Thomas Edison went through thousands of trials while he was inventing the light bulb. He struck out again and again, until finally… there was light. Later, he was asked if it was daunting, failing like that so many times. #-ad_banner-#His pithy reply has become famous: “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward.” It’s exactly that spirit of innovation and invention that’ drives many of the stocks I choose for my premium newsletter advisory, Top 10 Stocks. In… Read More

Thomas Edison went through thousands of trials while he was inventing the light bulb. He struck out again and again, until finally… there was light. Later, he was asked if it was daunting, failing like that so many times. #-ad_banner-#His pithy reply has become famous: “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward.” It’s exactly that spirit of innovation and invention that’ drives many of the stocks I choose for my premium newsletter advisory, Top 10 Stocks. In fact, I even have a name for these stocks… I call them “American Innovators.” And today, I want to share with you one recent example of the kind of success we’ve had investing in American Innovators. I firmly believe the recent success we’ve had from this pick is a signal of further big changes coming for American industry — and that it will create substantial opportunities most investors have no idea are coming. On June 26 this year, I sold my holdings in Alcoa (NYSE: AA), locking in a strong gain of more than 60% over… Read More

Let me start off today’s issue with a warning… We’re not trying to sound alarmist. It does absolutely zero good if you walk away from today’s essay with a “the sky is falling” mentality. We certainly don’t think that, and neither should you. #-ad_banner-#That being said, we’ve been spending a lot of time around the office thinking about a topic that has dominated headlines recently — one that our own Andy Obermueller has been spot-on with his analysis since Day 1. I’m talking about pandemics. Now, again, I want to be perfectly clear that we’re not saying some sort of… Read More

Let me start off today’s issue with a warning… We’re not trying to sound alarmist. It does absolutely zero good if you walk away from today’s essay with a “the sky is falling” mentality. We certainly don’t think that, and neither should you. #-ad_banner-#That being said, we’ve been spending a lot of time around the office thinking about a topic that has dominated headlines recently — one that our own Andy Obermueller has been spot-on with his analysis since Day 1. I’m talking about pandemics. Now, again, I want to be perfectly clear that we’re not saying some sort of global pandemic is imminent. But if you’ve paid any attention to the news regarding the Ebola outbreaks in Africa, you know that the next potential outbreak of some kind is always around the corner. 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 2,473 people in West Africa and killed an astonishing 1,350. 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… Read More

Whether you’ve been following the news closely or just overheard your coworkers talking about it, chances are you know about the controversy taking place in Ferguson, Missouri. In the wake of these events, protests and civil unrest have broken out across the city — leaving many around the country speculating as to what actually transpired on August 9. And it’s those speculations that could lead to a major boom for one market in the coming months. #-ad_banner-#The truth is: we may never know what happened that day. There was no video evidence and very few witnesses. But over the past… Read More

Whether you’ve been following the news closely or just overheard your coworkers talking about it, chances are you know about the controversy taking place in Ferguson, Missouri. In the wake of these events, protests and civil unrest have broken out across the city — leaving many around the country speculating as to what actually transpired on August 9. And it’s those speculations that could lead to a major boom for one market in the coming months. #-ad_banner-#The truth is: we may never know what happened that day. There was no video evidence and very few witnesses. But over the past few weeks, a growing number of police departments across the country are placing orders for body cameras that officers can wear to document their interactions with the public. The cameras will be able to record nearly everything an officer sees. Several petitions are gaining traction that will mandate police nationwide to begin wearing them. Aside from the Ferguson controversy, there’s been recent public outcry for change in New York and Los Angeles after incidents of alleged police brutality were caught on camera by pedestrians. A 2012 study conducted by the police department in Rialto, California —… Read More

If I ever truly need to find out what’s going on with mobile computing and telecom, I check my kids’ phones. Both bypassed Facebook altogether and went straight to Instagram. Their interest waned in Instagram about the time Facebook bought the firm for $1 billion. #-ad_banner-#​Now their attention has turned to Snapchat. This app company has yet to turn a profit but is valued by some experts, according to a Bloomberg report, at $10 billion or better. I’m sorry. That’s insane. I remember Pets.com. Read More

If I ever truly need to find out what’s going on with mobile computing and telecom, I check my kids’ phones. Both bypassed Facebook altogether and went straight to Instagram. Their interest waned in Instagram about the time Facebook bought the firm for $1 billion. #-ad_banner-#​Now their attention has turned to Snapchat. This app company has yet to turn a profit but is valued by some experts, according to a Bloomberg report, at $10 billion or better. I’m sorry. That’s insane. I remember Pets.com. Yes, the way these apps enable us to communicate is nothing short of the Jetsons. But when a company does not make money, it ostensibly adds zero value to its industry and the broader economy. However, many firms in the tech industry should be approached from a different perspective. While the market obsesses on high valuations for companies that have yet to go public, real value is derived from a solid operating history, earnings growth and generous dividend yields. The following is a list of companies that are well-positioned to withstand any potential tech… Read More

