Ultra Petroleum Corp. (NYSE: UPL) is an independent oil and gas company. It is actively engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The energy sector has underperformed the broader market in the past year, with the Energy Select Sector SPDR (NYSE: XLE) up less than 14% compared with the S&P 500’s 22% gain. Yet, as you can see in the chart below, UPL has drastically outperformed its sector (and the overall market), gaining 53% in the past 52 weeks. This is in stark comparison to some of its biggest peers… Read More

Ultra Petroleum Corp. (NYSE: UPL) is an independent oil and gas company. It is actively engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The energy sector has underperformed the broader market in the past year, with the Energy Select Sector SPDR (NYSE: XLE) up less than 14% compared with the S&P 500’s 22% gain. Yet, as you can see in the chart below, UPL has drastically outperformed its sector (and the overall market), gaining 53% in the past 52 weeks. This is in stark comparison to some of its biggest peers like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), which are up 8% and less than 1%, respectively, during that time. #-ad_banner-#On Feb. 20, UPL rallied 4% after reporting better-than-expected fourth-quarter and full-year 2013 results. Q4 earnings of $0.42 per share bested Zacks consensus estimate of $0.37, and this was attributed to a 78% year-over-year decline in operating costs for the quarter and an increase in price realizations. The company saw 58% adjusted operating cash flow margin and a 29% adjusted net income margin. CEO Michael D. Watford commented on the results, saying: “For our company, 2013 was… Read More

The energy market has been resilient as crude oil has stabilized above $100 a barrel with another recovery from recent lows. The three-year range from roughly $80 to $110 targets a move to $140 per barrel on a technical breakout above the highs. Brazilian stocks, on the other hand, have been moving down since their 2011 peak, as emerging markets gave back some of the record gains that began in 2009. iShares MSCI Brazil Capped (NYSE: EWZ) is trading about 45% below its 2011 highs. However, a bullish divergence, with new lows in price without new highs in volatility, is… Read More

The energy market has been resilient as crude oil has stabilized above $100 a barrel with another recovery from recent lows. The three-year range from roughly $80 to $110 targets a move to $140 per barrel on a technical breakout above the highs. Brazilian stocks, on the other hand, have been moving down since their 2011 peak, as emerging markets gave back some of the record gains that began in 2009. iShares MSCI Brazil Capped (NYSE: EWZ) is trading about 45% below its 2011 highs. However, a bullish divergence, with new lows in price without new highs in volatility, is signaling stabilization. Brazilian oil company Petrobras (NYSE: PBR) plummeted from a peak near $77 in 2008 to a low below $15. The stock saw a recovery in 2009 to around $50 before beginning its long, long downtrend. For the past nine months, PBR has traded sideways between $18 and $12. A modest upside objective is a move to the $15 midpoint, and the combination of strength in oil prices and bargain basement prices in Brazil makes PBR a good reward-to-risk play. #-ad_banner-#The $15 target is about 34% higher than recent prices, but traders who use a… Read More

It’s been hard to miss the rally in precious metals this year. While the broader market took it on the chin midway through January, gold and silver prices were finding support. And as equities have had to fight to return to their 2014 highs, gold and silver prices have actually made new highs for the year. #-ad_banner-#The fact that gold and silver have been dropping for roughly two years helps to make the case for a sustained rally in precious metals. After such a long decline, we may have finally reached the point where a meaningful amount of “true believers”… Read More

It’s been hard to miss the rally in precious metals this year. While the broader market took it on the chin midway through January, gold and silver prices were finding support. And as equities have had to fight to return to their 2014 highs, gold and silver prices have actually made new highs for the year. #-ad_banner-#The fact that gold and silver have been dropping for roughly two years helps to make the case for a sustained rally in precious metals. After such a long decline, we may have finally reached the point where a meaningful amount of “true believers” have finally become frustrated enough to throw in the towel. With the last remaining “weak holders” shaken out, sellers may be in short supply, allowing gold and silver buyers to push prices higher for months to come. It also helps that demand for precious metals from China has been on the rise, with the World Gold Council recently reporting that China’s gold purchases have now surpassed those of India. In particular, a surge in physical bar and coin demand from China may indicate that gold purchases represent investments and hedges against inflation rather than simply demand for jewelry from affluent… Read More

AllianceBernstein (NYSE: AB) is a New York-based investment management firm that currently manages around $450 billion in assets and caters to clients and institutions of all kinds. The company is structured as a limited partnership (LP), meaning it distributes most of its taxable income to its shareholders. #-ad_banner-#In 2013, the payout ratio was 94%. Its high yield, which is currently close to 10%, is what initially drew me to the stock. And with a covered call strategy, we can turn this high yielder into an even greater income generator. While the income is my main driver,… Read More

