In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often… Read More

In early September, stocks in the long-beleaguered maritime shipping industry started to do something few observers expected them to do anytime soon — they started to rise in a meaningful way.#-ad_banner-# The rally from names like DryShips (Nasdaq: DRYS) and Eagle Bulk Shipping (Nasdaq: EGLE) was driven by a meteoric rise in the Baltic Dry Index, which reflects the change in the daily charter rate for dry bulk vessels. The index nearly doubled in value between mid-August and this month, providing a glimmer of hope of decent profits for maritime shippers. But as is often the case with huge moves from stocks and indices, doubts started to set in about the sustainability of the Baltic Dry Index’s new price levels, and these stocks started to wane just as quickly as they’d heated up.  However, the rise from the Baltic Dry Index wasn’t the result of a little volatility. A handful of other data indicate the supply/demand balance in the dry bulk shipping sector has finally found a happy medium, making DryShips, Eagle Bulk, FreeSeas (Nasdaq: FREE), Diana Shipping (NYSE: DSX) and a few other names in the group worth a closer long-term look. The Perfect… Read More

The United States has a problem, and it’s going to take $1 trillion — and 25 years — to completely fix it. Almost needless to say, that’s a huge opportunity for companies with a real solution to this amazingly large and still-growing challenge. Take your pick of the numbers that… Read More

Obamacare may be on the defunding chopping block, but not every health care stock out there depends on the success — or even the existence — of the Affordable Care Act.#-ad_banner-# A law enacted in 2009 called the Health Information Technology for Economic and Clinical Health Act… Read More

It’s unusual to hear someone in the financial media suggest selling a stock — particularly one they previously recommended. But knowing when to close a position at the right time is just as important as getting into the right trade at the right time. That’s why I’d prefer not to leave this loose end open. If you stepped into a Wendy’s (NYSE: WEN) position about a year ago on my recommendation, I think it’s time… Read More

It’s unusual to hear someone in the financial media suggest selling a stock — particularly one they previously recommended. But knowing when to close a position at the right time is just as important as getting into the right trade at the right time. That’s why I’d prefer not to leave this loose end open. If you stepped into a Wendy’s (NYSE: WEN) position about a year ago on my recommendation, I think it’s time to lock in your 40% gain and use those proceeds to invest in McDonald’s (NYSE: MCD).#-ad_banner-# A little more than a year ago, I concluded that “based on the company’s plausible growth forecast, shares could be worth somewhere around $7 by the end of 2013 or mid-2014 — about 60% higher than current levels.” The stock actually hit $7 in late July and has since reached a high of $8.05. But it’s time to lock in the gain. Don’t… Read More

When investors seek-out high-yield stocks, most of them end up finding high-profile large-cap names. I’m talking about companies like natural gas middleman SandRidge Mississippian Trust (NYSE: SDT), with its current payout rate of 17.3%, or a mortgage real estate investment trust (REIT) company such Capstead Mortgage (NYSE: CMO), which currently boasts a 10% yield. Even a more conventional… Read More

When investors seek-out high-yield stocks, most of them end up finding high-profile large-cap names. I’m talking about companies like natural gas middleman SandRidge Mississippian Trust (NYSE: SDT), with its current payout rate of 17.3%, or a mortgage real estate investment trust (REIT) company such Capstead Mortgage (NYSE: CMO), which currently boasts a 10% yield. Even a more conventional equity like Dow component AT&T (NYSE: T), with its 5% yield, is sought by many investors for its reliable cash payout. However, there’s a downside to owning large-cap stocks that were built largely on the premise of paying dividends: There’s little opportunity for major growth in the dividend. There’s also scant opportunity for significant appreciation in the share price. Income investors looking for overall growth that has a shot at outpacing… Read More

Sometimes, the best advertising a company can hope for is nothing it could ever actually create for itself. Rather, the most potent marketing tool in the world is inspiring consumers to use that company’s name as a verb — one that is synonymous with what that company does.  For example, Google (Nasdaq: GOOG) knew it had made it when people started to say “Google it” as a succinct way of referring to a Web search. But every now and then, your company’s name becoming shorthand for a routine function can turn against you. Case in point: Xerox (NYSE: XRX). Read More

