First Egypt erupted, then Libya exploded. Investors might certainly wonder where the next Middle East powder keg will ignite and what effect it will have on crude oil prices. Analysts speculate there is already a $10-a-barrel “risk premium” built into crude, and that premium can go even higher if the… Read More

I confess. I love a good IPO (initial public offering). As part of the research for my Fast-Track Millionaire newsletter, I pore over every prospectus filed each month to take a look at who… Read More

When a company is in deep distress, its board of directors is willing to take big chances. Acknowledging that its legacy Internet access business would soon stop throwing off gobs of cash, AOL (NYSE: AOL) handed the reins to Tim Armstrong, a thirty-something Google (Nasdaq: GOOG) veteran. He pitched a radical vision to the board: amass a broad roster of experienced journalists, develop a wide range of segment-leading websites, and watch the ad dollars roll in. That plan surely carries risk at a time when online ad rates continue to badly lag ad rates found in other… Read More

When a company is in deep distress, its board of directors is willing to take big chances. Acknowledging that its legacy Internet access business would soon stop throwing off gobs of cash, AOL (NYSE: AOL) handed the reins to Tim Armstrong, a thirty-something Google (Nasdaq: GOOG) veteran. He pitched a radical vision to the board: amass a broad roster of experienced journalists, develop a wide range of segment-leading websites, and watch the ad dollars roll in. That plan surely carries risk at a time when online ad rates continue to badly lag ad rates found in other forms of media. Indeed, the results of Armstrong’s turnaround plan have been unimpressive, but he’s sticking to his guns with a newly-announced acquisition of The Huffington Post. Armstrong is now approaching his two-year anniversary with AOL, and two years hence, the deal to acquire Huffington Post will be looked back as a make-or-break moment for the company. Let’s peer into the future to see how it will play out. No choice Doing nothing was not an option for AOL’s board. Sales had fallen 47% in the two years before Armstrong arrived, though they… Read More

#-ad_banner-#It’s one of the first rules of investing: find stocks with strong earnings growth and reasonable valuations. We’re even taught a simple formula: look for stocks that have a price-to-earnings (P/E) ratio that is lower than the earnings growth rate, or, a PEG ratio (P/E divided by the earnings growth rate) lower than 1.0. Yet the converse is also true. Stocks with a PEG ratio over 1.0 can be overvalued. It happens without many investors even noticing. A stock rises and rises… Read More

#-ad_banner-#It’s one of the first rules of investing: find stocks with strong earnings growth and reasonable valuations. We’re even taught a simple formula: look for stocks that have a price-to-earnings (P/E) ratio that is lower than the earnings growth rate, or, a PEG ratio (P/E divided by the earnings growth rate) lower than 1.0. Yet the converse is also true. Stocks with a PEG ratio over 1.0 can be overvalued. It happens without many investors even noticing. A stock rises and rises until its value becomes disconnected from the reality on the ground. A high PEG ratio can limit further upside and make a stock especially ripe for a pullback in down markets. On the flip side, it can also make for a nice stock to short. Here’s a look at three stocks with alarmingly high PEG ratios. Each of the stocks on this table trade at least 50% above fair value when the PEG ratio test is applied. Salesforce.com (Nasdaq: CRM) This provider of contact relationship software has seen its shares fall roughly… Read More

You’ve probably heard the word nanotechnology before, but can you define it? Simply put, nanotech involves creating systems built on a molecular scale. While the industrial practice is small, nanotech manufacturing is big business. It’s also a very profitable one. What’s more, I’ve found a nanotech company that has the… Read More

As my colleague Tom Hutchinson recently pointed out, defense sector spending may be under threat of budget cuts, but make no mistake: demand will always be robust. That makes the defense sector not only a safe place for investors to be, but it also ensures a solid growth path. Read More

With the market soaring to two-year highs, is it time to play offense or defense?  Only hindsight will tell for sure. However, one thing is obvious right now:  The crowd is playing offense. As the prognosis for a stronger recovery has increased, investors have been gravitating toward… Read More

There is a clear downside to the impressive bull market we’ve seen during the last 22 months: it’s getting harder and harder to find real bargains. To ferret out value plays, investors are increasingly turning to stocks that have lagged the market, hoping to… Read More

Mary Meeker, known as the “Queen of the Net” during the heady 1990s, is back. Her latest prediction is that the mobile Internet will be a huge wealth generator. She even thinks it will surpass the Internet and that mobile commerce will overtake traditional e-commerce.     The fact… Read More

As part of your ongoing investment research, it pays to periodically check in with company insiders. When they are buying or selling a company’s stock, you’ll get a first-hand suggestion on whether shares are a bargain, or possibly ripe for a fall. Decisions on when to… Read More