The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices.  #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market.  Not just any weakness, but a weakness that is tied to a short-term situation… Read More

The inherent volatility of biotech shares makes biotech investing among the most lucrative ways to invest in the stock market. At the same time, that volatility also makes it one of the most dangerous. Often, biotech stocks are powered by sector- and stock-specific factors unrelated to the overall economy. Price drivers like FDA approvals, drug sales, product announcements, test results, and even government regulations are the catalysts behind biotech share prices.  #-ad_banner-#However, this volatility serves me well, because I love buying weakness in the stock market.  Not just any weakness, but a weakness that is tied to a short-term situation rather than an inherent flaw in the company.  When a short-term negative situation is combined with the inherent volatility of a biotech company on the cutting edge of its market, I see an opportunity… Ophthotech (Nasdaq: OPHT) fits the above description to a tee. Let’s take a closer look. Ophthotech describes itself as a biopharmaceutical company focusing on the development of novel therapeutics to manage diseases of the rear of the eye. They specialize in developing creative therapies for age-related macular degeneration (AMD).  The company’s most promising product candidate, Fovista anti-platelet-derived growth factor (anti-PDGF) therapy, is in Phase 3 clinical… Read More

Restaurants and quick-service dining stocks were some of the hottest in the market over the last several years with high-flyers like Chipotle Mexican Grill (NYSE: CMG) surging and headliner IPOs from companies like Shake Shack (NYSE: SHAK).  #-ad_banner-#Non-existent inflation kept wage growth low and a recovering economy had people ready to enjoy a meal out with the family. But now the industry is facing dual threats from tough price competition against grocery stores and rising labor costs. As shares tumble across the industry, a few leaders are becoming attractive on a valuation basis and could be relatively safe from the… Read More

Restaurants and quick-service dining stocks were some of the hottest in the market over the last several years with high-flyers like Chipotle Mexican Grill (NYSE: CMG) surging and headliner IPOs from companies like Shake Shack (NYSE: SHAK).  #-ad_banner-#Non-existent inflation kept wage growth low and a recovering economy had people ready to enjoy a meal out with the family. But now the industry is facing dual threats from tough price competition against grocery stores and rising labor costs. As shares tumble across the industry, a few leaders are becoming attractive on a valuation basis and could be relatively safe from the restaurant recession. Strong fundamentals and a long-term trend in eating habits may just mean they jump higher when the environment improves. Invest At The Bottom Of The Restaurant Recession Sales at U.S. restaurants grew at the slowest pace since 2009 in the second quarter and that’s not the only headwind facing the industry. Growing wage inflation combined with slower growth in overall inflation is pressuring restaurants, which see much of their operating expenses in labor.  Restaurants have increased prices to cover the higher costs but that’s leading to a big gap in the cost to eat out versus grocery… Read More

According to the Labor Department, there were 5.8 million job openings a few months ago, matching the all-time high set in July 2015. That’s an encouraging sign. Whenever a company puts out a “Help Wanted” ad, it sends a signal that business is good.  #-ad_banner-#Of course, job creation also puts more disposable income in the hands of consumers, which account for two-thirds of the nation’s GDP. So I like the fact that HR departments are busy conducting interviews to fill positions.  But let’s face it, salaries can also be a big financial drain on a business. The average entry-level accountant… Read More

According to the Labor Department, there were 5.8 million job openings a few months ago, matching the all-time high set in July 2015. That’s an encouraging sign. Whenever a company puts out a “Help Wanted” ad, it sends a signal that business is good.  #-ad_banner-#Of course, job creation also puts more disposable income in the hands of consumers, which account for two-thirds of the nation’s GDP. So I like the fact that HR departments are busy conducting interviews to fill positions.  But let’s face it, salaries can also be a big financial drain on a business. The average entry-level accountant earns $48,000 a year. A new recruit for the marketing department will run $45,000. And a new computer hardware engineer will make $66,000.  These are median national figures, with salaries escalating in certain regions and for those with more experience on their resume. And let’s not forget about healthcare, pensions, payroll taxes and bonuses.  Some large companies have tens of thousands of workers on the payrolls, the equivalent of a small city. So you can see how labor is typically one of the biggest expenses chipping away at profit margins. Don’t get me wrong, any organization is only as good… Read More

A few days ago, I told you about a little-known indicator that’s making a small group of investors a lot of money. #-ad_banner-#Unlike other indicators, it’s precise and simple to use. You don’t have to interpret its meaning. It completely takes the guesswork out of investing. Frankly, I haven’t seen anything like it in all my years of working in the financial industry. We call this indicator the “Maximum Profit Score,” because it consistently beats the market and often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits… Read More

