With the tech stocks having taken a beating over the past month, a number of interesting buying opportunities are out there for long-term investors. And it’s not every day you get a second chance to invest in an IPO. #-ad_banner-#That’s because it’s unusual for a company to trade below its IPO price less than six months after debuting in the public markets. However, shares of Twitter (NYSE: TWTR) are now trading below the closing price from their IPO debut.  TWTR has been hammered this week since the company reported first-quarter earnings — shares have fallen to well below… Read More

With the tech stocks having taken a beating over the past month, a number of interesting buying opportunities are out there for long-term investors. And it’s not every day you get a second chance to invest in an IPO. #-ad_banner-#That’s because it’s unusual for a company to trade below its IPO price less than six months after debuting in the public markets. However, shares of Twitter (NYSE: TWTR) are now trading below the closing price from their IPO debut.  TWTR has been hammered this week since the company reported first-quarter earnings — shares have fallen to well below $40 a share as of this writing. The prime factor in the plunge may be that the quarter was the fourth in a row in which Twitter saw slowing growth. Analysts and investors have also focused on subpar engagement metrics. Total monthly active users came in at 255 million for the quarter, below expectations of 257 million, and Timeline views totaled 157 billion, compared with the consensus estimate of 165 billion.  However, the quarter wasn’t all that bad. Revenue and EBITDA (earnings before interest taxes depreciation and amortization) beat estimates, and Twitter’s forecasts for the second quarter and full year… Read More

Momentum stocks have been hit especially hard over the past month. Most stocks related to the Internet has taken it on the chin.  With the lofty valuations for some of these tech stocks, it’s understandable that investors are booking gains and taking refuge in “safety” stocks. However, there are some stocks that are being pulled down unnecessarily.  Shares of TripAdvisor (Nasdaq: TRIP) are down over 15% over the past month, more than Amazon.com (Nasdaq: AMZN) over the same period. But TripAdvisor makes as much money on a net income basis as Amazon, and with a market cap that’s… Read More

Momentum stocks have been hit especially hard over the past month. Most stocks related to the Internet has taken it on the chin.  With the lofty valuations for some of these tech stocks, it’s understandable that investors are booking gains and taking refuge in “safety” stocks. However, there are some stocks that are being pulled down unnecessarily.  Shares of TripAdvisor (Nasdaq: TRIP) are down over 15% over the past month, more than Amazon.com (Nasdaq: AMZN) over the same period. But TripAdvisor makes as much money on a net income basis as Amazon, and with a market cap that’s only a tenth of Amazon’s. #-ad_banner-#With a rebounding economy, more people are looking to book vacations. TripAdvisor isn’t known for its booking capabilities, but it is known as the top place for research. Meanwhile, the likes of Priceline (Nasdaq: PCLN), Expedia (Nasdaq: EXPE) and Orbitz (NYSE: OWW) duke it out for customers looking to book trips. TripAdvisor is in a league of its own and has one of the largest online communities of travelers in the world.  Over 150 million reviews and opinions are posted on TripAdvisor.com, covering more than 3.7 million accommodations, restaurants and attractions. TripAdvisor already has… Read More

Market overreactions provide great buying opportunities — especially when they happen to large, consistently profitable companies.  #-ad_banner-#It happened to BP (NYSE: BP) back in 2011 with the Deepwater Horizon incident. Recalls have sent shares of Boeing (NYSE: BA), Toyota (NYSE: TM), and Tyson (NYSE: TSN) tumbling at one point or another.  And sometimes it takes years before a company can fully wash the stain from its brand image. But for time-tested companies, these sell-offs have been great buying opportunities. Unforeseen incidents and adverse events can happen almost anywhere — including at sea. And it’s safe to say Carnival… Read More

