One of my favorite times to trade a stock is just as it’s breaking out of a base. If there is a clear, definable stop-loss nearby, so much the better since my risk is limited.  And when the fundamentals support the bullish technicals, the probability that I have found a successful trade is high. Enter Steelcase (NYSE: SCS), a Michigan-based manufacturer that was founded in 1912. Its first patent was granted in 1914 for a steel, fireproof wastebasket, revolutionary for its time. #-ad_banner-#At first glance, the company looks like a maker of conventional office furniture and related products. Read More

One of my favorite times to trade a stock is just as it’s breaking out of a base. If there is a clear, definable stop-loss nearby, so much the better since my risk is limited.  And when the fundamentals support the bullish technicals, the probability that I have found a successful trade is high. Enter Steelcase (NYSE: SCS), a Michigan-based manufacturer that was founded in 1912. Its first patent was granted in 1914 for a steel, fireproof wastebasket, revolutionary for its time. #-ad_banner-#At first glance, the company looks like a maker of conventional office furniture and related products. It makes ergonomic chairs, tables, bookcases and cabinets. It also provides LED desk lamps and presentation technology such as interactive whiteboards that fuse analog and digital content. Its products are delivered through a network of independent dealers with 650 locations around the world. What differentiates Steelcase from its competition, however, is its emphasis on partnering with academic research institutions to find out how individuals “really work.”   Management believes workplace satisfaction is highly correlated with employee engagement and, thus, productivity. They view their office products not just as “furniture,” but as an attempt to create an environment in which individuals… Read More

When I arrived in Canada in 1970, one of the first investment maxims I was taught by the old pros was, “Put your money in the bank stocks, not the banks.” #-ad_banner-#The point was I would see far better returns holding bank shares than I would earning interest in a savings account. As this bull market rages on with the S&P 500 about 215% higher than its early 2009 low, I want to update the maxim. While this bull market continues, I say, buy the brokerage stocks. As the market trends higher, investors gain more confidence. With increased confidence, they… Read More

When I arrived in Canada in 1970, one of the first investment maxims I was taught by the old pros was, “Put your money in the bank stocks, not the banks.” #-ad_banner-#The point was I would see far better returns holding bank shares than I would earning interest in a savings account. As this bull market rages on with the S&P 500 about 215% higher than its early 2009 low, I want to update the maxim. While this bull market continues, I say, buy the brokerage stocks. As the market trends higher, investors gain more confidence. With increased confidence, they invest and trade more. As the market rises, there is more trading equity in their accounts and they can make bigger bets. Brokers benefit from this virtuous cycle. The ability to trade from virtually any mobile platform, anytime, anywhere is another reason trading activity at many online brokers is rising. One of the most innovative online brokers is Interactive Brokers (NASDAQ: IBKR). The company was rated highest in Barron’s survey of the best online brokerage for the third straight year. Ranked on categories such as trading cost, portfolio analysis and trading platform usability, the company scored 36.7 out of a… Read More

Even where I live in Canada, glimpses of bare brown earth are starting to dapple white snow. It’s not yet time for me to plant my garden, but that moment is not far off.  #-ad_banner-#I’m not alone in my interest to grow some of my own food. Gardening ranks as one of the most popular outdoor leisure activities in North America. Additionally, the National Gardening Association reports that a well-maintained garden can help save you several hundred dollars a year in food costs. Gardening is expanding beyond backyard plots, as community gardens and even urban apartment gardens increase in popularity. Read More