A few days ago, I told you about a little-known indicator that’s making a small group of investors a lot of money. #-ad_banner-#Unlike other indicators, it’s precise and simple to use. You don’t have to interpret its meaning. It completely takes the guesswork out of investing. Frankly, I haven’t seen anything like it in all my years of working in the financial industry. We call this indicator the “Maximum Profit Score,” because it consistently beats the market and often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits in the coming days… weeks… and months.  — Recommended Link — October 28th Announcement Takes Musk Out of Car Business​ You might think Tesla would be Elon’s cash cow… but it’s not. You’ll be surprised to find he’s got his eyes on an even more lucrative endeavor. One that’s potentially bigger than GM, Toyota, and even Apple…combined. Click here to grab a piece this trillion-dollar golden goose for yourself.​ For example, you are probably familiar with the discount airline Southwest Airlines (NYSE: LUV). Back in May 2014, the stock was going nowhere and there was no indication it would take… Read More

Third quarter earnings have begun to come in, and an end to the five-quarter earnings recession for companies in the S&P 500 isn’t likely. Investors have continued to bid up stocks on the hope that earnings could rebound this quarter and that higher profits would overcome the wave of geopolitical and economic hurdles facing the market. But can the market continue higher without an earnings turnaround? If revenue and profits fail to grow as expected, how long can investors rationalize valuations well above historical averages? #-ad_banner-#I’m always looking for quality names and value, but put my search into overtime when… Read More

Third quarter earnings have begun to come in, and an end to the five-quarter earnings recession for companies in the S&P 500 isn’t likely. Investors have continued to bid up stocks on the hope that earnings could rebound this quarter and that higher profits would overcome the wave of geopolitical and economic hurdles facing the market. But can the market continue higher without an earnings turnaround? If revenue and profits fail to grow as expected, how long can investors rationalize valuations well above historical averages? #-ad_banner-#I’m always looking for quality names and value, but put my search into overtime when I start asking these questions. If the market fails to get all it wanted out of earnings season, companies that have proven their business models through good times and bad may be the only safe investments in the ensuing selloff. Can The Market Break Its Earnings Recession? Alcoa (NYSE: AA) shocked the market last Tuesday missing on both sales and earnings, as questions arise about whether companies in the S&P 500 can break their long-running earnings drought. The miss sent shares tumbling more than 11%, while the S&P 500 fell by 1.25%, for its biggest daily drop in a… Read More

Stephen King’s The Lawnmower Man was adapted for the big screen in 1992, the story of a disabled landscaper hooked up to a virtual reality landscape and experimental drugs. The VR experiment boosted the title character’s intelligence exponentially and even helped him talk to the opposite sex.  I watched this moving having just turned 16 years old, and I would be forever hooked on the potential of virtual reality. #-ad_banner-#VR and augmented reality have remained more fiction than fact — until recently. The 2012 Kickstarter campaign for headset maker Oculus Rift raised millions but still lacked the software development to… Read More

Stephen King’s The Lawnmower Man was adapted for the big screen in 1992, the story of a disabled landscaper hooked up to a virtual reality landscape and experimental drugs. The VR experiment boosted the title character’s intelligence exponentially and even helped him talk to the opposite sex.  I watched this moving having just turned 16 years old, and I would be forever hooked on the potential of virtual reality. #-ad_banner-#VR and augmented reality have remained more fiction than fact — until recently. The 2012 Kickstarter campaign for headset maker Oculus Rift raised millions but still lacked the software development to complete the experience. Software and hardware are now coming together and the momentum could create a market to rival the iPhone.  The coming technological leap in consumer electronics could turn a decades long dream into reality… and I’ve found three companies that could benefit big time. This Tech Revolution Is Nearly A Reality Virtual reality and augmented reality (AR) are developing fastest in gaming and entertainment but potential uses can be found in nearly every sector from battlefield training for the troops to buying a home.  There are more than 1.2 billion gamers in the world, an easy market… Read More

If you’ve traded for some time, you know just how powerful and accurate chart patterns can be.  Technical patters are similar to the scarecrow in the “Wizard of Oz.” They may not “know” where the stock is supposed to be going, but they lead the way successfully because so many people trust in them, just as Dorothy trusted in the brainless-but-loveable character. Like the scarecrow, chart patterns are constructs of human actions. And while the scarecrow couldn’t make up his mind when it came to which path to take, certain chart patterns are very conclusive. They act almost like a… Read More

If you’ve traded for some time, you know just how powerful and accurate chart patterns can be.  Technical patters are similar to the scarecrow in the “Wizard of Oz.” They may not “know” where the stock is supposed to be going, but they lead the way successfully because so many people trust in them, just as Dorothy trusted in the brainless-but-loveable character. Like the scarecrow, chart patterns are constructs of human actions. And while the scarecrow couldn’t make up his mind when it came to which path to take, certain chart patterns are very conclusive. They act almost like a GPS leading you to a stock’s next move.  #-ad_banner-#Golden crosses and death crosses, in particular, are two very influential trend-changing technical formations. Both can cause big, intermediate-term moves in a stock. For those who may not be aware, golden crosses are a bullish formation in which the 50-day moving average crosses above the 200-day, with the stock above both. The death cross is when the 50-day drops below the 200-day, with the stock below both.  These are generally powerful signals. For instance, a recent golden cross in Apple (Nasdaq: AAPL) led to a rally in the stock (my Profit Amplifier subscribers were… Read More