Market overreactions provide great buying opportunities — especially when they happen to large, consistently profitable companies.  #-ad_banner-#It happened to BP (NYSE: BP) back in 2011 with the Deepwater Horizon incident. Recalls have sent shares of Boeing (NYSE: BA), Toyota (NYSE: TM), and Tyson (NYSE: TSN) tumbling at one point or another.  And sometimes it takes years before a company can fully wash the stain from its brand image. But for time-tested companies, these sell-offs have been great buying opportunities. Unforeseen incidents and adverse events can happen almost anywhere — including at sea. And it’s safe to say Carnival Corp. (NYSE: CCL) has had its fair share of adverse events over the past couple years.  First, there was the Costa Concordia shipwreck that killed 32 people in 2012. Then, last year, the Carnival Triumph incident left passengers stranded for days in the Gulf of Mexico. Most recently, the Caribbean Princess had to return to its Houston port when 176 passengers became ill. Needless to say, this combination of events has left shares of Carnival underperforming the market. The cruise operator has lagged the S&P 500 by nearly 30 percentage points over the past three years.  New CEO,… Read More

It’s very unlikely anyone will forget the housing bubble, and subsequent financial crisis, anytime soon. And for good reason. There’s plenty of blame to go around.  #-ad_banner-#This includes the credit rating agencies. All three of the major rating agencies in the U.S. are thought to have played a key role in helping create the housing bubble. Their key crime? Inflating ratings on mortgage-backed securities. Over half a decade later, some investors are still shunning the credit rating agencies. But not Warren Buffett. He and Berkshire Hathaway (NYSE: BRK-B) are Moody’s Corp.’s (NYSE: MCO) largest shareholder, owning 12% of… Read More

It’s very unlikely anyone will forget the housing bubble, and subsequent financial crisis, anytime soon. And for good reason. There’s plenty of blame to go around.  #-ad_banner-#This includes the credit rating agencies. All three of the major rating agencies in the U.S. are thought to have played a key role in helping create the housing bubble. Their key crime? Inflating ratings on mortgage-backed securities. Over half a decade later, some investors are still shunning the credit rating agencies. But not Warren Buffett. He and Berkshire Hathaway (NYSE: BRK-B) are Moody’s Corp.’s (NYSE: MCO) largest shareholder, owning 12% of the company.   Moody’s took one of the hardest hits following the bursting of the credit bubble. In less than two years, the company’s market cap shrank nearly 75%. One reason that Moody’s fell so hard was that three-quarters of the mortgage-backed securities it rated AAA in 2006 were rated junk by mid-2010.  Still, Buffett held on through all Moody’s struggles. Buffett has been an owner of Moody’s since 2000. He sold some shares in 2009, but only to raise money for his buyout of railway company Burlington Northern Santa Fe. Shares of the company are back up… Read More

The casual dining industry has taken it on the chin over the past half-decade as consumers have been trading down to cheaper alternatives. #-ad_banner-#But companies that cater to high-income consumers have been resilient against a weak economy. Ralph Lauren (NYSE: RL), Tiffany & Co. (NYSE: TIF) and Coach (NYSE: COH) have all impressively outperformed the S&P 500 over the past five years. These high-end retailers are all sought after by malls and shopping centers. That’s because these stores generate traffic.   But what these shopping centers also need is an anchor restaurant. And for that, their… Read More

The casual dining industry has taken it on the chin over the past half-decade as consumers have been trading down to cheaper alternatives. #-ad_banner-#But companies that cater to high-income consumers have been resilient against a weak economy. Ralph Lauren (NYSE: RL), Tiffany & Co. (NYSE: TIF) and Coach (NYSE: COH) have all impressively outperformed the S&P 500 over the past five years. These high-end retailers are all sought after by malls and shopping centers. That’s because these stores generate traffic.   But what these shopping centers also need is an anchor restaurant. And for that, their first choice is often the Cheesecake Factory (Nasdaq: CAKE).   That’s because it’s a destination restaurant — a place consumers go to for special occasions — so it doesn’t depend on mall traffic. Rather, it brings traffic to the malls. But mall traffic was down nearly 15% this holiday season, causing many investors to stay away from mall-related investments.   However, malls are still calling on the Cheesecake Factory. It remains the leader when it comes to restaurant metrics, including generating foot traffic. It ranks #1 in cash flow per unit, average unit volume and sales… Read More

