Active Trading

This stock’s story started in 1972 with a nagging stomachache. To ward off chronic discomfort, a Utah school teacher put a spoonful of cayenne pepper into an easy-to-swallow gelatin capsule. He felt immediate relief, but perhaps more importantly realized his remedy also had business potential. Shortly after,… Read More

Investors need to be on guard against “the sideways churn.” This happens when a market that had been steadily rising is now see-sawing back and forth. Such a shift is often a sign that buyers are slowly pulling back and sellers are starting to take root. The sideways churn often presages the next move: a market downturn, where the sellers get even bolder and buyers lose interest. With that in mind, it’s time to focus on five companies that could see sharp pullbacks in the months ahead. #-ad_banner-# 1. Sprint Nextel (NYSE: S)… Read More

Investors need to be on guard against “the sideways churn.” This happens when a market that had been steadily rising is now see-sawing back and forth. Such a shift is often a sign that buyers are slowly pulling back and sellers are starting to take root. The sideways churn often presages the next move: a market downturn, where the sellers get even bolder and buyers lose interest. With that in mind, it’s time to focus on five companies that could see sharp pullbacks in the months ahead. #-ad_banner-# 1. Sprint Nextel (NYSE: S) Shares of this wireless phone service provider have risen nearly 50% since early December as optimism spreads that faster phone networks will lead consumers to justify ever-higher phone bills. Indeed, Sprint has been able to push through recent price hikes as it rolls out 4G service in more markets. But investors seem to be forgetting a few important facts. First, Sprint’s network remains inferior to its rivals, especially Verizon (NYSE: VZ). That may explain why Verizon continues to steal market share: it added 907,000 net new subscribers in the… Read More

Investment advisors Sterne, Agee & Leach describe this restaurant chain as “the best-positioned player in the fast-food business.” Many analysts expect it to gain market share in the coming months due to menu upgrades and in-store decorative improvements. #-ad_banner-#But the opportunity to profit from the company’s… Read More

Some traders may be hesitant to buy a stock that’s just hit a new all-time high. But personally, I hunt for these types of trades because they often represent low-risk/high-reward opportunity. Often, stocks trading at new highs continue to advance because there’s no historical technical resistance in sight. Read More

Airlines are one of those industries that just don’t get any respect from investors. These long-suffering companies have a history of losses and usually carry a lot of debt. Billionaire investor Warren Buffett took notice of these qualities and summed it all up when he wrote, “The worst sort of… Read More

If you’ve read my wife, Carla Pasternak’s High-Yield Investing newsletter or her free Dividend Opportunities publication, you know she spots investment trends with uncanny accuracy. Carla’s trend-spotting ability also carries over to her fashion choices. She prefers the latest styles — especially when hitting the gym,… Read More