There are some 75 million small and midsize businesses around the world. If they plan on competing in an increasingly connected world of mobile devices and e-commerce, they’ll all need to have an online presence.  More than three-fourths of these 75 million SMBs don’t have a basic website — so this market is grossly underserved. Endurance International Group (Nasdaq: EIGI), which recently went public, is looking to change this.#-ad_banner-# Endurance is one of the U.S.’s top hosting companies, with a number of brands, including HostGator and Bluehost. Since its October IPO, EIGI is up 10%, and a number… Read More

There are some 75 million small and midsize businesses around the world. If they plan on competing in an increasingly connected world of mobile devices and e-commerce, they’ll all need to have an online presence.  More than three-fourths of these 75 million SMBs don’t have a basic website — so this market is grossly underserved. Endurance International Group (Nasdaq: EIGI), which recently went public, is looking to change this.#-ad_banner-# Endurance is one of the U.S.’s top hosting companies, with a number of brands, including HostGator and Bluehost. Since its October IPO, EIGI is up 10%, and a number of positive aspects make the company a compelling growth investment.  Endurance estimates its share of the SMB website market at 5%, which means there’s a lot of room for growth. But the company offers more than just website hosting. Endurance’s variety of products and services — including Web hosting, on-demand computing, security, marketing solutions and site analytics — is relatively unrivaled in the space, allowing it to serve a broad array of companies.  In addition to the services listed above, Endurance also has its Mojo Marketplace product, which allows companies to develop software solutions and sell them to any number… Read More

The number of Starbucks coffee shops that flooded the market during the mid-2000s was almost comical. In 2008, there were more than 230 Starbucks stores in New York City, with over 180 just in Manhattan. #-ad_banner-# There were literally Starbuckses right across the street from each other. As a coffee lover and Starbucks fanboy, I didn’t mind. But rapid expansion and market saturation turned out to be an unsustainable business model, which led to a large number of underperforming stores. As a result, Starbucks brought back former CEO Howard Schultz in 2008, and the company closed a number of U.S. Read More

The number of Starbucks coffee shops that flooded the market during the mid-2000s was almost comical. In 2008, there were more than 230 Starbucks stores in New York City, with over 180 just in Manhattan. #-ad_banner-# There were literally Starbuckses right across the street from each other. As a coffee lover and Starbucks fanboy, I didn’t mind. But rapid expansion and market saturation turned out to be an unsustainable business model, which led to a large number of underperforming stores. As a result, Starbucks brought back former CEO Howard Schultz in 2008, and the company closed a number of U.S. stores and ceased expansion efforts. Yet half a decade later, Starbucks (Nasdaq: SBUX) is back in full-blown growth mode. Despite concerns that Starbucks might again be hitting a saturation point, the coffee company is still very much a growth story. Starbucks has a number of growth levers it can pull this time around beyond just rapid store expansion. These include the company’s innovation on the food side and its single-serving products, Verismo and Teavana. With the likes of McDonald’s (NYSE: MCD), Tim Horton’s and Dunkin’ Donuts all fighting for a piece of the market, the competition in the coffee market… Read More

Once upon a time, using an American Express card could be nearly impossible. For some consumers, it may have felt like rejection to hear a cashier say, “Sorry, we don’t take American Express.” However, as an AmEx cardholder myself, I always looked at it as a compliment — as though I and other AmEx cardholders were a member of an exclusive club. However, that club isn’t as exclusive anymore. Yes, American Express (NYSE: AXP) remains the pinnacle of credit cards, signifying success, exclusivity and financial freedom. But while MasterCard (NSYE: MA) and Visa (NYSE: V) have seen their card portfolios… Read More

Once upon a time, using an American Express card could be nearly impossible. For some consumers, it may have felt like rejection to hear a cashier say, “Sorry, we don’t take American Express.” However, as an AmEx cardholder myself, I always looked at it as a compliment — as though I and other AmEx cardholders were a member of an exclusive club. However, that club isn’t as exclusive anymore. Yes, American Express (NYSE: AXP) remains the pinnacle of credit cards, signifying success, exclusivity and financial freedom. But while MasterCard (NSYE: MA) and Visa (NYSE: V) have seen their card portfolios shrink over the past couple of years as many consumers have cut up their cards, American Express has seen its portfolio grow. #-ad_banner-# The number of merchants and venues that accept American Express has grown exponentially over the past half-decade. While some cardholders might consider this a form of brand dilution, investors in AXP should consider it great news. American Express’ merchant fees have been on the decline, narrowing toward what MasterCard and Visa charge and allowing more businesses to accept AmEx. Merchants are becoming increasingly more open to accepting American Express, especially in light of the fact that AmEx… Read More

One of the most underappreciated areas of health care is also instrumental for human development. Baby formula isn’t exactly a market that many investors would consider a growth industry — but that could be about to change. The United Nations estimates that the world’s population could hit 11 billion by 2100, up from a current 7 billion. That’s many more mouths to feed. One of the biggest markets for baby formula is China: With 1.3 billion people and a birth rate of 1.2%, that’s 15.6 million babies a year. The baby formula market is huge and growing — so what’s… Read More

One of the most underappreciated areas of health care is also instrumental for human development. Baby formula isn’t exactly a market that many investors would consider a growth industry — but that could be about to change. The United Nations estimates that the world’s population could hit 11 billion by 2100, up from a current 7 billion. That’s many more mouths to feed. One of the biggest markets for baby formula is China: With 1.3 billion people and a birth rate of 1.2%, that’s 15.6 million babies a year. The baby formula market is huge and growing — so what’s the best way to invest in it? Mead Johnson Nutrition (NYSE: MJN) is the only pure-play pediatric nutrition company, and one that has a strong presence in China, to boot. Mead covers all stages of pediatric development, from newborns to 5-year-olds. It generates over 75% of its revenue from outside the U.S., most notably from China, which accounts for over 25% of its revenue. Infant formula makes up around 60% of revenues, with children’s nutrition accounting for the other 40%. Mead’s major products are sold under the Enfa brand. Mead was spun off from Bristol-Myers Squibb (NYSE: BMY) in 2009. Read More

