There’s an iconic U.S. company in trouble right now. This major player on the international stage symbolizes the American dream to many around the world. However, if you own this stock, now is the time to sell your shares. #-ad_banner-#The company is so popular that its mascot has posed with every U.S. president since Harry Truman, with the exception of Lyndon Johnson, and it once claimed that its mascot’s image had a 98% awareness rate among children aged 3-11 worldwide.  Launched in 1923, the company owns the world’s largest media company and one of the globe’s top providers of family… Read More

There’s an iconic U.S. company in trouble right now. This major player on the international stage symbolizes the American dream to many around the world. However, if you own this stock, now is the time to sell your shares. #-ad_banner-#The company is so popular that its mascot has posed with every U.S. president since Harry Truman, with the exception of Lyndon Johnson, and it once claimed that its mascot’s image had a 98% awareness rate among children aged 3-11 worldwide.  Launched in 1923, the company owns the world’s largest media company and one of the globe’s top providers of family travel and leisure experiences.  If you have not guessed it, I am referencing Walt Disney Company (NYSE: DIS). Disney is a monster corporation with over $56 billion in revenue and a massive market cap of nearly $150 billion. Headquartered in Burbank, California, this global entertainment powerhouse has operations in over 40 nations and has become a symbol of the United States. As a member of the Dow Jones Industrial Average and the S&P 500, nearly every financial institution or individual passive index investor has exposure to Disney stock.  This widespread ownership has paid off for investors in Disney over the… Read More

Bargain-basement and Warren Buffett are four words that are rarely, if ever, used together. Although Warren is best known for the value investment philosophy, the bargain stocks he chooses often remain relatively high-priced for the average investor. Despite being bargains, the high average stock prices for his picks makes it difficult for the average investor to build a properly diversified portfolio by following his picks.  #-ad_banner-#Remember, Mr. Buffett’s holding company Berkshire Hathaway (NYSE: BRK-A) is currently the most expensive stock on the New York Stock Exchange at $222,490.00 per share! Berkshire Hathaway wholly owns value companies like GEICO, NetJets, and… Read More

Bargain-basement and Warren Buffett are four words that are rarely, if ever, used together. Although Warren is best known for the value investment philosophy, the bargain stocks he chooses often remain relatively high-priced for the average investor. Despite being bargains, the high average stock prices for his picks makes it difficult for the average investor to build a properly diversified portfolio by following his picks.  #-ad_banner-#Remember, Mr. Buffett’s holding company Berkshire Hathaway (NYSE: BRK-A) is currently the most expensive stock on the New York Stock Exchange at $222,490.00 per share! Berkshire Hathaway wholly owns value companies like GEICO, NetJets, and Fruit of the Loom. It even holds a partial interest in Coca-Cola (NYSE: KO) and Restaurant Brands International (NYSE: QSR).  Fortunately, one does not have to buy Berkshire Hathaway shares or even value stocks priced $20.00 or more per share to invest like Warren Buffett.  I have identified two stocks that fit with Warren Buffett’s value philosophy trading for less than $5.00 per share. These low-priced value stocks allow even novice investors to build a value-stock portfolio. Buffett’s Investment Philosophy Warren Buffett became one of the world’s wealthiest people by adhering to the simple philosophy of value investing. The… Read More

The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices.  #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market.  Not just any weakness, but a weakness that is tied to a short-term situation… Read More

The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices.  #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market.  Not just any weakness, but a weakness that is tied to a short-term situation rather than an inherent flaw in the company.  When a short-term negative situation is combined with the inherent volatility of a biotech company on the cutting edge of its market, I see an opportunity… Ophthotech (Nasdaq: OPHT) fits the above description to a tee. Let’s take a closer look. Ophthotech describes itself as a biopharmaceutical company focusing on the development of novel therapeutics to manage diseases of the rear of the eye. They specialize in developing creative therapies for age-related macular degeneration (AMD).  The company’s most promising product candidate, Fovista anti-platelet-derived growth factor (anti-PDGF) therapy, is in Phase 3 clinical… Read More

