Among the highlights of 2014 was the blockbuster $25 billion initial public offering for Alibaba Group Holding Ltd (Nasdaq: BABA), which may rank as the biggest deal ever for some time to come. Hiding in Alibaba’s shadow is another historic IPO that occurred exactly two months later. The $2.6 billion offering for Paramount Group, Inc. (NYSE: PGRE) is the biggest deal in the history of real estate investment trusts, or REITs. Prior to Paramount’s debut, Douglas Emmett, Inc. (NYSE: DEI) set the record in 2006 by raising $1.6 billion. Read More

Among the highlights of 2014 was the blockbuster $25 billion initial public offering for Alibaba Group Holding Ltd (Nasdaq: BABA), which may rank as the biggest deal ever for some time to come. Hiding in Alibaba’s shadow is another historic IPO that occurred exactly two months later. The $2.6 billion offering for Paramount Group, Inc. (NYSE: PGRE) is the biggest deal in the history of real estate investment trusts, or REITs. Prior to Paramount’s debut, Douglas Emmett, Inc. (NYSE: DEI) set the record in 2006 by raising $1.6 billion. While Paramount Group — and other REITs — won’t deliver the meteoric growth rates of tech stocks like Alibaba, they do represent a chance to own hard, stable assets that fare well in a range of economic climates. Paramount’s IPO has performed moderately well since it went public, but investors are coming to term with the fact that it offers a tepid 2.1% dividend yield. That figure lags the 3.1% yield for the MSCI U.S. REIT index, a broad indicator of the domestic real… Read More

Wall Street analysts take a lot of heat, which may be a bit unfair considering they have one of the toughest jobs imaginable — predicting the future. And though analysts often misread the future tea leaves, they also get it right plenty of the time. One stock that is favored by analysts indeed appears to have an alright (if controversial) future. I’m talking about Comcast Corp. (Nasdaq: CMCSA), which is rated as “Buy” or “Strong Buy” by 24 out of the 27 analysts that cover the company. Comcast is the nation’s largest cable TV provider, and it will grow yet… Read More

Wall Street analysts take a lot of heat, which may be a bit unfair considering they have one of the toughest jobs imaginable — predicting the future. And though analysts often misread the future tea leaves, they also get it right plenty of the time. One stock that is favored by analysts indeed appears to have an alright (if controversial) future. I’m talking about Comcast Corp. (Nasdaq: CMCSA), which is rated as “Buy” or “Strong Buy” by 24 out of the 27 analysts that cover the company. Comcast is the nation’s largest cable TV provider, and it will grow yet larger if its merger with Time Warner Cable, Inc. (NYSE: TWC) is approved. Prior to that deal’s consummation, Comcast has already been a solid growth story. Profits grew at a 20% clip over the past five years, and analysts expect double-digit growth this year as well. Comcast is boosting profits the old-fashion way: Through superior operating metrics. The firm is well ahead of the industry averages in almost every key measure of growth and profitability, as the table below shows. Comcast Growth and Profitability Metrics   Revenue Growth (3-yr. avg.) Net Income Growth (3-yr. avg.) Operating Margin (past 12 months)… Read More

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the bigger players and massive potholes for the smaller ones. And one niche chip stock looks especially vulnerable to potholes right now. At first blush, Cypress Semiconductor Corp. (NYSE: CY) is the picture of health. The company appears to have solid momentum as its parlays its strength as a niche chipmaker into higher profits. #-ad_banner-#Cypress’ Programmable Systems Division, for example, is a world leader in high-performance programmable systems-on-a-chip (PSoC), which have applications in consumer electronics, communications, automotive, medicine, industrial and other sectors. As… Read More