As a player for the famed Brooklyn Dodgers, Eddie Stanky earned his stripes as a baseball great. His manager, Leo Durocher, summed him up this way: “He can’t hit, he can’t run, he can’t field. He’s no nice guy…all the little SOB can do is win.”  Stocks can be the same way. They can be in lackluster sectors. They can have terrible headwinds. But the companies keep delivering year after year. One of my favorite Stanky-like stocks is food giant ConAgra Foods, Inc. (NYSE: CAG). I’ve held this stock through the years in portfolios and it’s time to look at it again. Outside of… Read More

As a player for the famed Brooklyn Dodgers, Eddie Stanky earned his stripes as a baseball great. His manager, Leo Durocher, summed him up this way: “He can’t hit, he can’t run, he can’t field. He’s no nice guy…all the little SOB can do is win.”  Stocks can be the same way. They can be in lackluster sectors. They can have terrible headwinds. But the companies keep delivering year after year. One of my favorite Stanky-like stocks is food giant ConAgra Foods, Inc. (NYSE: CAG). I’ve held this stock through the years in portfolios and it’s time to look at it again. Outside of a decent run up in 2013, shares are basically flat. However, based on some of ConAgra’s average five year metrics, investors have an opportunity to buy a quality name at an extremely reasonable price. Five Year Trend   Growth Revenue Growth 8% EPS (Earnings per Share) Growth 6% Dividend Growth 6% Source: Morningstar Are they gargantuan, triple-digit growth? No. But considering ConAgra’s five year average net margin is less than 5%, revenue growth is a consistent 8%, plus healthy dividend increases, this stock is very attractive. The strength ConAgra brings to the table is the power of its brand portfolio. … Read More

It’s a CEO’s worst nightmare. You wake up one morning to find that your company’s stock has been targeted by short sellers and millions of dollars have suddenly been shaved from the firm’s market value. On March 23, 2011, it happened to Robin Raina, CEO of Ebix, Inc. (Nasdaq: EBIX). The company, which sells software and e-commerce platforms to the insurance industry, saw its shares plunge from $29 to $22 the next day. #-ad_banner-#But the damage has been done and Raina has been trying to contain the fallout ever since. Shares now trade for less than half the levels seen… Read More

It’s a CEO’s worst nightmare. You wake up one morning to find that your company’s stock has been targeted by short sellers and millions of dollars have suddenly been shaved from the firm’s market value. On March 23, 2011, it happened to Robin Raina, CEO of Ebix, Inc. (Nasdaq: EBIX). The company, which sells software and e-commerce platforms to the insurance industry, saw its shares plunge from $29 to $22 the next day. #-ad_banner-#But the damage has been done and Raina has been trying to contain the fallout ever since. Shares now trade for less than half the levels seen before short sellers first appeared.  For investors not yet familiar with this company, the forward view is what counts. By my math, this stock could rebound into the mid-$20’s over the next year if Ebix plays its hand well in coming quarters. Ebix is known as a “roll up” firm because it made a long stretch of acquisitions to boost sales. Such business models are much-loved when they work, but a target for short sellers when it appears that the deal-making yields few bottom-line gains. Roll up strategies do bring a clear negative:  Nearly $350 million in goodwill sits on… Read More

If there’s a single word I’d use to describe recent market activity it would be “volatile.” During the July 21 trading week, the S&P 500 hit an all-time high at 1,991. Within two weeks, the index shed more than 4%, dropping to a low of 1,905. This week, it surged to yet another new all-time high. While I am concerned about what could be negative momentum,divergence based on the Moving Average Convergence/Divergence (MACD) on the daily chart, I still have to respect… Read More

If there’s a single word I’d use to describe recent market activity it would be “volatile.” During the July 21 trading week, the S&P 500 hit an all-time high at 1,991. Within two weeks, the index shed more than 4%, dropping to a low of 1,905. This week, it surged to yet another new all-time high. While I am concerned about what could be negative momentum,divergence based on the Moving Average Convergence/Divergence (MACD) on the daily chart, I still have to respect the S&P’s ability to rally in the face of a dicey geopolitical environment. One sector I am excited about is tech. According to Morningstar, technology has been the top-performing sector in the past year with a 32% return. #-ad_banner-#Within the tech sector, memory chip supplier Micron Technology (Nasdaq: MU) is a leader. Over the past year, shares have brought traders outstanding returns of more than 135%! And the bullish technical and fundamental outlook makes the stock an attractive buy in my book. Strong demand for Micron’s specialized DRAM and NAND flash… Read More

