#-ad_banner-#By now, even the most casual investor (and American taxpayer) is familiar with the American International Group, Inc. (NYSE: AIG) story.   The company’s financial products division drove the company to the brink of bankruptcy, and the largest private sector bailout in American history saved it.   But those who dismiss AIG as an investment opportunity today because of past mismanagement are missing an incredible turnaround opportunity.   The company has divested numerous assets in an effort to slim down and simplify. Most importantly, it no longer has the financial products division… Read More

#-ad_banner-#By now, even the most casual investor (and American taxpayer) is familiar with the American International Group, Inc. (NYSE: AIG) story.   The company’s financial products division drove the company to the brink of bankruptcy, and the largest private sector bailout in American history saved it.   But those who dismiss AIG as an investment opportunity today because of past mismanagement are missing an incredible turnaround opportunity.   The company has divested numerous assets in an effort to slim down and simplify. Most importantly, it no longer has the financial products division that destroyed shareholder wealth in 2008 and 2009. Despite these positive steps, the company’s turnaround is still in the early stages and offers a lot of upside for patient investors.   If you’ve been hesitant to believe in and invest in the post-crisis AIG, then most of Wall Street agrees with you. AIG’s share price has barely budged these last 18 months, while the rest of the market has shot to new highs.   AIG’s lackluster stock performance, while share prices of rivals have surged, has created striking valuation differences among property and casualty insurance industry stocks. Competitors, like the… Read More

#-ad_banner-#If you’re a fan of old-time boxers, then you probably remember George Chuvalo. He was a sturdy Canadian heavyweight of the 60s and 70s who faced the best fighters of his time, including some extremely heavy hitters. In 93 hard-fought bouts, he came out on top far more often than not and wasn’t knocked down once. As an investor, Chuvalo reminds me of United Technologies Corp. (NYSE: UTX), a large conglomerate serving the aerospace, construction and other industries. Like Chuvalo, United Technologies has been the epitome of consistency, delivering decades of… Read More

#-ad_banner-#If you’re a fan of old-time boxers, then you probably remember George Chuvalo. He was a sturdy Canadian heavyweight of the 60s and 70s who faced the best fighters of his time, including some extremely heavy hitters. In 93 hard-fought bouts, he came out on top far more often than not and wasn’t knocked down once. As an investor, Chuvalo reminds me of United Technologies Corp. (NYSE: UTX), a large conglomerate serving the aerospace, construction and other industries. Like Chuvalo, United Technologies has been the epitome of consistency, delivering decades of solid growth in earnings, cash flow and dividends. And UTX proved that it can also take a punch. The firm faced unusual adversity in 2014, but powered through and went on to post solid financial results. Among last year’s troubles: —          Delays in meeting order deadlines for 28 Cyclone shipboard helicopters for the Canadian military. —          A couple big setbacks in the Pratt & Whitney division, including testing failures of a new commercial engine being developed for aircraft maker Bombardier, Inc. (OTC: BDRAF… Read More

Thanks to two mega trends sweeping the United States, the home improvement market is exploding in popularity all across the country. #-ad_banner-#With Americans beginning to rely more heavily on cost-savings options and push for greater sustainability, do-it-yourself (or DIY) projects have never been more popular. In 2014, the U.S. home improvement products market was worth an estimated $313.5 billion, up 5.9% from the prior year, according to market statistics firm Statista. Many investors would see this as a time to run out and buy shares of  big box-store company’s like Home Depot or Lowe’s. But with the two giants battling… Read More

Thanks to two mega trends sweeping the United States, the home improvement market is exploding in popularity all across the country. #-ad_banner-#With Americans beginning to rely more heavily on cost-savings options and push for greater sustainability, do-it-yourself (or DIY) projects have never been more popular. In 2014, the U.S. home improvement products market was worth an estimated $313.5 billion, up 5.9% from the prior year, according to market statistics firm Statista. Many investors would see this as a time to run out and buy shares of  big box-store company’s like Home Depot or Lowe’s. But with the two giants battling over home-improvement supremacy, there’s no telling which powerhouse retailer will ever come out on top. So instead, I’ve found three companies profiting from the DIY trend in a huge way. And these market-beaters have all the fundamentals necessary to keep showering you with big returns for years to come. The Sherwin-Williams Co. (NYSE: SHW) Sherwin-Williams is the largest producer of paints and coatings in the United States and the third largest in the world. The company estimates that more than 90% of the U.S. population lives within a 50 mile radius of one of its 3,654 domestic locations. While… Read More

  On Monday, March 9, investors will celebrate the sixth anniversary of the current bull market. After a brief pullback in January, the S&P 500 and Dow Jones Industrial Average have resumed their upward move and are now far above previous peaks.   #-ad_banner-#Even the tech-heavy Nasdaq is almost back at levels seen during the dot-com bubble of 2000.     Yet while many portfolios have staged an impressive rebound, consumers’ balance sheets have not. By one measure, more than a third of the population is at high risk of a personal financial crisis.   Nearly a quarter (24%) of… Read More