One of the most popular investing strategies is riding the coattails of deep-pocketed investors, especially activist investors.  #-ad_banner-#One of the most successful activist investors has been billionaire Paul Singer and his Elliott Management firm. He and his firm specialize in finding undervalued situations and extracting more value for shareholders. Since Singer founded the firm in 1977, he has delivered his investors a net compounded annual return of 14.6%, which compares favorably with a 10.9% return from the S&P 500 Index. Over the years, Singer and his firm have mounted campaigns against the nation of Argentina over its debt… Read More

One of the most popular investing strategies is riding the coattails of deep-pocketed investors, especially activist investors.  #-ad_banner-#One of the most successful activist investors has been billionaire Paul Singer and his Elliott Management firm. He and his firm specialize in finding undervalued situations and extracting more value for shareholders. Since Singer founded the firm in 1977, he has delivered his investors a net compounded annual return of 14.6%, which compares favorably with a 10.9% return from the S&P 500 Index. Over the years, Singer and his firm have mounted campaigns against the nation of Argentina over its debt default, Compuware (Nasdaq: CPWR), Hess (NYSE: HES), Juniper Networks (NYSE: JNPR), and many others. (I’ve taken a look in recent months at some of Singer’s other moves.) The latest target for Paul Singer is regional casino operator Boyd Gaming (NYSE: BYD). Elliott Management recently disclosed that the firm owns 5.4 million shares, or 5% of the company.  Singer isn’t the only billionaire interested in Boyd. Noted value investor Mario Gabelli and his Gamco Investors also own a 3.1% stake in the company. Boyd owns 21 casinos in the U.S. At the end of last year, it owned and operated 1.3 million… Read More

When shopping for jewelry, many shoppers might not be able to afford the little blue box that comes from Tiffany & Co. (NYSE: TIF). However, they might be familiar with the phrases “He Went to Jared” and “Every Kiss Begins With Kay.” #-ad_banner-#Jared and Kay Jewelers offer shoppers the opportunity to buy fine jewelry at a more affordable price than what you’ll find at Tiffany. And the company that owns the Jared and Kay Jewelers brands might not just be a better place to shop, but also a better investment than Tiffany. Signet Jewelers (NYSE:… Read More

When shopping for jewelry, many shoppers might not be able to afford the little blue box that comes from Tiffany & Co. (NYSE: TIF). However, they might be familiar with the phrases “He Went to Jared” and “Every Kiss Begins With Kay.” #-ad_banner-#Jared and Kay Jewelers offer shoppers the opportunity to buy fine jewelry at a more affordable price than what you’ll find at Tiffany. And the company that owns the Jared and Kay Jewelers brands might not just be a better place to shop, but also a better investment than Tiffany. Signet Jewelers (NYSE: SIG) announced earlier this year that it would acquire Zale Corp. (NYSE: ZLC). The move, which just cleared a regulatory hurdle, will bring together two of the largest jewelry retailers in the U.S. by market share. Generally, the acquiring company sees a pullback in its stock, while the company being acquired rises. However, shares of both Signet and Zale are up over 30% since the announcement. The market has taken the acquisition as a big positive.  Signet could see the benefits of the acquisition even sooner than normally would be expected, considering the move gives it an even bigger lead… Read More

Cellphones are everywhere — and everybody has the same problem…  #-ad_banner-#Getting the battery on their phones to last all day.  Finding a charger that will give you a quick boost is an even bigger problem. And if you’ve ever needed to charge your phone while you’re at an airport, good luck. Outlets at airports have become something of a grail.  But it’s not just about finding an outlet or a charger. It’s often even more important to get your device charged quickly.  One company that has developed a quick charger for the mobile market is little-known Power Integrations… Read More