Sometimes, the best advertising a company can hope for is nothing it could ever actually create for itself. Rather, the most potent marketing tool in the world is inspiring consumers to use that company’s name as a verb — one that is synonymous with what that company does.  For example, Google (Nasdaq: GOOG) knew it had made it when people started to say “Google it” as a succinct way of referring to a Web search. But every now and then, your company’s name becoming shorthand for a routine function can turn against you. Case in point: Xerox (NYSE: XRX). Back in the 1980s, before computers were common (or crucial) in corporate offices, photocopiers were the centerpiece of recording and sharing company information. That’s when the phrase “Xerox it” surfaced, slang for the act of photocopying. The advents of PCs and cloud storage have significantly quelled the need for high-end photocopiers, and Xerox has fallen from relevancy. Investors have also noticed the demise of Xerox’s stature, dismissing the company as yesteryear’s investment. That’s a mistake. Xerox has done a poor job of telling its story, but the company is far more relevant —… Read More

Sometimes, the best advertising a company can hope for is nothing it could ever actually create for itself. Rather, the most potent marketing tool in the world is inspiring consumers to use that company’s name as a verb — one that is synonymous with what that company does.  For example, Google (Nasdaq: GOOG) knew it had made it when people started to say “Google it” as a succinct way of referring to a Web search. But every now and then, your company’s name becoming shorthand for a routine function can turn against you. Case in point: Xerox (NYSE: XRX). Read More

Sometimes, the best advertising a company can hope for is nothing it could ever actually create for itself. Rather, the most potent marketing tool in the world is inspiring consumers to use that company’s name as a verb — one that is synonymous with what that company does.  For example, Google (Nasdaq: GOOG) knew it had made it when people started to say “Google it” as a succinct way of referring to a Web search. But every now and then, your company’s name becoming shorthand for a routine function can turn against you. Case in point: Xerox (NYSE: XRX). Back in the 1980s, before computers were common (or crucial) in corporate offices, photocopiers were the centerpiece of recording and sharing company information. That’s when the phrase “Xerox it” surfaced, slang for the act of photocopying. The advents of PCs and cloud storage have significantly quelled the need for high-end photocopiers, and Xerox has fallen from relevancy. Investors have also noticed the demise of Xerox’s stature, dismissing the company as yesteryear’s investment. That’s a mistake. Xerox has done a poor job of telling its story, but the company is far more relevant —… Read More

It’s no secret that J.C. Penney (NYSE: JCP) has become a retail disaster over the past five years. The top line has fallen each year since 2007, from… Read More

For true long-term investors, the intended holding period for a stock is typically measured in years, and the decision to buy it is based solely on that company’s long-term prospects. But every now and then, a short-term factor takes hold and forces an investor to become a trader. Refusing to take on that role, even if only temporarily, can mean missed opportunities. Like it or not, anybody who’s currently holding… Read More

For true long-term investors, the intended holding period for a stock is typically measured in years, and the decision to buy it is based solely on that company’s long-term prospects. But every now and then, a short-term factor takes hold and forces an investor to become a trader. Refusing to take on that role, even if only temporarily, can mean missed opportunities. Like it or not, anybody who’s currently holding a position in Kellogg (NYSE: K), General Mills (NYSE: GIS), or Flowers Foods (NYSE: FLO) is a trader. How so? Because these food stocks and their peers have rallied considerably since the latter part of last year — so much so, in fact, that they’re all at considerable risk of a pullback. Shareholders will have to make a decision soon, too, since the underlying reason for the rally is already starting… Read More

For true long-term investors, the intended holding period for a stock is typically measured in years, and the decision to buy it is based solely on that company’s long-term prospects. But every now and then, a short-term factor takes hold and forces an investor to become a trader. Refusing to take on that role, even if only temporarily, can mean missed opportunities. Like it or not, anybody who’s currently holding… Read More

For true long-term investors, the intended holding period for a stock is typically measured in years, and the decision to buy it is based solely on that company’s long-term prospects. But every now and then, a short-term factor takes hold and forces an investor to become a trader. Refusing to take on that role, even if only temporarily, can mean missed opportunities. Like it or not, anybody who’s currently holding a position in Kellogg (NYSE: K), General Mills (NYSE: GIS), or Flowers Foods (NYSE: FLO) is a trader. How so? Because these food stocks and their peers have rallied considerably since the latter part of last year — so much so, in fact, that they’re all at considerable risk of a pullback. Shareholders will have to make a decision soon, too, since the underlying reason for the rally is already starting… Read More