There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market?… Read More

There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market? It just so happens that the world’s largest hotel operator went public at the end of last year. Since its December 2013 IPO, Hilton Worldwide Holdings, Inc. (NYSE:HLT) has outperformed the S&P 500, rising nearly 25% compared to the market’s 10% increase. The company aims to continue its strong performance by reducing debt, increasing its global presence and unlocking existing shareholder value. HLT is the world’s largest hotel operator by market cap, revenues and room count. And for savvy investors, it looks like the biggest might be the… Read More

It’s not often that investors witness a large and stable stock tumble over 10% in a single day. When this happens, it can be a great buying opportunity. We saw this with the oil refiners, which took a beating, back in June. This proved to be an over-reaction and the major refiners have since outperformed the broader market handsomely. The market is serving up another huge overreaction. Walgreen Co. (NYSE: WAG) tumbled 13% in a single day earlier this month. Shares are still down 10% since the start of August. #-ad_banner-#The cause… Read More

It’s not often that investors witness a large and stable stock tumble over 10% in a single day. When this happens, it can be a great buying opportunity. We saw this with the oil refiners, which took a beating, back in June. This proved to be an over-reaction and the major refiners have since outperformed the broader market handsomely. The market is serving up another huge overreaction. Walgreen Co. (NYSE: WAG) tumbled 13% in a single day earlier this month. Shares are still down 10% since the start of August. #-ad_banner-#The cause of this huge selloff has been twofold. One, Walgreen offered fiscal 2016 guidance that was lower than expected. Two, Walgreen will spend $5.3 billion in cash and stock to buy the remaining 55% of the pharmacy chain, Alliance Boots, that it doesn’t’ already own. In 2012, Walgreen took a 45% stake in Alliance Boots. Sometimes the market makes a serious mistake. However, what disappointed investors most was Walgreen’s announcement to not attempt a tax inversion and that it… Read More

There is a phenomenon known as the “Icahn Lift.” This is the term used when the stock price of a company rises after Carl Icahn acquires shares —  sometimes even when there’s only speculation that he will invest. The latest company to get the “Icahn Lift” is Whole Foods Market (Nasdaq: WFM). While there’s serious doubt he actually owns shares of Whole Foods, shareholders could use a little of Carl Icahn’s magic. Shares of the company are down almost 34% year-to-date. On a trailing basis, Whole Foods’ stock trades… Read More

There is a phenomenon known as the “Icahn Lift.” This is the term used when the stock price of a company rises after Carl Icahn acquires shares —  sometimes even when there’s only speculation that he will invest. The latest company to get the “Icahn Lift” is Whole Foods Market (Nasdaq: WFM). While there’s serious doubt he actually owns shares of Whole Foods, shareholders could use a little of Carl Icahn’s magic. Shares of the company are down almost 34% year-to-date. On a trailing basis, Whole Foods’ stock trades at a price-to-earnings ratio of 25, which is well below its five-year average P/E ratio of 37. The problem is that Whole Foods is not growing as fast as it once was. There are only so many affluent neighborhoods in the United States. As Whole Foods expanded into lower income markets, it found that its new clientele can’t afford to load up their carts and as a result, the newer stores are not doing as well. But slow growth is still growth nonetheless. In the third quarter, total revenues at Whole Foods increased 10.5%… Read More

One of the most interesting holdings in the Berkshire Hathaway (NYSE: BRK-A) portfolio is VeriSign (NASDAQ: VRSN), which specializes in domain names and internet security. What makes the company interesting is that VeriSign is a tech company and Warren Buffett famously said that he doesn’t invest in technology.  His stock picking prowess has made him arguably the greatest investor of all-time, and when Berkshire buys something, other investors want to get in on the action. So when Buffett contradicts himself, it is worth taking note. #-ad_banner-#​He prefers to stick to financials,… Read More

One of the most interesting holdings in the Berkshire Hathaway (NYSE: BRK-A) portfolio is VeriSign (NASDAQ: VRSN), which specializes in domain names and internet security. What makes the company interesting is that VeriSign is a tech company and Warren Buffett famously said that he doesn’t invest in technology.  His stock picking prowess has made him arguably the greatest investor of all-time, and when Berkshire buys something, other investors want to get in on the action. So when Buffett contradicts himself, it is worth taking note. #-ad_banner-#​He prefers to stick to financials, railroads and companies he can easily understand. Technology is not his thing. What many investors might not know is that Buffett, at 83 years old, is grooming two men to take over when the time is right. And the purchase of VeriSign is indicative of the changes Ted Weschler or Todd Combs are making behind the scenes at Berkshire. So let’s take a look at the two Berkshire-teers‘ unorthodox purchase. VeriSign has worked hard to build a strong moat against competitors by accruing exclusive contracts with ICANN… Read More

