were put down on this underdog by betters all across the country. Why? Because these folks were betting on another game entirely. One with better odds and higher… Read More

Ever rooted for the underdog when you knew it couldn’t win? In basketball — as in many sports — this happens all the time. In the recent NCAA tournament, for example, Hampton (17-17 in the regular season) was pit against Kentucky (34-0). The chance that Hampton would upset this perennial powerhouse was slim to none. And yet, millions of dollars were put down on this underdog by betters all across the country. Why? Because these folks were betting on another game entirely. One with better odds and higher rewards… One that casual fans had no idea was going on right in front of them. A similar thing plays out every day in the investing world. If you understand it you stand to profit from high-yield opportunities that most investors will never see. Let me explain… Let’s consider the bond market for a moment. You can put your money on corporate bonds backed by stalwart blue-chip companies like Microsoft and Treasury IOUs. Or you can choose “junk” bonds issued by smaller, shakier businesses. Read More

There’s a dangerous idea in the world of finance that’s been floating around for years. The man who coined this idea won a Nobel Prize for his work, but even he has stated that there are “threats” to his theory. #-ad_banner-#Today, I’m going to tell you about one of those “threats,” and why it’s time to put this dangerous idea to bed for good. Because if you buy into it, you could miss out on some of the greatest opportunities the market has to offer. To frame our discussion, I’d like you to… Read More

There’s a dangerous idea in the world of finance that’s been floating around for years. The man who coined this idea won a Nobel Prize for his work, but even he has stated that there are “threats” to his theory. #-ad_banner-#Today, I’m going to tell you about one of those “threats,” and why it’s time to put this dangerous idea to bed for good. Because if you buy into it, you could miss out on some of the greatest opportunities the market has to offer. To frame our discussion, I’d like you to consider one thing: When an investor buys shares of a stock hoping that its value will rise, the person is often betting against the market — that other investors are wrong (about the stock’s value) and that his valuation is correct. It’s with this idea that theory called the “efficient market hypothesis” becomes important. The man behind the theory — economist Dr. Eugene Fama — is hailed as one of the fathers of modern finance. At its most basic, his hypothesis says that because the public has access to every bit… Read More

Something troubling just took place in China… Last month, Chinese officials were caught stockpiling potentially rotten grains into the country’s reserves.  The situation “holds serious implications for global commodity prices” reported The Financial Times. “If the stockpiles include large amounts of unusable grain, China could be forced to increase imports sharply…” You see, in China the government guarantees a minimum price on sales of grain. By fudging the paperwork to say they paid full price, officials were filling their warehouses with rotten, discounted grains and pocketing the change.  China holds nearly 40% of the world’s corn. And if the rumors… Read More

Something troubling just took place in China… Last month, Chinese officials were caught stockpiling potentially rotten grains into the country’s reserves.  The situation “holds serious implications for global commodity prices” reported The Financial Times. “If the stockpiles include large amounts of unusable grain, China could be forced to increase imports sharply…” You see, in China the government guarantees a minimum price on sales of grain. By fudging the paperwork to say they paid full price, officials were filling their warehouses with rotten, discounted grains and pocketing the change.  China holds nearly 40% of the world’s corn. And if the rumors are true Chinese demand for imported grain could skyrocket.  This could be a huge catalyst for one company in particular.  With more than 250 processing plants in over 75 countries, Archer Daniels Midland Co. (NYSE: ADM) is the largest publicly-traded company in a relatively unknown, but vital, portion of the $2 trillion U.S. agribusiness sector: grain trading.  Essentially, these companies buy, process, transport and sell agricultural commodities like corn, wheat, soybeans and cocoa. They then turn these into food products, vegetable oils, livestock feed, chemicals and biofuels, selling the finished products to the industries that require them.  Here’s where ADM… Read More

Dear readers, A team of researchers at EarthRisk Technologies made a shocking discovery. They created an amazing “prediction tool” that can accurately predict the weather up to 40 days out. This same kind of technology is also being used to “predict” future share price movements — with stunning results. BlackRock used a prediction tool to largely avoid the 2008 market crash. Researchers at the University of California used a similar tool to beat the market by 10% over a four-month period. And since creating our own in-house tool in 2013,… Read More

Dear readers, A team of researchers at EarthRisk Technologies made a shocking discovery. They created an amazing “prediction tool” that can accurately predict the weather up to 40 days out. This same kind of technology is also being used to “predict” future share price movements — with stunning results. BlackRock used a prediction tool to largely avoid the 2008 market crash. Researchers at the University of California used a similar tool to beat the market by 10% over a four-month period. And since creating our own in-house tool in 2013, it’s spotted 33 stocks right before they soared up to 242% in 11 months. Check out the fascinating story behind this amazing prediction technology here.  Sincerely, Frank Bermea Publisher, Profitable Trading All major U.S. indices, except for the tech-heavy Nasdaq 100 and Composite, closed in positive territory last week, reversing the previous week’s negative close as the stock market continues its recent pattern of alternating positive and negative weekly closes. This back-and-forth action indicates investor indecision as the market continues to handicap… Read More