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the bigger players and massive potholes for the smaller ones. And one niche chip stock looks especially vulnerable to potholes right now. At first blush, Cypress Semiconductor Corp. (NYSE: CY) is the picture of health. The company appears to have solid momentum as its parlays its strength as a niche chipmaker into higher profits. #-ad_banner-#Cypress’ Programmable Systems Division, for example, is a world leader in high-performance programmable systems-on-a-chip (PSoC), which have applications in consumer electronics, communications, automotive, medicine, industrial and other sectors. As its name suggests, PSoC incorporates computing, communicating and dozens of other functions all on one chip. That’s a big advantage for electronics manufacturers because it reduces design time, power consumption, space usage and, ultimately, production costs. It also enables these customers to make smaller, more sophisticated devices with more operating features and longer battery life. Cypress’ Programmable Systems division also makes touchscreens and other crucial PSoC interfaces. The other main segment, Memory Products, is a top producer of several forms of random access memory for use in consumer electronics, telecom equipment, wireless infrastructure and military avionics, among other areas. There’s… Read More

Although the market has recovered from the  October selloff, buying opportunities can still be had. The key is to focus on stocks which have been beset by recent company-specific woes, but still possess long-term appeal. #-ad_banner-#One example: Vitamin Shoppe, Inc. (NYSE: VSI), which has lagged consensus profit forecasts for two-straight quarters. An especially pronounced 10% shortfall in Q3 was mainly the result of higher acquisition costs. Shares of Vitamin Shoppe are now off 10% year-to-date, versus more than a 12% gain for the S&P 500. But the recent price decline is a temporary setback that only adds to the stock’s… Read More

Although the market has recovered from the  October selloff, buying opportunities can still be had. The key is to focus on stocks which have been beset by recent company-specific woes, but still possess long-term appeal. #-ad_banner-#One example: Vitamin Shoppe, Inc. (NYSE: VSI), which has lagged consensus profit forecasts for two-straight quarters. An especially pronounced 10% shortfall in Q3 was mainly the result of higher acquisition costs. Shares of Vitamin Shoppe are now off 10% year-to-date, versus more than a 12% gain for the S&P 500. But the recent price decline is a temporary setback that only adds to the stock’s long-term appeal. That’s because this leading provider of vitamins, supplements and other health-related products is taking steps to reinvigorate sales and profits. Recent troubles aside, the Vitamin Shoppe has consistently shown strong top-line improvement. From 2008 to 2013, revenues surged from around $600 million to nearly $1.1 billion. Analysts anticipate 11%-to-12% growth in 2014 and 2015, by which time sales are expected to approach $1.4 billion. Like most successful retailers, the Vitamin Shoppe has been able to boost sales by carving out a large base of loyal customers. For example, its no-fee “Healthy Awards Program” allows customers to… Read More

A mid-October computer glitch led to one of the stranger IPO stories in recent memory. An obscure drug company saw its shares incorrectly priced at $200,000 apiece, reflecting a market value of $3.9 trillion, according to Bloomberg. It’s hard to line up demand for shares when that kind of valuation is already in place. It’s a good thing that the error was quickly fixed. Shares of Atara Biotherapeutics, Inc. (Nasdaq: ATRA) were eventually priced at $11 a share, zoomed to nearly $30 a share in early November, and have recently back-slid toward the $20 mark on profit-taking. At current prices,… Read More

A mid-October computer glitch led to one of the stranger IPO stories in recent memory. An obscure drug company saw its shares incorrectly priced at $200,000 apiece, reflecting a market value of $3.9 trillion, according to Bloomberg. It’s hard to line up demand for shares when that kind of valuation is already in place. It’s a good thing that the error was quickly fixed. Shares of Atara Biotherapeutics, Inc. (Nasdaq: ATRA) were eventually priced at $11 a share, zoomed to nearly $30 a share in early November, and have recently back-slid toward the $20 mark on profit-taking. At current prices, this biotech holds a great deal of appeal. Atara, which was spun off from biotech behemoth Amgen, Inc. (Nasdaq: AMGN) in 2012, is pursuing drug treatments for muscle wasting conditions and cancer. The company’s lead drug compound, PINTA 745, has progressed into Phase II clinical trials. The Phase I study showed  that the drug markedly increased muscle mass in patients with end-stage kidney disease who developed protein energy wasting (PEW) syndrome, a condition of increasing frailty and muscle shrinkage. PINTA 745 aims to improve these patients’ quality of life by enhancing their physical strength. The potential market opportunity is… Read More