Mergers and acquisitions are significant price driving forces in the stock market. Purchasing shares in a company before it is acquired is a time-tested way to earn huge returns. Should a bidding war erupt over the enterprise, that’s even better for the investors! Locating a potential acquisition target already leading its industry and riding a major technological trend places the odds of a winning investment solidly in your court. #-ad_banner-#Sounds easy to accomplish, right? Nothing could be further from the truth. The most efficient way to locate likely acquisition candidates is to wait for a rumor to surface.  To be… Read More

Mergers and acquisitions are significant price driving forces in the stock market. Purchasing shares in a company before it is acquired is a time-tested way to earn huge returns. Should a bidding war erupt over the enterprise, that’s even better for the investors! Locating a potential acquisition target already leading its industry and riding a major technological trend places the odds of a winning investment solidly in your court. #-ad_banner-#Sounds easy to accomplish, right? Nothing could be further from the truth. The most efficient way to locate likely acquisition candidates is to wait for a rumor to surface.  To be clear, I am not advocating investing in every acquisition rumor, but rather that you should use rumors as a first step in identifying potential investments.  In most cases, the rumor itself is enough to push share prices sharply higher. Astute investors make certain that the target company is a strong investment, even if the acquisition never takes place. In other words, the company should have much more going for it than an iffy buyout.  I have identified a cutting edge, trend-leading company that has acquisition rumors swirling, yet would make a solid investment even without them.  The company is InvenSense… Read More

I love finding stealth rallies in the financial markets. These under-the-radar moves higher are ignored by the financial media and therefore by most investors.  Stealth rallies occur for any number of reasons. Primarily, these types of upward moves happen in commodities or stocks that have been beaten down for so long that the public simply loses interest in them.  #-ad_banner-#A stealth rally starts by attracting the attention of only the most diehard followers. These early investors quietly pocket huge gains while the rest of the investment community is chasing the latest hot stocks or futures.  Right now, a stealth rally… Read More

I love finding stealth rallies in the financial markets. These under-the-radar moves higher are ignored by the financial media and therefore by most investors.  Stealth rallies occur for any number of reasons. Primarily, these types of upward moves happen in commodities or stocks that have been beaten down for so long that the public simply loses interest in them.  #-ad_banner-#A stealth rally starts by attracting the attention of only the most diehard followers. These early investors quietly pocket huge gains while the rest of the investment community is chasing the latest hot stocks or futures.  Right now, a stealth rally is taking place in a commodity that has not been in the headlines for a while. Once a darling of the financial media, this commodity has been beaten down so severely it is rarely mentioned in the daily financial press. After being hailed as the savior of the United States’ energy future, this commodity quickly became over-produced. It may have succeeded in revitalizing U.S. energy, but its price continued to plunge lower as the years passed.  In case you haven’t guessed it, I am referencing natural gas. The widespread use of fracking created an oversupply of the commodity, resulting in… Read More

There is more to successful dividend investing than just buying high yielding stocks and waiting. Many investors mistakenly believe that wealth is easily created by holding onto high dividend-paying companies. Nothing could be further from the truth.  #-ad_banner-#Wealth is created in the stock market by a combination of dividend reinvestment and buying solid companies at a discounted price — in other words, dividend paying companies that have been unfairly beaten lower by irrational investor fears. Using this tactic combines the very real compounding power of dividend reinvestment on top of a high potential for stock price appreciation, creating an unbeatable… Read More

There is more to successful dividend investing than just buying high yielding stocks and waiting. Many investors mistakenly believe that wealth is easily created by holding onto high dividend-paying companies. Nothing could be further from the truth.  #-ad_banner-#Wealth is created in the stock market by a combination of dividend reinvestment and buying solid companies at a discounted price — in other words, dividend paying companies that have been unfairly beaten lower by irrational investor fears. Using this tactic combines the very real compounding power of dividend reinvestment on top of a high potential for stock price appreciation, creating an unbeatable wealth-building strategy.  I have discovered three dividend-paying stocks trading well off their highs that will make excellent candidates for this approach. The Power Of Dividend Reinvestment Dividends alone make up a huge part of the overall total returns of the stock market. In fact, the numbers astounded me. Morgan Stanley published a study revealing that, since 1930, 42% of all U.S. stock market returns were due to dividends! Talk about a powerful stock market force that cannot be ignored. Dividend reinvestment means plowing the cash earned from the dividends back into the stock. Simply stated, it means buying more… Read More

