Whatever deal gets struck to resolve the imminent “fiscal cliff,” the U.S. budget mess will be far from fixed. There will still be a yawning gap between government revenue and government spending, let alone the fact that we still have an existing $16 trillion debt load we need to start whittling down. One of the most vulnerable arms of the federal government will be the Department of Defense (DoD). Our current military is so large — more than… Read More

Whatever deal gets struck to resolve the imminent “fiscal cliff,” the U.S. budget mess will be far from fixed. There will still be a yawning gap between government revenue and government spending, let alone the fact that we still have an existing $16 trillion debt load we need to start whittling down. One of the most vulnerable arms of the federal government will be the Department of Defense (DoD). Our current military is so large — more than 10 times bigger than its nearest rival — that a bit of shrinkage seems inevitable. Nobody is calling for plans to gut our nation’s military in an extreme fashion, but a DoD that is 5% or 10% smaller than current levels seems increasingly inevitable. And that spells top-line weakness for many defense contractors. A wide range of multibillion contracts with firms such as Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD) are coming under tighter scrutiny, as the DoD seeks ways to find less-expensive solutions to fielding a more nimble military. Out with the bath water Simply being… Read More

It’s hard to remember, but today’s leading large-cap stocks were once just fast-growing small businesses. Years of double-digit annual sales growth turned these acorns into mighty oak trees. And if you glance across the 600 stocks comprising the S&P’s SmallCap 600 Index, then you’ll come across tomorrow’s stars as well. Several dozen firms are in the midst of a long-term growth spurt that will likely have them characterized as mid-cap stocks before long. And well down the road, these stocks could be solid citizens in… Read More

It’s hard to remember, but today’s leading large-cap stocks were once just fast-growing small businesses. Years of double-digit annual sales growth turned these acorns into mighty oak trees. And if you glance across the 600 stocks comprising the S&P’s SmallCap 600 Index, then you’ll come across tomorrow’s stars as well. Several dozen firms are in the midst of a long-term growth spurt that will likely have them characterized as mid-cap stocks before long. And well down the road, these stocks could be solid citizens in the S&P 500 Large Cap Index. Here are four to keep your eye on… 1. 3D Systems 3D Systems (NYSE: DDD), along with Stratasys (Nasdaq: SSYS), was one of the early pioneers of “rapid prototyping,” which allows designers to make a three-dimensional model of virtually any small item. NASA even used a machine to create spare parts in mid-flight if necessary. For many years, this industry was more about hype than reality: 3D Systems’ sales hit $126 million in 2004 and by 2009, had actually shrank to $113 million. Since then, you can see this company… Read More

A number of the world’s best investors have said something to the effect that stocks don’t know where they’ve been, only where they’re headed.   So if a stock has doubled, tripled, quadrupled or more, shareholders shouldn’t assume there’s little or no further gain potential and that it’s time to sell. Indeed, they shouldn’t assume anything. Rather, they should ask themselves where the stock is most likely to go from here.   #-ad_banner-#It’s a question many investors probably have about one highly popular, very fast-growing stock that’s up an amazing 440% in past the five years. Read More

A number of the world’s best investors have said something to the effect that stocks don’t know where they’ve been, only where they’re headed.   So if a stock has doubled, tripled, quadrupled or more, shareholders shouldn’t assume there’s little or no further gain potential and that it’s time to sell. Indeed, they shouldn’t assume anything. Rather, they should ask themselves where the stock is most likely to go from here.   #-ad_banner-#It’s a question many investors probably have about one highly popular, very fast-growing stock that’s up an amazing 440% in past the five years. I’m sure you’ve heard of the company and its products — the best-known being its high-powered and sometimes controversial carbonated energy drinks. The firm also sells noncarbonated beverages like natural soft drinks and iced teas.   It got its latest boost in mid-August when management announced that Coca-Cola (NYSE: KO) planned to acquire nearly a 17% stake for $2.2 billion in cash. Assuming the deal closes by year-end or in early 2015 as expected, the company will also take over Coke’s energy drink lineup (this includes several brands like Full Throttle and Burn) in exchange for its noncarbonated… Read More

There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market?… Read More

There’s been a lot to love about the hotel industry lately. Stock prices of the major hotel operators have crushed the market over the last decade and many are now trading at all-time highs. #-ad_banner-#​But is it too late to profit from the bustling hotel industry? In short: no, I believe there is still time. Occupancy and room rates are still on the rise. And the strengthening economy should only mean higher stock prices for hotel operators. The real question becomes: what’s the best play on this part of the market? It just so happens that the world’s largest hotel operator went public at the end of last year. Since its December 2013 IPO, Hilton Worldwide Holdings, Inc. (NYSE:HLT) has outperformed the S&P 500, rising nearly 25% compared to the market’s 10% increase. The company aims to continue its strong performance by reducing debt, increasing its global presence and unlocking existing shareholder value. HLT is the world’s largest hotel operator by market cap, revenues and room count. And for savvy investors, it looks like the biggest might be the… Read More