AllianceBernstein (NYSE: AB) is a New York-based investment management firm that currently manages around $450 billion in assets and caters to clients and institutions of all kinds. The company is structured as a limited partnership (LP), meaning it distributes most of its taxable income to its shareholders. #-ad_banner-#In 2013, the payout ratio was 94%. Its high yield, which is currently close to 10%, is what initially drew me to the stock. And with a covered call strategy, we can turn this high yielder into an even greater income generator. While the income is my main driver, I also like this stock because of the company’s expansion efforts, revenue growth and virtually no debt. With the recovery of economies around the globe, the banking sector is growing, but AB could likely sustain even a severe downturn. As you can see in the chart below, AB has been lagging behind the sector, as measured by the Financial Select Sector SPDR (NYSE: XLF), since June, but caught up with it this month. I think AB should now be able to keep up with, if not surpass, its sector. On the fundamental side, AB is estimated to earn… Read More

Software giant Microsoft (Nasdaq: MSFT) is reportedly cutting the price of its Windows 8.1 operating system for manufacturers of tablets and low-cost computers in an effort to compete with cheaper rivals like Google’s (Nasdaq: GOOG) Chromebooks. #-ad_banner-#Bloomberg reported that people familiar with the program said license fees of $15 will be charged to manufacturers who want to preinstall the software on any devices that will retail for less than $250. That’s a 70% discount from the usual $50 fee. In my view, this move was inevitable. Competition has stiffened in recent years for Microsoft, with Apple (Nasdaq: AAPL) making a… Read More

Software giant Microsoft (Nasdaq: MSFT) is reportedly cutting the price of its Windows 8.1 operating system for manufacturers of tablets and low-cost computers in an effort to compete with cheaper rivals like Google’s (Nasdaq: GOOG) Chromebooks. #-ad_banner-#Bloomberg reported that people familiar with the program said license fees of $15 will be charged to manufacturers who want to preinstall the software on any devices that will retail for less than $250. That’s a 70% discount from the usual $50 fee. In my view, this move was inevitable. Competition has stiffened in recent years for Microsoft, with Apple (Nasdaq: AAPL) making a huge push back into the personal computing/electronics space and Google transforming itself from an Internet search engine into a technology monster. More importantly, we have witnessed a structural shift in the personal computing space thanks to the astonishing growth in smartphones and tablets. These devices, while admittedly still in the early stages from a functionality point of view, are increasingly becoming the epicenter of personal computing. And the newer breed of technology companies like Google and Facebook (Nasdaq: FB) will take a larger part in this every day. The result is a healthy increase in competition that is forcing Microsoft… Read More

Banks as a group have had a great couple of years with super-low interest rates and the essentially zero cost of money. The Financial Select Sector SPDR (NYSE: XLF) has risen almost 200% in the past five years, and monetary policy doesn’t appear to be changing anytime soon. The yearlong trading range between $18 and $22 targets a $4 move on a breakout and a 20% extension of the rally run. One stock that is lagging behind the sector and likely to play catch-up is Morgan Stanley (NYSE: MS). MS has support just below the technical pivot at… Read More

Banks as a group have had a great couple of years with super-low interest rates and the essentially zero cost of money. The Financial Select Sector SPDR (NYSE: XLF) has risen almost 200% in the past five years, and monetary policy doesn’t appear to be changing anytime soon. The yearlong trading range between $18 and $22 targets a $4 move on a breakout and a 20% extension of the rally run. One stock that is lagging behind the sector and likely to play catch-up is Morgan Stanley (NYSE: MS). MS has support just below the technical pivot at $28. An upside breakout of the four-month trading range between $28 and $32 targets a move to $36. Only a close below $24 on a weekly basis would negate the bullish trend. #-ad_banner-#The $36 target is about 18% higher than recent prices, but traders who use a capital-preserving, stock substitution strategy could make almost 70% on a move to that level. One major advantage of using a long call option rather than buying a stock outright is putting up much less capital to control 100 shares — that’s the power of leverage. But with all of the potential… Read More

The S&P 500 Index has bounced back from its healthy 6% sell-off and is again within spitting distance of its all-time high. And while the automotive industry’s recovery cannot be underestimated, shares of former blue-chip and Big Three automaker General Motors (NYSE: GM) are struggling, down 11% year to date. #-ad_banner-#I think the stock’s current pullback represents an excellent opportunity to participate in the continued recovery of the American auto industry. After being booted from the Dow 30 back in 2009 after filing for bankruptcy protection, GM relaunched as a publicly traded company in November 2010. Coming off… Read More

The S&P 500 Index has bounced back from its healthy 6% sell-off and is again within spitting distance of its all-time high. And while the automotive industry’s recovery cannot be underestimated, shares of former blue-chip and Big Three automaker General Motors (NYSE: GM) are struggling, down 11% year to date. #-ad_banner-#I think the stock’s current pullback represents an excellent opportunity to participate in the continued recovery of the American auto industry. After being booted from the Dow 30 back in 2009 after filing for bankruptcy protection, GM relaunched as a publicly traded company in November 2010. Coming off a July 2012 low, shares rocketed to a peak just below $42 in late December 2013. They now sit 13% below their highs, making them a great bargain. GM has two-year midpoint support at $30. A recovery to the highs near $42 following the recent pullback to $34 projects a measured move to $50. Only a weekly close below $30 would negate the technical pattern. The $50 target is about 37% higher than recent prices, but traders who use a capital-preserving stock substitution strategy could make triple-digit profits on a move to that level. One major advantage of… Read More