#-ad_banner-#For some investors, the current bull market has dubious underpinnings. That’s because “financial engineering,” where firms pour cash into oversized share repurchase and dividend payment programs, are creating an artificial boost to core growth rates. Yet such moves often means sacrificing equipment upgrades, product development and other crucial long-term investments. Sooner or later, firms that underinvest in their businesses risk serious underperformance. That’s why I seek innovators with a demonstrated commitment to research and development. These firms tend to display the solid, consistent organic growth necessary to evolve into an Apple, Inc. (Nasdaq: AAPL) or 3M Co. (NYSE:… Read More

#-ad_banner-#For some investors, the current bull market has dubious underpinnings. That’s because “financial engineering,” where firms pour cash into oversized share repurchase and dividend payment programs, are creating an artificial boost to core growth rates. Yet such moves often means sacrificing equipment upgrades, product development and other crucial long-term investments. Sooner or later, firms that underinvest in their businesses risk serious underperformance. That’s why I seek innovators with a demonstrated commitment to research and development. These firms tend to display the solid, consistent organic growth necessary to evolve into an Apple, Inc. (Nasdaq: AAPL) or 3M Co. (NYSE: MMM). Along with these stalwarts, one of my favorite firms using R&D to generate strong organic growth is Autoliv, Inc. (NYSE: ALV), a mid-size auto safety products maker with annual sales of $9.1 billion. Autoliv doesn’t neglect dividends and share repurchases, but keeps such efforts in check. At this firm, innovation is a top priority, which has been rewarded by investors with a nearly 100% gain during the past three years, far outpacing the S&P 500’s roughly 50% gain. Founded more than six decades ago, Sweden’s Autoliv is the leading provider of “passive” auto safety products… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers,… Read More

As long-time readers may know, back in December 2009 I began an ambitious experiment. My mission: take $200,000 of StreetAuthority’s money and invest it in a stable, growing portfolio of dividend-paying securities. I would take the dividends I earn from these investments, reinvest them, and then build my portfolio into a robust income-generating machine. We built an entire newsletter advisory around this experiment. And during this time, I’m happy to report that I’ve been able to grow my portfolio value to more than $320,000. And depending on the needs of my Daily Paycheck subscribers, they can “flip the switch” from dividend reinvestment and live off of their income stream at any time. But let’s face it, not everyone gets $200,000 thrown in their laps. Take Matthew Michaels, for example. #-ad_banner-#Matt is a young father who works at StreetAuthority. He doesn’t have thousands of dollars to invest at the moment. But even so, he and his wife recently began using the Daily Paycheck strategy to build a portfolio for their two young daughters’ future. That’s the beauty of my strategy: anyone can take… Read More

There is one simple rule about earnings season: have plenty of cash on hand. That’s because a few dozen stocks will fall sharply on tepid results or cautious forward outlooks and real bargains can emerge. Of course, many stocks that have been punished deserve to stay in the penalty box for quite some time. Their near-term problems are unlikely to dissipate any time soon. So you need to dig deep to find the rare diamonds in the rough that have been unfairly punished. When the dust settles on earnings season, these are precisely the kinds of stocks that value investors… Read More

There is one simple rule about earnings season: have plenty of cash on hand. That’s because a few dozen stocks will fall sharply on tepid results or cautious forward outlooks and real bargains can emerge. Of course, many stocks that have been punished deserve to stay in the penalty box for quite some time. Their near-term problems are unlikely to dissipate any time soon. So you need to dig deep to find the rare diamonds in the rough that have been unfairly punished. When the dust settles on earnings season, these are precisely the kinds of stocks that value investors will seek out. I’ve looked at a few dozen earnings season casualties and have found two of them that appear poised to claw back recent losses. SUPERVALU, Inc. (NYSE: SVU) This operator of several grocery chains was in deep distress just a few years ago. Yet a series of asset sales managed to trim the company’s debt load from around $7.6 billion in fiscal (February) 2010 to a recent $2.7 billion. And the company has managed to generate profits in each of the last two fiscal years, after generating losses in the prior three years. Cost cuts and better… Read More

Landing a triple-digit winner is like hitting a hole-in-one. It doesn’t happen often, but it’s just as satisfying each time it happens. However, there’s an often overlooked subsection of the market that can lead to these types of gains — but you have to understand where to look, what to look for and the dangers involved. #-ad_banner-#When shares of data storage firm OCZ Technology Group, Inc. (Nasdaq: OCZ) slipped below $2 back in 2012, short sellers began to circle like sharks. The company was burning through cash at an unsustainable rate, and at the time, I noted that OCZ had… Read More

Landing a triple-digit winner is like hitting a hole-in-one. It doesn’t happen often, but it’s just as satisfying each time it happens. However, there’s an often overlooked subsection of the market that can lead to these types of gains — but you have to understand where to look, what to look for and the dangers involved. #-ad_banner-#When shares of data storage firm OCZ Technology Group, Inc. (Nasdaq: OCZ) slipped below $2 back in 2012, short sellers began to circle like sharks. The company was burning through cash at an unsustainable rate, and at the time, I noted that OCZ had “a very short window to stop the bleeding.” By late 2013, the company declared bankruptcy. Simply put, whenever you see a stock slip below the $3 mark, you may want to take a quick look at the balance sheet and cash flow statement. Falling levels of cash and persistently negative cash flow can often put a company out of business. So, what are the best companies to invest in the stock market? When I looked at biofuels provider Gevo, Inc. (Nasdaq: GEVO) back in 2012, I wrote that the company required serial capital infusions to stay afloat. At the time,… Read More