Even where I live in Canada, glimpses of bare brown earth are starting to dapple white snow. It’s not yet time for me to plant my garden, but that moment is not far off.  #-ad_banner-#I’m not alone in my interest to grow some of my own food. Gardening ranks as one of the most popular outdoor leisure activities in North America. Additionally, the National Gardening Association reports that a well-maintained garden can help save you several hundred dollars a year in food costs. Gardening is expanding beyond backyard plots, as community gardens and even urban apartment gardens increase in popularity.   A key beneficiary of this increasing interest in gardening is Scotts Miracle-Gro (NYSE: SMG). The Ohio-based company was started in 1868 and is the world’s largest marketer of branded lawn and garden products.  Its global consumer segment, which accounts for roughly 90% of revenue, sells such products as fertilizers, grass seed, spreaders, and plant pest and disease control products. Some of its better-known brands are Scotts, Miracle-Gro, Ortho and Roundup.   It also generates revenue through its lawn care service division, which is the No. 2 player the country and provides residential and commercial lawn, tree and shrub care,… Read More

With the S&P 500 oscillating around the psychologically important 2,000 level, I remain cautiously optimistic about the market’s outlook. In this uncertain environment, I’m looking to go long growth stocks that are outperforming the broader market.   #-ad_banner-#One stock that has grabbed my attention is Whole Foods Market (NASDAQ: WFM). Since their October low near $36, shares have surged about 44%. In comparison, the S&P 500 has advanced about 12% during this period. You wouldn’t think the launch of a new grocery store would be the talk of the town. But recently, when Whole Foods opened its first… Read More

With the S&P 500 oscillating around the psychologically important 2,000 level, I remain cautiously optimistic about the market’s outlook. In this uncertain environment, I’m looking to go long growth stocks that are outperforming the broader market.   #-ad_banner-#One stock that has grabbed my attention is Whole Foods Market (NASDAQ: WFM). Since their October low near $36, shares have surged about 44%. In comparison, the S&P 500 has advanced about 12% during this period. You wouldn’t think the launch of a new grocery store would be the talk of the town. But recently, when Whole Foods opened its first store in Ottawa, Ontario, the capital of my native Canada, social media feeds blew up. Customers raved about the selection of natural and organic food options.   The Ottawa launch augers well for the planned expansion of the chain’s presence in Canada. At present, Whole Foods has only 10 Canadian stores. But the Austin, Texas-based grocer plans to open at least 40 more Canadian locations in the coming years — a strategy it believes will add an additional $1 billion in annual sales. The company generated more than $14 billion in revenue in the past 12 months. That annual sales… Read More

Since the S&P 500’s all-time high of 2,093.55 on Dec. 29, the index is off 1.5% in just seven trading sessions. And that performance includes the bounce-back rally of Wednesday and Thursday. Based on this shaky start to the year, I want to play it safe by picking stable stocks with solid charts and strong revenue and earnings growth projections. #-ad_banner-#International aerospace parts designer and manufacturer, HEICO Corporation (NYSE: HEI) is just such a stock. The company provides aircraft replacement parts and specialty components to original equipment manufacturers and the U.S. military. Its parts are found on everything… Read More

Since the S&P 500’s all-time high of 2,093.55 on Dec. 29, the index is off 1.5% in just seven trading sessions. And that performance includes the bounce-back rally of Wednesday and Thursday. Based on this shaky start to the year, I want to play it safe by picking stable stocks with solid charts and strong revenue and earnings growth projections. #-ad_banner-#International aerospace parts designer and manufacturer, HEICO Corporation (NYSE: HEI) is just such a stock. The company provides aircraft replacement parts and specialty components to original equipment manufacturers and the U.S. military. Its parts are found on everything from commercial and military aircraft to industrial turbines and missiles.   HEICO has two main operating divisions. Its flight support group creates and distributes FAA-approved airliner parts such as hydraulic brakes and electromechanical engine components. The company’s electronic technologies segment is a world leader in designing, manufacturing, and selling electrical and electro-optical systems for the aerospace, defense and space industries.  The company reported record sales and profits in fiscal 2014 (ended in October). Revenue increased 12% to $1.1 billion while earnings rose 18% to $1.80 per share. The company pays a small but increasing dividend. Based on solid and growing… Read More