Shares of Apple (Nasdaq: AAPL) jumped more than 12% last week after telecom carriers reported stronger than expected preorders for the iPhone 7. Apple has said that it will break with tradition by not reporting first weekend sales of the iPhone, so carrier comments have been crucial in gauging demand for the new phones. One telecom carrier reported preorders up 375%, compared to those of last year’s 6s series. Another carrier set a single day sales record across its network. Inventory of the larger Plus model iPhone 7 in all colors was sold out through pre-orders before Friday’s release.  #-ad_banner-#By… Read More

Shares of Apple (Nasdaq: AAPL) jumped more than 12% last week after telecom carriers reported stronger than expected preorders for the iPhone 7. Apple has said that it will break with tradition by not reporting first weekend sales of the iPhone, so carrier comments have been crucial in gauging demand for the new phones. One telecom carrier reported preorders up 375%, compared to those of last year’s 6s series. Another carrier set a single day sales record across its network. Inventory of the larger Plus model iPhone 7 in all colors was sold out through pre-orders before Friday’s release.  #-ad_banner-#By most accounts, the release of the new phones should be a boon to wireless providers trying to get people back in their stores to renew contracts. But one carrier was noticeably more doubtful on its own preorder news, according to comments from an executive at a recent investor conference.  Weak iPhone sales may not be the company’s only problem, as costs to maintain its network escalate and its large fixed-line network continues to weigh on results.   The weakness in preorders may just be a turning point that takes this telecom leader lower, even if the market hasn’t… Read More

Social media came seemingly out of nowhere and took over our lives. And it’s not just the ubiquitous — some would even say obnoxious — need to check your Twitter (Nasdaq: TWTR) feed or post on Facebook (Nasdaq: FB). The way we get our news and communicate with friends and family has changed forever.  #-ad_banner-#Indeed, the public has adopted social media amazingly fast. It’s hard to believe that just a decade or so ago, it was in its early stages. In fact, the first tweet was sent just 10 years ago on March 21, 2006, almost 130 years to the… Read More

Social media came seemingly out of nowhere and took over our lives. And it’s not just the ubiquitous — some would even say obnoxious — need to check your Twitter (Nasdaq: TWTR) feed or post on Facebook (Nasdaq: FB). The way we get our news and communicate with friends and family has changed forever.  #-ad_banner-#Indeed, the public has adopted social media amazingly fast. It’s hard to believe that just a decade or so ago, it was in its early stages. In fact, the first tweet was sent just 10 years ago on March 21, 2006, almost 130 years to the day after Alexander Graham Bell famously made the first telephone call in his Boston lab.  Twitter officially launched its service on July 15, 2006. It now has 313 million monthly active users (82% of whom are using mobile devices), supports more than 40 languages, and counts 1 billion monthly unique visits to websites with embedded tweets. It’s hard to name a celebrity, politician, athlete, business or media outlet that doesn’t use Twitter to varying degrees. Twitter: A Primer For those of you not among those 300+ million active users, here’s a primer: A tweet is a message written in… Read More

Contrarians love a good scandal. When a stock drops hard for no other reason, it often presents the chance to play the rebound for a quick profit. That seems to be the case with banking giant Wells Fargo (NYSE: WFC). #-ad_banner-#On Sept. 9, news came to light that employees had been opening illegal accounts in an effort to meet sales targets and earn bonuses, and the stock got slammed. Of course, it didn’t help that the market tanked that day on rather hawkish comments by the Federal Reserve. Interestingly, though, while the stock was severely punished for its foibles, falling… Read More

Contrarians love a good scandal. When a stock drops hard for no other reason, it often presents the chance to play the rebound for a quick profit. That seems to be the case with banking giant Wells Fargo (NYSE: WFC). #-ad_banner-#On Sept. 9, news came to light that employees had been opening illegal accounts in an effort to meet sales targets and earn bonuses, and the stock got slammed. Of course, it didn’t help that the market tanked that day on rather hawkish comments by the Federal Reserve. Interestingly, though, while the stock was severely punished for its foibles, falling 9% in just over a week’s time, analysts have not lowered their ratings on the stock, with the majority still considering WFC a “buy.” And with interest rates likely to start moving higher, the entire banking sector stands to benefit from a friendlier lending environment. A look at the KBW Nasdaq Bank Index (BKX) shows the sector setting a new high for the year early this month and finally outperforming the broader market. Wells Fargo, on the other hand, stalled last month right at resistance from earlier peaks in 2016. This set up a sizeable trading range for the year. Read More