Cellphones are everywhere — and everybody has the same problem…  #-ad_banner-#Getting the battery on their phones to last all day.  Finding a charger that will give you a quick boost is an even bigger problem. And if you’ve ever needed to charge your phone while you’re at an airport, good luck. Outlets at airports have become something of a grail.  But it’s not just about finding an outlet or a charger. It’s often even more important to get your device charged quickly.  One company that has developed a quick charger for the mobile market is little-known Power Integrations (Nasdaq: POWI).  While it might not be well known, the company has a market cap of just over $2 billion. Shares have also performed quite well over the past year and are up more than 50%. In that time, Power Integrations beat earnings estimates in three of the four quarters. For the full year 2014, earnings per share (EPS) are expected to come in at $2.72, which would be year-over-year growth of 10.5%.  To capture the market opportunity in cellphone charging, Power Integrations is teaming up with Qualcomm (Nasdaq:… Read More

A healthy lifestyle is becoming all the rage, and the trend has led to an increase in demand for natural and organic foods. Along those lines, there has been a lot of success in the organic grocery retail space. Whole Foods Market (Nasdaq: WFM) is up nearly fivefold over the past five years. There’s also been a rise in competition, such as Sprouts Farmers Market (Nasdaq: SFM), which had its IPO last year. #-ad_banner-#​However, it’s not always best to invest in the end supplier. For example, during the California gold rush of the 1800s… Read More

A healthy lifestyle is becoming all the rage, and the trend has led to an increase in demand for natural and organic foods. Along those lines, there has been a lot of success in the organic grocery retail space. Whole Foods Market (Nasdaq: WFM) is up nearly fivefold over the past five years. There’s also been a rise in competition, such as Sprouts Farmers Market (Nasdaq: SFM), which had its IPO last year. #-ad_banner-#​However, it’s not always best to invest in the end supplier. For example, during the California gold rush of the 1800s, the shovel merchants made a lot more money than the actual miners. In this case, rather than buying shares of Whole Foods, or trying to guess which grocer will have the most success in the industry, investors might be best served by investing in the company that sells the natural and organic products grocers stock their shelves with. The best choice here is United Natural Foods (Nasdaq: UNFI), which is the top distributor of natural and organic foods in the U.S. Upside In Organics A couple of years ago, the Organic Trade Association found that 80%… Read More

With the worst of the U.S. government’s budget “sequester” behind us, there will be some big winners as government spending rebounds. One little-noticed area pinched during the crisis was the government’s spending on office furniture.  #-ad_banner-#When the government budget was in the spotlight, certain expenses, such as new office furniture, were put on the back burner. However, government employees still need a place to work, and the U.S. government has historically been a big customer of the major office furniture companies. One company that’s already seeing the benefits of a loosening of the government’s purse strings is Herman… Read More

With the worst of the U.S. government’s budget “sequester” behind us, there will be some big winners as government spending rebounds. One little-noticed area pinched during the crisis was the government’s spending on office furniture.  #-ad_banner-#When the government budget was in the spotlight, certain expenses, such as new office furniture, were put on the back burner. However, government employees still need a place to work, and the U.S. government has historically been a big customer of the major office furniture companies. One company that’s already seeing the benefits of a loosening of the government’s purse strings is Herman Miller (Nasdaq: MLHR). Shares of Herman Miller made a new 52-week high after releasing third-quarter earnings last month. The company’s strong order book appears to have investors excited, and rightfully so. The best news is that the company saw order growth from the U.S. government for the first time in 10 quarters. To boost its specialty and consumer segment, Herman Miller purchased textile maker Maharam last year. This boosted sales of the consumer segment 35.5% in the third quarter. New orders for the segment more than doubled to $71.5 million. The Maharam acquisition is key for Herman Miller. It positions… Read More