While the current market price for natural gas may fluctuate, the long-term picture is quite bullish. It remains a much cleaner alternative for power plants over coal. It’s also a lot safer option than nuclear. Over the next few years the United States will start exporting natural gas as a number of export facilities come online. There’s a great demand from overseas for liquefied natural gas (LNG), especially cheap gas produced by the U.S. fracking boom.  Yet natural gas prices have taken a beating in recent months,… Read More

While the current market price for natural gas may fluctuate, the long-term picture is quite bullish. It remains a much cleaner alternative for power plants over coal. It’s also a lot safer option than nuclear. Over the next few years the United States will start exporting natural gas as a number of export facilities come online. There’s a great demand from overseas for liquefied natural gas (LNG), especially cheap gas produced by the U.S. fracking boom.  Yet natural gas prices have taken a beating in recent months, sinking below $4 per thousand cubic feet (Mcf) as demand has fallen off amid an unusually cool summer. Last month, my colleague David Sterman concluded that prices likely haven’t bottomed out yet — but they’re bound to eventually. That’s drawn the attention of a couple of high-profile billionaire investors, as I’ll explain momentarily. My three favorite companies to profit from the eventual rebound in natural gas prices are EQT Corp. (NYSE: EQT), Rice Energy (NYSE: RICE), and WPX Energy (NYSE: WPX). … Read More

Today, one of the best places for value investors is technology. This comes as the share prices of some dot-com-era companies are still below where they were during the boom. #-ad_banner-#While their price-to-earnings (P/E) multiples were in the stratosphere back in 1999, they’re now in the value bin. Some of these durable companies are even trading at P/E’s below that of the S&P 500. This means there’s an opportunity for sophisticated investors to buy some great bargains. Although their share prices might have not climbed much in the past 10 years, their businesses have continued to grow. Today, with their… Read More

Today, one of the best places for value investors is technology. This comes as the share prices of some dot-com-era companies are still below where they were during the boom. #-ad_banner-#While their price-to-earnings (P/E) multiples were in the stratosphere back in 1999, they’re now in the value bin. Some of these durable companies are even trading at P/E’s below that of the S&P 500. This means there’s an opportunity for sophisticated investors to buy some great bargains. Although their share prices might have not climbed much in the past 10 years, their businesses have continued to grow. Today, with their steady businesses, these former high-fliers can almost be considered blue-chip stocks. One company that fits this mold is EMC Corp. (NYSE: EMC). At the height of the dot-com bubble, EMC traded at nearly $100 a share. Today, shares trade near $29, a good 70% off the company’s all-time highs. (It is up 8%, however, since my colleague Joseph Hogue profiled EMC this spring.) EMC is more profitable now than ever, with earnings before interest, taxes, depreciation and amortization (EBITDA) of $5.4 billion last year on revenue of $23.6 billion. Shares are trading at just 13 times… Read More

Advertising is a business that’s been around for a long time. It’s perhaps become better known due to the hit show “Mad Men,” which focuses on the world of advertising in the 1960s. Back then, ad agencies made a great deal of money as companies rushed to increase their exposure to television, the hottest medium of the day. Today, the hottest medium is the Internet — and in particular, social media. But television still brings in the big bucks for ad agencies. However, the Internet has forced many ad agencies to adapt to changing times. One way that they have… Read More

Advertising is a business that’s been around for a long time. It’s perhaps become better known due to the hit show “Mad Men,” which focuses on the world of advertising in the 1960s. Back then, ad agencies made a great deal of money as companies rushed to increase their exposure to television, the hottest medium of the day. Today, the hottest medium is the Internet — and in particular, social media. But television still brings in the big bucks for ad agencies. However, the Internet has forced many ad agencies to adapt to changing times. One way that they have gone about this is through mergers. Back in the 1960s, the ad business was much more competitive and there were many competitors. Over the years, many sold out, leaving just a few big players left. (My colleague Adam Fischbaum recently profiled one such agency.) One ad company still standing is the Interpublic Group of Cos. (NYSE: IPG). The company was founded in 1902 and was known as McKann-Erickson before 1961. However, if billionaire Paul Singer gets his way, Interpublic Group won’t be standing alone for long.  He has amassed a 6.7% stake in the advertising giant and is pushing for… Read More

