Analyst Articles

It was September 2008, and the stock market was in chaos. The Dow Jones industrial average experienced its largest point decline, plunging 777 points in just one session. The support of the 50- and 200-period moving averages were slashed like a hot knife through butter, while the Volatility Index (VIX) rocketed through technical resistance as if it wasn’t even there. The… Read More

It was September 2008, and the stock market was in chaos. The Dow Jones industrial average experienced its largest point decline, plunging 777 points in just one session. The support of the 50- and 200-period moving averages were slashed like a hot knife through butter, while the Volatility Index (VIX) rocketed through technical resistance as if it wasn’t even there. The financial media was full of pundits declaring a complete technical breakdown in the stock market.#-ad_banner-# Many were left asking what it all meant. Part of what it meant was that the once esoteric quasi-science known as technical analysis had gone mainstream. In the days before the personal computer, practitioners of technical analysis used quotes out of the newspapers or quote books to draw charts and make projections. Intraday data were very difficult to obtain outside of… Read More

Consumers have an insatiable appetite for new and better products and services, and they tend to reward the companies that fulfill their desires. However, shifting consumer preferences can erode brand loyalty at even the best-loved companies. When this happens, expenses are slashed and dividends are cut as the formerly high-flying company struggles to remain relevant in the ever-changing consumer culture. Once the dividends start to be cut, yield investors will start to dump the stock,… Read More

Consumers have an insatiable appetite for new and better products and services, and they tend to reward the companies that fulfill their desires. However, shifting consumer preferences can erode brand loyalty at even the best-loved companies. When this happens, expenses are slashed and dividends are cut as the formerly high-flying company struggles to remain relevant in the ever-changing consumer culture. Once the dividends start to be cut, yield investors will start to dump the stock, sending share prices downward. The key to avoiding these “dividend trap” stocks is to look for a weakening fundamental and technical situation when the dividend yield is staying steady or climbing. Here are two stocks that may become “dividend traps” due to the changing consumer landscape. Garmin (Nasdaq: GRMN) This manufacturer and marketer of GPS equipment pays a hefty dividend yield of 5%. Generally, this would be a positive, but in this instance, it signals trouble.#-ad_banner-# The… Read More

We are finally seeing signs of life in this critical U.S. industry. Rocked by overspending, hubris and economic crisis, this once mighty segment of the economy was reduced to a mere shadow of itself.  Fortunately, things are quickly changing for the better in this nearly left-for-dead sector.#-ad_banner-# In fact, January 2013 was the industry’s best January since 2008. U.S. sales soared 14% to more than 1 million units compared with the year-ago period, while individual companies reported between 16-27% sales gains during the same period. Total unit sales hit more than 15 million in… Read More

We are finally seeing signs of life in this critical U.S. industry. Rocked by overspending, hubris and economic crisis, this once mighty segment of the economy was reduced to a mere shadow of itself.  Fortunately, things are quickly changing for the better in this nearly left-for-dead sector.#-ad_banner-# In fact, January 2013 was the industry’s best January since 2008. U.S. sales soared 14% to more than 1 million units compared with the year-ago period, while individual companies reported between 16-27% sales gains during the same period. Total unit sales hit more than 15 million in the first month of the year, signalling an even better year than 2012, granted sales continue on this trajectory.  The surging stock market, with the S&P 500 posting its top-performing January in more than 12 years, combined with a slow-but-steady improvement in the U.S. employment picture have fuelled the rebound. Clearly, this industry rises and falls in lock step with the U.S. economy, so it’s often viewed as a proxy for the entire domestic economy.  In case you haven’t guessed it… Read More