There are few legal monopolies.#-ad_banner-# One commonly cited example in the public markets is Sirius XM (Nasdaq: SIRI). Sure, Sirius is the only satellite operator in the market, but radio listeners have alternatives — including the likes of local broadcast radio. Even other common monopolies have alternatives, such as the U.S. Postal Service, where you can opt to use FedEx (NYSE: FDX) or UPS (NYSE: UPS). However, is there any market in which customers don’t have a choice? But what if there were a legal monopoly that embodied “customer captivity”? Imagine a company that has agreements that give it unrivaled… Read More

There are few legal monopolies.#-ad_banner-# One commonly cited example in the public markets is Sirius XM (Nasdaq: SIRI). Sure, Sirius is the only satellite operator in the market, but radio listeners have alternatives — including the likes of local broadcast radio. Even other common monopolies have alternatives, such as the U.S. Postal Service, where you can opt to use FedEx (NYSE: FDX) or UPS (NYSE: UPS). However, is there any market in which customers don’t have a choice? But what if there were a legal monopoly that embodied “customer captivity”? Imagine a company that has agreements that give it unrivaled power. And imagine that this same company operates in the fastest-growing industry in the world — the Internet. That company is VeriSign (Nasdaq: VRSN), which has a virtual monopoly on Internet domains. This company has a high level of customer captivity, meaning that its customers rely heavily on its services and cannot get said services elsewhere. VeriSign offers domain name registry services. What this means is that VeriSign operates the authoritative directory of dot-com, dot-net, dot-cc, dot-tv and dot-name domains. The company saw a sizable pullback in late 2012, after the Internet Corporation for Assigned Names and Numbers (ICANN) approved… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value… Read More

Deal shopping is quickly becoming a lost art.  Technology, like it has done time and again, is changing the way we buy and sell used goods, as those marketplaces are quickly becoming centralized. The Internet is quickly rendering classic print ads, such as the weekly PennySaverUSA, obsolete. The two big names in online classified are eBay (Nasdaq: EBAY) and Craigslist. Though there are plenty of horror stories about Craigslist, it remains the go-to site for used goods, with nearly 50 million unique visitors a month.  But neither Craigslist nor PennySaverUSA will help you find the next great value investment. What value investors can do is buy the company that owned and distributed PennySaverUSA, Harte-Hanks (NYSE: HHS). This marketing company appears to be a great value, and it has a near-term catalyst to boot.  In an effort to focus on higher-growth markets, Harte-Hanks agreed last month to sell its PennySaverUSA business for $22.5 million. The sale will leave Harte-Hanks with an international direct and targeted marketing business that generates a tremendous amount of cash. The sell-off of PennySaverUSA — which had been a drag on financials and a distraction for management — gives new investors the chance… Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all… Read More

Some of the best ways to find undervalued investments is to look in places that other investors tend to ignore.#-ad_banner-#​ There are a number of “unsexy” industries and companies that produce goods and services we use every day, but they don’t receive the media attention that an Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) does. And so many retail investors miss out on great opportunities.  One such industry is auto parts. There are nearly 250 million vehicles in North America alone. Almost everyone I know has a car (sometimes two). Those vehicles all need servicing, and they all break down from time to time.  And while some people choose to take their vehicles to an auto parts servicer — a strategy known colloquially as DIFM, short for “do it for me” — others prefer to get their hands dirty with a DIY (“do it yourself”) approach. Regardless, it has to get done.  Enter Motorcar Parts of America (Nasdaq: MPAA). This company is one of the nation’s top manufacturers of aftermarket auto parts. And a company that caters to both sides of the very large replacement parts market, DIYers and DIFMers alike. One of the big tailwinds for Motorcar… Read More

These days Wi-Fi has become a necessity, a part of our everyday lives that we just can’t live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.  Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT). Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land… Read More

These days Wi-Fi has become a necessity, a part of our everyday lives that we just can’t live without. That demand is now being seen in the friendly skies, as fliers prefer a Wi-Fi connection to amenities such as more legroom or better food.  Carriers are taking note, and one company that stands to benefit from this trend is Global Eagle Entertainment (Nasdaq: ENT). Global Eagle provides airline passengers with Internet access, live television, video content, shopping and travel information. Its in-flight services have been installed on more than 500 aircraft, covering both land and sea. Through its subsidiary Advanced Inflight Alliance (AIA), Global Eagle provides film and television content, games and applications to more than 130 airlines worldwide. Big Tailwinds One of the big tailwinds for Global Eagle is that a Federal Aviation Administration panel just endorsed Wi-Fi as safe for all portions of flights. The panel’s recommendations would lift the restrictions on the use of certain handheld devices below 10,000 feet. Only ground-based cellular connections for voice and data would be prohibited. Passengers would be allowed to access their email and the Internet during all phases of a flight, but only… Read More

When I was a kid, it was a privilege to be allowed to mow the lawn. I recall the enjoyment of using the walk-behind lawn mower to tackle our half-acre of grass in 100-degree heat.#-ad_banner-# Nowadays, mowing the lawn is a chore, often outsourced to landscaping companies… Read More

Even if you don’t own a SodaStream (Nasdaq: SODA), chances are you’ve heard the name. These magical machines turn their users into “beverage engineers.” Users can create nearly every imaginable soft drink (and various other beverages), right from their kitchen. Knowing that, why would anyone ever buy… Read More