Although the market often looks to the world’s top investors for direction on highly-publicized stocks, investing gurus can also lead us to great companies we might never hear about otherwise. #-ad_banner-#​Take the famous hedge fund manager David Einhorn, founder and president of Greenlight Capital, which manages an investment portfolio of more than $7 billion. In Greenlight’s latest 13-f filing for the second quarter, Einhorn revealed he’d more than doubled his position in what most investors would consider a relatively obscure and rather boring technology stock: Lam Research… Read More

Although the market often looks to the world’s top investors for direction on highly-publicized stocks, investing gurus can also lead us to great companies we might never hear about otherwise. #-ad_banner-#​Take the famous hedge fund manager David Einhorn, founder and president of Greenlight Capital, which manages an investment portfolio of more than $7 billion. In Greenlight’s latest 13-f filing for the second quarter, Einhorn revealed he’d more than doubled his position in what most investors would consider a relatively obscure and rather boring technology stock: Lam Research Corp. (Nasdaq: LRCX). At this point, he owns 2.6 million shares with a market value of approximately $189 million based on a recent stock price of about $72. With a 2.5% weighting in Einhorn’s long portfolio –Greenlight makes short bets, too — the expanded position is now quite substantial. And it’s already paying off. Shares are up by about 7% since the end of the Q2. Einhorn first established a position in the stock in Q1. Since then, the stock has risen by more… Read More

​​​​​​We’re now more than a half decade into the shale revolution, which has completely changed the energy industry and the U.S. economy. #-ad_banner-#The surging production of crude oil and natural gas equates to huge profits for drillers and energy service providers, a boost in tax receipts for Uncle Sam and a taming effect on our country’s onerous trade deficits. The good news: output in shale regions keeps on rising, which may eventually enable the U.S to become a net exporter of crude oil. But not quite yet. The U.S. still maintains a multi-decade restriction against the export of… Read More

​​​​​​We’re now more than a half decade into the shale revolution, which has completely changed the energy industry and the U.S. economy. #-ad_banner-#The surging production of crude oil and natural gas equates to huge profits for drillers and energy service providers, a boost in tax receipts for Uncle Sam and a taming effect on our country’s onerous trade deficits. The good news: output in shale regions keeps on rising, which may eventually enable the U.S to become a net exporter of crude oil. But not quite yet. The U.S. still maintains a multi-decade restriction against the export of crude oil and policy makers have also been applying the brakes on plans to make a massive push into natural gas exports. However, crude oil export restrictions don’t apply to refined energy products, such as diesel and gasoline. And the numbers bear out a growing niche: Back in 2008, our nation exported roughly 63 million barrels of gasoline. Fast forward to 2013, and that figure exceeded 140 million barrels, according to the Energy Information Administration.  Surging Gasoline Exports Year 2008 2013 2013 (First Five Months) 2014 (First Five Months) (Millions of Barrels) 62,840 143,176 57,654 65,905 Source: EIA Through the… Read More

Many stocks these days seem to live and die by their most recent quarterly results. What if I said I found a stock whose customers are virtually guaranteed not to go out of business, a client that will be around forever? What’s more, the customers are likely to generate more revenues every year no matter what, and the more the client grows, which it seems to always be growing, the more the stock naturally benefits. If the stock sounds too good to be true, it’s not. If it sounds like the government, you’re getting warm. NIC, Inc. (Nasdaq: EGOV) is… Read More

Many stocks these days seem to live and die by their most recent quarterly results. What if I said I found a stock whose customers are virtually guaranteed not to go out of business, a client that will be around forever? What’s more, the customers are likely to generate more revenues every year no matter what, and the more the client grows, which it seems to always be growing, the more the stock naturally benefits. If the stock sounds too good to be true, it’s not. If it sounds like the government, you’re getting warm. NIC, Inc. (Nasdaq: EGOV) is a long established company that provides services to local, state and federal government agencies. Specifically, it builds and maintains official websites, online services and secure payment processing solutions for more than 3,500 government customers in 29 states across the United States. The United States government tends not to get smaller from year to year. Even in the maw of the Great Recession, in most cases, it was only the rate of growth in government spending that declined, not the level of spending itself. And, now that the recession is over, business is booming. #-ad_banner-#NIC is ranked No. 20 on Forbes… Read More