Successful companies don’t always need to target large markets. In some cases, a very narrow focus on a small niche market can also lead to huge profits. It certainly has for Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN). The company’s blockbuster drug, called Soliris, received FDA approval in 2007 and now accounts for more than $2 billion in annual sales (Annual net income now averages an impressive $600 million). #-ad_banner-#Soliris doesn’t target a leading malady such as diabetes or high cholesterol. Instead, this drug is aimed at people with very rare genetic… Read More

Successful companies don’t always need to target large markets. In some cases, a very narrow focus on a small niche market can also lead to huge profits. It certainly has for Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN). The company’s blockbuster drug, called Soliris, received FDA approval in 2007 and now accounts for more than $2 billion in annual sales (Annual net income now averages an impressive $600 million). #-ad_banner-#Soliris doesn’t target a leading malady such as diabetes or high cholesterol. Instead, this drug is aimed at people with very rare genetic blood disorders, which cause the body to destroy its own red blood cells. If these disorders sound deadly, it’s because they are. Left untreated, they’re highly likely to kill within five years of diagnosis. But those affected can live a normal life with proper therapy, and at present Soliris is the only option. Like many rare-disease treatments, the drug carries an eye-popping price tag:currently $400,000-to-$500,000 a year per patient. Since these patients can’t survive without Soliris, governments and other third-party payers are typically willing to shoulder the cost, ensuring blockbuster status… Read More

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags-to-riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, its products like the iPod, iPhone and Macbook are undeniably popular. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price sky rocket more than 12,600% since 2001. Despite what most people think,… Read More

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags-to-riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, its products like the iPod, iPhone and Macbook are undeniably popular. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price sky rocket more than 12,600% since 2001. Despite what most people think, it’s not the company’s revolutionary products that drive its success… The key to understanding Apple’s success can be seen in a simple pattern. Once you identify this pattern, the catalyst to future growth for Apple — and the way investors can make money from the company today — will be apparent. After Apple sold the first iPod in October 2001, it was not received well by critics, consumers and investors. Just look at this chart showing Apple’s share price in the 18 months following the iPod launch: Not what you’d expect,… Read More

As cross-border trade expands, U.S.-based healthcare providers are increasingly finding customers around the globe. Source: Abbott Labs 2014 Annual Report In the United States, healthcare spending is a whopping 18% of GDP. On the other hand, in emerging economies healthcare makes up only 6% of GDP. A growing middle class in developing nations means that number is rising. Companies focusing overseas are going to grow faster than U.S.-focused counterparts. Here are three companies following the growth around the world: Abbott Laboratories (NYSE: ABT) Abbott is a global provider of branded pharmaceuticals and other healthcare… Read More

As cross-border trade expands, U.S.-based healthcare providers are increasingly finding customers around the globe. Source: Abbott Labs 2014 Annual Report In the United States, healthcare spending is a whopping 18% of GDP. On the other hand, in emerging economies healthcare makes up only 6% of GDP. A growing middle class in developing nations means that number is rising. Companies focusing overseas are going to grow faster than U.S.-focused counterparts. Here are three companies following the growth around the world: Abbott Laboratories (NYSE: ABT) Abbott is a global provider of branded pharmaceuticals and other healthcare products. It operates in more than 100 countries and generates close to 70% of its revenue outside the United States. Asia represents Abbott’s fastest-growing region. #-ad_banner-#The Asia-Pacific region’s healthcare spending is expected to grow at a rate of 7.1 percent from 2013 to 2017, according to The Economist. China is one of the firm’s major markets, where Abbott Labs is excelling  despite a complex regulatory environment. The firm has grown sales in the country 24% per year since 2012, and China is now the company’s second-largest market behind the United States. Its third-largest market is India. Sales in the country… Read More

I spend a lot of time on the road. As far as I’m concerned, to truly grasp the investment opportunities that emerge each year across the globe, there’s no better way than to actually see it in person. My travels recently took me to Hong Kong, the island protectorate that has been home to the some of the most stunning stock market gains seen in quite some time. #-ad_banner-#While visiting the area, which has been under Chinese control since 1999, I had a chance to sit down with friends working and investing in Hong… Read More

I spend a lot of time on the road. As far as I’m concerned, to truly grasp the investment opportunities that emerge each year across the globe, there’s no better way than to actually see it in person. My travels recently took me to Hong Kong, the island protectorate that has been home to the some of the most stunning stock market gains seen in quite some time. #-ad_banner-#While visiting the area, which has been under Chinese control since 1999, I had a chance to sit down with friends working and investing in Hong Kong — first over tapas and wine on the famed Old Bailey Street in Central district, and then whiskey and Cuban cigars at a friend’s private club. And what they told me confirmed the data I’ve been seeing on this part of the world: a powerful investment trend is in full swing. You see, over the past two months, the Hong Kong stock exchange has been on a tear. Beginning March 11, the benchmark Hang Seng index gained 20% to hit a high of around 28,500 in late April. Since then,… Read More