Somehow, a lot of the best stocks manage to slip right by individual investors. There the company is, posting massive gains, supposedly right in front of our eyes. Yet, by and large, they go unnoticed by the average Joe. Institutions are often onto them, though. For instance, one compelling stock most individual investors probably haven’t heard of is owned almost entirely by institutions. And these big investors have certainly profited. During the past five years, the stock delivered a gain of more than 240%, or about 28% a year, besting the S&P 500 by nearly 11% per year. Read More

Somehow, a lot of the best stocks manage to slip right by individual investors. There the company is, posting massive gains, supposedly right in front of our eyes. Yet, by and large, they go unnoticed by the average Joe. Institutions are often onto them, though. For instance, one compelling stock most individual investors probably haven’t heard of is owned almost entirely by institutions. And these big investors have certainly profited. During the past five years, the stock delivered a gain of more than 240%, or about 28% a year, besting the S&P 500 by nearly 11% per year. Well, I think it’s high time individual investors know about LKQ Corp. (Nasdaq: LKQ). Perhaps LKQ has gone unnoticed because of the decidedly “unsexy” business it’s in: replacement parts and systems for damaged cars and trucks. These include things like bumper covers, lights, engines and engine parts, wheels, steering and suspension systems, seats and seat components — pretty much anything you’d find in a car or truck. LKQ gets much of its inventory from severely damaged vehicles it buys at salvage auctions — in some cases, parts are refurbished or completely remanufactured. The firm also stocks so-called aftermarket inventory, consisting… Read More

Any time Apple (Nasdaq: AAPL) stages an event, it makes news. These events are always surrounded with speculation on what Apple will reveal. Will it be an iWatch, new iOS, a newer, bigger, faster iPhone? All eyes are focused what the company’s next hit product could be. #-ad_banner-#Apple’s highly-anticipated event yesterday morning was no different. This time around, Apple unveiled the iPhone 6, which will have a bevy of new and improved features, such as a larger iPhone, a sapphire crystal screen and a faster more efficient A8 chip. I can’t tell with absolute certainty what will happen to Apple’s… Read More

Any time Apple (Nasdaq: AAPL) stages an event, it makes news. These events are always surrounded with speculation on what Apple will reveal. Will it be an iWatch, new iOS, a newer, bigger, faster iPhone? All eyes are focused what the company’s next hit product could be. #-ad_banner-#Apple’s highly-anticipated event yesterday morning was no different. This time around, Apple unveiled the iPhone 6, which will have a bevy of new and improved features, such as a larger iPhone, a sapphire crystal screen and a faster more efficient A8 chip. I can’t tell with absolute certainty what will happen to Apple’s share price in light of the new iPhone. But in the days following the announcement, I can guarantee there will be constant chatter from every corner of the Earth analyzing the implications of Apple’s latest product launch. While all analysts will have their opinions, there’s something in particular that we will be watching for as CEO Tim Cook reveals Apple’s latest product offering… I’m talking about a new technology that could be featured in the new iPhone that has only recently started to surface. A technology that our own expert, Andy Obermueller of Game-Changing Stocks, predicted would come out for… Read More

The economy is just starting to work its way out of the funk brought by the historically cold winter last year. With still sluggish wage growth and retail demand, many consumer discretionary companies are trying to claw their way back from the dead. And that is why it is the best time to be buying. #-ad_banner-#While a bad selling season can wreck sentiment in a company’s shares, the institutional knowledge remains. Companies with a strong brand and a track record for surprising investors with innovative products are your best bet for a rebound to come. Not only are these best-in-class… Read More

The economy is just starting to work its way out of the funk brought by the historically cold winter last year. With still sluggish wage growth and retail demand, many consumer discretionary companies are trying to claw their way back from the dead. And that is why it is the best time to be buying. #-ad_banner-#While a bad selling season can wreck sentiment in a company’s shares, the institutional knowledge remains. Companies with a strong brand and a track record for surprising investors with innovative products are your best bet for a rebound to come. Not only are these best-in-class innovators a great long-term bet, but the mountain of cash on corporate balance sheets have made them classic buyout targets. From Darling to Dud LeapFrog Enterprises, Inc. (NYSE: LF) surged after its 2002 market debut, jumping 167% in the following 15 months. The company’s LeapPad, released in 1999, revolutionized children’s electronics. Then a drought in new releases and competition hit the company like a ton of bricks. No new major products were released in the five years to 2008, and other portable electronics started chipping away at the company’s market share. Sales growth slumped from an annualized… Read More

