As the old maxim goes, “Build a better mousetrap, and the world will beat a path to your door.” That was surely on Nick Woodman’s mind as he was growing up in Silicon Valley, home to numerous innovators. The founder and CEO of GoPro, Inc. (Nasdaq: GPRO) didn’t invent the camera, but he has surely built a better one. The company’s eponymous line of high-definition wearable cameras have garnered a huge amount of buzz and will help the company blow past the $1 billion revenue mark this year. That’s quite a feat for a company that only broke the $200… Read More

As the old maxim goes, “Build a better mousetrap, and the world will beat a path to your door.” That was surely on Nick Woodman’s mind as he was growing up in Silicon Valley, home to numerous innovators. The founder and CEO of GoPro, Inc. (Nasdaq: GPRO) didn’t invent the camera, but he has surely built a better one. The company’s eponymous line of high-definition wearable cameras have garnered a huge amount of buzz and will help the company blow past the $1 billion revenue mark this year. That’s quite a feat for a company that only broke the $200 million revenue threshold in 2011. #-ad_banner-#GoPro’s revenue surge has been accompanied by a remarkable upward move in the company’s stock: GoPro’s June 2014 IPO was priced at $24 a share and four months later, shares are trading hands in the low $90’s. As the company’s market value now approaches $12 billion, camera rivals, such as Sony Corp. (NYSE: SNE) and Canon, Inc. (NYSE: CAJ), can only look on with envy. Indeed, few would have guessed there was any innovation left in this consumer electronics niche. Yet as shares of GoPro keep rising, a simple question comes to mind: Is the… Read More

So far 2014 has been the year of IPOs. According to Renaissance Capital, “In terms of proceeds, 2014 is now the biggest year for the IPO market since 2000, when 406 companies raised $97 billion.” To give you an idea of just how big this year has been, look at the Alibaba (NYSE: BABA) IPO from last month. On September 19th, Alibaba broke records, raising $25 billion — making it the largest IPO in history. So with the world’s biggest… Read More

So far 2014 has been the year of IPOs. According to Renaissance Capital, “In terms of proceeds, 2014 is now the biggest year for the IPO market since 2000, when 406 companies raised $97 billion.” To give you an idea of just how big this year has been, look at the Alibaba (NYSE: BABA) IPO from last month. On September 19th, Alibaba broke records, raising $25 billion — making it the largest IPO in history. So with the world’s biggest IPO last month and the most IPO activity in dollar terms since the tech boom, many investors may be wondering, “should I buy into the next hot IPO?” #-ad_banner-#​No. Put simply, investing in IPOs is a loser’s game. Whenever a hot IPO is being pushed onto the public, I generally don’t partake, because typically the money has already been made. Let me explain… First, a quick rundown on what it takes for a company to go public. Most companies looking to go public bring in underwriters to help navigate… Read More

When you’re the biggest maker of customer relationship management software on the planet, you have a whole lot of eyes watching your every move. Just ask San Francisco-based Salesforce.com (NYSE: CRM). The company has become a bellwether for the red-hot cloud computing space. Its prominence in the industry means that its shares are heavily traded and often volatile. The company seems to always be making headlines, and for a variety of reasons. First, its focus on bringing in revenue and reinvesting in its business — similar to the way Amazon.com (NASDAQ: AMZN) does things — has resulted in a lack… Read More

When you’re the biggest maker of customer relationship management software on the planet, you have a whole lot of eyes watching your every move. Just ask San Francisco-based Salesforce.com (NYSE: CRM). The company has become a bellwether for the red-hot cloud computing space. Its prominence in the industry means that its shares are heavily traded and often volatile. The company seems to always be making headlines, and for a variety of reasons. First, its focus on bringing in revenue and reinvesting in its business — similar to the way Amazon.com (NASDAQ: AMZN) does things — has resulted in a lack of actual profits. This has led to negative earnings surprises in each of the past four quarters. #-ad_banner-#More recently, the company suffered a malware attack aimed at stealing customer log in information. The malware, known as Dyre or Dyreza, was the same that was aimed at major financial institutions such as Bank of America (NYSE: BAC), Citibank (NYSE: C) and RBS (NYSE: RBS).  Then there was the September insider sale by the company’s CEO and Chairman Marc Benioff, who liquidated several million dollars’ worth of CRM shares. For CRM shareholders, the initiation of coverage by Robert Breza of Sterne, Agee… Read More

As a financial writer, I spend many hours a week looking through newspapers, online publications and television newscasts for clues about the direction of the markets and the most lucrative means for investors to capitalize on that knowledge. #-ad_banner-#Early this week, I had an epiphany: a major trend was right in my face — not in what I was finding, but in how I was doing my research.  Though I try to use all media sources to my advantage, the truth is I do about 90% of my research digitally. And I’m not alone — these days more people rely… Read More