Retailers rallied Thursday on news that retail sales increased by the most in eight months, rising 0.7% in November. These gains were mainly attributed to lower fuel prices and rising employment encouraging consumers to go out and spend this holiday season. #-ad_banner-#In the past month, consumer discretionary has gone from one of the worst-performing sectors to one of the best, up 3.6% compared with a loss of 0.5% for the S&P 500. For those last-minute shoppers, there’s still time to play the trend. In each of the past five years, the sector has shown gains in December. And this year… Read More

Retailers rallied Thursday on news that retail sales increased by the most in eight months, rising 0.7% in November. These gains were mainly attributed to lower fuel prices and rising employment encouraging consumers to go out and spend this holiday season. #-ad_banner-#In the past month, consumer discretionary has gone from one of the worst-performing sectors to one of the best, up 3.6% compared with a loss of 0.5% for the S&P 500. For those last-minute shoppers, there’s still time to play the trend. In each of the past five years, the sector has shown gains in December. And this year could be even better than usual with falling oil prices equating to a tax cut for many families.   Within the sector, my top pick is North America’s second largest general merchandise retailer, Target (NYSE: TGT).  The stock boasts outstanding technicals and upbeat fourth-quarter earnings guidance, driven by holiday sales, which are expected to be strong. On Wednesday, Nov. 26, Target offered a pre-sale on select Black Friday deals. By 9 a.m. that day, online sales topped total sales on the same day last year. The company also reported Thanksgiving Thursday was its best online sales day in its history,… Read More

Retailers rallied Thursday on news that retail sales increased by the most in eight months, rising 0.7% in November. These gains were mainly attributed to lower fuel prices and rising employment encouraging consumers to go out and spend this holiday season. #-ad_banner-#In the past month, consumer discretionary has gone from one of the worst-performing sectors to one of the best, up 3.6% compared with a loss of 0.5% for the S&P 500. For those last-minute shoppers, there’s still time to play the trend. In each of the past five years, the sector has shown gains in December. And this year… Read More

Retailers rallied Thursday on news that retail sales increased by the most in eight months, rising 0.7% in November. These gains were mainly attributed to lower fuel prices and rising employment encouraging consumers to go out and spend this holiday season. #-ad_banner-#In the past month, consumer discretionary has gone from one of the worst-performing sectors to one of the best, up 3.6% compared with a loss of 0.5% for the S&P 500. For those last-minute shoppers, there’s still time to play the trend. In each of the past five years, the sector has shown gains in December. And this year could be even better than usual with falling oil prices equating to a tax cut for many families.   Within the sector, my top pick is North America’s second largest general merchandise retailer, Target (NYSE: TGT).  The stock boasts outstanding technicals and upbeat fourth-quarter earnings guidance, driven by holiday sales, which are expected to be strong. On Wednesday, Nov. 26, Target offered a pre-sale on select Black Friday deals. By 9 a.m. that day, online sales topped total sales on the same day last year. The company also reported Thanksgiving Thursday was its best online sales day in its history,… Read More

In “One Up on Wall Street,” Peter Lynch told investors that a key principle for finding winning stocks is selecting companies whose businesses are not particularly sexy or exciting. Today’s pick operates in what some may consider a “boring” market segment, but the stock is exciting to me because it has a strong chart and excellent fundamentals. Advance Auto Parts (NYSE: AAP) is North America’s largest automotive aftermarket parts provider. With cars and trucks lasting longer than they used to, consumers put increased dollars into maintaining their existing cars, spurring demand for auto parts. The automotive aftermarket industry consists of… Read More