  On Monday, March 9, investors will celebrate the sixth anniversary of the current bull market. After a brief pullback in January, the S&P 500 and Dow Jones Industrial Average have resumed their upward move and are now far above previous peaks.   #-ad_banner-#Even the tech-heavy Nasdaq is almost back at levels seen during the dot-com bubble of 2000.     Yet while many portfolios have staged an impressive rebound, consumers’ balance sheets have not. By one measure, more than a third of the population is at high risk of a personal financial crisis.   Nearly a quarter (24%) of Americans have more credit card debt than emergency savings, according to a recent report by Bankrate, a financial publisher. Another 13% have no credit card debt, but also don’t have any emergency savings either. That is 37% of the population that would be thrown into severe financial stress were they to lose their employment or another recession were to occur.   Those approaching retirement may be even worse off. As I wrote in December, many investors may be unable to live on the traditional 4% withdrawal rule.   While the U.S. economy has been the success story… Read More

It seems like ancient history, but consumers were in an awfully good mood a decade ago. Back then, price pressures were relatively contained and unemployment levels were fairly low. Taken together, these two measures of consumer health created a powerful tailwind for spending on a wide range of goods and services. #-ad_banner-#Of course, the good times couldn’t last. The Great Recession of 2008 led to massive increases in the unemployment rate and consumers are still feeling the lingering psychological effects to this day. For example, consumers are now wary of taking on debt. Total household debt (mortgages, credit… Read More

It seems like ancient history, but consumers were in an awfully good mood a decade ago. Back then, price pressures were relatively contained and unemployment levels were fairly low. Taken together, these two measures of consumer health created a powerful tailwind for spending on a wide range of goods and services. #-ad_banner-#Of course, the good times couldn’t last. The Great Recession of 2008 led to massive increases in the unemployment rate and consumers are still feeling the lingering psychological effects to this day. For example, consumers are now wary of taking on debt. Total household debt (mortgages, credit card balances, car loans, etc.) has fallen by nearly $20 billion over the past five years, according to the Federal Reserve. With consumer balance sheets now in better shape, consumers are likely to respond to remarkable turnabout in what is known as the “misery Index.” This index combines the national inflation rate and the national unemployment rate. It was often cited back in the 1970s, when the index was synonymous with “stagflation.” These days, we should call the misery index the “relief index,” because it hasn’t been this low since the good old days of 2007. Read More

Most people know the name Wayne Gretzky. #-ad_banner-#For years he was nearly universally regarded as the best hockey player in the world. Yet his astounding success had very little to do with superior athletic abilities. “A good hockey player skates to where the puck is,” Gretzky would say. “A great hockey player skates to where the puck is going.” Although investing doesn’t require the same physical prowess as hockey, this same principle is key to identifying stocks at the cusp of a big upward move. You see, the… Read More

Most people know the name Wayne Gretzky. #-ad_banner-#For years he was nearly universally regarded as the best hockey player in the world. Yet his astounding success had very little to do with superior athletic abilities. “A good hockey player skates to where the puck is,” Gretzky would say. “A great hockey player skates to where the puck is going.” Although investing doesn’t require the same physical prowess as hockey, this same principle is key to identifying stocks at the cusp of a big upward move. You see, the key lies in spotting big picture themes that are likely to unfold, and then understanding the likely winners or losers based on these long-established relationships in the global market. Let’s be clear: I’m not talking about localized events that could be gone tomorrow, but big-picture developments that could take months or years to play out. For example, when the world began recognizing the potential of fracking and horizontal drilling to optimize the extraction of natural resources from shale rock formations, it was obvious that well-positioned oil and gas producers would benefit. But, those who… Read More

  Acquisitions can be a sure-fire way to supercharge growth. But when a major buyout attempt falls through, prospects for rapid expansion may suddenly look slim.   #-ad_banner-#At first glance, that may characterize the outlook for discount merchandiser Dollar General Corp. (NYSE: DG).   On further inspection, this retailer has ample room for organic growth. DG hoped to acquire rival Family Dollar Stores, Inc. (NYSE: FDO), but was outbid by Dollar Tree, Inc. (NASDAQ: DLTR). With the competitive landscape now altered, Dollar General now has further incentive to accelerate its growth plans.   Dollar Tree will be a pretty even… Read More

  Acquisitions can be a sure-fire way to supercharge growth. But when a major buyout attempt falls through, prospects for rapid expansion may suddenly look slim.   #-ad_banner-#At first glance, that may characterize the outlook for discount merchandiser Dollar General Corp. (NYSE: DG).   On further inspection, this retailer has ample room for organic growth. DG hoped to acquire rival Family Dollar Stores, Inc. (NYSE: FDO), but was outbid by Dollar Tree, Inc. (NASDAQ: DLTR). With the competitive landscape now altered, Dollar General now has further incentive to accelerate its growth plans.   Dollar Tree will be a pretty even match for Dollar General once the Family Dollar acquisition closes next month. At that point, Dollar Tree will have as many as 12,700 locations and annual revenue of about $18 billion, compared with a pro forma 11,700 stores and $18.5 billion in sales for Dollar General. This includes the roughly 300-to-500 stores Dollar Tree will have to divest to appease antitrust regulators.   But even without Family Dollar in the fold, Dollar General could eventually boost its store count by 14,000, more than doubling its current footprint. This expansion goal is feasible because smaller stores (the kind Dollar General typically… Read More

