Dividends4Life submits:
A stock with a high yield doesn’t mean much if the dividend is cut or eliminated, and the stock price declines significantly. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk. What can we do to help gauge the risk of an individual stock?
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Nathan Kawaguchi submits:
What should investors do when faced with ultra-low interest rates and a risky global business outlook? No matter what the circumstances and outlook, investors should always look for the best risk-adjusted returns within acceptable risk parameters. Currently, long-term investors can find that in high quality stocks.
As of today, the five-year and ten-year U.S. Treasuries yield 1.80% and 3.00%, respectively. The investment grade corporate bond index yields 4.80% and the high yield corporate bond index yields 8.90%. Now, let’s take a look at free cash flow yields for a sample of ten high quality stocks (Note: depending on how one adjusts for free cash flow, calculations may vary).
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,a href=’http://www.dominoanalytics.com/’>Brian Coleman submits:
We have recently completed teardowns of the AT&T (T) USBConnect Lightning (manufactured by Sierra Wireless) and Nokia’s CS-18 USB modem in order to confirm our suspicions that Quicklogic (QUIK) had silicon content in each of these designs. Our efforts paid off as we unearthed the company’s CSSP products in both of these potentially high-volume devices.
Today we turn our attention and mini-screwdrivers—and if that fails, a hammer—to Vodafone’s (VOD) Mobile Broadband USB Modem otherwise known as model K3805-Z. This device is manufactured by one of China’s heavyweight telecom equipment vendors, ZTE (ZTCOF.PK). The implications for Quicklogic, a microcap stock, potentially having its cart tied to telecom horses such as ZTE and Vodafone (on top of having already confirmed AT&T, Sierra Wireless (SWIR) and Nokia (NOK) as down channel partners) really requires no further elaboration. Since in the case of a teardown report a picture really is worth a thousand words, let’s go to the pictures. The full teardown report is available for download at Domino Analytics.
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Wade Slome submits:
Judging by the all the volatility in the markets and the gloomy headlines blanketing business periodicals, one would think the global walls of capitalism and democracy were crumbling into oblivion. That’s why it’s a nice diversion to discover a diamond in the rough, shining through the darkness in the form of the Colombian stock market. How special is this South American gem? An +1,845% return over 10 years sounds pretty exceptional to me. Those are the results that Professor Dr. Mark J. Perry from the University of Michigan calculated in a posting he recently wrote about the MSCI Colombia stock market index in his blog, Carpe Diem.
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Energy and Capital submits:
Rife with comical absurdity, “Drill Baby Drill” mentality assumes that we’re smart enough to drill for oil offshore. But the BP disaster in April did a heck of a job disproving that…
All BP had to do was heed the warnings over blow-out preventers [BOPs] — which ultimately failed and contributed to the fireball over the Gulf of Mexico — and BP most likely wouldn’t be in the mess it finds itself in today…
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Green Chip Review submits:
by Nick Hodge
For all the perceived evil, you have to give them credit… Goldman Sachs (GS) knows how to make money — lots of it. In fact, they are so good at making money — for themselves and their clients — that for years they’ve been referred to in financial circles as ‘Golden Slacks’.
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SeekingValue submits:
Myriad Genetics (MYGN) has been a Magic Formula stock for a while, and it keeps showing up in one of my Zack’s screens (high current ratio, low P/E, trading near 52-week low), but I’ve always ignored it. I vaguely knew that they lost a patent case recently, so I figured the "bargain" the screens were turning up was bogus. For whatever reason, I finally decided to take a look last week, and I’m glad I did.
First, the boilerplate description of the business:
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Jeb Handwerger submits:
Stocks went down sharply yesterday on concerns over consumer confidence and indications that show that the economy is stalling in China. China has been a leading market in this recovery and its bull market has helped the price of industrial metals and base metals.
Over the past few weeks I have highlighted that the market has given signs of a major deflationary crisis and economic slowdown. Yesterday these signs became apparent with a significant sell off on high volume and a break into new lows for the S&P 500 and Nasdaq.
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Dobromir Stoyanov submits:
The investment returns of most fund managers are generally compared against a common benchmark. This provides for an objective evaluation of their performance over a period of time. A common benchmark for most mutual fund managers is the total returns of the S&P 500 index. This benchmark is also useful for comparison to dividend investors as well. For many long-term dividend investors however, income growth is very important as well. Thus having an increase or decrease in dividend incomes does not mean much, unless it is being compared to a common benchmark.
While there have been several dividend indexes such as the Dividend Aristocrats and the Dividend Achievers, which have dividend ETFs that provide accurate information on dividend and price returns, these have not been around as much as the broad S&P 500 index. In addition to that the S&P 500 is sector diversified, and most information is widely available. Because of that, I would consider the changes in annual dividend income of the S&P 500 index as an important barometer against which to benchmark your dividend income over time.
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Greentech Media submits:
by Rob Day
Tesla (TSLA) went out to IPO quite successfully. I was very glad to see the offering do well, at least on the first day (Tuesday). I’ve seen complaints about it going out too early (as yet unprofitable, and mass market car not due until 2011), but it does seem from the outside like a relatively well-run company with a compelling story. Low risk? Absolutely not. But I’m hoping they do well. Especially because this sector needs more success stories. LPs have been waiting very, very patiently for more big visible stories like First Solar (FSLR)… Will Tesla prove to be one of them? Time, and stock market investor patience, will tell…
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Jim Trippon submits:
In case you missed it, the world’s biggest brokerages are now flashing green lights at investors. They’re saying that now is the time to buy Chinese stocks. Double digit gains are just around the corner.
It’s buying time again!
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Shlomi Cohen submits:
Goldman Sachs research analysts covering the chip sector traveled to Asia to visit chip producers there. They had 15 meetings.
Their opinion is that the industry is healthy, because on the supply side, they don’t see chip surpluses. For example, in the personal computer manufacturing food chain they found low inventories, even though April and May were weak in terms of computer sales. Only in June was there a big recovery, which will lead the Asian sub-contractors to reach their sales targets for the second quarter.
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Saj Karsan submits:
Following sub-par first quarter results, shares of Best Buy (BBY) have fallen to a level such that its P/E is now 11. Unlike some of the other low P/E stocks we have discussed on this site, however, Best Buy generates returns on capital of around 20% per year. And it does this consistently, as shown by the chart below:
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Hard Assets Investor submits:
By Aaron J. Levitt
Sometimes we forget, but the earth is a finite resource. As the populations and economies in developing nations explode, demand will increase for energy, food, metals and other "essentials" — which will have dramatic effects on the planet’s ability to provide such needs.
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Investing, Long Term Investment, stock market | admin June 30, 2010 | 
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