It’s easy to get overwhelmed by the sheer number of differing opinions regarding the market. Talking heads shout them at you through the TV. Your financial advisor suggests a different strategy. A close relative swears by yet another completely unique way to put your hard-earned money to work. For some it might seem impossible to separate the noise from the advice that can secure the future you desire for yourself and your family. But actually, there’s one simple thing that can help you ignore the false prophets and identify true winners. Read More

It’s easy to get overwhelmed by the sheer number of differing opinions regarding the market. Talking heads shout them at you through the TV. Your financial advisor suggests a different strategy. A close relative swears by yet another completely unique way to put your hard-earned money to work. For some it might seem impossible to separate the noise from the advice that can secure the future you desire for yourself and your family. But actually, there’s one simple thing that can help you ignore the false prophets and identify true winners. Follow the results. #-ad_banner-#You see, anyone can get lucky enough to stumble upon triple-digit gains once… maybe even twice. But I’ve done it 23 times in the four years since I joined the Game-Changing Stocks newsletter. That means, on average, I’ve helped my readers identify at least one stock that gains 100% or more every other month. That’s somewhere around six triple-digit winners per year, in addition to the many double-digit winners I’ve uncovered. One area, in particular, where I’ve been able… Read More

In theory, successful stock investing hinges on a single, simple premise: buy low, sell high. If only it were that easy. In the real world, knowing when a stock is truly undervalued or overvalued  can be terribly difficult, even with the cache of valuation metrics that investors have at their disposal. Take The Middleby Corp. (Nasdaq: MIDD), a prominent worldwide food service equipment supplier with roughly $1.7 billion in annual revenue. During the past 15 years, Middleby’s stock rose more than 8,300%. Recent gains have pushed the price-to-earnings (P/E) ratio to 31, which is about 10 points higher than the… Read More

In theory, successful stock investing hinges on a single, simple premise: buy low, sell high. If only it were that easy. In the real world, knowing when a stock is truly undervalued or overvalued  can be terribly difficult, even with the cache of valuation metrics that investors have at their disposal. Take The Middleby Corp. (Nasdaq: MIDD), a prominent worldwide food service equipment supplier with roughly $1.7 billion in annual revenue. During the past 15 years, Middleby’s stock rose more than 8,300%. Recent gains have pushed the price-to-earnings (P/E) ratio to 31, which is about 10 points higher than the S&P 500’s earnings multiple. Thus, it might seem safe to conclude that Middleby has run its course, at least for now. After all, this is a company that makes everyday commercial and residential kitchen appliances, like foodwarmers, ovens, cooktops and refrigerators. With its roots in such a mundane industry, how much higher could its stock be expected to rise from current levels? Actually, several catalysts portend substantially higher stock prices in the coming years. These include a knack for acquiring state-of-the-art innovations that complement a growing product portfolio. Earlier this year, for example, Middleby purchased New Jersey-based oven… Read More

Exchange-traded funds (ETFs) are exploding in popularity with retail and institutional investors alike. Financial services firm Price Waterhouse Coopers expects the ETF industry to at least double to $5 trillion in assets under management by 2020. This will mean big profits for two asset management companies who are leaders in the industry. Exchange-traded funds are mostly commodity products. There are dozens of companies that offer an S&P 500 ETF, for example, and all hold the exact same companies. The best way an asset manager can differentiate itself among competitors is to become the lowest cost provider,… Read More

Exchange-traded funds (ETFs) are exploding in popularity with retail and institutional investors alike. Financial services firm Price Waterhouse Coopers expects the ETF industry to at least double to $5 trillion in assets under management by 2020. This will mean big profits for two asset management companies who are leaders in the industry. Exchange-traded funds are mostly commodity products. There are dozens of companies that offer an S&P 500 ETF, for example, and all hold the exact same companies. The best way an asset manager can differentiate itself among competitors is to become the lowest cost provider, which means being the biggest. ​BlackRock, Inc. (NYSE: BLK) is a global asset management business and the world’s largest provider of ETFs. It has more than $1 trillion under management, spread across its many iShares funds. Blackrock is  growing assets under management in the iShares business at a compounded annual growth rate of 16% over the past five years. This rapid growth combined with a scalable business and low fixed costs, allows Blackrock to keep costs to customers low, which attracts more customers and assets. iShares is only one quarter of Blackrock’s total business, but the evidence of the business’… Read More