There’s a wonderful little Mexican restaurant near my house that serves great food, stays busy all day, yet still manages to provide timely service. Each time I go, I am told I will have to wait 15 minutes, but manage to find myself at a table in a fraction of the time. It keeps me coming back ’to the restaurant time and time again. #-ad_banner-#​There’s a common saying in business: “under promise and over deliver.” The Mexican restaurant certainly understands the concept. It’s a good way to keep customers happy and enhance the business’ reputation. In… Read More

There’s a wonderful little Mexican restaurant near my house that serves great food, stays busy all day, yet still manages to provide timely service. Each time I go, I am told I will have to wait 15 minutes, but manage to find myself at a table in a fraction of the time. It keeps me coming back ’to the restaurant time and time again. #-ad_banner-#​There’s a common saying in business: “under promise and over deliver.” The Mexican restaurant certainly understands the concept. It’s a good way to keep customers happy and enhance the business’ reputation. In the stock market, though, promises and positivity are risky things to throw around. A disappointing quarter can hurt a stock after investors bail out of a seemingly inconsistent company. That’s why I was surprised to find a company that hasn’t just raised expectations once, but twice this year. The stock is only up around 1% year-to-date leaving plenty of room for investors to hop aboard before it takes off. The stock I’m talking about is Alliance Data Systems Corp. (NYSE: ADS). The company beat earnings for the last three quarters… Read More

Last month, we told you about our colleague Andy Obermueller’s fascinating research into pandemics. We mentioned that while the most recent Ebola outbreak is no cause for major alarm, investors would be wise to learn more about the companies and government agencies working to develop groundbreaking vaccines and drugs to combat the world’s next terrifying, unseen threat. Since first being discovered in 1976, this recent outbreak of Ebola has been the most deadly. According to the World Health Organization, as of Thursday, it has infected 3,685 people in West Africa and killed an astonishing 1,841. This deadly strain… Read More

Last month, we told you about our colleague Andy Obermueller’s fascinating research into pandemics. We mentioned that while the most recent Ebola outbreak is no cause for major alarm, investors would be wise to learn more about the companies and government agencies working to develop groundbreaking vaccines and drugs to combat the world’s next terrifying, unseen threat. Since first being discovered in 1976, this recent outbreak of Ebola has been the most deadly. According to the World Health Organization, as of Thursday, it has infected 3,685 people in West Africa and killed an astonishing 1,841. This deadly strain of Ebola has a 60 percent fatality rate. To put that in perspective, the 1918 flu pandemic had a fatality rate between 10-20 percent… and it still killed over 50 million people. #-ad_banner-#​As we said back in our original write-up, we don’t think this current outbreak will get anywhere near that point. That’s partly because the virus is so deadly and the fact that it’s actually quite difficult to contract. But another reason is because there is hope for a successful treatment…More than a decade ago the U.S. Army began research to develop treatments… Read More

Between social media, cloud storage and increased use of mobile devices, like tablets and iPhones, we’re going through a massive transformation: Evermore, we offload our experiences, memories and secrets to constantly evolving forms of technology. On Tuesday, Apple made an official statement acknowledging that hackers targeted a handful of celebrities and lifted incriminating photos from their personal iCloud systems. #-ad_banner-#​Not too long ago, the only way someone could take pictures from you would be to physically steal the prints. Nowadays, a hacker half the world away can… Read More

Between social media, cloud storage and increased use of mobile devices, like tablets and iPhones, we’re going through a massive transformation: Evermore, we offload our experiences, memories and secrets to constantly evolving forms of technology. On Tuesday, Apple made an official statement acknowledging that hackers targeted a handful of celebrities and lifted incriminating photos from their personal iCloud systems. #-ad_banner-#​Not too long ago, the only way someone could take pictures from you would be to physically steal the prints. Nowadays, a hacker half the world away can access your trove of personal data within seconds. All of this innovation in the way we catalog our lives presents a colossal problem: how does one protect personal information from being stolen by savvy hackers? On an individual level, there are steps you can take to protect yourself. However, when you scale this problem out to something the size of a company or a government agency, the consequences of massive data theft are an entirely different story. Rewind to the beginning of August. Russian hackers… Read More