If you’ve been a regular reader of my articles during the past four months, then you know how much I feared the eventual market rout we’re now witnessing. I only mention this to make it clear that my current, increasingly… Read More
David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon
Analyst Articles
The number 666 has spooky connotations for fans of horror films. It’s also an ominous number that analysts at France-based Societe Generale (SoGen) want you to think about. That’s their target price for the S&P 500. The S&P 500’s 120 point drop since late March to a recent 1,305 has… Read More
Traditionally, investing in the airline industry has been fraught with peril. But there are always exceptions to the rule. In its earlier days, investors could have done quite well by buying and holding on to Southwest Airlines (NYSE: LUV). When it was first founded 28 years ago,… Read More
In the spring of 2008, Corporate America was caught off guard. Many companies carried hefty debt loads, and once the financial crisis hit that summer, a number of stocks plunged precipitously on looming bankruptcy fears. The most vulnerable among them: companies with more debt coming due in the following 12… Read More
The Break-Out Stock You Can’t Afford to Ignore
I couldn’t believe my eyes when I walked into the store. There were literally dozens of smartly-dressed women excitedly seeking out their sizes in a variety of clothing items. The shoppers were completely undeterred by the relatively high prices but rather focused on just how good their purchases would make them look at the gym, yoga class or just as casual wear. I quickly remembered Fidelity Investments’ Peter Lynch and his investing rule, “buy what you know,” as my wife came out of the dressing room modeling her latest tennis/workout skirt for my approval. Not only did… Read More
I couldn’t believe my eyes when I walked into the store. There were literally dozens of smartly-dressed women excitedly seeking out their sizes in a variety of clothing items. The shoppers were completely undeterred by the relatively high prices but rather focused on just how good their purchases would make them look at the gym, yoga class or just as casual wear. I quickly remembered Fidelity Investments’ Peter Lynch and his investing rule, “buy what you know,” as my wife came out of the dressing room modeling her latest tennis/workout skirt for my approval. Not only did the outfit look great, but the craftsmanship and unique fabric sealed the deal — despite the very high price point. If you haven’t guessed it, then the store we were in was lululemon athletica (Nasdaq: LULU). Riding on the resurgence of the fitness/yoga craze that started in the 1970s, lululemon has built a powerhouse fashion empire on women’s desire for quality, looks, comfort and functionality. It’s also been one of the hottest stocks on Wall Street in recent memory… Interestingly, half the women in the store didn’t… Read More
Get Ready for the Commodities Rebound
According to official data, the Chinese economy is cooling a bit, with 2012 growth projected to come in around 7% or 8% — a multi-year low. Don’t you believe it. Statistics provided by the Chinese government are strictly a form of propaganda, used to… Read More
They’re arguably the most successful high-yield stocks to ever hit the market. I’d venture more fortunes have been made with these securities than just about any other income investment out there. And thanks to the market’s recent drop, I think they present a… Read More
Now is the Time for Housing Stocks
Every spring, the same headline flashes across the screen: “The housing sector is perking up and it’s time to buy.” As time passed, the newfound momentum invariably petered out, leading to the follow-up refrain “wait ’til next year.” #-ad_banner-#The fact that housing stocks posted solid gains in the past few… Read More
By now, you’ve probably heard about the biggest story in energy. New drilling technologies in natural gas exploration and production have opened the floodgates to new supplies, creating all kinds of possibilities for consumers and investors. [See this article for an example of what I’m talking about.] But this natural gas revolution has so far been a mixed blessing for producers, as natural gas prices have gone into a tail spin. From highs of $8 per million Btu (British thermal units) four years ago, natural gas prices at the wellhead have plummeted to a recent $2 per million Btu, the… Read More
By now, you’ve probably heard about the biggest story in energy. New drilling technologies in natural gas exploration and production have opened the floodgates to new supplies, creating all kinds of possibilities for consumers and investors. [See this article for an example of what I’m talking about.] But this natural gas revolution has so far been a mixed blessing for producers, as natural gas prices have gone into a tail spin. From highs of $8 per million Btu (British thermal units) four years ago, natural gas prices at the wellhead have plummeted to a recent $2 per million Btu, the lowest point in more than a decade. As expected, major natural gas producers are feeling the pain. Well-known natural gas players such as Chesapeake Energy (NYSE: CHK), for instance, have lost 50% of their share price in the past 12 months alone (although, to be fair, some of that has to do with bad press regarding revelations of some of management’s practices). #-ad_banner-#The good news is that in the investment world, for every loser there is also a winner. So you should be thinking about buying shares of the dozens of other… Read More
If I told you about a stock that’s delivered gains of nearly 20% to investors for the past five years, then I imagine you’d be a little skeptical. After all, the past five years have been some of the most tumultuous years in recent memory. And even if it weren’t,… Read More