Unless you’re not much into tech, you’ve probably heard of GoPro, Inc. (Nasdaq: GRPR), a young firm gaining fame for its wearable high-definition cameras designed for extreme action video photography. The stock has taken investors on a rough ride recently, falling more than 20% below its early October peak of about $94. Still, the price is up nearly 140% since GoPro’s June 26 initial public offering. While analysts project fast growth for GoPro in the next few years and the stock could still have lots more upside, it’s not the only choice for investors seeking profits… Read More

Unless you’re not much into tech, you’ve probably heard of GoPro, Inc. (Nasdaq: GRPR), a young firm gaining fame for its wearable high-definition cameras designed for extreme action video photography. The stock has taken investors on a rough ride recently, falling more than 20% below its early October peak of about $94. Still, the price is up nearly 140% since GoPro’s June 26 initial public offering. While analysts project fast growth for GoPro in the next few years and the stock could still have lots more upside, it’s not the only choice for investors seeking profits from the growing popularity of wearable video cameras. In fact, I’ve got my eye on another such company, a recent startup based in Florida that has some unique offerings of its own. #-ad_banner-#Now, I don’t see this simply as a GoPro knockoff. GoPro is geared mainly toward the action enthusiast, and its small video cameras can be mounted in several ways — like to a helmet, a pair of goggles or a remote-controlled aircraft — to get shots that would be impossible or unsafe to attempt otherwise. This other firm’s cameras are even smaller, maybe roughly half the size of… Read More

Some situations, no matter how bad, are so enduring they’ve almost become accepted as a normal part of the global political and economic landscape. I mean, can anyone remember a time when there wasn’t strife in the Middle East? Or how about serious issues related to the environment? There’s been lots of talk about ‘saving the environment’ for decades, but relatively little action. #-ad_banner-#Then there’s the outsourcing of good-paying manufacturing jobs to foreign locations. This, too, is a decades-old issue, with many manufacturing tasks increasingly going to China, Southeast Asia, Mexico and other developing regions simply because it was so… Read More

Some situations, no matter how bad, are so enduring they’ve almost become accepted as a normal part of the global political and economic landscape. I mean, can anyone remember a time when there wasn’t strife in the Middle East? Or how about serious issues related to the environment? There’s been lots of talk about ‘saving the environment’ for decades, but relatively little action. #-ad_banner-#Then there’s the outsourcing of good-paying manufacturing jobs to foreign locations. This, too, is a decades-old issue, with many manufacturing tasks increasingly going to China, Southeast Asia, Mexico and other developing regions simply because it was so much cheaper, making it easier for U.S. companies to simultaneously generate strong profits and offer lower prices on their products. But this is one area where things have actually started to change. During the past few years, roughly 200 domestic companies began bringing manufacturing jobs back to the United States in a relatively new trend increasingly referred to as “reshoring.” What’s more, about half of all manufacturing firms with more than $1 billion of annual revenue are considering reshoring part or all of their production, according to the Boston Consulting Group (BCG), a leading management consulting firm. This includes plenty… Read More

While insider activity is often a helpful guide in the decision to buy or sell, it certainly shouldn’t be considered gospel. Just because the CEO or other key insiders are buying or selling their firm’s stock doesn’t necessarily mean you should. For instance, investors could be making a huge mistake by following insiders out of the stock of one of the world’s most successful discounters. In October, key insiders at this firm sold nearly $11 million of the company’s stock. But don’t take that as a bearish sign for Costco Wholesale Corp. (Nasdaq:… Read More

