When one group has disproportionate authority over another, there is little leeway for the characteristics that make us uniquely human — carelessness, bigotry, emotion, error in judgment, ignorance. That truth has never been more evident than in recent months, which have been plagued with high-profile incidents of law enforcement fatally using force to apprehend suspected lawbreakers. The deaths of Michael Brown in Ferguson, Missouri and Freddie Gray in Baltimore, Maryland, among others, spurred outcries of police negligence, followed by protests and riots in major cities. #-ad_banner-#The trouble arises when an officer resorts to violence, but there is little or no… Read More

When one group has disproportionate authority over another, there is little leeway for the characteristics that make us uniquely human — carelessness, bigotry, emotion, error in judgment, ignorance. That truth has never been more evident than in recent months, which have been plagued with high-profile incidents of law enforcement fatally using force to apprehend suspected lawbreakers. The deaths of Michael Brown in Ferguson, Missouri and Freddie Gray in Baltimore, Maryland, among others, spurred outcries of police negligence, followed by protests and riots in major cities. #-ad_banner-#The trouble arises when an officer resorts to violence, but there is little or no evidence to substantiate or discredit the need for an escalation in tactics. This often leads investigators to rely on eyewitness testimony and official police statements, both of which have potential for biases. Incidents like this foster distrust in the justice system and in the police. This is not a new problem, but it is one that finally has a solution. The answer: offer nonlethal weapons and hold all parties accountable by strapping a camera to every officer. A recent study by the San Diego Police Department concluded that the presence of body cameras reduced complaints against… Read More

Sears Holdings Corp. (Nasdaq: SHLD) is dying and its largest shareholder, chairman and CEO, Eddie Lampert, is dismantling the retail giant and selling it for parts. However, investors who have held on despite a 52% share price drop from April 2010 highs could be in for a nice reward; that is, if Lampert gets his way and if those same investors can see past the bad. #-ad_banner-#Since 2007, revenue at Sears Holdings has steadily declined, while earnings per share have been negative for the previous 16 consecutive quarters. The company shuttered 56% of its stores since 2010. It spun off Sears Hometown… Read More

Sears Holdings Corp. (Nasdaq: SHLD) is dying and its largest shareholder, chairman and CEO, Eddie Lampert, is dismantling the retail giant and selling it for parts. However, investors who have held on despite a 52% share price drop from April 2010 highs could be in for a nice reward; that is, if Lampert gets his way and if those same investors can see past the bad. #-ad_banner-#Since 2007, revenue at Sears Holdings has steadily declined, while earnings per share have been negative for the previous 16 consecutive quarters. The company shuttered 56% of its stores since 2010. It spun off Sears Hometown and Outlet in October 2012, the clothing brand Land’s End in April 2014 and Sears Canada in October 2014. These asset sales provided SHLD with desperately needed cash, which has kept its remaining 1,725 stores stocked with merchandise. Of that, SHLD owns 183 Kmart stores and 501 Sears locations, and it leases 796 Kmart and 245 Sears stores. Nonetheless, the numbers clearly show a dying retailer in dire need of more capital. In its most recent filing, Sears Holdings had $3.8 billion in debt, but only $250 million cash on hand; 76% less cash than the fiscal year prior. Last November,… Read More

It’s not every day that four words have the potential to upend an entire industry, but that’s exactly the implication of the Supreme Court case King v. Burwell, which began on March 4.  #-ad_banner-#The fate of The Affordable Care Act, and potentially the country’s entire healthcare industry, lies in the court’s final interpretation of the words “established by the state,” which are buried in one line of a 906-page document. In order to make the Affordable Care Act “affordable,” the federal government offers subsidies that make insurance accessible to even the lowest income brackets. But according… Read More

It’s not every day that four words have the potential to upend an entire industry, but that’s exactly the implication of the Supreme Court case King v. Burwell, which began on March 4.  #-ad_banner-#The fate of The Affordable Care Act, and potentially the country’s entire healthcare industry, lies in the court’s final interpretation of the words “established by the state,” which are buried in one line of a 906-page document. In order to make the Affordable Care Act “affordable,” the federal government offers subsidies that make insurance accessible to even the lowest income brackets. But according to the strict letter of the law, only people who signed up through an insurance marketplace that was “established by the state” qualify for a federal subsidy.  The federal government says the language should be interpreted within the context of the law as a whole. They argue that if you consider the document in its entirety, then the law clearly intends for all Americans — not just those who signed up under-state exchanges — to be eligible to qualify for subsidies. This is where King v. Burwell comes in. Only 13 states elected to create their own exchanges, while the… Read More

Frankly, I’m a news junkie. I’m the guy in the office that people come to for explanations on what’s going on in the Middle East, or how the latest political buzz may affect markets. One practice I’ve become accustomed to in my daily stroll through the news is to question everything. It helps me remember the details and often leads to solid investments. Apple, Inc.’s (Nasdaq: AAPL) recent announcement of a nearly $850 million investment in solar energy is a perfect example. Apple has partnered with First Solar, Inc. (NYSE: FSLR) to build a solar farm that will generate 280… Read More

