Throughout September and October, the market bagged impressive gains as strategists started to view the economy as healthy enough to avoid the dreaded “double-dip” recession. More recently, the market has lost a bit of that luster as investors realize that we’re not necessarily set for impressive growth in 2011 either. A just released survey from the National Association for Business Economics (NABE) highlights expectations that the U.S. economy will grow just +2.7% this year and +2.6% in 2011. Their conclusion: “To a large extent, the latest NABE forecast reflects the view that… Read More

Throughout September and October, the market bagged impressive gains as strategists started to view the economy as healthy enough to avoid the dreaded “double-dip” recession. More recently, the market has lost a bit of that luster as investors realize that we’re not necessarily set for impressive growth in 2011 either. A just released survey from the National Association for Business Economics (NABE) highlights expectations that the U.S. economy will grow just +2.7% this year and +2.6% in 2011. Their conclusion: “To a large extent, the latest NABE forecast reflects the view that the economy will struggle against financial headwinds.” And the absence of robust growth means many companies will struggle to boost sales in 2011 and some companies may actually see sales pull back next year. With that in mind, here’s a profile of five companies that are expected to see sales slump next year. AOL (NYSE: AOL) A year ago this week, this former Internet powerhouse came public again, and it has not been the hot stock that some had hoped. In the past four quarters it’s become increasingly… Read More

Investing guru Warren Buffett doesn’t think much of diversification . In his view, it’s for investors who don’t really know what they’re doing. Those who do can actually lessen risk by betting big on a few investments they thoroughly understand, Buffett asserts, and will earn the greatest returns in the… Read More

When Cisco Systems (Nasdaq: CSCO) announced last week that business trends had slowed, its shares quickly moved toward a 52-week low. Management could at least take solace in the company’s bulletproof balance sheet, sporting $39 billion in cash. Read More

The company behind credit card swiping technology is now working on a system that enables you to “swipe and pay” with your mobile phone. The technology is considered by many experts to be the future of payment systems, so you can imagine the potential this company has. Read More

When business school professors look back on this era, they’ll likely talk to their students about one of the greatest turnarounds in the history of enterprise. Few companies have gone from near-death to industry titan in such a short time as Ford Motor (NYSE: F). And investors have showed their respect, with shares rising from under $2 in early 2009 to $17 just 20 months later. That’s an +850% gain! But signs are emerging that the party may be over for now. Shares made a quick move from $12 since mid-September… Read More

When business school professors look back on this era, they’ll likely talk to their students about one of the greatest turnarounds in the history of enterprise. Few companies have gone from near-death to industry titan in such a short time as Ford Motor (NYSE: F). And investors have showed their respect, with shares rising from under $2 in early 2009 to $17 just 20 months later. That’s an +850% gain! But signs are emerging that the party may be over for now. Shares made a quick move from $12 since mid-September (a +40% jump in two months), yet now appear to be hit by some profit-taking since last Monday. There’s no doubt that shares have plenty more upside: the stock trades for just eight times projected 2010 profits, and the auto industry is likely to see higher volume down the road. But the coming year still holds real challenges for this auto maker. Here are five key issues you’ll need to track if you own shares of Ford. If these items come to pass and shares slip back to the lower teens, it would create a fresh compelling… Read More

Just a year after going bust, GM (NYSE: GM) showed it can get its groove back. Its IPO was impressive, with a large increase in the price range as well as the number of shares issued. [Read:… Read More

When it comes to investing in emerging markets, Brazil is often mentioned as one of the most appealing countries. This is for good reason — its population of more than 200 million represents one of the world’s largest markets. Better yet, years of economic… Read More

Here’s a fairly simple investment premise: if the stock market rises +10% or 15% in the next six months, one sector will rise +30% or even +50%. That’s because a rising stock market tends to bring out increased interest from individual investors. And they bring lots more business to online… Read More

It could be just the thing to put an end to the economic malaise. If enacted, shareholders of dozens — even hundreds — of companies would have to be ready for a tidal wave of stock buybacks and dividend hikes. And the overall… Read More

As GM (NYSE: GM) celebrates an impressive re-entry into the public markets, investors are chewing over a clear theme. Both GM and Ford (NYSE: F) are far healthier companies, with much leaner cost structures and the ability to generate sharply improved profit margins as industry volumes rebound. In their shadow, key auto parts suppliers are also now in fighting shape after being bruised and battered in the economic freefall of 2008. The new adage for the industry: “what doesn’t kill you makes you stronger.” How bad did it get for… Read More

As GM (NYSE: GM) celebrates an impressive re-entry into the public markets, investors are chewing over a clear theme. Both GM and Ford (NYSE: F) are far healthier companies, with much leaner cost structures and the ability to generate sharply improved profit margins as industry volumes rebound. In their shadow, key auto parts suppliers are also now in fighting shape after being bruised and battered in the economic freefall of 2008. The new adage for the industry: “what doesn’t kill you makes you stronger.” How bad did it get for these auto parts suppliers? Domestic auto makers produced 15-16 million cars and trucks every year from 2001 to 2007. That figure fell to 12.5 million in 2008 and just 8.5 million in 2009. Years of steady profits were offset by massive losses in 2008 and 2009, and a number of these firms flirted with bankruptcy. For a short while, many of their stocks traded below $1. In a testament to just how much they have changed, all of the key players are likely to be nicely profitable again this year, even though the industry will produce just 11.5 million units. Read More