In “One Up on Wall Street,” Peter Lynch told investors that a key principle for finding winning stocks is selecting companies whose businesses are not particularly sexy or exciting. Today’s pick operates in what some may consider a “boring” market segment, but the stock is exciting to me because it has a strong chart and excellent fundamentals. Advance Auto Parts (NYSE: AAP) is North America’s largest automotive aftermarket parts provider. With cars and trucks lasting longer than they used to, consumers put increased dollars into maintaining their existing cars, spurring demand for auto parts. The automotive aftermarket industry consists of companies that manufacture, distribute, sell and install car and truck equipment and accessories, like batteries, motor oil, stereos, etc. In 2010, this market totaled about $190 billion, according to the U.S. Department of Commerce. By 2013, it ballooned 67% to $318 billion. #-ad_banner-#That growth looks set to continue. According to research by financial information company Sageworks, auto parts were one of the fastest growing retail segments of the past 12 months. Advance Auto Parts currently operates more than 5,200 company outlets, over 100 Worldpac branches, and serves about 1,400 independently owned Carquest stores. The retailer primarily caters to the “do… Read More

Now is not the time to be taking imprudent risks in the market. True, the S&P 500 has rebounded strongly from its mid-October lows. But the September peak at 2,019 may present formidable resistance. That’s about 25 points away, and the index has come very far very fast. In this tricky environment, I am looking for stocks that meet two important criteria:  1. Double-digit revenue and earnings growth projections; and 2. A rock-solid technical picture with no nearby resistance looming overhead. Strategic Hotels & Resorts (NYSE: BEE) fits the bill. The real estate investment trust (REIT) operates high-end hotels… Read More

Now is not the time to be taking imprudent risks in the market. True, the S&P 500 has rebounded strongly from its mid-October lows. But the September peak at 2,019 may present formidable resistance. That’s about 25 points away, and the index has come very far very fast. In this tricky environment, I am looking for stocks that meet two important criteria:  1. Double-digit revenue and earnings growth projections; and 2. A rock-solid technical picture with no nearby resistance looming overhead. Strategic Hotels & Resorts (NYSE: BEE) fits the bill. The real estate investment trust (REIT) operates high-end hotels like Fairmont, Marriott and Westin. #-ad_banner-#Industry trends are bullish. Business and leisure travel are growing, and hotel occupancy rates are in an uptrend. In August, the U.S. hotel industry’s occupancy rate climbed 3.8% year over year to 71.6%, according to Smith Travel Research. Year to date, the occupancy rate is at 66% — the highest in 17 years. PricewaterhouseCoopers (PwC) expects this trend to continue. Demand for hotel rooms is forecast to rise 4% for 2014, with available supply growing just 1%.  Increased demand coupled with low supply, should create a favorable environment. And higher occupancy rates will… Read More

This is a stock you wouldn’t have wanted to own when the tech bubble burst in early 2000. In that era, it plummeted more than 95% from a February 2000 peak near $73 to a July 2002 all-time low near $3.40. For many years, the shares struggled to right themselves technically, repeatedly hitting resistance just above $10 and backing off. In fact, it wasn’t until late 2009 that this resistance was decisively penetrated. Now, however, shares of the specialized chipmaker Skyworks (NASDAQ: SWKS) have recently broken a major multi-year downtrend line and look very attractive technically. Backed by robust revenue… Read More

This is a stock you wouldn’t have wanted to own when the tech bubble burst in early 2000. In that era, it plummeted more than 95% from a February 2000 peak near $73 to a July 2002 all-time low near $3.40. For many years, the shares struggled to right themselves technically, repeatedly hitting resistance just above $10 and backing off. In fact, it wasn’t until late 2009 that this resistance was decisively penetrated. Now, however, shares of the specialized chipmaker Skyworks (NASDAQ: SWKS) have recently broken a major multi-year downtrend line and look very attractive technically. Backed by robust revenue and earnings growth estimates, based on strong product demand, Skyworks looks set to move ahead, making now a potentially profitable time to trade the stock. #-ad_banner-#News that Skyworks will be supplying RF (radio frequency) chips for Apple’s (NASDAQ: AAPL) upcoming iPhone 6 is a strong growth catalyst. Analysts expect at least 100 million iPhones will be sold during the third and fourth quarters of 2014, meaning Skyworks will likely be selling millions of its of RF chips — just to Apple. As a result, Skyworks management anticipates upcoming fourth-quarter revenue will increase 42% year-over-year. In addition to supplying chips to… Read More