Frankly, I’m a news junkie. I’m the guy in the office that people come to for explanations on what’s going on in the Middle East, or how the latest political buzz may affect markets. One practice I’ve become accustomed to in my daily stroll through the news is to question everything. It helps me remember the details and often leads to solid investments. Apple, Inc.’s (Nasdaq: AAPL) recent announcement of a nearly $850 million investment in solar energy is a perfect example. Apple has partnered with First Solar, Inc. (NYSE: FSLR) to build a solar farm that will generate 280 megawatts, or MW, of electricity — 130 MW of which will fuel all of Apple’s California operations, the other 150 MW will be sold back to a utility company. To give you context, 280 MW is enough electricity to power more than 70,000 homes, according to the Solar Energy Industries Association. My first line of questioning is why solar and why now? Apple had stated its goal for a number of years: to power all of its facilities using renewable energy. So, this new project is a natural progression toward that mission. But the answer to “why now” lies in… Read More

#-ad_banner-#Texas is the nation’s largest oil-producing state. In fact, it is the world’s sixth-largest oil market, dwarfing many countries. So when the price of oil is cut in half (or more) in a matter of months, it has an enormous impact on the state’s economy and the companies that operate within it. Take 1985 for example. The price of West Texas Intermediate (WTI) Crude — the country’s oil benchmark — dropped more than 70% in less than six months. This was due to increased output from the Organization of the Petroleum Exporting Countries (OPEC), which produces about 40%… Read More

#-ad_banner-#Texas is the nation’s largest oil-producing state. In fact, it is the world’s sixth-largest oil market, dwarfing many countries. So when the price of oil is cut in half (or more) in a matter of months, it has an enormous impact on the state’s economy and the companies that operate within it. Take 1985 for example. The price of West Texas Intermediate (WTI) Crude — the country’s oil benchmark — dropped more than 70% in less than six months. This was due to increased output from the Organization of the Petroleum Exporting Countries (OPEC), which produces about 40% of the world’s crude oil, and led to an eventual supply glut. This resulted in industry-wide layoffs and the collapse of major regional banks. In Texas alone, the supply glut led to the destruction of the state’s housing market and ultimately a recession for the state’s economy that continued through the early 1990s. Fast forward a few decades and the same situation looks to be playing out again. From a June 2014 high of nearly $107 per barrel, the spot price of WTI has fallen more than 50% to less than $50 a barrel currently. Much like the… Read More

If you’re looking to capture yields, but often fall flat on your face when it comes to researching and picking stocks, then there’s a simple technique you should learn. #-ad_banner-#Among the many investing strategies is a perennial one that offers investors solid dividend yields and a history of proven returns — often beating the overall market. It is called “Dogs of the Dow.” This is the process of investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average (DJIA) and holding them for one year. Since price drops create higher yields, these are often the worst performing companies… Read More

If you’re looking to capture yields, but often fall flat on your face when it comes to researching and picking stocks, then there’s a simple technique you should learn. #-ad_banner-#Among the many investing strategies is a perennial one that offers investors solid dividend yields and a history of proven returns — often beating the overall market. It is called “Dogs of the Dow.” This is the process of investing in the 10 highest-yielding stocks in the Dow Jones Industrial Average (DJIA) and holding them for one year. Since price drops create higher yields, these are often the worst performing companies in the index — hence the nomenclature “Dogs.” The idea is that these market laggards will turn around in the following year, resulting in modest, reliable gains. Investors who followed this strategy in 2014 have seen 12.6% returns year to date. To put this in context, the Dogs outperformed the Dow Jones Industrial Average’s overall 11.1% total return, but were shy of the S&P 500’s 15%. Investing doesn’t get much more simplistic than this strategy. In fact, the Dogs of the Dow have held up over time. Over the past 15 years, the Dogs returned 146%, handily outperforming DJIA’s 124%… Read More

Today, the global pharmaceutical industry is worth roughly $1 trillion. And when you look at the major players in this space — Merck (NYSE: MRK), Bayer (OTC: BAYRY), Johnson & Johnson (NYSE: JNJ), and so on — it’s hard to imagine the industry growing at any sort of rate for investors to get excited about. #-ad_banner-#But a wave of change is quietly sweeping this industry. And investors who are aware of these developments have an opportunity to position themselves to profit — ahead of the crowd. It’s no secret… Read More

Today, the global pharmaceutical industry is worth roughly $1 trillion. And when you look at the major players in this space — Merck (NYSE: MRK), Bayer (OTC: BAYRY), Johnson & Johnson (NYSE: JNJ), and so on — it’s hard to imagine the industry growing at any sort of rate for investors to get excited about. #-ad_banner-#But a wave of change is quietly sweeping this industry. And investors who are aware of these developments have an opportunity to position themselves to profit — ahead of the crowd. It’s no secret that many of the companies I just mentioned are facing some challenges. Before I tell you more about the opportunity, it’s important to understand what those challenges are.  Big Pharma seemed unstoppable until a few years ago — when three trends began pushing the industry in a new direction. The “patent cliff”: Between 2012 and 2018, patent expirations are set to erase a whopping $148 billion in sales. When those patents expire, generic makers move in, undercut the brand name and eat up the profits.  Production of new drugs is costly: PricewaterhouseCoopers estimates that for every 30 drugs in… Read More