While most of Warren Buffett ‘s $63 billion fortune is wrapped up in Berkshire Hathaway (NYSE: BRK-B), he does own other stocks that are beyond the prying eyes of the media.  #-ad_banner-#Buffett is a great investor there’s no question there. Berkshire’s book value has grown at an annualized rate of nearly 20% for the past half-century. And it would make sense that he makes great investments in his personal portfolio as well. One sector where Buffett has found value over the past few years is banking. Berkshire’s #1 stock holding is Wells Fargo (NYSE: WFC), with… Read More

While most of Warren Buffett ‘s $63 billion fortune is wrapped up in Berkshire Hathaway (NYSE: BRK-B), he does own other stocks that are beyond the prying eyes of the media.  #-ad_banner-#Buffett is a great investor there’s no question there. Berkshire’s book value has grown at an annualized rate of nearly 20% for the past half-century. And it would make sense that he makes great investments in his personal portfolio as well. One sector where Buffett has found value over the past few years is banking. Berkshire’s #1 stock holding is Wells Fargo (NYSE: WFC), with Berkshire owning 8.8% of the bank. Back in 2011, Berkshire invested $5 billion in Bank of America (NYSE: BAC) in exchange for preferred shares.  In a 2012 interview with CNBC, Buffett revealed that he personally owns shares of JPMorgan Chase (NYSE: JPM), although Berkshire does not. Buffett has praised JPMorgan’s CEO Jamie Dimon for writing the best annual reports in the business.  There’s no way to know for sure that Buffett is still an owner of JPMorgan — but by all indications, he still loves big banks. (My colleague David Sterman recently profiled another reviled big… Read More

The European financial crisis really took a toll on European stocks. The debt crisis that came from Portugal, Italy, Ireland and Spain caused investors to pull money out of European equities and banks, throwing nearly the entire Continent into a recession. #-ad_banner-#In the flight to safety, investors ended up investing a large portion of their portfolios in U.S. bonds and equities. The U.S. was pretty much the only game in town. But, now as U.S. markets make new highs, investors are starting to grow cautious with U.S. equities — and looking elsewhere.  Europe is back on investors’ radars. Read More

The European financial crisis really took a toll on European stocks. The debt crisis that came from Portugal, Italy, Ireland and Spain caused investors to pull money out of European equities and banks, throwing nearly the entire Continent into a recession. #-ad_banner-#In the flight to safety, investors ended up investing a large portion of their portfolios in U.S. bonds and equities. The U.S. was pretty much the only game in town. But, now as U.S. markets make new highs, investors are starting to grow cautious with U.S. equities — and looking elsewhere.  Europe is back on investors’ radars. All major European countries are now out of recession. A major contributor to this is the continent’s manufacturing sector, which has been driving growth in the region. Many of these European manufacturers are still in deep value territory and cheaper than their peers across the pond. One investor who has noticed this is billionaire Daniel Loeb, who runs the hedge fund Third Point. His latest pick is Koninklijke DSM (OTC: RDSMY), better known as Royal DSM. Like many European companies, Royal DSM has been around for a long time. It was founded in 1903. But over the past three years,… Read More

Do you ever think about which of today’s companies will be around a century from now? #-ad_banner-#You’d be looking for a company that has a strong enough business to survive no matter what. Whether there’s war, depression or natural disasters, you want a company with the resilience to withstand whatever comes its way. To identify this type of investment, you have to be a visionary like Warren Buffett…  Or Steve Jobs.  Jobs is no longer with us, but he had the same foresight when it comes to investing his fortune as he did with Apple (Nasdaq: AAPL) products. Read More

Do you ever think about which of today’s companies will be around a century from now? #-ad_banner-#You’d be looking for a company that has a strong enough business to survive no matter what. Whether there’s war, depression or natural disasters, you want a company with the resilience to withstand whatever comes its way. To identify this type of investment, you have to be a visionary like Warren Buffett…  Or Steve Jobs.  Jobs is no longer with us, but he had the same foresight when it comes to investing his fortune as he did with Apple (Nasdaq: AAPL) products. While Jobs was the visionary behind the iMac, iPod and iPhone, Apple stock represented only a portion of his portfolio. The bulk of Jobs’ fortune was in The Walt Disney Co. (NYSE: DIS). After Jobs’ passing, many had expected his widow, Laurene Powell Jobs, to sell the family’s 7% stake in Disney. However, she has not sold a single share. It appears she’s confident in the company’s long-term future, and rightfully so — Disney is a 100-year stock. DIS is up more than 33% over the past year, compared with the S&P 500’s gain of just over 16%. Powell Jobs’… Read More