With so many stocks trading at all-time highs, avoiding those with sky-high price-to-earnings (P/E) ratios now seems to be a prudent strategy. But it’s a decision to make on a case-by-case basis. On closer inspection, it becomes apparent that some seemingly richly valued stocks have the fundamentals to support plenty more price appreciation. The nation’s third-largest fast-food chain, Wendy’s Co. (Nasdaq: WEN), is such a stock. Its shares trade for more than 40 times earnings, a multiple that is well above the broader market multiple. Yet investors should anticipate continued outperformance.  Looking for a catalyst that will send… Read More

With so many stocks trading at all-time highs, avoiding those with sky-high price-to-earnings (P/E) ratios now seems to be a prudent strategy. But it’s a decision to make on a case-by-case basis. On closer inspection, it becomes apparent that some seemingly richly valued stocks have the fundamentals to support plenty more price appreciation. The nation’s third-largest fast-food chain, Wendy’s Co. (Nasdaq: WEN), is such a stock. Its shares trade for more than 40 times earnings, a multiple that is well above the broader market multiple. Yet investors should anticipate continued outperformance.  Looking for a catalyst that will send this stock yet higher? A multi-year re-branding effort that is still bearing fruit is a clear one. Initiatives include logo and tagline revamps, as well as serious efforts to establish a meaningful digital presence (TV advertising was traditionally the preferred marketing method). There have also been wise menu changes that reflect evolving demographics and consumer preferences. Menu innovations tend to target the enormous millennial generation, which is expected to be the economy’s main growth driver in the coming decades. Thus, Wendy’s is increasing its lineup of very spicy fare, a food category that’s favored by many millennials and should also… Read More

Investment bankers are having a field day. They’ve been helping their clients pursue a stunning amount of deals, pushing the phrase “Merger Mondays” back on to the front page. What kind of volume are we talking about? More than $1 trillion worth of deals have been announced thus far in 2015, according to Dealogic. That puts us on pace for the second-busiest year of M&A activity ever (though still trailing the pace seen in 2007, a record-setting year). The tech sector can always be counted on for a vigorous pace of deals, and this year is no exception. And the… Read More

Investment bankers are having a field day. They’ve been helping their clients pursue a stunning amount of deals, pushing the phrase “Merger Mondays” back on to the front page. What kind of volume are we talking about? More than $1 trillion worth of deals have been announced thus far in 2015, according to Dealogic. That puts us on pace for the second-busiest year of M&A activity ever (though still trailing the pace seen in 2007, a record-setting year). The tech sector can always be counted on for a vigorous pace of deals, and this year is no exception. And the hottest industries within technology — adtech and datacenters — are leading the way. That makes this a fine time to focus on the companies that might soon catch a bid. Digital Marketing From 2008 through 2012, major tech firms such as Facebook, Inc. (Nasdaq: FB), Google, Inc. (Nasdaq: GOOG) and Yahoo, Inc. (Nasdaq: YHOO) spent a combined $6 billion in cash and stock to acquire small, privately-held advertising technology firms. Fast forward to 2014 and that level of adtech deals took place in just one year. And the industry M&A has already surpassed $5 billion thus far in 2015,… Read More

I hate to say this, but as an investor the deck is stacked against you. There are literally tens of thousands of investments out there for you to choose between, each with their own market capitalization, earnings multiple, dividend yield and a whole host of other facts that dictate how they might perform. And given the set of infinite potential outcomes, the odds of successful investment sustained over time are likewise infinitesimal. Luckily though, my Game-Changing Stocks strategy can reverse the odds dramatically in your favor. In fact, it’s as close… Read More

I hate to say this, but as an investor the deck is stacked against you. There are literally tens of thousands of investments out there for you to choose between, each with their own market capitalization, earnings multiple, dividend yield and a whole host of other facts that dictate how they might perform. And given the set of infinite potential outcomes, the odds of successful investment sustained over time are likewise infinitesimal. Luckily though, my Game-Changing Stocks strategy can reverse the odds dramatically in your favor. In fact, it’s as close to a sure thing as anything I’ve ever seen. “Now, Andy,” I can just hear you respond, “of course you’d say that. It’s your strategy.” #-ad_banner-#But the truth is, the Game-Changing Stocks strategy isn’t really “mine.” It’s based on the work of an Italian mathematician named Vilfredo Pareto, who posited that 20% of all effort will yield 80% of the results. That’s why I preach letting 20% of your portfolio do the heavy lifting and capture all the big gains, while the remaining 80% sits in solid blue-chip investments earning you… Read More