As a financial writer, I spend many hours a week looking through newspapers, online publications and television newscasts for clues about the direction of the markets and the most lucrative means for investors to capitalize on that knowledge. #-ad_banner-#Early this week, I had an epiphany: a major trend was right in my face — not in what I was finding, but in how I was doing my research.  Though I try to use all media sources to my advantage, the truth is I do about 90% of my research digitally. And I’m not alone — these days more people rely on the internet than print publications for news and information.  Media and entertainment companies like Time Warner Inc. (NYSE: TWX) and News Corp. (Nasdaq: NWS) have taken notice and are spinning off their publishing businesses. The aim is to keep profits from their broadcasting and digital ventures shielded from declining print sales.   And as you’ll see, both moves proved to be great opportunities for savvy investors who bought in before the spin-offs.  In June 2013, News Corp. investors finally convinced  Rupert Murdoch to split the company’s publishing unit from its entertainment business. The publishing holdings, such as the Wall Street Journal… Read More

After cratering during the recession, the number of U.S. initial public offerings has jumped dramatically. That’s especially true in the past couple years, as the following table illustrates. Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 # of IPOs 192 196 213 31 63 154 125 128 222 211 Source: IPO ETF manager Renaissance Capital. Yearly breakdown based on IPO pricing date — excludes SPACs, closed-end funds and trusts. What the numbers don’t reveal, though, is not every IPO has been warmly greeted. For instance, investors clearly weren’t excited about the… Read More

After cratering during the recession, the number of U.S. initial public offerings has jumped dramatically. That’s especially true in the past couple years, as the following table illustrates. Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 # of IPOs 192 196 213 31 63 154 125 128 222 211 Source: IPO ETF manager Renaissance Capital. Yearly breakdown based on IPO pricing date — excludes SPACs, closed-end funds and trusts. What the numbers don’t reveal, though, is not every IPO has been warmly greeted. For instance, investors clearly weren’t excited about the late-2012 debut of a leading plastics manufacturer. In this case, the initial release called for 29.4 million shares at $16 per share, which was at the low end of the projected range of $16-to-$18. Even worse, the stock only opened a little above $15 when trading began on October 4, 2012. And within four days, the price sank as low as $13.48 — nearly a 16% drop from the IPO price. Above-average debt was a key reason for the market’s harsh welcome of Berry Plastics Group, Inc. (NYSE: BERY), which makes thermoform drinking cups, blow-molded… Read More

It could be one of the greatest innovations to come out of the financial crisis, and it’s gaining ground in almost every aspect of our lives — from transportation and hospitality to financial transactions. I’m talking about the “sharing economy.” #-ad_banner-#Companies like Airbnb, Uber, Lyft and Kickstarter are the major household names in this burgeoning space, but there’s one peer-to-peer company that could disrupt the very way we borrow money. In fact, my colleague Andy Obermueller of Game-Changing Stocks calls it “The Next Big Thing in Finance.” But… Read More

It could be one of the greatest innovations to come out of the financial crisis, and it’s gaining ground in almost every aspect of our lives — from transportation and hospitality to financial transactions. I’m talking about the “sharing economy.” #-ad_banner-#Companies like Airbnb, Uber, Lyft and Kickstarter are the major household names in this burgeoning space, but there’s one peer-to-peer company that could disrupt the very way we borrow money. In fact, my colleague Andy Obermueller of Game-Changing Stocks calls it “The Next Big Thing in Finance.” But before I get to it, I want to share a little history about the company, because it’s something everyone can relate to. The fight against credit cards It all started in 2006 when an infuriated Renaud Laplanche opened his credit card statement and noticed his 16.99% interest rate was astronomical in comparison to the measly 0.48% interest rate he earned from his savings account at the same bank. How could there be such an extreme difference between the two rates? Was the current banking system really the most efficient way for… Read More

Article Correction: The following article has been altered to correct inaccurate Q2 2014 statistics in the table below. Data under the “Cash On Hand” column for Viggle, Inc. has been updated to reflect accurate Q2 2014 figures. All reference of Liquid Holdings Group, Inc. and Aerohive Networks, Inc. has been removed, as the accurate data does not warrant these companies’ inclusion in this article. The recent blockbuster initial public offering, or IPO, for Alibaba Group Holding Limited (Nasdaq: BABA) helped secure an impressive milestone. According to Renaissance Capital, “In terms of proceeds, 2014 is now the biggest year for the… Read More