Micron Technology (Nasdaq: MU) manufactures semiconductors, memory chips, flash memory drives and other related products worldwide. Its products are everywhere — in smartphones, solid-state drives, tablets and computers, as well as other industrial and automotive applications. As you can see in the chart, MU is trending upward quite nicely. The 50-day exponential moving average (EMA) is acting as solid support. #-ad_banner-#It was recently announced that Greenlight Capital, the hedge fund run by David Einhorn, purchased $1 billion worth of MU shares during the fourth quarter. Greenlight’s year-end investor letter had mentioned the purchase (at $16.49 a share) without… Read More

Micron Technology (Nasdaq: MU) manufactures semiconductors, memory chips, flash memory drives and other related products worldwide. Its products are everywhere — in smartphones, solid-state drives, tablets and computers, as well as other industrial and automotive applications. As you can see in the chart, MU is trending upward quite nicely. The 50-day exponential moving average (EMA) is acting as solid support. #-ad_banner-#It was recently announced that Greenlight Capital, the hedge fund run by David Einhorn, purchased $1 billion worth of MU shares during the fourth quarter. Greenlight’s year-end investor letter had mentioned the purchase (at $16.49 a share) without giving details about the position size. Einhorn, who previously shorted the stock, wrote, “A decade of poor results exposed every flaw in the business and killed any love for the stock.” He added, “The sell-side group think has reversed: the mostly bearish analysts now contort themselves to justify earnings estimates that are too low, price targets that are too pessimistic, and stock ratings that are too negative.” In early January, Micron reported results for the fiscal first quarter of 2014, which ended Nov. 28. Revenue of $4 billion was up 120% compared with a year ago, and earnings per share… Read More

Most people think investing success is a matter of finding good stocks and buying them when the odds favor a rise in the price. They buy a blue-chip stock like Procter & Gamble (NYSE: PG), Amazon.com (Nasdaq: AMZN), Philip Morris (NYSE: PM) or MasterCard (NYSE: MA), monitor their position closely, collect any dividends that may come in — and hope things work out. #-ad_banner-#True success, however, also involves knowing when to sell and how to use all the investment tools at your disposal to reach your goals. While most investors have studied different methods of analyzing what stocks to buy… Read More

Most people think investing success is a matter of finding good stocks and buying them when the odds favor a rise in the price. They buy a blue-chip stock like Procter & Gamble (NYSE: PG), Amazon.com (Nasdaq: AMZN), Philip Morris (NYSE: PM) or MasterCard (NYSE: MA), monitor their position closely, collect any dividends that may come in — and hope things work out. #-ad_banner-#True success, however, also involves knowing when to sell and how to use all the investment tools at your disposal to reach your goals. While most investors have studied different methods of analyzing what stocks to buy and when, few have considered all of the possible trading tools at their disposal. As for me, I’m not interested in simply buying good stocks, waiting for dividend checks to come in, and hoping for the best. Instead, I’m interested in earning income. Now. That may sound a little impatient, but I assure you it’s not. In fact, some of the world’s best money managers and hedge funds have the same goal. One way we can achieve this is with options. Most individual traders would probably say that options are among the riskiest investments anyone could make. They’re… Read More

Do you have a stock position that you have owned for a long time? Maybe it’s a position that you inherited, or one that was given to you years ago. Maybe it is company stock that you methodically accumulated as an employee. #-ad_banner-#Many investors hold long-term positions that have grown tremendously over time. In most cases, it doesn’t make sense to sell this stock because of the tax implications — not to mention the aversion to selling an asset that has been growing for so long. But what are you giving up by holding on to this stock? Is it… Read More

Do you have a stock position that you have owned for a long time? Maybe it’s a position that you inherited, or one that was given to you years ago. Maybe it is company stock that you methodically accumulated as an employee. #-ad_banner-#Many investors hold long-term positions that have grown tremendously over time. In most cases, it doesn’t make sense to sell this stock because of the tax implications — not to mention the aversion to selling an asset that has been growing for so long. But what are you giving up by holding on to this stock? Is it really the best investment that you can make with your capital? Are you missing out on an opportunity to make more money by sitting on this long-term position? Now, before you quit reading, let me tell you that I’m not suggesting you sell your long-term position. You have your reasons for holding this position and I respect that. But what I am suggesting is that you consider a strategy to help you create additional income from your long-term position. Case Study: A 20-Year Investment I once worked for a hedge fund manager named John who held a large block… Read More