As a student of the stock market, I pay close attention to trends.  Investing into an established trend is a time-proven way to find success. When two or more trends merge, it creates a high-potential stock market investment. #-ad_banner-#Trends come in two types: societal trends and price trends. Societal trends are those that sweep across the culture, making certain things attractive or even a must-have among consumers.  An excellent example of a major societal trend is the one toward healthy eating. Organic fast food and low-fat dining have become the hot new things among the masses. We see successful restaurant… Read More

As a student of the stock market, I pay close attention to trends.  Investing into an established trend is a time-proven way to find success. When two or more trends merge, it creates a high-potential stock market investment. #-ad_banner-#Trends come in two types: societal trends and price trends. Societal trends are those that sweep across the culture, making certain things attractive or even a must-have among consumers.  An excellent example of a major societal trend is the one toward healthy eating. Organic fast food and low-fat dining have become the hot new things among the masses. We see successful restaurant chains like Chipotle (NYSE: CMG) riding the organic, healthy fast food trend.  Another major trend is the growth of pet-ownership spending in the United States. According to the American Pet Products Association, total pet spending in 2010 hit $48.35 billion. This number has been growing steadily and is expected to hit $62.75 billion in 2016 with $27 billion being attributed to food products.  Combining these two seemingly unrelated trends pointed me toward the organic pet food market. As pet ownership trends higher, wholesome food-oriented consumers seek to provide their pets a similarly healthy diet.  The leading company in the wholesome… Read More

All successful stock market investors have one thing in common. Sure, they may have very different ideas and styles, but this one thing remains true across the board. No matter who you ask, from Warren Buffett to your local investment advisor, they will all agree on this single point.    #-ad_banner-#The point is there is a difference between price and value in the stock market. While the ordinary investor chases price, the winning long-term stock investor understands the importance of value. Understanding value enables you to purchase stocks that are underpriced in the market. These diamonds in the rough are often… Read More

All successful stock market investors have one thing in common. Sure, they may have very different ideas and styles, but this one thing remains true across the board. No matter who you ask, from Warren Buffett to your local investment advisor, they will all agree on this single point.    #-ad_banner-#The point is there is a difference between price and value in the stock market. While the ordinary investor chases price, the winning long-term stock investor understands the importance of value. Understanding value enables you to purchase stocks that are underpriced in the market. These diamonds in the rough are often stocks that will create wealth over the long term. One way to think about the difference between value and price is that value is real worth, while the price is nothing more than how much market participants are willing to pay. In other words, the price is often reflective of the herd mentality. And these numbers are typically far apart.   Investors are often willing to pay far more than stock is worth due to hype and upside price momentum. At the same time, stock prices can also be lower than the actual value of the stock. This is often… Read More

I am a huge proponent of following Peter Lynch’s mantra of buying what you know in the stock market. Mr. Lynch intended for this saying to be the impetus that launched further research into the company, rather than as the only reason to make a buy or sell decision in the stock market. When used correctly, it can be a powerful way to create investment ideas to explore for your portfolio.   #-ad_banner-#Taking this saying to heart, I am always looking for the next big thing when it comes to food. As a foodie who loves the American classics such… Read More

I am a huge proponent of following Peter Lynch’s mantra of buying what you know in the stock market. Mr. Lynch intended for this saying to be the impetus that launched further research into the company, rather than as the only reason to make a buy or sell decision in the stock market. When used correctly, it can be a powerful way to create investment ideas to explore for your portfolio.   #-ad_banner-#Taking this saying to heart, I am always looking for the next big thing when it comes to food. As a foodie who loves the American classics such as hamburgers, I keep a close eye on the fast and gourmet burger joints that seem to be popping up everywhere. I was thrilled to see the success of Shake Shack (NYSE: SHAK). Starting out as a humble hot dog cart in Manhattan, the company launched its IPO in January 2015. Given the simple start, the IPO alone was a testament to American capital markets and our never-ending love of fast-food hamburgers. However, Shake Shack continued to surprise and confound critics, with shares more than doubling on their first day of trading. Even more, the stock continued to rocket higher… Read More

I am about to make a bold call on the future price of gold. Clearly, no one knows the future, but I firmly think that the preponderance of the evidence points toward dramatically lower prices for the yellow metal over the next 24 months. In fact, I expect gold prices… Read More