Article Correction: The following article has been altered to correct inaccurate Q2 2014 statistics in the table below. Data under the “Cash On Hand” column for Viggle, Inc. has been updated to reflect accurate Q2 2014 figures. All reference of Liquid Holdings Group, Inc. and Aerohive Networks, Inc. has been removed, as the accurate data does not warrant these companies’ inclusion in this article. The recent blockbuster initial public offering, or IPO, for Alibaba Group Holding Limited (Nasdaq: BABA) helped secure an impressive milestone. According to Renaissance Capital, “In terms of proceeds, 2014 is now the biggest year for the IPO market since 2000, when 406 companies raised $97 billion. Renaissance identified many more IPOs still set to be priced in the fourth quarter, perhaps setting the stage for an all-time record. Yet investors should also heed the concern of venture capitalist Marc Andreessen — older investors may remember Andreessen as the founder of Netscape Communications. In a recent Twitter post, he warned that many young companies may eventually “vaporize.” Market open, market closed One of the hallmarks of the current bull market is its remarkable IPO backdrop. We’re seeing so many deals simply… Read More

Most great businesses have one thing in common: cash. Far from simply not hurting for it, they’ve typically got plenty on the balance sheet. They generally have healthy free cash flow, too. #-ad_banner-#​For investors, a great way to gain exposure to these things is through the insurance industry. Insurance can be a fantastic cash generator because premiums tend to go up regularly, leading to a more consistent revenue stream and steady growth of profits. Still, insurance companies face risk, mainly from having to pay out so much for claims that their cash position and… Read More

Most great businesses have one thing in common: cash. Far from simply not hurting for it, they’ve typically got plenty on the balance sheet. They generally have healthy free cash flow, too. #-ad_banner-#​For investors, a great way to gain exposure to these things is through the insurance industry. Insurance can be a fantastic cash generator because premiums tend to go up regularly, leading to a more consistent revenue stream and steady growth of profits. Still, insurance companies face risk, mainly from having to pay out so much for claims that their cash position and bottom line suffers. But that’s not as big a concern for the industry’s middlemen — insurance brokerages — because they’re not underwriters or payers. Rather, their main job is connecting customers with insurers and for this they collect commissions and fees. The insurance brokerage I prefer is one of the top two in the United States, as well as a leading provider of human resources, management and economics consulting services. It has an extremely tough competitor in main rival Aon Hewitt Plc (NYSE: AON), with both firms offering high-level expertise, generating… Read More

As you many of my long-time readers know, my boots-on-the-ground approach to finding the world’s best investments has taken me all over the globe. Recently, I found myself in Bangkok — a Southeast Asian hotspot brimming with opportunity to launch new products and investments. #-ad_banner-#​Surprisingly, though, it was in a small tailor shop down one of Bangkok’s narrow side alleys that gave me the most inspiration.A cab driver — who I’m sure the tailor had paid to bring potential clients to his shop — dropped me off to have a look around. As luck would have… Read More

As you many of my long-time readers know, my boots-on-the-ground approach to finding the world’s best investments has taken me all over the globe. Recently, I found myself in Bangkok — a Southeast Asian hotspot brimming with opportunity to launch new products and investments. #-ad_banner-#​Surprisingly, though, it was in a small tailor shop down one of Bangkok’s narrow side alleys that gave me the most inspiration.A cab driver — who I’m sure the tailor had paid to bring potential clients to his shop — dropped me off to have a look around. As luck would have it, I needed some new suits. And after finding the merchandise in the shop to be of good quality, I got down to the heart of the matter with the shop owner — the price. He opened with 30,000 Thai baht for two suits — about $1,000. Not a bad price for a tailor-made item… but I’d seen better. We eventually haggled down to 26,500 baht, but I still wasn’t convinced. And with a week to look around at other shops in the area, I started to head for the exit. Then… Read More

All-time investing great Warren Buffett is well-known for taking large positions in stocks he likes, and his top holdings naturally include many of the market’s most familiar names. Yet as a value seeker and contrarian, he also bets boldly on lesser-known firms — like a leading but still under-the-radar building materials supplier based in Chicago. Through his well-known conglomerate Berkshire Hathaway, Inc. (NYSE: BRK.A), Buffett holds about 39 million shares of the company worth $1.1 billion based on a recent stock price of $28.10. #-ad_banner-#This gives him a 27% stake, making him by far… Read More

All-time investing great Warren Buffett is well-known for taking large positions in stocks he likes, and his top holdings naturally include many of the market’s most familiar names. Yet as a value seeker and contrarian, he also bets boldly on lesser-known firms — like a leading but still under-the-radar building materials supplier based in Chicago. Through his well-known conglomerate Berkshire Hathaway, Inc. (NYSE: BRK.A), Buffett holds about 39 million shares of the company worth $1.1 billion based on a recent stock price of $28.10. #-ad_banner-#This gives him a 27% stake, making him by far the company’s single-largest shareholder. The next largest is a German building materials producer with a nearly 14% stake. I doubt many individual investors know of the company, which currently generates $3.6 billion in annual revenue, mainly by making wallboard and joint compound for the residential and commercial construction and remodeling markets. But the simple fact that Buffett owns it, and in large quantity, makes USG Corp. (NYSE: USG) well worth consideration. Clearly, Buffett has major confidence in the housing recovery or he wouldn’t risk so much on USG, which is about as pure a play… Read More