Few companies can claim they actually contributed to changing the world. But less than 30 years ago, Microsoft (Nasdaq: MSFT) and Intel (Nasdaq: INTC) did change the world as they defined the standards for personal computers (PCs). With Intel providing the hardware standards and Microsoft defining software, those two companies made the widespread acceptance of the Internet possible.#-ad_banner-# Today, these two companies are still leaders in their markets, but they have become more like stodgy utility companies than the growth juggernauts they were decades ago. Both now trade with low price-to-earnings (P/E) ratios… Read More

Few companies can claim they actually contributed to changing the world. But less than 30 years ago, Microsoft (Nasdaq: MSFT) and Intel (Nasdaq: INTC) did change the world as they defined the standards for personal computers (PCs). With Intel providing the hardware standards and Microsoft defining software, those two companies made the widespread acceptance of the Internet possible.#-ad_banner-# Today, these two companies are still leaders in their markets, but they have become more like stodgy utility companies than the growth juggernauts they were decades ago. Both now trade with low price-to-earnings (P/E) ratios and significant dividend yields. Of the two, I think Intel is the more attractive investment option. Intel is the world’s largest chipmaker and has been for 20 years. According to Computer World, the company accounts for about 17% of the sales in the $307 billion semiconductor market. While PC sales are slowing, they are still significant, and Intel is unlikely to lose its dominant position in the industry in the near future. Analysts following… Read More

With political leaders considering changes to taxes and fiscal policy that could have significant economic effects, the market is likely to be driven by irrational fears or hopes. After a deal is reached to avoid the fiscal cliff, or if the talks collapse and the nation plummets over the edge, traders may frantically buy or sell stocks and we could see a volatile move. Rather than try to guess which way things will go, it… Read More

With political leaders considering changes to taxes and fiscal policy that could have significant economic effects, the market is likely to be driven by irrational fears or hopes. After a deal is reached to avoid the fiscal cliff, or if the talks collapse and the nation plummets over the edge, traders may frantically buy or sell stocks and we could see a volatile move. Rather than try to guess which way things will go, it is important to have some trades that can benefit from either reaction.#-ad_banner-# Overvalued stocks could offer some protection against the downside risks of the market. These are the kind of stocks that could fall more than average in a market sell-off, or they could fall even if the broad stock market rises because they are overvalued. Buying low-cost put options offers a way to benefit from the potential drop in prices while limiting the risk to a small dollar amount. United States Steel (NYSE:… Read More

Value investors look for stocks that offer low risk. The idea is to buy a stock at a price level that should be near a low as measured by the fundamentals. Some value investors look for stocks with sound business models that are selling at a low price-to-earnings (P/E) ratio, for example.#-ad_banner-# There are a number of other factors that they can screen for and many long-term investors have found success with this model. From a trader’s perspective, the idea of buying and waiting… Read More

Value investors look for stocks that offer low risk. The idea is to buy a stock at a price level that should be near a low as measured by the fundamentals. Some value investors look for stocks with sound business models that are selling at a low price-to-earnings (P/E) ratio, for example.#-ad_banner-# There are a number of other factors that they can screen for and many long-term investors have found success with this model. From a trader’s perspective, the idea of buying and waiting usually seems unappealing because it often means having to hold stocks that don’t perform well for years. In order to be successful, value investors need to be patient. An undervalued stock might remain undervalued for some time, and will usually only go up in price when other investors discover the stock. It might take years for other investors to spot a company, and ideally, a value stock offers a… Read More