While insider activity is often a helpful guide in the decision to buy or sell, it certainly shouldn’t be considered gospel. Just because the CEO or other key insiders are buying or selling their firm’s stock doesn’t necessarily mean you should. For instance, investors could be making a huge mistake by following insiders out of the stock of one of the world’s most successful discounters. In October, key insiders at this firm sold nearly $11 million of the company’s stock. But don’t take that as a bearish sign for Costco Wholesale Corp. (Nasdaq: COST). My interpretation is insiders are simply taking some profits because Costco has done so well, rising around 13% year-to-date and more than 130% during the past five years. Insiders certainly aren’t abandoning the stock, not by a long shot. Overall, they still hold more than 2.2 million shares worth almost $300 million, and as a group they’ve actually increased their ownership a bit during the past 12 months. Indeed, there are plenty of reasons to remain bullish on Costco over the long-term, like very solid revenue growth despite the firm being on… Read More

Although material or worker shortages can really crimp the growth for companies and even entire industries, they can also present big opportunities. Take the ongoing shortage of skilled drivers who can handle big rigs and other heavy-duty vehicles. As recently reported by the Business Insider, the United States is short 30,000 truck drivers because of increasing regulation, somewhat stingy pay, loss of qualified drivers during the recession and a lack of interest in truck driving among young people. #-ad_banner-#And it looks like the situation could get quite a bit worse, with the truck driver shortfall projected to rise nearly eightfold… Read More

Although material or worker shortages can really crimp the growth for companies and even entire industries, they can also present big opportunities. Take the ongoing shortage of skilled drivers who can handle big rigs and other heavy-duty vehicles. As recently reported by the Business Insider, the United States is short 30,000 truck drivers because of increasing regulation, somewhat stingy pay, loss of qualified drivers during the recession and a lack of interest in truck driving among young people. #-ad_banner-#And it looks like the situation could get quite a bit worse, with the truck driver shortfall projected to rise nearly eightfold to 239,000 by 2022. Since truck driving is a high-turnover profession, the trucking industry will need about 100,000 new drivers a year for the next decade to close the gap, according to the American Trucking Associations. It’s a serious issue, causing supply chain disruption, lost revenues and poorer performance in a number of industries like dairy, agriculture and consumer goods in addition to the trucking industry itself. And that’s not good for the economy. But it is good for a company that can help solve the problem. Now, this firm’s not in recruiting and staffing, so it won’t be attracting… Read More

While volatility like we’ve had recently often creates great bargains, even the best do-it-yourself stock pickers can find it hard to take full advantage of buying opportunities before they slip away. So rather than try to navigate choppy waters entirely on your own, why not consider turning over a substantial portion of your portfolio to the pros? #-ad_banner-#​One top large-cap fund I especially like has a long, successful history of capitalizing on stock market fluctuations. And its lead managers, two noted value investors, were out looking for bargains during the latest bout of volatility. Read More

While volatility like we’ve had recently often creates great bargains, even the best do-it-yourself stock pickers can find it hard to take full advantage of buying opportunities before they slip away. So rather than try to navigate choppy waters entirely on your own, why not consider turning over a substantial portion of your portfolio to the pros? #-ad_banner-#​One top large-cap fund I especially like has a long, successful history of capitalizing on stock market fluctuations. And its lead managers, two noted value investors, were out looking for bargains during the latest bout of volatility. In a recent interview with CNBC a couple weeks ago, for example, co-manager Bill Nygren revealed some stocks he considered worthy values at the time. Among these were IT services provider Accenture Plc (NYSE: ACN), the Swiss commodities and mining firm Glencore Plc (OTC: GLNCY), the well-known appliance maker Whirlpool Corp. (NYSE: WHR) and Las Vegas Sands Corp. (NYSE: LVS), which is dominant in the resorts and casinos space. In each case, he and co-manager Kevin Grant invested in… Read More