It’s not always easy to go against the crowd, especially when it comes to investing.   #-ad_banner-#But some of the best investments ever have been made when markets are paralyzed by fear.   Warren Buffett is the poster child for this style of contrarian investing. Just look back to 2011 when Buffett’s Berkshire Hathaway  invested $5 billion in then-struggling Bank of America (NYSE: BAC). While most investors were fleeing, questioning the bank’s solvency, Buffett saw an opportunity. Today the market value of his investment has more than doubled in just over three years.   And when it comes… Read More

It’s not always easy to go against the crowd, especially when it comes to investing.   #-ad_banner-#But some of the best investments ever have been made when markets are paralyzed by fear.   Warren Buffett is the poster child for this style of contrarian investing. Just look back to 2011 when Buffett’s Berkshire Hathaway  invested $5 billion in then-struggling Bank of America (NYSE: BAC). While most investors were fleeing, questioning the bank’s solvency, Buffett saw an opportunity. Today the market value of his investment has more than doubled in just over three years.   And when it comes to another one of Buffett’s well-known investments, we have a similar opportunity to profit tremendously today. In the 1960s, American Express made a series of bad loans in a scandal dubbed “The Salad Oil Scandal.” Essentially, American Express was the victim of fraud by a company that obtained loans based on its far-overstated inventory of salad oil. When all was said and done American Express shares dropped more than 50%.   Seeing a tremendous value, Buffet stepped in and bought a 5% stake in American Express Co. (NYSE: AXP) for about $20 million. As the years went… Read More

  Growth and income investors seeking stocks that perform well in all economic conditions are often quickly drawn to Public Storage (NYSE: PSA), a real estate investment trust that’s basically the king of self-storage facilities.   #-ad_banner-#Public Storage’s domain is expansive, comprising more than 2,000 properties in 38 states and Europe. Its $2.1 billion in annual revenue and $35-billion market value are tops among self-storage REITs. Eight dividend hikes in the past 10 years despite a recession also sets Public Storage apart, as does its whopping $5.60 a share payout and 165% stock price gain in the past five years. Read More

  Growth and income investors seeking stocks that perform well in all economic conditions are often quickly drawn to Public Storage (NYSE: PSA), a real estate investment trust that’s basically the king of self-storage facilities.   #-ad_banner-#Public Storage’s domain is expansive, comprising more than 2,000 properties in 38 states and Europe. Its $2.1 billion in annual revenue and $35-billion market value are tops among self-storage REITs. Eight dividend hikes in the past 10 years despite a recession also sets Public Storage apart, as does its whopping $5.60 a share payout and 165% stock price gain in the past five years.   Investors shouldn’t be too quick to settle solely on Public Storage, though. There are several other excellent self-storage REITs worth considering, both for diversification and as good or better yields.   My favorite is one most investors probably wouldn’t recognize right off the bat: Sovran Self Storage, Inc. (NYSE: SSS).   But those living in Sovran’s core markets of Florida, Texas and the Mid-Atlantic states may know the company better by its brand, Uncle Bob’s Self-Storage. Typically, an Uncle Bob’s is a large, modern-looking, multi-story facility with 24-hour access, sophisticated security systems and climate control, in keeping with current… Read More

  There are a pair of solid reasons why I developed my skills as a stock analyst: I don’t have much faith in other analysts and money managers, and nobody is going to care as much about managing my money as I am.   #-ad_banner-#But there are a few analysts and money managers that I do respect. Adam Parker, chief U.S. equity strategist at Morgan Stanley is one of them, as well as Abby Joseph Cohen of Goldman Sachs.   Few money managers, even among those that I follow, are able to say they have consistently beaten the market. In… Read More

  There are a pair of solid reasons why I developed my skills as a stock analyst: I don’t have much faith in other analysts and money managers, and nobody is going to care as much about managing my money as I am.   #-ad_banner-#But there are a few analysts and money managers that I do respect. Adam Parker, chief U.S. equity strategist at Morgan Stanley is one of them, as well as Abby Joseph Cohen of Goldman Sachs.   Few money managers, even among those that I follow, are able to say they have consistently beaten the market. In fact, I can only think of one and he just made a recommendation that I cannot ignore.   A Market Oracle Makes A Bold Call To my knowledge, you won’t find a money manager or analyst that has surpassed the stock-picking savvy of Bill Miller, chairman and chief investment officer of Legg Mason Capital Management. Miller runs his firm’s Legg Mason Value Trust, which beat the S&P 500 for 15 consecutive years, making him one of the most widely-respected managers on Wall Street.   Miller’s historic run came to an end in… Read More