Jeffrey Walkenhorst submits:
As discussed in our slide/video presentation posted the other week, we’ve been through the psychological ringer over the past two years. We’ve moved from shock and awe, to realization and, now — in our view — acceptance:
Tags: Long Term Investment
Investing, Long Term Investment, stock market | admin February 17, 2010 | 
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Value Expectations submits:
Twice in 2009, ValueExpectations.com highlighted “Fidelity’s Low Priced Stock Fund”, an investment strategy that has been employed since 1989 by fund manager Joel Tillinghast. The theory behind this “low-price” strategy is that stocks within the small cap space tend to experience the most frequent mis-pricings and have the least amount of analyst coverage. Mr. Tillinghast created this strategy to take advantage of the numerous inefficiencies in small caps. They started out as a strategy to invest in stocks trading below $10; that limit has since been raised to $35 to widen the pool of investable stocks.
Although this fund has been a market performer over the past year, Tillinghast had taken advantage of such mispricing’s during the 15 prior years, averaging an 11% annual return vs. a 6% annual return for the S&P 500 over the same period. The fund had been closed to investors since 2003, but was recently reopened in December to get more cash inflow to be able to take advantage of all of the investment opportunities they see in the market.
Andrew Horowitz submits:
Over the past few weeks, the U.S. Dollar has been strengthening. This is in direct response to the Eurozone’s problem with the PIIGS and a flight to safety. In reaction, metals have been drifting lower, as have been most commodities.
Yet last week we finally saw the correlation break (dollar up, commodities down). EU responded with a helping hand to Greece, that somewhat calmed investors’ jitters. If the U.S. dollar begins to drift lower, there is a good possibility that there will be a short-squeeze reversing the recent trend for gold (GLD) and other metals / commodities.
David Brown submits:
It worked . . . last week the market reversed Monday Mania, starting the week with a down day and ending in a bullish mood.
Business, rather than the consumer, seems to be driving the economy forward, as evidenced by the performance of the sectors that are the backbone of the business side of the economy: Energy, Materials, Financials, and Information Technology. (Consumer Discretionary, Consumer Staples, Healthcare, and Utilities represent to a greater degree the consumer side of the economy.)
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Investing, Long Term Investment, stock market | admin |
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Jason Shade submits:
It was only a few days ago that Leapfrog Enterprises (LF) (5.08) sent its shares jumping with a positive 4th quarter earnings report (see conference call transcript here). Yesterday, the company saw the momentum continue as it conducted an analyst day to provide further clarity on its toy business.
Investors liked what they saw as the stock hopped another 8% yesterday. Why the investor demand for a toy company during these difficult economic times?
Tags: Investing
Investing, Long Term Investment, stock market | admin |
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Dr. Stephen Leeb submits:
Chuck Carnevale submits:
Teva, headquartered in Petach Tikva, Israel, is the world’s largest generic drug company and trades as an ADR under the symbol (TEVA). The company reported earnings Tuesday that were in fact up strongly on strong revenue growth exceeding 30%, and it also raised its dividend by 17%. [Read Teva's Q409 earnings call transcript here.] Yet interestingly, the stock was down on an up day. This is due to Teva’s missing analyst expectations by a mere penny. Oh, the peculiar illogic of Wall Street.
Let’s look at this above-average consistent earnings grower from the perspective of our F.A.S.T.™ graphs (Fundamentals Analyzer Software Tool) with figure 1 below plotting earnings only.
Yee Ong submits:
Quite a few prominent investors like Jim Rogers are optimistic about China’s economy, which had reportedly grown at a 10.7% pace in the fourth quarter of 2009, while others like Jim Chanos warn of an impending major Chinese real estate bust. All the noise and often contrary opinions by the experts have outright confused investors who are interested in learning more about China.
I will not attempt to explain everything about China here but I will point out a rare opportunity that is available to investors interested in the Chinese market. After all, good investment opportunities have to exist in an economy as big as China. The investment I am referring to is a stock listed on the New York Stock Exchange called New Oriental Education and Technology Group Inc. (EDU).
Jason Kelly submits:
I wrote yesterday about the inevitable long-term rise in the price of oil, current recessionary pressures notwithstanding. I mentioned that at the end of the current leg down, I would be looking into buying leading oil-industry investments, such as Transocean (RIG).
Several people wrote to say that Transocean is one good idea, but that Noble Energy (NE) is better. By almost any long-term valuation analysis, each driller is cheap these days. Which is cheaper?
Joe Eqcome submits:
Summary: A strong case can be made for the liquidation or conversion of The Adams Express Company (ADX). Initially founded in 1929, ADX is today an anachronism. The value of a managed large cap fund that basically tracks its S&P 500 benchmark is sharply diminished as investors can readily buy the large cap S&P 500 index at a much lower cost and with significantly more liquidity through the purchase of the SPDRs S&P 500 ETF (SPY).
The Sad Reality: ADX’s investors would be materially better-off in terms of generating a higher return on their investment if ADX were to liquidate at its 19.4% higher NAV value and for those proceeds to be reinvested in SPY. ADX’s beta is the same as the S&P 500 index.
Sean Hannon submits:
As a value investor, I am dependent upon the market. After determining what I believe to be a company’s fair value, I must wait for the market to allow me to purchase the shares below that price. Oftentimes, this involves stepping into a stock after everyone else has left. Such an approach is often lonely, but profitable as well.
A recent example is the recommendation I made in the January 31 issue of EPIC Insights. At that time, Motorola (MOT) had recently reported quarterly earnings of $.09, which bettered both the estimate of $.08 and last year’s result of a $.01 loss.
Mark Gomes submits:
RealNetworks (RNWK) represents an exceptional value at current levels. The founder and CEO, Rob Glaser, was arguably operating too many business units. This resulted in a lack of focus and sub-optimal profitability. On January 13, Glaser stepped down in favor of Robert Kimball, who has been brought in to maximize shareholder value. Glaser will remain involved as the Chairman of the Board.
RealNetworks’ new mission will start by divesting some of its business units. Specifically, RNWK and MTV (VIA and VIA.B) have agreed to spin off Rhapsody, their digital music joint venture. This transaction is expected to be completed by the end of this quarter. RNWK also plans to shed its gaming business, along with any other unprofitable activities.
Jim Van Meerten submits:
When I begin to search for new stocks I always begin the same way, using Barchart to run a list of the stocks having recent price appreciation and then sorting for those with the most frequent price appreciations in the last 20 trading sessions. I then run through a sorting process to weed the list down further. My pick for today is Tyson Foods Inc (TSN) .
I’ll go into the reasons in a moment. I don’t know about you, but I am eating a lot more chicken. Many of my friends are eating less red meat and those that haven’t gone over to the dark side and become total vegetarians are restricting themselves to fish and chicken.
Shlomi Cohen submits:
Today I am replacing the stock of e-commerce giant, eBay (EBAY), with that of a smaller one, AudioCodes Ltd. (Nasdaq: AUDC; TASE: AUDC). eBay seems to be in constant reorganization in recent years, and has a chance to succeed at it. However, I anticipate a much greater return over the next year from Audiocodes, if the strategic change it is currently undergoing works.
Since the heady days of VocalTec Communications Ltd. (Nasdaq:VOCL) during the technology bubble of more than a decade ago, I have stayed away from voice over IP [VoIP] like from fire. VoIP is the industry in which Audiocodes operates.
Lawrence Weinman submits:
Since index funds/ETFs are by definition buy and hold, they certainly avoid having the problems listed in this WSJ article associated with your investments. Now all you have to do is keep yourself from rapidly jumping in and out of the hundreds of ETFs and index mutual funds now available..In fact it seems that the more the manager of your actively managed mutual fund trades, the less likely he is to produce superior performance and he is surely more likely to generate more tax headaches for you.
My bolds below:
